Agenda packet — Palo Alto City Council, June 16, 2025 (part 5 of 6)

Table 1: Cost Recovery Level by Service Area
Service Area Annual Revenue Annual Expense Deficit Cost Recovery % Building $13.0M $13.3M ($0.3M) 97%
Current Planning $1.8M $2.6M ($0.7M) 71%
Public Works $0.7M $0.8M ($0.1M) 84%
Fire Prevention4 $3.6M $5.0M ($1.4M) 72%
The proposed fee adjustments aim to ensure that development-related services in Palo Alto are funded fairly and transparently, aligning fees with the actual cost of providing these services.

With the recommended changes, larger commercial and multi-family developments will likely see higher fees, particularly for projects requiring extensive reviews from multiple departments, such as Fire Prevention, Public Works, and Transportation. Developers of high-value construction projects will also pay more, as expanded fee tiers ensure costs reflect the true complexity of their projects. Additionally, businesses handling hazardous materials and applicants for multi-family electric vehicle (EV) charging stations will see fee increases, correcting previous undercharges.

At the same time, smaller residential projects, such as minor home remodels and small additions, will benefit from lower or more proportionate fees. This is accomplished by continuing to utilize the square footage calculation model to establish the projects construction valuation. Certain fees, including those for some occupancy permits and basic hazardous materials permits, have 4 Includes development-related fire services such as plan reviews, inspections, and hazardous materials oversight conducted under County authority. Other Fire Department services such as fire suppression and emergency medical services are funded separately and are not part of this analysis.

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been adjusted downward to better align with actual service costs. These changes ensure that applicants pay only for the services they use, making the system more equitable while maintaining high-quality service and reducing the burden on the City’s General Fund.

Greater specificity on some of the report findings by program are provided below as well as an opportunity for the Finance Committee to consider policy recommendations to Council to subsidize some fees.

Building Fees
The Building Division ensures the safety, regulatory compliance, and structural integrity of new construction, renovations, and tenant improvements. The study found that building fees recover approximately 97% of costs, indicating that the program is near full cost recovery. This is largely because most building permit fees are structured to cover plan check and inspection costs, ensuring direct cost recovery for staff time. While staffing levels have increased since the last fee study, cost recovery remains high due to sustained permit demand, workload distribution, and fee adjustments made over time to align with service costs.

Key adjustments include:
Valuation-Based Fee Structure Changes: The City’s existing valuation-based model for commercial and multi-family projects does not accurately capture the complexity of plan review and inspections, particularly for large-scale developments. The study recommends expanding valuation tiers up to $50 million and reverting to a base fee plus multiplier model to ensure larger, more complex projects contribute proportionally, while smaller developments are not overburdened.
Plan Check Fees: Plan review fees will continue to be calculated as a percentage of the building permit fee. However, the study recommends refining the structure to ensure fees more accurately reflect the level of review effort required. For single-family residential projects, plan check fees will be incorporated within a square footage-based fee structure, while commercial and multi-family projects will follow an adjusted valuation- based tier system. These refinements will improve alignment between plan review effort and project complexity while maintaining consistency with industry standards. Square Footage-Based Fees for Single-Family Residential: The study recommends converting valuation-based permit fees for single-family residential projects to a square footage-based structure. This approach ensures fees scale more predictably with project size, reflecting actual plan check and inspection efforts rather than relying on construction cost estimates.
Instant Building Permits: The City has expanded the instant permit program to expedite approvals for simple residential projects such as kitchen and bathroom remodels and single-family equipment replacements (e.g., heat pumps, water heaters). These permits streamline the approval process by eliminating plan review requirements for qualifying Item 23
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projects, reducing staff time and applicant costs while maintaining compliance with safety standards.
Inspection Fees: Some projects require multiple site visits due to compliance corrections, leading to under-recovery of costs. The study recommends increased fees for repeat inspections, ensuring that additional site visits reflect actual staff time spent on enforcement and compliance.

These modernized fee structures ensure more accurate cost recovery, eliminate inefficiencies, and improve transparency while maintaining Palo Alto’s competitiveness within the region.

Planning Fees
The Planning Division ensures that private development aligns with the City’s long-term vision, land use policies, and environmental sustainability goals. The division oversees zoning administration, historic preservation, and entitlement processing for projects requiring discretionary approval.

The study found that Current Planning fees would recover only 71% of costs, resulting in an annual $0.7 million shortfall. The largest funding gaps stem from discretionary review applications, where the staff time required exceeds the fees collected.

Key adjustments include:
Discretionary Review Fees: The cost of processing minor Architectural Review Board (ARB) applications, Variances, and Conditional Use Permits (CUPs) exceeds current fee levels due to increasing project complexity, legal analysis, and expanded public engagement requirements. While major ARB projects are cost-recovered through deposit-based accounts, smaller ARB applications require additional fee adjustments to align with staff effort.
Pre-Application Consultation Fees: The study recommends a new cost-recovery model for early project consultations, ensuring that applicants cover the staff time spent advising on project feasibility before submitting a formal application. Additionally, the new structure will align with the Housing Element program goal of providing 120 minutes of cost-free time for homebuilders.
Long-Range Planning and Policy Fees: These services provide broad public benefits and have historically been partially subsidized through the General Fund. Aside from the Comprehensive Plan Maintenance Fee discussed later in this report, no other significant long-range planning fees are currently collected, and the study does not propose major changes.

These adjustments aim to reduce the General Fund subsidy while maintaining fairness for applicants. Higher fees for discretionary reviews and pre-application consultations ensure that applicants cover the costs of individualized service, while long-range planning efforts remain partially subsidized to support broader community benefits.

Fire Prevention Fees
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The Fire Prevention Division ensures that new developments meet fire and life safety standards through fire plan checks, hazardous materials inspections, and site safety assessments. Unlike Fire Suppression and Emergency Medical Services, which provide emergency response, Fire Prevention focuses on proactive safety measures, code compliance, and risk mitigation.

Since the last fee study, position adds have enhanced hazardous materials oversight, life safety inspections, and plan review services. These staffing increases reflect the growing complexity of regulatory requirements and the need for more robust enforcement.

The study found that Fire Prevention services currently recover 72% of costs, resulting in an annual $1.4 million shortfall. The primary shortfalls stem from hazardous materials permitting, life safety inspections, and fire protection system reviews, where existing fees do not fully reflect the time and resources required.

Key adjustments include:
Hazardous Materials Permitting Fees: Increased State and Federal safety regulations have expanded the scope of hazardous materials reviews, requiring more staff time and technical expertise. The study recommends a tiered fee structure to ensure that higher- risk occupancies contribute proportionally to fire safety costs. Life Safety Inspection Fees: Many inspections require multiple site visits, coordination with building inspectors, and extensive documentation. The study recommends adjusting fees to reflect actual staff time spent, particularly for repeat inspections due to non- compliance.
Fire Protection System Plan Check Fees: The study found that fire sprinkler and alarm plan reviews have become more complex, particularly for high-rise and mixed-use developments. Fee adjustments will ensure these projects cover the costs associated with their increased review time.
Multi-Visit Fire Inspection Fees: Compliance corrections often require multiple site visits, leading to under-recovery of costs. The study recommends updating inspection fees to reflect actual staff time required for follow-up visits.

These updates ensure that Fire Prevention services remain financially sustainable while continuing to protect public safety. The proposed tiered fee structure and inspection adjustments align fees with service complexity, preventing under-recovery of costs in high-risk categories.

Public Works Fees
The Public Works Division oversees development-related functions, including land development, encroachments in the public right-of-way, environmental services, stormwater management, and urban forestry. These activities ensure infrastructure integrity, environmental sustainability, and compliance with state and local regulations.

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review. These additions have been necessary to manage more complex regulatory requirements and development activity.

The study found that Public Works fees currently recover 84% of costs, with funding gaps in encroachment permits, stormwater compliance, and urban forestry-related reviews. Increased complexity in utility undergrounding, regional coordination, and new stormwater regulations has led to higher staff workloads that are not fully recovered in current fees.

Key adjustments include:
Encroachment Permit Fees: The City does not fully recover costs for staff time spent reviewing encroachment permits, especially those requiring coordination with external agencies. The study recommends adjusting these fees to reflect actual review effort and regulatory complexity.
Stormwater Compliance and Green Infrastructure Fees: New state-mandated stormwater and green infrastructure regulations require detailed technical reviews, increasing staff workload. The study recommends introducing a separate fee category to cover these additional compliance costs.
Urban Forestry and Tree Removal Fees: Enforcing tree protection policies requires extensive review time, particularly for heritage trees and environmentally sensitive sites.

The study recommends adjusting tree preservation and removal permit fees to fully recover processing costs.

These updates align Public Works fees with actual service demands, ensuring cost recovery while supporting critical infrastructure and environmental sustainability. The adjustments reflect the increasing complexity of compliance requirements while ensuring the City remains proactive in managing development impacts.

Cross-Departmental Support
Many development services require coordination across Planning, Building, Fire Prevention, and Public Works for pre-application meetings, development review, permitting system upgrades, and public engagement. The study found that fees do not fully capture these cross-departmental efforts, resulting in internal subsidies.

To address this, the study recommends:
Introducing an administrative cost recovery fee to support interdepartmental coordination. This fee will be assessed automatically based on permit type to reflect shared service costs but will not replace direct time tracking where required for cost reconciliation.
Updating technology fees to reflect ongoing system upgrades and maintenance. Adjusting public engagement fees to capture staff time for hearings, community meetings, and noticing requirements.

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These changes will improve cost recovery and ensure applicants contribute fairly to shared service costs while maintaining accountability for staff time allocation.

Comprehensive Plan Maintenance Fee
The Comprehensive Plan Maintenance Fee funds long-range planning efforts, including updates to the General Plan, zoning code, housing element, and other regulatory policies. These efforts require significant staff time, consultant work, and public engagement.

The study found that current fees do not fully recover these costs. To improve cost recovery while maintaining affordability, the study recommends:
Increasing the fee from 0.133% to 0.136% of building valuation to reflect actual costs. Maintaining a valuation-based structure to ensure fees are proportionate to project size and impact.
Keeping fees below regional benchmarks, as Palo Alto’s full-cost fee remains lower than Mountain View (0.26%) and Sunnyvale (0.15%).

This adjustment ensures that new development contributes fairly to citywide planning efforts while keeping fees aligned with industry standards and regional practices.

Technology Surcharge Fee
The Technology Surcharge Fee supports the City’s investment in permitting software, electronic plan review tools, and mobile inspection technology. These systems streamline permitting, improve efficiency, and enhance transparency. However, the current fee structure does not fully cover the ongoing costs of system upgrades, cybersecurity, software licensing, and cloud-based storage.

The study identified annual technology-related costs of approximately $1 million, covering both direct expenses (e.g., software, databases, and inspection applications) and internal IT support (e.g., infrastructure maintenance and application services). Key cost components include:
Software and Digital Tools – Includes licensing fees for Accela, GIS systems, reporting databases, inspection applications, and electronic document review. Hardware and Mobile Devices – Covers inspector tablets, workstations, and infrastructure upgrades to maintain efficient field inspections and digital plan review. System Maintenance and IT Support – Encompasses IT staffing, application maintenance, and software updates necessary for secure and reliable digital permitting operations.

To ensure the Technology Surcharge Fee aligns with actual costs, the study recommends:
Increasing the fee from the current 2–3% to 5% of permit fees, ensuring proportional cost recovery based on project size and software utilization. Separating the Technology Fee as a distinct line item in the fee schedule for improved transparency.

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Aligning with regional best practices, as a comparative survey shows nearby cities charge between 3% and 5% of permit fees, with Sunnyvale also at 5%.

The updated 5% rate ensures that larger projects, which require more digital storage, plan review, and permitting system resources, contribute equitably to technology infrastructure costs.

This approach prevents underfunding while keeping the City’s fee structure competitive with neighboring jurisdictions.

Development Services Reserve Fund
Development activity fluctuates with economic cycles, making it essential to maintain a Development Services Reserve Fund to stabilize permitting and inspection services. This reserve, currently at $2.2 million, allows the City to sustain staffing levels, prevent backlogs, and maintain service continuity even during economic downturns. During the pandemic, reserve funds were used to offset revenue losses, ensuring stable staffing and operations.

The study found that reserve contributions have not kept pace with revenue volatility, particularly after pandemic-related slowdowns. To maintain financial stability, the study recommends:
Renewing the Reserve Fund Policy through June 30, 2030, clearly defining its purpose, funding goals, and usage guidelines.
Maintaining a funding target of 25% (three months of operating costs), collected over five years to align with historical revenue trends.
Retaining the reserve surcharge at 5% and listing it as a separate fee line item for greater transparency, similar to the Technology and Comprehensive Plan Maintenance Fees.

These adjustments ensure that the City can absorb economic fluctuations without impacting service delivery, making reserve funding more predictable and transparent for both applicants and internal stakeholders.

Comparative Survey
To evaluate Palo Alto’s fee structure, Matrix conducted a comparative survey of Menlo Park, Mountain View, San Jose, Santa Clara, and Sunnyvale—jurisdictions with similar development activity and regulatory frameworks. However, direct comparisons require careful consideration of local policies, subsidy levels, and the recency of each jurisdiction’s fee study.

Key factors influencing fee comparisons include:
Subsidies: Some cities offset fees with General Fund support, particularly for Planning and Fire Prevention services. Palo Alto, for example, maintains historically subsidized Planning fees, which results in lower cost recovery compared to peer cities. Last Fee Study Completion: Santa Clara (FY 23-24) is the only surveyed city to have conducted a recent fee study. Other jurisdictions—Menlo Park (FY 17-18), San Jose (FY Item 23
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17-18), Sunnyvale (FY 16-17), and Mountain View (FY 09-10, currently in progress)—have not reassessed cost recovery in several years, meaning their fees may not reflect current service costs.
Local Conditions and Community Expectations: Each city tailors its fees to align with development priorities, staffing costs, and administrative structures.

While comparative surveys provide useful context, they do not fully account for differences in cost structures, service levels, or policy objectives, making them a secondary decision-making tool rather than a strict pricing benchmark.

Key comparative fee examples:

I. New Single-Family Home
o Current fee: $12,993 | Actual Cost: $11,705 | Regional Avg.: $11,227 o Palo Alto’s fee is slightly above the regional average but remains competitive given the complexity of review and permitting requirements.
o San Jose ($13,905) and Santa Clara ($13,102) charge higher fees, while Menlo Park ($9,929), Mountain View ($8,454), and Sunnyvale ($10,746) charge lower fees. o No major structural fee changes are proposed, as fees already align with cost recovery and regional norms.

Figure 2: Comparative Survey, New Single-Family Home
II. Business Tenant Improvement
o Current fee: $18,395 | Actual Cost: $16,144 | Regional Avg.: $11,733 o Palo Alto’s fee exceeds the regional average, though Menlo Park ($5,076) lowers the average due to a square footage-based model. Excluding Menlo Park, the regional average ($13,398) is closer to Palo Alto’s actual cost. o San Jose, Santa Clara, and Sunnyvale charge fees closer to $13,000–$14,000. o The study recommends adjusting valuation tiers to better align fees with actual review effort, ensuring larger projects pay proportionally without overburdening smaller-scale improvements.

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Figure 3: Comparative Survey, Business Tenant Improvement

III. Accessory Dwelling Unit (ADU)
o Current fee: $6,115 | Actual Cost: $6,329 | Regional Avg.: $3,728 o Palo Alto’s fee is higher than regional norms, as Sunnyvale ($6,000) is the only comparable jurisdiction, indicating a high likelihood of subsidy utilization. o Menlo Park, San Jose, and Santa Clara use a square footage-based fee, while Palo Alto, Sunnyvale, and Mountain View charge fees based on valuation.

Figure 4: Comparative Survey, Accessory Dwelling Unit
These comparisons support targeted adjustments to maintain cost recovery, regional competitiveness, and policy alignment while ensuring fees reflect the actual cost of service delivery.

Fee Subsidies
As the City seeks to balance cost recovery with broader policy goals, staff requests the Finance Committee provide direction on potential targeted fee reductions in key areas that support community priorities. Based on prior Council policy, subsidies could be applied based on cost Item 23
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recovery percentages identified earlier in this report to advance City objectives related to childcare access, regulatory compliance, carbon reduction, and housing affordability.

Supporting Childcare Providers
The City historically has subsidized childcare facility permit fees to advance a broader policy goal of supporting childcare providers and increasing availability of childcare options.

Promoting Electrification and Carbon Reduction Goals
Given the City’s commitment to carbon reduction and electrification, there is an opportunity to align permit fees with these climate policy objectives. The study finds that fees for electrification- related permits, including heat pump water heaters, heat pump mechanical equipment, energy storage systems, and EV chargers, currently recover a limited portion of actual costs. To encourage adoption and make the transition to clean energy more accessible, the Finance Committee could consider a fee reduction and not assess the full cost of providing services for these permits.

Reducing Fees for ADUs to Expand Housing Options
Accessory Dwelling Units contribute to the City’s housing supply and affordability goals, but the cost of permitting may discourage some homeowners from pursuing these projects. The study shows that ADU-related permit fees fully recover costs, meaning reductions would require a policy-based subsidy.

Minor Residential Improvements
Single-family homeowners often undertake small-scale renovations, such as window replacements, minor kitchen and bathroom upgrades, and other basic home improvements.

While these projects require permitting and inspections, their lower complexity and cost may justify a policy-based fee reduction to minimize financial barriers for residents while ensuring compliance with safety and building standards.

Next Steps
The Finance Committee is requested to review the proposed fee adjustments, make any necessary modifications, and determine whether to forward them to the City Council for approval as part of the FY 2026 budget process.

FISCAL/RESOURCE IMPACT
The proposed adjustments aim to align fees with actual costs for services rendered, improve cost recovery particularly in Current Planning and Fire Prevention, and reduce potential impacts upon the General Fund.

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Projected financial impacts include:
Reducing potential General Fund impacts for inadequate cost recovery . Maintaining General Fund support for long-range planning and public-benefit programs. Ensuring stable staffing levels to prevent processing delays. Ongoing revenue monitoring, with updates provided to policymakers.

STAKEHOLDER ENGAGEMENT
Matrix collaborated with City staff across Planning, Building, Fire Prevention, and Public Works to ensure accurate cost calculations. The study also benchmarked Palo Alto’s fees against regional peers to assess competitiveness. Public input opportunities are available through Finance Committee and City Council meetings.

The City has met all public noticing and hearing requirements under Government Code § 66016, ensuring transparency in the fee update process.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because a cost of services study update is a government funding mechanism or fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment A: Proposed Fee Adjustment Listing
Attachment B: Ordinance Amending Municipal Fee Schedule Attachment C: Planning and Development Services Cost of Services Study Report APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 23
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PALO ALTO , CA

REPORT ON DEVELOPMENT COST

OF SERVICE (USER FEE) STUDY
MAY 202 5
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MATRIX CONSULTING GROUP

INTRODUCTION AND EXECUTIVE SUMMARY 1
LEGAL FOUNDATIONS AND CONSIDERATIONS 4
USER FEE STUDY METHODOLOGY 7
RESULTS OVERVIEW 9
BUILDING 10
PLANNING 19
FIRE PREVENTION 24
PUBLIC WORKS 30
DEVELOPMENT SURCHARGES 33
FEE ADJUSTMENTS 38
APPENDIX A: FULL LISTING OF FEES 40
APPENDIX B: FULL Y BURDENED HOURL Y RATES 55
APPENDIX C: COMPARATIVE SURVEY 56

TABLE OF CONTENTS
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 1

This report presents the results of the Development-Related Cost of Services (User Fee) Study conducted by the Matrix Consulting Group for the City of Palo Alto.

PROJECT BACKGROUND AND OVERVIEW
Matrix Consulting Group analyzed the cost-of-service relationships that exist between fees for service activities in the following development departments: Building, Planning, Fire, and Public Works. The City of Palo Alto last conducted a development services fee study in 2016. It is considered best practice to update these analyses every 7 years; therefore, the City contracted with Matrix Consulting Group to conduct a review of the planning and development services related fees. The results of this study provide a tool for understanding current service levels, the cost and demand for those services, and what fees for service can and should be charged.

GENERAL PROJECT APPROACH AND METHODOLOGY
The methodology employed by Matrix Consulting Group is a widely accepted “bottom up” approach to cost analysis, where time spent per unit of fee activity is determined for each position within a Department or Program. Once time spent for a fee activity is determined, all applicable City costs are then considered in the calculation of the “full” cost of providing each service. The following table provides an overview of types of costs applied in establishing the “full” cost of services provided by the City:

TABLE 1: OVERVIEW OF COST COMPONENTS
Cost Component Description

Direct

Fiscal Year 2025 Budgeted salaries, beneﬁts, and allowable expenditures.

Indirect

Division, departmental, and Citywide administration / management and clerical support.

Together, the cost components in the table above comprise the calculation of the total “full” cost of providing any service, regardless of whether a fee for that service is charged.

The work accomplished by Matrix Consulting Group in the analysis of the proposed fees for service involved the following steps:
• Departmental Staff Interviews: The project team interviewed Departmental staff regarding their needs for clariﬁcation on the structure of existing fee items or for addition of new fee items.

• Data Collection: Data was collected for each permit / service, including time estimates. In addition, revenue, expenses, and staﬃng levels for Fiscal Year 2025 were entered into Matrix Consulting Group’s analytical software model.

INTRODUCTION AND EXECUTIVE SUMMARY
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 2

• Cost Analysis: The full cost of providing each service included in the analysis was established.

• Review and Approval of Results with City Staff: Department management has reviewed and approved these documented results.

A more detailed description of user fee methodology, as well as legal and policy considerations, are provided in subsequent chapters of this report.

SUMMARY OF RESULTS
When comparing Fiscal Year 2025 fee-related budgeted expenditures with fee-related revenue based on Fiscal Year 2024 workload the Planning and Development Services Department is under-recovering its costs by approximately $1.15 million and recovering 93% of its costs. The following table shows by major service area / discipline, the revenue collected, the total annual cost, the resulting annual difference, and the resulting cost recovery.

TABLE 2: ANNUAL COST RECOVERY ANALYSIS
Service Area
Annual
Revenue Annual Cost
Annual
Difference
Cost
Recovery %
Building1 $12,990,678 $13,331,847 ($341,169) 97%
Current Planning2 $1,835,952 $2,516,495 ($680,543) 73%
Public Works $656,971 $786,427 ($129,456) 84%
Subtotal Planning & Dev. $5,743,136 $9,686,506 ($3,943,370) 59% Fire Prevention $3,613,077 $5,012,525 ($1,399,448) 72%
TOTAL $19,096,678 $21,647,294 ($2,550,617) 88%

Due to the interdependence between each division and service area, it is important to evaluate Planning and Development Services cost recovery wholistically. Overall, the Department shows a deﬁcit of $1.15 million. The largest source of this deﬁcit is Current Planning fees at $681,000.

As part of the FY2025 budget process, Fire Prevention (non-development related activities) was separated from Planning and Development Services; however, they were included in the overall fee analysis. For those services, the City is seeing an under-recovery of approximately $1.4 million or a cost recovery level of 72%.

The detailed documentation of the study will show an over-collection for some fees (on a per unit basis) and an undercharge for most others. The results of this analysis will provide the Department and the City with guidance on how to right-size their fees to ensure that each service unit is set at an amount that does not exceed the full cost of providing that service.

1 This captures the cost and revenue associated with the Planning, Fire, and Engineering in association with Building Permits. 2 This captures the services provided by current planning staff as it relates to individual reviews, historic reviews, use perm its. It does not include costs or revenues associated with long- range planning, speciﬁc area plans, housing, or code enforcement .

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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 3

The display of cost recovery ﬁgures shown in this report are meant to provide a basis for policy development discussions among Councilmembers and City staff, and do not represent a recommendation for where or how the Council should act. The setting of the “rate” or “price” for services, whether at 100 percent full cost recovery or lower, is a policy decision to be made only by the Council, with input from City staff and the community.

FEE STUDY RECOMMENDATIONS
Through the course of this study, Matrix Consulting Group reviewed development-related fee components and activities. The following points summarize the key recommendations from this analysis:
v All fees should be set at 100% cost recovery unless a speciﬁc cost recovery subsidy policy has been established.
v Fees should continue to be updated annually based upon the city established increase factor (i.e., cost of living adjustment), except for deposits, surcharges, percentage-based fees, and any state-set fees.
v The Technology Fee and Reserve surcharge could be shown as separate surcharges to more transparently reﬂect the true cost of providing services. v Surcharges for Comprehensive Plan Maintenance, Technology Fee, and Reserve Fund should be accounted for in separate subaccounts per accounting best practices.

The report goes into further detail regarding these fee recommendations. Implementing these recommendations will allow the department and the City to better capture its full cost of providing services, while setting asides funds earmarked for speciﬁc purposes.

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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 4

This section of the report is intended to provide an overview regarding overall legal rules and regulations as well as general policy considerations for fees for service. A “user fee” is a charge for service provided by a governmental agency to a public citizen or group. In California, several constitutional laws such as Propositions 13, 4, and 218, State Government Codes 66014 and 66016, and more recently Prop 26 and the Attorney General’s Opinion 92-506 set the parameters under which the user fees typically administered by local government are established and administered. Speciﬁcally, California State Law, Government Code 66014(a), stipulates that user fees charged by local agencies “…may not exceed the estimated reasonable cost of providing the service for which the fee is charged.”

GENERAL PRINCIPLES AND PHILOSOPHIES REGARDING USER FEES Local governments are providers of many types of general services to their communities. While all services provided by local government are beneﬁcial to constituents, some services can be classiﬁed as globally beneﬁcial to all citizens, while others provide more of a direct beneﬁt to a speciﬁc group or individual. The following table provides examples of services provided by local government within a continuum of the degree of community beneﬁt received:

TABLE 3: SERVICES IN RELATION TO BENEFIT RECEIVED

Funding for local government is obtained from myriad revenue sources such as taxes, ﬁnes, grants, special charges, user fees, etc. In recent years, alternative tax revenues, which typically offset subsidies for services provided to the community, have become increasingly limited. These limitations have caused increased attention on user fee activities as a revenue source that can offset costs otherwise subsidized (usually) by the general fund. In Table 3, services in the “global community beneﬁt” section tend to be funded primarily through voter-approved tax revenues. In the middle of the table, one typically ﬁnds a mixture of taxes, user fees, and other funding sources. Finally, in the “individual / group beneﬁt” section of the table are the services provided by local government that are typically funded almost entirely by user fee revenue.

The following are two central concepts regarding the establishment of user fees:
"Global" Community Benefit
•Police
•Park Maintenance
•Fire Suppression
"Global" Benefit and an
Individual or Gorup Benefit
•Recreation / Community
Services
•Fire Prevention
Individual or Group Benefit
•Building Permits
•Planning and Zoning
Approval
•Engineering Development
Review

LEGAL FOUNDATIONS AND CONSIDERATIONS
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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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v Fees should be assessed according to the degree of individual or private beneﬁt gained from services. For example, the processing and approval of a land use or building permit will generally result in monetary gain to the applicant, whereas Police services and Fire Suppression are examples of services that are essential to the safety of the community at large. v A proﬁt-making objective should not be included in the assessment of user fees. In fact, California laws require that the charges for service be in direct proportion to the costs associated with providing those services. Once a charge for service is assessed at a level higher than the actual cost of providing a service, the term “user fee” no longer applies. The charge then becomes a tax subject to voter approval.

Therefore, it is commonly accepted that user fees are established at a level that will recover up to, and not more than, the cost of providing a particular service.

Within the services that are typically funded by user fees, the Matrix Consulting Group recognizes several reasons why City staff or City Council may not advocate the full cost recovery of services. The following factors are key policy considerations in setting fees at less than 100 percent of cost recovery:
• Limitations posed by an external agency. The State or an outside agency will occasionally set a maximum, minimum, or limit on the jurisdiction’s ability to charge a fee. Examples includes time spent copying and retrieving public documents and / or transportation permits. • Encouragement of desired behaviors. Keeping fees for certain services below full cost recovery may provide better compliance from the community. For example, if the cost of a permit for changing a water heater in residential home is higher than the cost of the water heater itself, many citizens will avoid pulling the permit.
• Beneﬁt received by user of the service and the community at large is mutual. Many services that directly beneﬁt a group or individual equally beneﬁt the community. Examples include Planning Design Review, historical dedications, and certain types of special events.

The Matrix Consulting Group recognizes the need for policies that intentionally subsidize certain activities. The primary goals of a User Fee Study are to provide a fair and equitable basis for determining the costs of providing services and ensure that the City complies with State law.

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discussion and at times fall into a “grey area.” However, with the resulting cost of services information from a User Fee Study, the City Council can be assured that the adopted fee for service is reasonable, fair, and legal. Overall, city staff has reviewed all fees for service in this analysis and where subsidies were identiﬁed, they recommended increases where appropriate to reduce the deﬁcit; and where over- recoveries were identiﬁed, reduced the fee to comply with the law.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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The Matrix Consulting Group utilizes a cost allocation methodology commonly known and accepted as the “bottom-up” approach to establishing User Fees. The term means that several cost components are calculated for each fee or service. These components then build upon each other to comprise the total cost for providing the service. The following chart describes the components of a full cost calculation:

The general steps utilized by the project team to determine allocations of cost components to a particular fee or service are:
• Calculate fully burdened hourly rates by position, including direct and indirect costs; • Develop time estimates for the average time spent to deliver each service included in the study; and • Distribute the appropriate amount of the other cost components to each fee or service based on the staff time allocation basis or another reasonable basis.

The results of these allocations provide detailed documentation for the reasonable determination of the actual cost of providing each service.

One of the key study assumptions utilized in the “bottom up” approach is the use of time estimate averages for the provision of each fee-related service. Utilization of time estimates is a reasonable and defensible approach, especially given that experienced staff members who understand service levels and processes unique to the City developed these estimates.

The project team worked closely with City staff in developing time estimates with the following criteria:
• Estimates are representative of average times for providing services. Extremely diﬃcult or abnormally simple projects are not factored in the analysis.
• Estimates reﬂect the time associated with the position or positions that typically perform a service. • Estimates are reviewed by the project team for “reasonableness” against their experience with other agencies.

DIRECT
(Salaries, Beneﬁts,
Productive Hours)

INDIRECT
(Departmental Admin,
Services & Supplies,
Citywide Overhead etc.)
Total Cost

USER FEE STUDY METHODOLOGY
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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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• Estimates were not based on time in motion studies3, as they are not practical for the scope of services and time frame for this project.
• Estimates match the current or proposed staﬃng levels to ensure there is no over-allocation of staff resources to fee and non-fee related activities.

The Matrix Consulting Group agrees that while the use of time estimates is not perfect, it is the best alternative available for setting a standard level of service on which to base a jurisdiction’s fees for service and meets the requirements of California law.

The alternative to time estimating is actual time tracking, often referred to billing on a “time and materials” basis. Except in the case of anomalous or very large and complex projects, Matrix Consulting Group believes this approach to not be cost effective or reasonable for the following reasons:
• Accuracy in time tracking is compromised by the additional administrative burden required to track, bill, and collect for services in this manner.
• Additional costs are associated with administrative staff’s billing, refunding, and monitoring deposit accounts.
• Customers often prefer to know the fees for services in advance of applying for permits or participating in programs.
• Departments can better predict revenue streams and staff needs using standardized time estimates and anticipated permit volumes.

Situations arise where the size and complexity of a given project warrants time tracking and billing on a “time and materials” basis. The Matrix Consulting Group has recommended taking a deposit and charging Actual Costs for such fees as appropriate and itemized within the current fee schedule.

3 Time and motion studies involve actual tracking of staff time using “stop watches” or other devices to determine average task times. This process can take between six months and several years to collect time for all process tasks.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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The motivation behind a cost-of-service (user fee) analysis is for the City Council and Departmental staff to maintain services at a level that is both accepted and effective for the community and to maintain control over the policy and management of these services.

It should be noted that the results presented in this report are not a precise measurement. In general, a cost-of-service analysis takes a “snapshot in time,” where a ﬁscal year of adopted, budgeted cost information is compared to the prior ﬁscal year of revenue and workload data available. Changes to the structure of fee names, along with the use of time estimates, allow only for a reasonable projection of subsidies and revenue. Consequently, the Council and Department staff should rely conservatively upon these estimates to gauge the impact of implementation going forward.

Discussion of results in the following chapters is intended as a summary of extensive and voluminous cost allocation documentation produced during the study. Each chapter will include detailed cost calculation results for each major service category including the following:
• Modiﬁcations or Issues: discussions regarding any revisions to the current fee schedule, including elimination or addition of fees.
• “Per Unit” Results: comparison of the full cost of providing each unit of service to the current fee for each unit of service (where applicable).

The full analytical results were provided to City staff under separate cover from this summary report.

RESULTS OVERVIEW
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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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The Building Division is responsible for providing plan check and inspection services on all building and construction within the City to establish safety for residents by ensuring all buildings comply with California building codes and regulations. Fees included in this analysis are in relation to life-safety, structural, mechanical, electrical, plumbing, green building, and energy compliance plan checks and inspections. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Building Division.

FEE SCHEDULE MODIFICATIONS
In discussions with Building Division staff several modiﬁcations were made to the current fee schedule , including:

• Eliminated Fees: Based upon the conversation with the division, the following fees were eliminated:
- Electrical Permits
o Air Conditioners
o Busway, Power Duct or Floor Duct
o Conditional Meter Release (Conditional Utility Agreement) o Each Additional Meter (Group of 5)
o Fixtures, Switches, and Outlets (Group of 20)
o Lighting, Power and / or Control Panel Board, Switchboard Cabinet, or Panel o Motor (Groups of 10)
o Range, Electric Clothes Dryer, or Water Heater (Groups of 5) o Special Circuit (not listed herein; groups of 10)
o Temporary Wiring for Construction
- General & Miscellaneous Fees
o All Other Publications
o Miscellaneous Planning Plan Check & Inspection
o Records Retention
o Special Inspection – Materials Testing Lab Certiﬁcation o Utilities Plan Review
- Green Building
o All fees
- Mechanical Permits
o Compressors and Absorption Systems
- Plumbing Permits
o Atmospheric-type Vacuum Breakers
o Industrial Waste Pretreatment Interceptor
o Medical Gas Piping System
o Swimming Pool
o Water Heater, Vent, or Other
o Water Piping

BUILDING
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Cost of Service Study and
Municipal Fee
Adjustments

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These fees were eliminated as they are services that are no longer provided (i.e., inspection guidelines and all other publications) or are services that are captured through other existing fees.

• New Fees: Similar to elimination of fees, the project team also worked with Building Staff to identify new fees. The following points list the new fees added:
- Building Permit Fees
o Deconstruction Permit (Initiation / Intake)
- Electrical Permits
o Rewiring (Single Family Residential Only)
o Single-Family Residential Permits / Equipment Not Listed Above o Multi-Family / Commercial Permits / Equipment Not Listed Above - Electrical Permits – Photovoltaic Systems (PV)
o Multi-Family / Commercial System – Reinstallation
o Single-Family – Reinstallation
o SolarAPP+ PV
o Solar APP+ PV and ESS
- Energy Storage Systems
o Single-Family System
o Multi-Family / Commercial System
- General & Miscellaneous Fees
o ADU – Standalone Detached
§ Excluding Master Permits
§ Master Permit
§ Site Construction – Site Speciﬁc Related to Master
§ Pre-fab Site Speciﬁc Related to Master
o Bathroom Remodel – Instant Permit
o Cell Tower Building Review
o Foundation Repair – Single Family Residential (No Basement) o Kitchen Remodel – Instant Permit
o Seismic Retroﬁt – Brace and Bolt – Single Family Residential o Industrial Storage Racks / Cabinets
o Swimming Pool / Spa
§ Single-Family
§ Multi-Family / Commercial
o Deferred Submittals / Revisions – Base Charge
§ Hourly Charge
- Mechanical Permits
o Instant Permit – Single-Family Replacement (i.e., Heat Pump, Water Heaters, Gas, etc.) o Miscellaneous Permit – Not Otherwise Listed – Per Hour - Plan Review Fees
o Alternate Materials, Design Methods of Construction (AMMR) - Plumbing Permits
o Potable Water System – Repair / Direct Replacement
- Plumbing Permits – Graywater Systems
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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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o Miscellaneous Permit – Not Otherwise Listed
§ Per Hour
- Appeal
- Consultation

These fees were added to the schedule to capture services that are currently being provided but are not captured separately.

• Expanded or Streamlined Fees: Other modiﬁcations made to the fee schedule involved expanding or collapsing fee categories. The following modiﬁcations were made:
- Building Permits
o Expansion of the base permit fee to be speciﬁc to standalone permits, small or medium, and then larger projects
- Electrical Permits
o Expansion of Generator fees into ‘Single-Family’ and ‘Multi-Family / Commercial’ o Expansion of Electrical Service into ‘Less than 400 amp’ and ‘400 amp and Greater’ - General & Miscellaneous Fees
o Addition of Balcony to the Deck fee and change from tiers of “Up to 1,000 SF” and “Each Add’l 1,000 SF” to one category – ‘Single Family’
o Expansion of Doors, Windows, and Skylights fees to include ‘ Single-Family’ and ‘Multi- Family/Commercial’ tiers
o Expansion of Dry Rot Repair / Replacement fee into ‘Structural’ and ‘Non-Structural’ tiers o Expansion of the Sign Permit into ‘Illuminated,’ ‘Non-Illuminated,’ and ‘Monument’ - Mechanical Permits
o Expansion of Air Conditioners into HVAC Systems generally, with tiers for ‘Single-Family’ and ‘Multi-Family / Commercial (Groups of 5)’
§ Further expansion of Multi -Family / Commercial HVAC systems into ‘Direct replacements,’ ‘New – with curb,’ and ‘New – without curb’ o Expansion of ‘Boilers / Water Heaters’ into ‘Residential’ and ‘Commercial’. o Expansion of ‘Furnace, Flue, and Associated Ducts into ‘Single Family / Multi Family’ and ‘Commercial’.
- Use & Occupancy Permits
o Expansion of the Certiﬁcate of Use and Occupancy into ‘Standalone’ and ‘Included in Associated Building Permit.’

These changes will allow the Division to better capture the different levels of service that are associated within different permit categories or types. • Conversion of Plan Review Fees from Valuation to Occupancy Basis: All Plan Check fees were changed from a tiered valuation basis to a two-category occupancy basis: ‘Single-Family Residential’ and ‘Commercial & Multifamily.’ They would still be based on a percentage of the building permit fee to remain consistent with industry standards. • Conversion of Valuation -Based Fees to Sq. Ft. Fees : for single -family residential projects, the valuation-based building permits were converted into a square footage structure. This allows the Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Division to better capture the level of effort associated with plan check and inspection, as it is more dependent on the size of the project.

• Expansion of Valuation Tiers: The City currently utilizes three tiers of valuation-based projects, which does not accurately capture the breadth and complexity of projects. For commercial / multi-family / industrial, it was proposed that the City remain on a valuation-based structure but revert back to the traditional base and multiplier model with expanding the tiers all the way up to $50 million. This allows the City to better capture the complexity of construction in its City.

As the points demonstrate, there were signiﬁcant modiﬁcations made to the Building Division fee schedule and structure. The goal of these modiﬁcations is to better reﬂect the services provided by the Building Division and to ensure that associated fees and charges are accurate, fair, transparent, and defensible.

DETAILED RESULTS
The Building Division charges fees for building permits, standalone trade permits, and other miscellaneous services such as awnings, doors, re-roofs, decks, and remodels. The total cost calculated for each service includes direct staff costs, cross-divisional and departmental support (Planning, Engineering, Fire, Public Works, Utilities, etc.), and departmental and Citywide overhead. The following table details the fee name, current fee, total cost, and the difference associated with each service offered.

TABLE 4: TOTAL COST PER UNIT RESULTS – BUILDING FEES
Fee Name
FY25 Current
Fee4
Total City
Cost5 Difference
Building Permit Fees
Base Fee For All Standalone Permits $155.67 $277 ($122) Base Fee for Small or Medium Sq. Ft. / Valuation Permits New $1,110 N/A Base Fee for Larger Sq. Ft. / Valuation Permits New $4,162 N/A Single-Family / Duplex Residential (Sq. Ft.) Permit Fees:
0-250 sq. ft. Modiﬁed $596 N/A
251-500 sq. ft Modiﬁed $1,191 N/A
501-1,000 sq. ft. Modiﬁed $1,340 N/A
1,001 - 1,500 sq. ft. Modiﬁed $2,234 N/A
1,501 - 2,000 sq. ft. Modiﬁed $2,531 N/A
2,001 - 2,500 sq. ft. Modiﬁed $4,467 N/A
2,501 - 3,000 sq. ft. Modiﬁed $4,616 N/A
3,001 - 3,500 sq. ft. Modiﬁed $5,063 N/A
3,500 - 4,000 sq. ft. Modiﬁed $5,212 N/A
4,001 - 4,500 sq. ft. Modiﬁed $5,361 N/A
4,501 - 5,000 sq. ft Modiﬁed $5,509 N/A
5,001 - 5,500 sq. ft. Modiﬁed $5,956 N/A
5,501 - 6,000 sq. ft. Modiﬁed $6,552 N/A
6,001 - 6,500 sq. ft. Modiﬁed $6,850 N/A
6,500+ sq. ft Modiﬁed $7,445 N/A
6,500+ sq. ft. – Each Add’l 500 sq. ft. Modiﬁed $573 N/A

4 The current fee listed does not include the 2% Technology Fee and 5% Reserve amount that are built into the published fee. 5 The total cost listed does not include the 5% Technology Fee and 5% Reserve amount that was calculated as part of this study .

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25 Current
Fee4
Total City
Cost5 Difference
Multi-Family & Commercial (Valuation) Permit Fees:
$0 - $2,000 $32.74 $1,191.24 ($1,158.50)
$2,001 - $25,000 $32.74 $1,191.24 ($1,158.50)
$2,001 - $25,000 – Each Add’l $1,000 $16.37 $25.90 ($9.53) $25,001 - $50,000 $409.20 $1,786.86 ($1,377.66)
$25,001 - $50,000 – Each Add’l $1,000 $16.37 $35.74 ($19.37) $50,001 - $100,000 $818.40 $2,680.29 ($1,861.89)
$50,001 - $100,000 – Each Add’l $1,000 $16.37 $20.85 ($4.48) $100,001 - $500,000 $1,636.80 $3,722.62 ($2,085.82)
$100,001 - $500,000 – Each Add’l $1,000 $16.37 $7.45 $8.92 $500,001 - $1,000,000 $8,184.00 $6,700.72 $1,483.28
$500,001 - $1,000,000 – Each Add’l $1,000 $16.37 $16.38 ($0.01) $1,000,001 - $5,000,000 $16,368.00 $14,890.49 $1,477.51 $1,000,001 - $5,000,000 – Each Add’l $1,000 $9.63 $7.45 $2.18 $5,000,001 - $10,000,000 $54,870.00 $44,671.48 $10,198.52 $5,000,001 - $10,000,000 – Each Add’l $1,000 $10.97 $5.96 $5.02 $10,000,001 - $25,000,000 $109,740.00 $74,452.46 $35,287.54 $10,000,001 - $25,000,000 – Each Add’l $1,000 $1.67 $1.99 ($0.31) $25,000,001 - $50,000,000 $134,850.00 $104,233.45 $30,616.55 $25,000,001 - $50,000,000 – Each Add’l $1,000 $5.39 $1.79 $3.61 $50,000,000+ $269,700.00 $148,904.92 $120,795.08
$50,000,000+ – Each Add’l $1,000 $5.39 $0.89 $4.50
Demolition $674.31 $1,086 ($411)
Deconstruction New $975 N/A
Interior Non-Structural Demolition $242.43 $456 ($213) Construction & Demolition (C&D)
Commercial and Multi-Family Projects Greater Than or Equal to $25,000.00 In Valuation $412.27 $470 ($58)
Single-Family and Two-Family Projects Greater Than
$25,000.00 and Less Than $75,000.00 in Valuations $220.81 $470 ($249) Single Family and Two-Family Projects Greater Than
$75,000.00 in Valuation $283.47 $503 ($220)
Electrical Permits
Generator
Single-Family $598.35 $714 ($115)
Multi-Family / Commercial $598.35 $1,318 ($720)
Electrical Service - New or Replacement
Less than 400 AMP $496.98 $565 ($68)
400 AMP and Greater $745.54 $871 ($126)
Rewiring (Single Family Residential Only) New $604 N/A
Temporary Electric Service (Power Pole, Pedestal, Etc.) $79.60 $149 ($69) Misc. Permit - Not Otherwise Listed
Single-Family Residential Permits / Equipment Not Listed Above New $528 N/A
Multi-Family / Commercial Permits / Equipment Not Listed Above New $685 N/A
Electrical Permits - Electrical Vehicle Charging Stations Multi-Family Commercial (Level 1 and 2)
1-6 Stations $482.53 $3,930 ($3,448)
Each Add’l 6 Stations $90.53 $1,031 ($940)
Multi-Family Commercial (Level 3 and 4)
1-6 Stations $576.59 $4,759 ($4,182)
Each Add’l 6 Stations $113.34 $1,031 ($917)
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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25 Current
Fee4
Total City
Cost5 Difference
Single-Family (Level 1 and 2) $208.70 $1,205 ($997)
Single-Family (Level 3) $317.22 $1,387 ($1,070)
Electrical Permits - Photovoltaic Systems (PV)
Multi-Family / Commercial System (10kW Or Less) $755.20 $1,761 ($1,006) Multi-Family / Commercial System (11kW-49kW) $1,013.46 $2,375 ($1,361) Multi-Family Commercial System (50kW or Greater) $755.20 $3,155 ($2,399) Multi-Family / Commercial System - Reinstallation New $1,227 N/A Single-Family Systems (10kW or Less) $349.79 $1,346 ($996) Single-Family Systems (Greater Than 10kW) $223.16 $1,698 ($1,475) Single-Family - Reinstallation New $911 N/A
SolarAPP+ PV New $596 N/A
SolarAPP+ PV and ESS New $1,209 N/A
Energy Storage Systems (ESS)
Single-Family System New $1,688 N/A
Multi-Family / Commercial System New $2,957 N/A
General & Miscellaneous Fees
ADU - Stand-Alone Detached - Excluding Master Permits New $6,384 N/A ADU - Stand-Alone Detached - Master Permit New $2,305 N/A ADU - Stand-Alone Detached - Site Construction - Site Speciﬁc Related to Master New $4,764 N/A
ADU - Stand-Alone Detached - Pre-fab Site Speciﬁc Related to Master New $3,415 N/A
Address Change - First Address Change $683.93 $365 $319 Each Additional $254.82 $91 $164
Awnings (Groups Of 5)
Single-Family $94.05 $307 ($213)
Multi-Family / Commercial $94.05 $1,519 ($1,425)
Bathroom Remodel
Single-Family (Direct Replacement Non-Structural) $377.53 $596 ($218) Multi-Family (Direct Replacement, Non-Structural) $377.53 $753 ($376) Single-Family and Multi-Family (Not Direct Replacement, Structural) $377.53 $911 ($534)
Instant Permit New $595 N/A
Cell Tower Plan Review New $2,480 N/A
Deck and Balcony – Single-Family New $786 N/A
Doors, Windows And Skylights (Group Of 5) - Structural
Single-Family $377.53 $547 ($169)
Multi-Family/Commercial $377.53 $795 ($418)
Doors, Windows and Skylights (Group Of 10) - Non-Structural Single-Family $189.42 $468 ($278)
Multi-Family/Commercial $189.42 $547 ($357)
Dry Rot Repair/Replacement - Single Family
Structural $94.05 $762 ($668)
Non-Structural $94.05 $456 ($362)
Electric Service and Safety Inspection $265.37 $298 ($32) Extension Of Building Permit Or Building Permit Application $106.18 $238 ($132) Foundation Repair – Single-Family Residential (No Basement) New $510 Green Building Special Inspector Application
Initial Review $574.46 $376 $198
Renewal Update $286.53 $188 $98
Inspections And Investigations
Outside of Normal Business Hours (2 Hour Minimum) $499.47 $343 $156 Unclassiﬁed (2 Hour Minimum) $332.98 $298 $35
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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25 Current
Fee4
Total City
Cost5 Difference
Kitchen Remodel
Single-Family (Direct Replacement, Non-Structural) $283.47 $447 ($163) Multi-Family (Direct Replacement, Non-Structural) $283.47 $604 ($321) Single-Family and Multi-Family (Remodel, Not Direct
Replacement) $283.47 $753 ($470)
Instant Permit New $447 N/A
Progress and Partial Inspections (Up to 30 Minutes
Inspection) $74.77 $149 ($74)
Reactivation of Expired Building Permit
Multiple Outstanding Inspections 50% 50% 0%
Final Inspection Only $346.27 $365 ($19)
Application $211.17 $90 $121
Real Property Research Fee (1-Hour Minimum) $310.04 $277 $33 Building Reinspection Fee
Multi-Family Residential And Commercial (Up To 30 Minute Inspection) $184.60 $149 $36
Single-Family
Primary Inspection Type (1 Hour) $190.58 $298 ($107)
Secondary Inspection Type (30 Minutes) $102.51 $149 ($46) Request of Release of Building Plans and Documents $103.70 $277 ($174) Re-Roof:

Re-Roof - Multi-Family / Commercial
First 5,000 Sf $377.53 $1,233 ($856)
Each Additional 2,500 Sf $93.44 $298 ($204)
Re-Roof-Single Family Overlay $94.05 $298 ($204)
Re-Roof - Single Family $377.53 $538 ($160)
Retaining Walls
First 100 LF $125.46 $1,439 ($1,313)
Each Additional 100 LF $62.79 $208 ($145)
Siding Repair/Replacement (in-kind) $189.41 $298 ($108) Sign Permit (Group of 5)
Illuminated $156.85 $750 ($593)
Non-Illuminated $156.85 $452 ($295)
Monument $156.85 $656 ($499)
Seismic Retroﬁt - Brace and Bolt Program – Single-Family New $456 N/A Industrial Storage Racks / Cabinets New $613 N/A
Stucco Repair / Replacement $283.47 $298 ($14)
Swimming Pool / Spa
Single-Family New $1,184 N/A
Multi-Family / Commercial New $2,217 N/A
Deferred Submittal / Revisions - Base Charge New $631 N/A Hourly Charge New $316 N/A
Appeal New $413 N/A
Consultation New $413 N/A
Mechanical Permits
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air
Handling Unit)

Single-Family $63.96 $489 ($425)
Multi-Family / Commercial (Groups of 5)
Direct Replacements $63.96 $902 ($838)
New - With Curb $63.96 $1,539 ($1,475)
New - Without Curb $63.96 $1,233 ($1,169)
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Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25 Current
Fee4
Total City
Cost5 Difference
Boilers / Water Heaters
Residential $125.46 $298 ($172)
Commercial $125.46 $544 ($418)
Instant Permit - Single-Family Replacement (i.e., Heat Pump Water Heaters, Gas, etc.) New $298 N/A
Furnace, Flue, and Associated Ducts
Single Family / Multi Family $125.46 $456 ($330)
Commercial $125.46 $632 ($507)
Miscellaneous Permit - Not Otherwise Listed $63.96 $298 ($234) Per Additional Hour New $298 N/A
Process Piping System $62.79 $456 ($393)
Process Piping System - Hazardous $63.96 $808 ($744)
Swimming Pool Heater - Direct Replacement $74.77 $489 ($414) Ventilation and Exhaust System - Single-Family / Multi-Family $63.96 $456 ($392) Plan Review Fees
Additional Plan Review $258.19 $316 ($57)
Alternate Materials, Design Methods Of Construction (AMMR) New $898 N/A Certiﬁed Access Specialist (CASp) Review / Consultation $496.99 $596 ($99) Single-Family Residential Plan Check (% of Bldg permit) Modiﬁed 125% N/A Multi-Family / Commercial Plan Check (% of Bldg Permit) Modiﬁed 95% N/A Plumbing Permits
Backﬂow Protective Device $225.63 $203 $22
Building Sewer System - Direct Replacement $152.04 $352 ($200) Gas Piping System $225.63 $510 ($284)
Sand Oil Interceptor and Grease Traps $225.63 $917 ($691) Plumbing Fixtures - New / Direct Replacement (Groups Of 5) $156.85 $298 ($141) Solar Hot Water System $225.63 $604 ($379)
Storm Drain System $225.63 $407 ($181)
Potable Water System - Repair / Direct Replacement New $352 N/A Plumbing Permits - Graywater Systems
Clothes Washer System / Simple System $94.05 $510 ($416) Complex System $225.63 $817 ($591)
Miscellaneous Permit - Not Otherwise Listed New $298 N/A Per Additional Hour New $352 N/A
Use and Occupancy Permits
Certiﬁcate of Use and Occupancy
Stand-Alone $1,482.64 $1,300 $183
Included In Associated Building Permit $1,482.64 $171 $1,312 Certiﬁcate of Use and Occupancy - Replacement $296.17 $135 $161 Temporary Occupancy Permit
Multi-Family Residential, Non-Residential, and Other
Commercial $1,118.27 $2,791 ($1,673)
Single-Family and Commercial Tenant Improvement Less Than 10,000 Sq. Ft. $820.33 $1,150 ($329)
The majority of the ﬂat (non-valuation based) fees charged by the Building Division are under-recovering.

On average, the per-unit cost recovery for ﬂat fees is approximately 64%. The largest under-recoveries come from the electrical permits for multi-family and commercial electric vehicle charging stations. The ‘Multi-Family / Commercial (Level 3 and 4)’ fee for 1-6 stations under-recovers by about $4,155, and the ‘Multi-Family / Commercial (Level 1 and 2)’ fee for 1-6 stations under-recovers by about $3,430; both show only a 12% cost recovery at the current fee level.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Some ﬂat fees are currently over-recovering costs, which indicates that the fee should decrease. These overages range from a low of $22 (‘Backﬂow Protective Device’) to a high of $1,312 (‘Certiﬁcate of Use and Occupancy – Included in Associated Building Permit’). The high overcharge for a ‘Certiﬁcate of Use and Occupancy – Included in Associated Building Permit’ underscores the importance of expanding this fee into two tiers as proposed by staff during this study.

The valuation-based building permit fees show a mix of under- and over-recoveries. The largest over- recoveries are found in the higher valuation tiers, whereas the under-recovering is in the lower valuation tiers. This is common when we expand valuation-based fees and indicates the reasoning for expanding those tiers.

Implementing fees at the cost listed in the “Total City Cost” column above will allow the Division to recover the costs associated with all Citywide departments and divisions involved in processing building permits while remaining in compliance with state laws and regulations.

CROSS-DEPARTMENTAL / DIVISIONAL SUPPORT
The Building Division is not the only division that reviews Building Permits. The Building Division routes permits to Planning, Fire, Public Works (Engineering, Urban Forestry, Industrial Waste Investigators), Transportation, and Zero Waste for review. The City currently only has support fees for Planning, Fire, and Public Works. Through this process, it was determined that all support departments and divisions should have a fee for their review. The following table shows the cross-departmental / divisional fees calculated:

TABLE 5: TOTAL COST PER UNIT RESULTS – BUILDING FEES
Category Single Family Residential Commercial & Multi-Family Fire 8% of Building Permit 40% of Building Permit
Planning 30% of Building Permit 15% of Building Permit
Public Works 35% of Building Permit 15% of Building Permit Zero Waste N/A 0.48% of Building Permit
Transportation N/A 0.06% of Building Permit
The fees are set up as a percentage of the building permit to help capture the proportionate level of effort associated with conducting reviews and inspections in support of these projects. The greater the permit fee, the greater the proportionate time associated with reviews and inspections. Implementing these fees will ensure that the City is not only recovering for Building time on these projects but also recovering all other City staff time.

It is important to note that these fees would only be charged if those departmental reviews are conducted. If certain building projects do not require a Transportation review, the relevant fee would not be assessed. The fees have also been split into Single-Family Residential and Commercial / Multi-Family to appropriately capture the level of effort spent on those projects.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Planning focuses on ensuring that private development complies with environmental policies, long-range planning, and land use regulations. The group also oversees the Historic Preservation Program. The fees examined within this study relate to appeals, architectural review, historical resources, individual review, subdivision, variances, and wireless permits . The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by Planning.

FEE SCHEDULE MODIFICATIONS
A key advantage to conducting fee studies is the ability to modify the fee structure to account for all current services being provided by the division. There were some key modiﬁcations made to Planning fees through this process, which included the following:

• Elimination of Legal Review Fees : Based upon discussion with staff, all Legal Review Fees (Legislative, ARB, Environment, Additional Hearings, and Mitigation Monitoring) were eliminated.

These fees were originally created to capture the City’s Legal department’s support speciﬁc to fees.

These costs are now allocated to the department through a Citywide Indirect charge, which is proposed to be allocated as overhead to Planning staff.

• Other Eliminated Fees: In addition to legal review of fees, the project team also worked with staff to eliminate the following fees:
- Architectural Review
o Signs – (Exceptions)
o Temporary Sign Permit
- Documents & Photocopies
o Comprehensive Plan
o Zoning Map Booklet
- Historic Resource
o Mills Act Contract – Establish or Withdraw
- Other Application Fees
o Records Retention
- Use Permit
o Conditional Use Permit – Additional Upon Hearing Request - Variance
o Variance – Additional Upon Hearing Request

These fees represent either services no longer offered or duplications of fees codiﬁed elsewhere in the fee schedule.

• New Fees: The project team worked with staff to identify the following new areas of service:
- Streamlined Housing Development Review
- Planning Compliance Fee
- SB9 Application

PLANNING
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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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- Retail Waiver

The addition of these new fees helps capture services already being provided either for free or being captured through other fees that don’t reﬂect the level of staff effort associated with these activities.

• Expanded Fees: The following fees were expanded from existing fee categories:
- Conditional Use Permit – Director Level – Amendment
- Conditional Use Permit – Alcohol

The creation of these new fee categories helps capture the varying level of effort associated with these types of activities.

• Streamlined Fees: There are currently three different ranges of public noticing fees – up to 150 ft. radius, 150-600 ft, and beyond 600 ft. radius. However, in discussion with staff it was determined that the staff time to process these notices is now the same, and as such the fee can be streamlined to a singular public noticing fee.

• Conversion of Deposits to Flat Fees: Certain fees are currently being charged as deposits, but the project team was able to work with City staff to identify a reasonable average of staff effort associated with those activities to be able to convert them from deposits to ﬂat fees:

- Pre-Screening Fee
- Wireless Tier 1
- Planned Community Zone Change – Minor Change

• Conversion of Flat Fees to Deposits: ‘Preliminary Parcel Map, Minor with Exception’ was converted from a ﬂat fee to a deposit- based fee. This is due to the signiﬁcant amount of effort associated with these types of applications.

The modiﬁcations noted above help streamline the Planning fee schedule to better reﬂect the types of services and the level of effort associated with those activities.

DETAILED RESULTS
This section provides an overview of the detailed results associated with ﬂat fees and deposit-based fees.

FLAT FEES
The Planning Division collects fees for appeals, architectural review, subdivision fees, historic preservation, use permits, wireless permits, and zone changes. The total cost calculated for each service includes direct staff costs, direct materials costs (where applicable), cross-departmental / divisional support (i.e., Engineering, Fire, Building, Transportation, Utilities, etc.), and Departmental and Citywide overhead. The following table details the fee name, current fee, total cost, and the difference for each fee.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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TABLE 6: TOTAL COST PER UNIT RESULTS – PLANNING FLAT FEES Fee Name
FY25 Current
Fee6
Total City
Cost7 Difference
Appeals
Appeals before City Council or Planning & Transportation Commission $718 $562 $156
Architectural Review
Architectural Review – Minor Project (ARB Review) $10,679 $11,452 ($773) Architectural Review – Minor Project (Staff Review) $4,100 $5,830 ($1,730) Design Enhancement Exception $8,505 $3,613 $4,892
Preliminary Review $8,014 $8,226 ($213)
Signs – (ARB Review/Exceptions) $5,356 $6,674 ($1,318) Signs – (Staff Review, unless OTC) $1,281 $2,830 ($1,549) Streamlined Housing Development Review New $24,753 N/A
Director's Approval
Home Improvement Exception $4,770 $4,307 $463
Documents & Photocopies
Administrative Extensions and Zoning Letters Actual Cost $354 N/A Property Research requiring more than 30 minutes Actual Cost $342 N/A Environmental Impact Assessment
CEQA Categorical Exemption $693 $744 ($51)
Historic Resource
Demolition Application for Historic Buildings $1,535 $1,810 ($275) Historic Resource Review - Major Project $2,304 $6,619 ($4,315) Historic Resource Review - Minor Project (Staff Review) $1,536 $3,041 ($1,504) Historic Resource Review of Individual Review Application $384 $1,123 ($739) Individual Review
Expansion of Existing Two-Story greater than 150 sq. ft. $8,653 $7,389 $1,265 Individual Review - Minor Revisions to Approved Projects $4,497 $3,739 $758 New Two-Story Addition or New Two-Story Home $10,811 $14,397 ($3,586) Preliminary Individual Review and SB9 with Architect $576 $1,037 ($461) Other Application Fees
Pre-Screening fee $4,602 $6,193 ($1,591)
Pre-Application Staff Consultation Fee $889 $1,149 ($261) SB9 Applications New $5,174 N/A
Day Care Center $219 $8,430 ($8,211)
SB 330 Fee $2,873 $3,006 ($133)
Public Noticing Modified $326 N/A
Subdivision (Minor) – Four or Less Parcels
Parcel Map $5,983 $5,753 $230

6 The current fee listed does not include the 3% Technology Fee, that is built into the published fee. 7 The total cost listed does not include the 5% Technology Fee and 5% Reserve amount that was calculated as part of this study .

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25 Current
Fee6
Total City
Cost7 Difference
Preliminary Parcel Map $7,167 $7,725 ($557)
Parcel Map, Minor with Exception $4,380 $8,726 ($4,346) Subdivision (Major) – Five or More Parcels
Subdivision Final Map $7,153 $8,532 ($1,379)
Use Permit
Conditional Use Permit - Director Level $8,826 $9,068 ($242) Conditional Use Permit – Director Level – Amendment New $4,252 N/A Conditional Use Permit – Alcohol New $3,890 N/A
Conditional Use Permit – Alcohol – Amendment $4,655 $1,885 $2,771 Temporary Use Permit $1,753 $2,137 ($384)
Variance
Variance $5,639 $6,854 ($1,215)
Wireless Permit
Wireless Tier 1 $4,100 $3,700 $399
Zone Change
Planned Community Zone Change - Minor Change $2,302 $7,481 ($5,179) Retail Waiver
Retail Waiver New $8,381 N/A
The Planning Division’s fees generally under-recover its costs, with some exceptions. Use permits for Day Care Centers have the largest under-recovery at about $8,200, or only 3% of costs. It is important to note that this fee is often set below cost recovery to encourage these types of facilities when there is a shortage. The fee with the smallest under-recovery is the ‘CEQA Categorical Exemption’ fee at around $51, or 93% cost recovery.

There are several fees for which the department currently overcharges. These range from $4,892 (Design Enhancement Exception) to $156 (Appeals before City Council or Planning & Transportation Commission). It is essential that the division adjust these fees to at or below cost recovery.

DEPOSIT-BASED FEES
The Planning Division also assesses deposit-based fees for entitlement and land use applications.

Deposit-based fees are speciﬁcally for those types of projects that can span several months and are often complex in nature. Since these types of applications vary widely in the time that staff are required to spend on them, a deposit is generally recommended to ensure that each project pays its appropriate share and cost recovery is achieved.

In order to evaluate the City’s current and proposed deposit-based fees, the project team worked with Planning and other Departmental staff to estimate the minimum amount of time needed to process the applications. This would ensure that the recommended deposit would at least account for the base level of effort and allow staff to collect additional funds as needed. The following table shows the deposit- based fees (current and calculated) for Planning and the recommended deposit amount.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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TABLE 7: PLANNING DEPOSIT-BASED FEES – CURRENT AND PROPOSED DEPOSITS Fee Name
FY25 Current
Deposit8
Calculated
Deposit9
Recommended
Deposit
Appeals
Appeal Costs Exceeding Appeals Filing Fee $4,602 $6,188 $4,700 Architectural Review
Architectural Review - Major Project $15,749 $38,227 $16,000 Comprehensive Plan Change
Comprehensive Plan Change $9,384 $29,122 $9,600
Development Agreement

Development Agreement $10,828 $32,762 $11,100
Development Agreement - Annual Review $3,791 $5,460 $3,900 Environmental Impact Assessment
Environmental Document (Staff Review) $7,671 $14,561 $7,900 Mitigation Monitoring - Environmental Impact Report $5,631 $5,460 $5,800 Mitigation Monitoring - Mitigated Negative Declaration $1,876 $3,640 $1,900 Historic Resource
Transfer of Development Rights Projects $905 $5,460 $900 Williamson Act Contract – Establish or Withdraw $2,959 $3,640 $3,000 Other Application Fees
Planning Compliance Fee New $1,092 $1,000
Site & Design

Site and Design Major $34,555 $38,412 $20,000
Subdivision (Minor) – Four or Less Parcels
Preliminary Parcel Map, Minor with Exception $11,335 $19,491 $11,600 Subdivision (Major) – Five or More Parcels
Tentative Map $13,228 $19,926 $13,500
Wireless Permit
Wireless Tier 2 $8,827 $21,515 $9,100
Wireless Tier 3 $9,374 $25,155 $9,600
Zone Change

Planned Community Zone Change $11,264 $36,402 $11,600
Zone Change Regular $9,385 $21,841 $9,600
The majority of the City’s deposits are insuﬃcient based on the minimum level of effort needed to complete each task. Additionally, due to the nature of deposits, the project team considers it best practice to assess deposits as a round, estimated number (i.e., $5,000, $12,000, $20,000, etc.) as the remaining funds will be refunded and / or additional funds would be requested. This will simplify the customer service aspect for applicants, as well as make it easier for staff to administer the deposit.

8 The current deposit listed does not include the 3% Technology Fee, that is built into the published fee. 9 The total cost listed does not include the 5% Technology Fee and 5% Reserve amount that was calculated as part of this study .

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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The Fire Prevention Division as part of the Development Services Department focuses on performing ﬁre plan checks, reviews, permitting, and ﬁeld inspections to ensure that development complies with the California Fire Code. In FY2025, these fees were identiﬁed to be moved from Planning and Development Services to the Fire Department. The Fire development-related fees are captured under the Building fee schedule. Fees examined in this study relate to hazardous materials, inspection fees, consultations, life safety and ﬁre, and hazard permits. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Fire Prevention Division.

FEE SCHEDULE MODIFICATIONS
During discussions with Fire Prevention staff, modiﬁcations were proposed to the current fee schedule, which include:
• Eliminated Fees: Several fees were eliminated as these services are either captured through other fees and are redundant or they are no longer provided:
- Documents
o Emergency Planning Guide
o Long-Term Offsite Document Storage
o Microﬁlm Copy / Print (Blueprint and Speciﬁcation)
o Photographs (First Print and Each Additional)
- Inspection Fees
o Use & Occupancy Fire Inspection
• New Fees: Several new fees were added to the schedule to capture services that are currently being provided, but for which no current or unique fee is being collected:
- Compliance Fees
o Hazmat Plan Submittal
o Hazmat Closure
• Partial Closure
• Full Closure
- Hazardous Materials Permits
o Temporary Generator / Backup Power Supply
o Battery Operated Equipment
• Up to 10 Pieces of Equipment
• Each Additional Equipment at Same Location
o Temporary Certiﬁcate of Occupancy – Hazmat
- Inspection Fees
o Hospital Inspections
• Annually for up to 7 hours
• Each additional hour
o Standby Fire Watch – Fire Engine Company

FIRE PREVENTION
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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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o Hazmat Temporary Occupancy Permit for Vendors/Stock Occupancy o Business Inspection
- Investigations
o Environmental Hazard Release
o Hazmat
o Fire Investigation
- Life Safety & Fire Protection
o Fire Protection and Fire Access Plan Review for New Developments or Additions • Restructured Fees: Several fees were restructured to capture the level of service, which included expanding categories or renaming the fee:
- General & Miscellaneous Fees – renamed ‘Fire Prevention Plan Check Hourly’ - Hazardous Materials
o The Hazardous Materials Classiﬁcation section – renamed ‘Hazardous Materials Permits’ and combined with the Hazardous Materials Storage section. o Liquid or Gas-Fueled Powered Equipment – expanded into two categories: ‘First Equipment’ and ‘Each Additional Equipment at Same Location’ - Inspection Fees
o Additional Inspection or Reinspection Fee – expanded into three categories: ‘Fire Prevention,’ ‘Development Services – Fire,’ and ‘HazMat’ o After Hours Inspection Fee – expanded into three categories: ‘Fire Prevention,’ ‘Development Services – Fire,’ and ‘HazMat’
- Consultations
o Additional Hours Over Plan Review/Site Visit – expanded into three categories: ‘Fire Prevention,’ ‘Development Services – Fire,’ and ‘HazMat’ o Alternate Means and Methods Application – expanded into two categories: ‘Fire Prevention’ and ‘HazMat’
o Appeals to Decisions – expanded into three categories: ‘Fire Prevention,’ ‘Development Services – Fire,’ and ‘HazMat’
o Consultation Fee – expanded into three categories: ‘Fire Prevention,’ ‘Development Services – Fire,’ and ‘HazMat’
- Services
o Emergency Responder Radio Coverage Testing Fee – from ﬂat fee to per hour - Life Safety & Fire Protection
o Sprinklers – broke out NFPA 13D vs. all others; charged NFPA 13D based on a base fee and per head fee
o Fire Prevention Inspection of Private Schools – changed from a ﬂat fee to per hour with a 2-hour minimum
o Multi-family dwellings, hotels, and motels – creating smaller intervals to better reﬂect the level of support associated with each set of units
• 3 – 10 units, 11 – 25 units, 26 – 100 units, 101 – 250 units, more than 250 units o Site Disaster Planning – expanded to include Emergency Preparedness Planning - Speciﬁc Hazard Permits
o Occupant Load Increase – Temporary Public Assembly – modiﬁed to read only ‘Temporary Public Assembly’
o Place of Assembly – expanded to include a fee for each additional assembly The modiﬁcations outlined will allow Fire Prevention staff to better capture their level of effort associated with providing services to the community.

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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DETAILED RESULTS
The Fire Prevention Division collects fees for occupancy inspections, ﬁre life safety, and hazardous materials. The total cost calculated for each service includes direct staff costs, contractor costs, and Departmental and Citywide overhead, as well as any speciﬁc material costs. The following table details the fee name, current fee, total cost, and the difference between the two for each fee.

TABLE 8: TOTAL COST PER UNIT RESULTS – FIRE PREVENTION
Fee Name
FY25
Current
Fee10
Total
City
Cost11
Differenc
e
Compliance Fees
Emergency Response Fee - Hazmat $472.88 $482 ($9)
Hazmat Plan Submittal New $2,021 N/A
Hazmat Closure
Partial Closure New $1,317 N/A
Full Closure New $3,338 N/A
Hazmat Work Submittal Without Approved Plans and/or Permits Double Fee Hazmat Closure Without Approved Plans and/or Permits Double Fee Review of Emergency Planning Guide *Only assessed if not part of annual submittal (per hour) Modified $482 N/A
Fire Prevention Plan Check - Hourly
Fire Prevention $258.19 $352 ($94)
Development Services – Fire $258.19 $352 ($94)
HazMat $258.19 $352 ($94)
Hazardous Materials Permits
Compressed Gas $474.06 $482 ($8)
Corrosives $474.06 $482 ($8)
Cryogenic Fluid $474.06 $482 ($8)
Flammable and Combustible Liquids $474.06 $964 ($490) Flammable Gas $473.08 $482 ($9)
Flammable Solids $474.06 $482 ($8)
Health Hazard (Liquids & Solids) $474.06 $482 ($8)
Liqueﬁed Petroleum Gases $474.06 $482 ($8)
Organic Coatings $474.06 $482 ($8)
Organic Peroxides $474.06 $482 ($8)
Other Hazardous Materials - Unclassiﬁed $474.06 $482 ($8) Ovens - Industrial Baking or Drying $474.06 $964 ($490) Oxidizers (Liquids & Solids) $474.06 $482 ($8)
Oxidizing Gas $474.06 $482 ($8)
Pyrophoric Gas $474.06 $482 ($8)
Pyrophoric Materials (Liquids & Solids) $474.06 $482 ($8)

10 The current fee listed does not include the 3% Technology Fee, that is built into the published fee. 11 The total cost listed does not include the 5% Technology Fee and 5% Reserve amount that was calculated as part of this study .

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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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Fee Name
FY25
Current
Fee10
Total
City
Cost11
Differenc
e
Pyrotechnical Special Effects Material $474.06 $482 ($8) Radioactive Materials or Sources $474.06 $964 ($490)
Refrigeration Equipment $509.13 $482 $27
Spraying/Dipping $454.58 $482 ($28)
Tire Recapping/Tire Storage $1,890.25 $1,858 $32
Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gas $474.06 $964 ($490) Toxic, Highly Toxic, Moderately Toxic, Health Hazard Materials $474.06 $964 ($490) Unstable Reactive Gas $474.06 $482 ($8)
Unstable Reactive Materials (Liquids & Solids) $474.06 $482 ($8) Water Reactive Materials (Liquids & Solids) $474.06 $482 ($8) Additional Approvals for Hazardous Materials Storage Permit Per occurrence (includes up to 2 hours) $1,030.19 $834 $196 Per hour for time above two hours $674.31 $417 $257
Business Plan (HMBP) $674.31 $723 ($49)
Level I Facility 25% $0 $0
Level II Facility $474.06 $723 ($249)
Level III Facility $951.77 $1,206 ($254)
Petroleum Aboveground Storage Tank $1,903.55 $3,134 ($1,231) Provisional Hazmat Storage (6 Month) $951.77 $1,929 ($977) Liquid or Gas-Fueled Powered Equipment (i.e. Welders, Portable Light Units, etc.) Up to 10 Pieces of Equipment $471.71 $482 ($11)
Each Additional Equipment at Same Location New $121 N/A Temporary Generator / Backup Power Supply New $1,317 N/A Battery Operated Equipment
Up to 10 Pieces of Equipment New $482 N/A
Each Additional Equipment at Same Location New $121 N/A Operate a Tank Vehicle to Transport Flammable/Combustible Liquids $634.00 $723 ($89) Temporary Certiﬁcate of Occupancy - Hazmat New $964 N/A Inspection Fees
Additional Inspection or Reinspection Fee (2-hour minimum)

Fire Prevention $473.48 $464 $9
Development Services – Fire $473.48 $464 $9
HazMat $473.48 $482 ($9)
After Hours Inspection Fee (4-hour minimum)
Fire Prevention $709.34 $530 $180
Development Services – Fire $709.34 $530 $180
HazMat $709.34 $555 $155
As-Built Plan Check and Additional Work $946.96 $817 $130 Care Facility Inspection Including Fire Clearance
Facilities with 7-25 clients $471.71 $464 $7
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Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25
Current
Fee10
Total
City
Cost11
Differenc
e
Facilities with more than 25 clients $946.96 $1,858 ($911) Christmas Tree Lot/Pumpkin Patch $471.71 $464 $7
High Rise Building - Certiﬁcate of Compliance
Annually for up to 7 hours $3,708.19 $3,251 $457
Each additional hour $507.08 $464 $43
Hospital Inspections
Annually for up to 7 hours New $3,251 N/A
Each additional hour New $464 N/A
Outside Cooking Booths/Food Trucks $709.34 $464 $245
Standby Fire Watch – Fire Inspector $471.71 $464 $7
Temporary Occupancy Permit for Vendors/Stock Occupancy $1,523.55 $2,210 ($687) Hazmat Temporary Occupancy Permit for Vendors/Stock Occupancy New $2,281 N/A Business Inspection New $464 N/A
Consultation
Additional Hours Over Plan Review/Site Visit
Fire Prevention $337.79 $352 ($14)
Development Services – Fire $337.79 $352 ($14)
HazMat $337.79 $352 ($14)
Alternate Means and Methods Application (2 hr. minimum) Fire Prevention $1,009.75 $835 $175
Development Services – Fire $1,009.75 $835 $175
Appeals to Decisions
Fire Prevention $471.71 $483 ($11)
Development Services – Fire $471.71 $483 ($11)
HazMat $471.71 $483 ($11)
Consultation Fee
Fire Prevention $471.71 $433 $39
Development Services – Fire $471.71 $433 $39
HazMat $471.71 $439 $33
Investigations
Environmental Crimes New $417 N/A
Hazmat New $482 N/A
Fire Investigation New $464 N/A
Services
Emergency Responder Radio Coverage Testing Fee $667.12 $464 $203 Hydrant Flow Fee $471.71 $697 ($225)
Life Safety & Fire Protection
Hydrant Installation/Modiﬁcation - Private $237.62 $817 ($579) Sprinkler NFPA 13D - Base New $993 N/A
Sprinkler NFPA 13D - Per head New $4 N/A
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Cost of Service Study and
Municipal Fee
Adjustments

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Fee Name
FY25
Current
Fee10
Total
City
Cost11
Differenc
e
All Other (Non-NFPA 13D) Automatic Fire Sprinkler Installation/Modiﬁcation 1 - 19 Sprinkler Heads $1,055.58 $1,690 ($634)
20 or more Sprinkler Heads - Base $2,334.23 $2,915 ($580) Per head $3.89 $11 ($7)
Express Fire Protection Plan Check Fee $235.27 $457 ($222) Fire Alarm System Installation and Modiﬁcation $1,379.79 $1,986 ($606) Plus per device or contact point $31.09 $41 ($10)
Fire Prevention Inspection of Private Schools (min 2 hours) $473.48 $464 $9 Fire Protection and Fire Access Plan Review for New Developments or Additions (min 2 hours) New $433 N/A
Multifamily dwellings, hotels & motels 3-10 units $471.71 $464 $7 Multifamily dwellings, hotels & motels 11-25 units $471.71 $929 ($457) Multifamily dwellings, hotels & motels 26-100 units $946.96 $1,393 ($447) Multifamily dwellings, hotels & motels 101-250 units $1,418.67 $2,322 ($904) Multifamily dwellings, hotels & motels greater than 250 units $1,418.67 $2,787 ($1,368) Other Automatic Extinguishing Systems $1,283.57 $1,393 ($110) Site Disaster / Emergency Preparedness Planning $471.71 $446 $26 Standpipe System - Wet, Dry, or Combination $946.96 $1,633 ($686) Temporary Certiﬁcate of Occupancy $1,024.20 $1,393 ($369) Underground Fire Service Line (Includes 4 hrs. of inspection and 1 hr. of plan check) $2,229.25 $2,210 $19
Veriﬁcation of Fire Protection System Maintenance and Certiﬁcation $86.89 $39 $48 Speciﬁc Hazard Permits
Candles and Open Flames in Assembly Areas $471.71 $464 $7 Hot Work (i.e. Spark/Flame Producing) Operations $529.56 $464 $65 Temporary Public Assembly $471.71 $1,281 ($810)
Place of Assembly $951.77 $929 $23
Each additional assembly New $232 N/A
Tent/Canopy or Air Supported Structure $992.81 $1,169 ($176)

Fire Prevention’s fees show a mix of over- and under-recovery. The largest fee with the largest under- recovery is the ‘Multifamily dwellings, hotels & motels greater than 250 units’ fee at $1,368. The fee where the division overcharges the most is the ‘High Rise Building – Certiﬁcate of Compliance – Annually for up to 7 hours’ at $457. On average the division recover about 90% of its costs. The department should critically examine its current fees and adjust as needed to better achieve cost recovery goals while complying with legal requirements.

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Cost of Service Study and
Municipal Fee
Adjustments

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The Public Works unit located at the Development Center focuses on land development, encroachment in the right-of-way, environmental services, urban forestry, and zero waste. The fees examined within this study relate to encroachment, construction in the public right-of-way, tree removal, storm drain plan check, and miscellaneous reviews and inspections. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Public Works Division.

FEE SCHEDULE MODIFICATIONS
In discussion with Public Works Division staff, there were minor modiﬁcations made to the fee schedule:
• Eliminated Fees: In discussion with staff, it was proposed that the following fees be eliminated, as they represent duplicative services or services no longer offered:
- Map / Plan Review fees – Architectural Review
o Minor Project Trees (ARB Review)
o Minor Project Trees (Staff Review)
- Permit Fees
o Improvement Plan Review
• Expanded Fees: The Construction in Public Right-of-Way fee was expanded from ending at $500,000 to include two additional ranges - $500,000-$1 million and greater than $1.0 million. This will allow the City to capture additional projects that are typically falling into these categories.

The modiﬁcations outlined will allow Public Works staff to better capture their level of effort associated with providing services to the community.

DETAILED RESULTS
Public Works collects fees for encroachment, tree permits, construction in public right-of-way, and grading. The total cost calculated for each service includes direct staff costs and Departmental and Citywide overhead. The following table details the fee name, current fee, total cost, and the difference between the two for each fee.

TABLE 9: TOTAL COST PER UNIT RESULTS – PUBLIC WORKS
Fee Name
FY25
Current
Fee12
Total
Cost13 Difference
Encroachment Permit
A. Dumpster, Container $407 $475 ($68)
B. Non-Residential - Single Day $1,631 $2,053 ($422)

12 The current fee listed does not include the 2% Technology Fee and 5% Reserve Amount, that is built into the published fee. 13 The total cost listed does not include the 5% Technology Fee and 5% Reserve amount that was calculated as part of this study .

PUBLIC WORKS
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Municipal Fee
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Fee Name
FY25
Current
Fee12
Total
Cost13 Difference
C. Non-Residential Short-Term (Less than 5 days) $1,903 $2,281 ($378) D. Non-Residential Long-Term (More than 5 days) $2,609 $2,931 ($322) E. Additional Non-Residential Long-Term (More than 5 days) Monthly $917 $934 ($17) F. Fence $2,005 $1,999 $6
G. Residential $1,038 $1,277 ($239)
Parklet Permit:

Initial Application Fee $1,860 $4,539 ($2,679)
License Fee for Use of Right-Of-Way $11 $11 $0
Refundable Deposit $2,500 $2,500 $0
Renewal Fee $233 $549 ($316)
Grading / Excavation
A. 101 - 1,000 cubic yards
First 100 cubic yards $247 $1,550 ($1,303)
Each additional 100 cubic yards or fraction thereof $247 $322 ($75) B. 1,001 - 10,000 cubic yards
First 1,000 cubic yards $2,470 $4,010 ($1,540)
Each additional 1,000 cubic yards or fraction thereof $233 $554 ($321) C. 10,001 or more cubic yards
First 10,000 cubic yards $4,802 $8,398 ($3,596)
Each additional 10,000 cubic yards or fraction thereof $906 $2,034 ($1,128) General & Miscellaneous Fees
Miscellaneous Public Works Inspection $254 $195 $59
Miscellaneous Public Works Plan Check $298 $243 $55
Inspection Fees
Tree Inspection for Private Development $236 $764 ($528) Wet Season Construction Site Stormwater Inspection
Per Inspection $360 $312 $48
Per hour thereafter, charged monthly October thru April $120 $208 ($88) Off Hour Inspection $311 $244 $67
Permit Fees

1. Temporary Discharge to Storm Drain from Non -Exclusionary Construction Site Dewatering $18,213 $17,329 $884

2. Additional Temporary Discharge to Storm Drain from Non - Exclusionary Construction Site Dewatering $388 $373 $15 Certiﬁcate of Compliance / Certiﬁcate of Correction / Map Amendment $5,660 $4,577 $1,083 Subdivision Map Act Applications Actual Cost
A. Construction in Public Right-of-Way ($1.00 - $5,999) $818 $971 ($153) B. Construction in Public Right-of-Way ($6,000 - $25,999) $818 $971 ($153) Value Greater than $6,000 10.7% 18.4% -7.7%
C. Construction in Public Right-of-Way ($26,000 - $100,999) $2,923 $5,430 ($2,507) Value Greater than $26,000 13.7% 10.6% 3.1%
D. Construction in Public Right-of-Way ($101,000 - $500k) $13,033 $15,854 ($2,821) Value Greater than $100,000 10.7% 2.3% 8.4%
E. Construction in Public Right-of-Way ($500k-$1m) $55,726 $25,267 $30,459 Value Greater than $500,000 10.7% 2.5% 8.2%
F. Construction in Public Right-of-Way ($1m+) $109,226 $38,175 $71,051 Value Greater than $1m 10.7% 1.3% 9.4%
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Cost of Service Study and
Municipal Fee
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Fee Name
FY25
Current
Fee12
Total
Cost13 Difference
Polychlorinated Biphenyls (PCBs) Permit Review Fee
Per hour of review $257 $230 $27
Right of Way Closure Management $103 $96 $7
Storm Drain Plan Check Fee $1,225 $2,718 ($1,493)

Most fees being charged by Public Works are under-recovering, although there are also some signiﬁcant overcharges. The under-recoveries range from $17 (Encroachment Permit – Additional Non-Residential Long-Term (More than 5 days) Monthly) to about $3,597 (Grading / Excavation – 10,001 or more cubic yards – First 10,000 cubic yards). The overages range from $7 (Right of Way Closure Management) to around $71,051 (Construction in Public Right-of-Way ($1m+)). The project team recommends adjusting fee levels to be no higher than the total calculated cost.

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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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There are two typical surcharges assessed as part of the development review process – the Comprehensive Plan Fee and the Technology Fee. The City of Palo Alto currently charges a Comprehensive Plan Maintenance Fee as part of the building phase, and the Technology Fee is included within the permit and application fees. The City of Palo Alto is unique in that it also builds a reserve calculation into its fees, which can be considered a surcharge. The following subsections discuss the calculation of the Comprehensive Plan Maintenance Fee, Technology Fee, and the Reserve Surcharge.

COMPREHENSIVE PLAN MAINTENANCE
The City of Palo Alto currently assesses a Comprehensive Plan Maintenance Fee as part of its building permit process. The fee is meant to account for updates to the general plan, zoning ordinance, housing elements, and other long-range planning activities that are part of the larger General Plan. This is a standard fee charged by many jurisdictions. The City of Palo Alto charges this fee as a percentage of the building valuation at the time of building permit submittal. It is charged during the building permit phase because development projects that get to that phase generally make a suﬃcient impact to require the need for an update to the Zoning Code or the General Plan.

The project team worked with Department staff to identify the costs associated with Long-Range Planning based upon the components of the long-range plan that need to be updated. The cost estimates for the categories are based upon existing updates, an inﬂationary factor, and staff estimates.

The following table shows the total cost, lifespan, and resulting annual cost by plan category:

TABLE 10: COMPREHENSIVE PLAN MAINTENANCE FEE COST COMPONENTS Category Total Cost Lifespan Annual Cost
General Plan Update $3,475,916 15 $231,728
Housing Element Update $767,594 8 $95,949
Zoning Code Update $1,000,000 10 $100,000
Total Long-Range Planning Annual Costs $427,677
The total annual costs associated with updating the Comprehensive Plan are approximately $428,000. To assess this fee as a percentage of the building valuation, the project team took the annual cost associated with comprehensive plan upkeep and divided it by the average total building permit valuation for FY24. The following table shows this calculation:

TABLE 11: COMPREHENSIVE PLAN MAINTENANCE FEE CALCULATION Category Amount
Total Comprehensive Plan Annual Maintenance Cost $427,677 Annual Building Permit Valuation $314,402,136
General Plan Maintenance Fee 0.136%

DEVELOPMENT SURCHARGES
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Municipal Fee
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As the table indicates, the calculated Comprehensive Plan Maintenance Fee is 0.136% of the building valuation. The following table compares the city’s current fee to the full cost fee calculated through this study:

TABLE 12: COMPREHENSIVE PLAN MAINTENANCE FEE PER UNIT RESULT COMPARISON Category Current Fee Full Cost Surplus / (Deﬁcit)
Comprehensive Plan Maintenance Fee 0.133% 0.136% (0.003%) The City’s current fee is $1.33 per $1,000 of building permit valuation or 0.133% of the building valuation.

Therefore, the full cost fee would result in an increase of the City’s current fee from 0.133% to 0.136%.

As part of this analysis, the project team conducted a comparative survey of other local jurisdictions and their Comprehensive Plan Maintenance Fees. Like other comparative efforts, the survey below only shows the fees charged by the jurisdiction and does not include the basis upon which the other jurisdictions calculated or developed their fee. The following table shows the results of this comparative analysis:

TABLE 13: COMPREHENSIVE PLAN MAINTENANCE FEE – COMPARATIVE SURVEY Jurisdiction Fee Amount
Menlo Park 3% of Permit Fee
Mountain View 0.26% of Building Valuation
San Jose 11.97% of Building and Planning Applications
Santa Clara 12.39% of Building Permit Fee
Sunnyvale 0.15% of Building Permit Valuation
As the table indicates, the surrounding jurisdictions charge for long-range planning either as a percentage of the building valuation or as a percentage of the permit fee or planning and building fees.

Of those jurisdictions that charge it as a percentage of the building permit valuation, both the City’s current fee of 0.133% and the 0.136% full-cost fee fall below the fees that are charged based on valuation (Mountain View and Sunnyvale).

TECHNOLOGY SURCHARGE FEE
The City currently collects a fee for technology as part of its overall permit or application fee. The Technology Fee allows the City to support the costs associated with the City’s permitting system, such as staff time for managing the systems, acquisition and upgrade costs, and mobile devices used for permitting. The following table shows the total cost, the quantity of items, the number of years the item or cost is related to, and the resulting annual cost by cost category:

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Cost of Service Study and
Municipal Fee
Adjustments

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TABLE 14: TECHNOLOGY SURCHARGE FEE COST COMPONENTS
Cost Category Amount Lifespan Annual Cost
Adobe Licenses $60,000 1 $60,000
Scanning Services/Arc/SkySite $25,000 1 $25,000
Reporting Database $25,000 1 $25,000
Inspection App – Accela $15,000 1 $15,000
Other Inspection App – CityGovApps $11,000 1 $11,000
Ongoing EDR Cost $80,000 1 $80,000
GIS Migration $75,000 2 $37,500
Hardware Maintenance/Upgrades $25,000 1 $25,000
Software and Apps Maintenance/Upgrades $25,000 1 $25,000 Replace / Renew Cost for Accela14 $500,000 10 $50,000
Hardware for Inspector/Plan Review – iPads, etc. $5,000 2 $2,500 Parcel Map Updates $45,000 1 $45,000
Total IT Software and Hardware Costs:

$401,000
IT Internal Support:

39370 - DESKTOP REPLACEMENT $26,520 1 $26,520
39380 - DESKTOP MAINTENANCE $119 1 $119
39420 - IT-INFRAST REPLACEMN $7,425 1 $7,425
39430 - IT-INFRAST MAINT $24,365 1 $24,365
39440 - IT SUPPORT $208,023 1 $208,023
39520 - APPLICATION MAINT $360,877 1 $360,877
Subtotal Internal IT Support:

$627,329
Total Annual Tech Fee Costs

$1,028,329

Based on the technology needed to provided development-related services, as well as internal IT staff and operational support, the annual technology fee costs are approximately $1.0 million for the City of Palo Alto.

Working with City staff, the project team determined that the most relatable nexus for the Technology Fee is proportionate to the permit fee. This means that the greater the permit fee, the greater the Technology Fee should be, as there is more software utilization and storage space for larger projects.

Therefore, the project team took the total Technology Annual Cost and divided it by the total permit revenue associated with Building, Fire, Planning, and Engineering services for FY24. The following table shows this calculation:

TABLE 15: TECHNOLOGY FEE CALCULATION
Category Amount
Total Technology Annual Cost $1,028,329
Development- Related Permit Revenue $21,647,294
Technology Fee as % of Permit Fee 5%

14 Implementation and potential contract increase.

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Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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The City’s calculated technology fee is 5% of the permit fee. Therefore, if a permit fee was $100, the technology fee collected would be $5; if a permit fee was $1,000, the technology fee collected would be $50. This type of structure enables the technology fee to be more proportionately distributed to the projects based on their impact. Currently, the City incorporates a 2% fee for Building Permits and 3% fee for planning applications. It is a best practice to capture this separately for greater transparency.

As part of this analysis, the project team conducted a comparative survey of other local jurisdictions and their assessment of a Technology Fee. Like other comparative efforts, the survey below simply shows the fees charged by the jurisdiction and does not include the basis upon which the other jurisdictions calculated or developed their fee. The following table shows the results of this comparative analysis:

TABLE 16: TECHNOLOGY FEE – COMPARATIVE SURVEY
Jurisdiction Fee Amount
Menlo Park 3% of Permit Fee
Mountain View 4% of Permit Fee
Santa Clara 3.37% of Permit Fee
Sunnyvale 5% of Permit Fee
Most of the jurisdictions charge the Technology Fee as a percentage of the permit fee, like the City of Palo Alto. The City currently incorporates between 2-3% of the permit fee as the Technology Fee, which is in line with or lower than the surrounding jurisdictions. The full cost of the technology fee at 5% of the permit fee is higher than all surrounding jurisdictions except Sunnyvale, which has an equivalent fee.

RESERVE FUND
As discussed, the City of Palo Alto is unique in that Development Services has a reserve calculation built into the current fees. The current policy calculates that the reserve for the department should include 3 months of average recurring operating expenses, collected over the course of 5 years. The reserve amount is to be recovered as a percentage of the fees assessed. Therefore, it is assessed on the building, engineering, and ﬁre fees. The following table shows the City’s reserve surcharge calculation:

TABLE 17: RESERVE CALCULATION
Cost Category Amount
Total DS Operating Budget $23,715,59215
% of Cost to be Funded 25%16
Total Reserve Amount $5,928,898
# of Years to Achieve Funding 5
Annual Reserve Cost $1,185,780
Total DS Revenue $21,688,294
Reserve Surcharge % 5 %
The proposed updated reserve surcharge is 5%, which is consistent with the City’s current reserve surcharge. The reserve surcharge should remain steady at about 5% and could be shown as an added fee

15 Includes operating costs for DS Building, Planning (including current planning), Engineering, and Fire. 16 25% represents 3 months out of 12 -month timeframe.

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Municipal Fee
Adjustments

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line item (like the Technology Fee and Comprehensive Plan Maintenance Fee) to more transparently demonstrate the true cost of permitting to internal and external stakeholders.

The advantage of retaining the reserve fund is that the department has a built-in contingency that it can access if there is a signiﬁcant change in operations due to unpredictable circumstances and situations.

Some other considerations for the City include transitioning Development Services to an enterprise fund to allow for a separate reserve policy more speciﬁc to those types of activities.

SURCHARGE FUNDS
It is a best practice to collect and account for all surcharges in separate accounts. The City of Palo Alto currently has a separate subaccount for the Comprehensive Plan Maintenance Fee and also tracks the Reserve surcharge separately.

However, there is currently no separate account or subaccount within the General Fund for the Technology Fee. Implementing this as a separate surcharge will require the creation of a separate account to follow accounting best practices and to more transparently demonstrate to internal and external stakeholders that this funding is only being used for the purpose of annual maintenance and / or replacement of the permitting system. This will ensure compliance with funding requirements, enable appropriate allocation of funds to general plan or technology-related activities, and mitigate any potential issues with comingling of funds.

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Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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This study has documented and outlined on a fee-by-fee basis where the City’s current fee differs from its full cost. City and Department management will now need to review the results of the study and adjust fees in accordance with state guidelines, Departmental and City philosophies, and policies. The following points outline the major options the City has in adjusting its fees. • Over-Collection: Upon review of the fees that are shown to be greater than the current fee, the City should reduce the current fee to be in line with the full cost of providing the service. • Full Cost Recovery: For fees that show an under-collection of costs, the City may decide to increase the fee to full cost recovery immediately.
• Phased Increase: For fees with signiﬁcantly low-cost recovery levels, or that would have a signiﬁcant impact on the community, the City could choose to increase fees gradually over a set timeframe.

The City will need to review the results of the fee study and associated cost recovery levels and determine how best to adjust fees. The following subsections provide further detail on why and how the City should consider either implementing Full Cost Recovery or a Phased Increase approach to adjusting its fees that are under-collecting.

FULL COST RECOVERY
Based on the permit or review type, the City may wish to increase the fee to cover the full cost of providing services. Certain permits may be close to cost recovery already, and an increase to full cost may not be signiﬁcant. Other permits may have a more signiﬁcant increase associated with full cost recovery.

The City should consider increasing fees for permits for which services are rarely engaged to full cost recovery. These services often require speciﬁc expertise and can involve more complex research and review due to their infrequent nature. As such, setting these fees at full cost recovery will ensure that when the permit or review is requested, the City is recovering the full cost of its services.

PHASED INCREASES
Depending on current cost recovery levels, some current fees may need to be increased signiﬁcantly to comply with established or proposed cost recovery policies. Due to the type of permit or review or the amount by which a fee needs to be increased, it may be best for the City to use a phased approach to reach their cost recovery goals.

As an example, the City could have a current fee of $200 with a full cost of $1,000, representing 20% cost recovery. If the current policy is 80% cost recovery, the current fee would need to increase by $600, bringing the fee to $800, to comply. Assuming this service is something the City provides quite often and affects various members of the community, an instant increase of $600 may not be feasible. Therefore,

FEE ADJUSTMENTS
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Cost of Service Study and
Municipal Fee
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the City could take a phased approach, whereby it increases the fee annually over a set period until cost recovery is achieved.

Raising fees over a set timeframe not only allows the City to monitor and control the impact to applicants but also ensures that applicants have time to adjust to signiﬁcant increases. Continuing with the example above, the City could increase the fee by $150 for the next four years, spreading out the increase. Depending on the desired overall increase, and the impact to applicants, the City could choose to vary the number of years by which it chooses to increase fees. However, the project team recommends that the City not phase increases for periods greater than ﬁve years, as that is the maximum window for which a comprehensive fee assessment should be completed.

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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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The following table shows the complete list of fees reviewed in this study by division / section, including the fee name, the current fee amount, and full cost calculated through this analysis:

TABLE 18: FULL LISTING OF FEES
Fee Category Unit Current Fee17 Total Cost18 $ Change

BUILDING
Building Permit Fees
Base Fee for All Standalone Permits Per permit $155.67 $277 $122 Base Fee for Small or Medium Sq. Ft. / Valuation Permits Per permit New $1,110 N/A Base Fee for Larger Sq. Ft. / Valuation Permits Per permit New $4,162 N/A Single-Family / Duplex Residential (Sq. Ft.) Permit Fees:
0-250 sq. ft. Each Modified $596 N/A
251-500 sq. ft Each Modified $1,191 N/A
501-1,000 sq. ft. Each Modified $1,340 N/A
1,001 - 1,500 sq. ft. Each Modified $2,234 N/A
1,501 - 2,000 sq. ft. Each Modified $2,531 N/A
2,001 - 2,500 sq. ft. Each Modified $4,467 N/A
2,501 - 3,000 sq. ft. Each Modified $4,616 N/A
3,001 - 3,500 sq. ft. Each Modified $5,063 N/A
3,500 - 4,000 sq. ft. Each Modified $5,212 N/A
4,001 - 4,500 sq. ft. Each Modified $5,361 N/A
4,501 - 5,000 sq. ft Each Modified $5,509 N/A
5,001 - 5,500 sq. ft. Each Modified $5,956 N/A
5,501 - 6,000 sq. ft. Each Modified $6,552 N/A
6,001 - 6,500 sq. ft. Each Modified $6,850 N/A
6,500 sq. ft+ Base Modified $7,445 N/A
6,500 sq. ft. Each Addl 500 sq. ft. Modified $573 N/A Multi-Family & Commercial (Valuation) Permit Fees: N/A

17 The current fee does not include the 2% or 3% Technology Fee or 5% Reserve Surcharge. 18 The total cost does not include the calculated 5% Technology Fee or 5% Reserve Surcharge.

APPENDIX A: FULL LISTING OF FEES
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and Development Services Cost of
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Fee Category Unit Current Fee17 Total Cost18 $ Change
$0 - $2,000 Base $32.74 $1,191.24 $1,159
$2,001 - $25,000 Base $32.74 $1,191.24 $1,159
$2,001 - $25,000 Each Addl. $1,000 or fraction thereof $16.37 $25.90 $10 $25,001 - $50,000 Base $409.20 $1,786.85 $1,378
$25,001 - $50,000 Each Addl. $1,000 or fraction thereof $16.37 $35.74 $19 $50,001 - $100,000 Base $818.40 $2,680.28 $1,862
$50,001 - $100,000 Each Addl. $1,000 or fraction thereof $16.37 $20.85 $4 $100,001 - $500,000 Base $1,636.80 $3,722.61 $2,086
$100,001 - $500,000 Each Addl. $1,000 or fraction thereof $16.37 $7.45 ($9) $500,001 - $1,000,000 Base $8,184.00 $6,700.71 ($1,483) $500,001 - $1,000,000 Each Addl. $1,000 or fraction thereof $16.37 $16.38 $0 $1,000,001 - $5,000,000 Base $16,368.00 $14,890.46 ($1,478) $1,000,001 - $5,000,000 Each Addl. $1,000 or fraction thereof $9.63 $7.45 ($2) $5,000,001 - $10,000,000 Base $54,870.00 $44,671.37 ($10,199) $5,000,001 - $10,000,000 Each Addl. $1,000 or fraction thereof $10.97 $5.96 ($5) $10,000,001 - $25,000,000 Base $109,740.00 $74,452.28 ($35,288) $10,000,001 - $25,000,000 Each Addl. $1,000 or fraction thereof $1.67 $1.99 $0 $25,000,001 - $50,000,000 Base $134,850.00 $104,233.20 ($30,617) $25,000,001 - $50,000,000 Each Addl. $1,000 or fraction thereof $5.39 $1.79 ($4) $50,000,000+ Base $269,700.00 $148,904.57 ($120,795)
$50,000,000+ Each Addl. $1,000 or fraction thereof $5.39 $0.89 ($5) Demolition Per permit $674.31 $1,085.99 $412
Deconstruction (Initiation / Intake) Per permit New $975 N/A Commercial Interior Non-Structural Demolition Per permit $242.43 $456 $213 Construction & Demolition (C&D)
Commercial and Multi-Family Projects greater than or equal to $25,000.00 in Valuation Per permit $412.27 $470 $58
Single Family and Two Family Projects greater than $25,000.00 and less than $75,000.00 in Valuations Per permit $220.81 $470 $250 Single Family and Two Family Projects greater than $75,000.00 in Valuation Per permit $283.47 $503 $220
Electrical Permits
Generator
Single-Family Per Permit $598.35 $714 $115
Multi-Family / Commercial Per Permit $598.35 $1,318 $720 Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 42

Fee Category Unit Current Fee17 Total Cost18 $ Change
Electrical Service - New or Replacement
Less than 400 amp Per Permit $496.98 $565 $68
400 amp and Greater Per Permit $745.54 $871 $126
Rewiring (Single Family Residential Only) Per Permit New $604 N/A Temporary Electric Service (Power Pole, Pedestal, etc.) Per Permit $79.60 $149 $69 Misc. Permit - Not Otherwise Listed
Single-Family Residential Permits / Equipment Not Listed Above Per Permit New $528 N/A Multi-Family / Commercial Permits / Equipment Not Listed Above Per Permit New $685 N/A Electrical Permits - Electrical Vehicle Charging Stations Multi-Family / Commercial (Level 1 and 2)
1-6 Stations Per Permit $482.53 $3,933 $3,450
Each addl 6 stations Per Group $90.53 $1,031 $940
Multi-Family / Commercial (Level 3 and 4)
1-6 Stations Per Permit $576.59 $4,762 $4,185
Each addl 6 stations Per Group $113.34 $1,031 $918
Single-Family (Level 1 and 2) Per Permit $208.70 $1,206 $997 Single-Family (Level 3) Per Permit $317.22 $1,388 $1,071 Electrical Permits - Photovoltaic Systems (PV)
Multi-Family / Commercial System (10kW or less) Per Permit $755.20 $1,762 $1,007 Multi-Family / Commercial System (11kW-49kW) Per Permit $1,013.46 $2,375 $1,362 Multi-Family Commercial System (50kW or greater) Per Permit $755.20 $3,155 $2,400 Multi-Family / Commercial System - Reinstallation Per Permit New $1,227 N/A Single-Family Systems (10kW or less) Per Permit $349.79 $1,346 $996 Single-Family Systems (greater than 10kW) Per Permit $223.16 $1,698 $1,475 Single-Family - Reinstallation Per Permit New $911 N/A
SolarAPP+ PV Per Permit New $596 N/A
SolarAPP+ PV and ESS Per Permit New $1,210 N/A
Energy Storage Systems (ESS)
Single-Family System Per Permit New $1,690 N/A
Multi-Family / Commercial System Per Permit New $2,959 N/A General & Miscellaneous Fees
ADU - Stand-Alone Detached - Excluding Master Permits Per Permit New $6,385 N/A ADU - Stand-Alone Detached - Master Permit Per Model New $2,306 N/A ADU - Stand-Alone Detached - Site Construction - Site Specific Related to Master Per Permit New $4,765 N/A
Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 43

Fee Category Unit Current Fee17 Total Cost18 $ Change
ADU - Stand-Alone Detached - Pre-fab Site Specific Related to Master Per permit New $3,416 N/A Address Change - First address change Per address $683.93 $365 ($319) Each additional Per address $254.82 $91 ($164)
Awnings (Groups of 5)
Single-Family Per group $94.05 $307 $213
Multi-Family / Commercial Per group $94.05 $1,520 $1,426 Bathroom Remodel
Single-Family (Direct Replacement Non-Structural) Per Permit $377.53 $596 $218 Multi-Family (Direct Replacement, Non-Structural) Per Permit $377.53 $753 $376 Single/Multi-Family (Other) Per Permit $377.53 $911 $534 Instant Permit Per Permit New $596 N/A
Cell Tower Building Review Per Permit New $2,481 N/A
Deck or Balcony - Single Family Per Permit Modified $787 N/A Doors, windows and skylights (Group of 5) - Structural
Single-Family Per group $377.53 $547 $169
Multi-Family/Commercial Per group $377.53 $795 $418
Doors, windows and skylights (Group of 10) - Non-Structural Single Family Per group $189.42 $468 $278
Multi-Family/Commercial Per group $189.42 $547 $357
Dryrot Repair/Replacement - Single Family
Structural Per Permit $94.05 $762 $668
Non-Structural Per Permit $94.05 $456 $362
Electric Service and Safety Inspection Per hour $265.37 $298 $32 Extension of Building Permit or Building Permit Application Per application $106.18 $238 $132 Foundation Repair - Single Family Residential (No Basement) Per Permit New $510 N/A Green Building Special Inspector
Initial Review Per application $574.46 $376 ($198)
Renewal Update Per application $286.53 $188 ($98)
Inspections and Investigations
Outside of Normal Business Hours (2 hour minimum) Per hour $499.47 $343 ($156) Unclassified (2 hour minimum) Per hour $332.98 $298 ($35) Kitchen Remodel
Single-Family (Direct Replacement, Non-Structural) Per Permit $283.47 $447 $163 Multi-Family (Direct Replacement, Non-Structural) Per Permit $283.47 $604 $321 Single/Multi-Family (Remodel, not direct replacement) Per Permit $283.47 $753 $470 Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 44

Fee Category Unit Current Fee17 Total Cost18 $ Change
Instant Permit Per Permit New $447 N/A
Progress & Partial Inspections (Up to 30 minutes inspection) Per inspection $74.77 $149 $74 Reactivation of Expired Building Permit
Multiple Outstanding Inspections % of Original Building Permit Fee 50% 50% $0 Final Inspection Only
Fee or 50% of Building Permit Fee,
whichever is less $346.27 $365 $19
Application Per permit plus Plan Check Fees $211.17 $90 ($121) Real Property Research Fee (1-hour minimum) Per hour $310.04 $277 ($33) Building Reinspection Fee
Multi-Family Residential and Commercial (up to 30 minute inspection) Per Inspection $184.60 $149 ($36) Single-Family
Primary Inspection Type (1 hour) Per Inspection $190.58 $298 $107 Secondary Inspection Type (30 minutes) Per Inspection $102.51 $149 $46 Request of Release of Building Plans and Documents Per request $103.70 $277 $174 Re-Roof:

Re-Roof - Multi-Family / Commercial
First 5,000 sf Per Permit $377.53 $1,233 $856
Each additional 2,500 sf Each additional 2,500 sf $93.44 $298 $204 Re-Roof-Single Family Overlay Per permit $94.05 $298 $204 Re-Roof - Single Family Per permit $377.53 $538 $160
Retaining Walls
First 100 LF Per Permit $125.46 $1,439 $1,314
Each additional 100 LF Each additional 100 LF $62.79 $208 $145 Siding Repair/Replacement (in-kind) Per Permit $189.41 $298 $108 Sign Permit (Group of 5)
Illuminated Per Permit $156.85 $750 $593
Non-Illuminated Per Permit $156.85 $452 $295
Monument Per Permit $156.85 $656 $499
Seismic Retrofit - Brace and Bolt - Single Family Residential Per Permit New $456 N/A Industrial Storage Racks / Cabinets Per Permit New $613 N/A Stucco Repair/Replacement Each $283.47 $298 $14
Swimming Pool / Spa
Single-Family Per Permit New $1,184 N/A
Multi-Family / Commercial Per Permit New $2,218 N/A
Deferred submittal/revisions - Base Charge Per Application New $631 N/A Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 45

Fee Category Unit Current Fee17 Total Cost18 $ Change
Hourly Charge Per hour New $316 N/A
Mechanical Permits
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling Unit) Single-Family Per Permit $63.96 $489 $425
Multi-Family / Commercial (Groups of 5)
Direct replacements Per Permit $63.96 $902 $838
New - with curb Per Permit $63.96 $1,540 $1,476
New - without curb Per Permit $63.96 $1,233 $1,169
Boilers, Compressors, and Absorption Systems / Water Heaters N/A Single Family / Multi Family Per Permit $125.46 $298 $172 Commercial Per Permit $125.46 $544 $418
Instant Permit - Single-Family Replacement (i.e., Heat Pump Water Heaters, Gas, etc.) Per Permit New $298 N/A
Furnace, Flue, and Associated Ducts
Single Family / Multi Family Per permit $125.46 $456 $330 Commercial Per permit $125.46 $632 $507
Miscellaneous Permit - not otherwise listed Per Permit $63.96 $298 $234 Per hour Per hour New $298 N/A
Process Piping System Per permit $62.79 $456 $393
Process Piping System - Hazardous Per permit $63.96 $808 $744 Swimming Pool Heater - Direct Replacement Per permit $74.77 $489 $414 Ventilation and Exhaust System - Single-Family / Multi-Family Each $63.96 $456 $392 Plan Review Fees
Additional Plan Review Per hour $258.19 $316 $57
Alternate Materials, Design Methods of Construction (AMMR) Per application New $898 N/A Certified Access Specialist (CASp) Review/Consultation Flat $496.99 $596 $99 Building Plan Check:

Single-Family Residential % of Bldg Permit Fee Modified 125% N/A Commercial & Multi-Family % of Bldg Permit Fee Modified 95% N/A Fire and Life Safety Plan Check:

Single-Family Residential % of Bldg Permit Fee Modified 8% N/A Commercial & Multi-Family % of Bldg Permit Fee Modified 40% N/A Public Works Plan Check:

Single-Family Residential % of Bldg Permit Fee Modified 35% N/A Commercial & Multi-Family % of Bldg Permit Fee Modified 15% N/A Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 46

Fee Category Unit Current Fee17 Total Cost18 $ Change
Zoning Plan Check
Single-Family Residential % of Bldg Permit Fee Modified 35% N/A Commercial & Multi-Family % of Bldg Permit Fee Modified 15% N/A Zero Waste Plan Check
Commercial & Multi-Family % of Bldg Permit Fee Modified 0.48% N/A Traffic Engineering Plan Check
Commercial & Multi-Family % of Bldg Permit Fee Modified 0.06% N/A Plumbing Permits
Backflow protective device Each $225.63 $203 ($22)
Building Sewer System - Direct Replacement Per permit $152.04 $352 $200 Gas Piping System Per permit $225.63 $510 $284
Sand Oil Interceptor and Grease Traps Per permit $225.63 $917 $691 Plumbing Fixtures - New / Direct Replacement (Groups of 5) Per group $156.85 $298 $141 Solar Hot Water System Per permit $225.63 $604 $379
Storm Drain System Per permit $225.63 $407 $181
Potable Water System - Repair / Direct Replacement Per permit New $352 N/A Plumbing Permits - Graywater Systems
Clothes washer System / Simple System Per permit $94.05 $510 $416 Complex System Per permit $225.63 $817 $591
Miscellaneous Permit - not otherwise listed Per permit New $298 N/A Per hour Per hour New $352 N/A
Use & Occupancy Permits
Certificate of Use and Occupancy
Stand-alone Per application $1,482.64 $1,301 ($182)
Included in Associated Building Permit Per application $1,482.64 $171 ($1,312) Certificate of Use and Occupancy - Replacement Per application $296.17 $135 ($161) Temporary Occupancy Permit
Multi-Family Residential, Non-Residential, and Other Commercial Per application $1,118.27 $2,793 $1,675 Single Family and Commercial Tenant Improvement less than 10,000 sq. ft. Per application $820.33 $1,150 $330
Appeal Per Hour New $413 N/A
Consultation Per Hour New $413 N/A

PLANNING
Appeals
Appeal Costs Exceeding Appeals Filing Fee Deposit $4,601.68 $6,193 $1,592 Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 47

Fee Category Unit Current Fee17 Total Cost18 $ Change
Appeals and Request for Hearing before City Council or Planning & Transportation Commission Per Application $717.80 $562 ($156) Architectural Review
Architectural Review - Major Project Deposit $15,748.99 $38,255 $22,506 Architectural Review - Minor Project (ARB Review) Each $10,679.26 $11,460 $780 Architectural Review - Minor Project (Staff Review) Each $4,099.91 $5,834 $1,734 Design Enhancement Exception Each $8,504.62 $3,616 ($4,889) Preliminary Review Each $8,013.79 $8,232 $219
Signs - (ARB Review/Exceptions) Per application $5,356.05 $6,679 $1,323 Signs, Minor Façade Changes, Landscaping, Accessory Structures or Similar Minor Changes to a Building Exterior - (Staff Review, unless OTC) Per application $1,280.77 $2,832 $1,551
Streamlined Housing Development Review Each New $24,773 Comprehensive Plan Change
Comprehensive Plan Change Deposit $9,384.12 $29,145 $19,760 Development Agreement
Annual Review Deposit $3,791.00 $5,465 $1,674
Development Agreement Deposit $10,828.07 $32,788 $21,960 Director's Approval
Home Improvement Exception Each $4,770.26 $4,310 ($460) Documents & Photocopies
Administrative Extensions and Zoning Letters Applicable hourly rate Flat Fee Modified $354 N/A Property Research requiring more than 30 minutes Applicable hourly rate Per Hour Modified $342 N/A Environmental Impact Assessment
CEQA Categorical Exemption Each $692.73 $744 $52
Environmental Document (Staff Prepared) Deposit $7,671.29 $14,572 $6,901 Mitigation Monitoring - Environmental Impact Report Deposit $5,631.09 $5,465 ($166) Mitigation Monitoring - Mitigated Negative Declaration Deposit $1,876.00 $3,643 $1,767 Historic Resource
Demolition Application for Historic Buildings Each $1,535.29 $1,811 $276 Historic Resource Review - Major Project Each $2,304.21 $6,625 $4,320 Historic Resource Review - Minor Project (Staff Review) Each $1,536.18 $3,043 $1,507 Historic Resource Review of Individual Review Application Each $384.07 $1,124 $740 Mills Act Contract - Establish or Withdraw Deposit $2,816.06 $3,643 $827 Transfer of Development Rights Projects Deposit $904.55 $5,465 $4,560 Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 48

Fee Category Unit Current Fee17 Total Cost18 $ Change
Williamson Act Contract - Establish or Withdraw Deposit $2,958.76 $3,643 $684 Individual Review
Expansion of Existing Two-Story greater than 150 sq. ft. Each $8,653.43 $7,394 ($1,259) Individual Review - Minor Revisions to Approved Projects Each $4,497.08 $3,742 ($755) Individual Review Refund Fee 2 hr. rate $0.00 $687 $687 New Two-Story Addition or New Two-Story Home Each $10,810.62 $14,408 $3,597 Preliminary Individual Review and SB9 with Architect Per occurrence $575.73 $1,037 $461 Other Application Fees
Contract Administrative % of Cost $0.25 0% ($0)
Planning Compliance Fee Deposit Modified $1,093 N/A
Pre-Screening fee Flat $4,602.29 $6,197 $1,595
SB9 Applications Each New $5,178 N/A
Public Noticing - Up to 150 ft. Radius Each $786.12 $326 ($460) Public Noticing - 600 ft. Radius Each $1,380.32 $326 ($1,054) Public Noticing beyond 600 ft. Radius Each $1,840.08 $326 ($1,514) Recording Fee with County Pass through Actual cost Actual Cost N/A Day Care Center Each $218.59 $8,437 $8,218
Pre-Application Staff Consultation Fee Each $888.74 $1,150 $261 SB 330 Pre-Application Fee Each $2,872.98 $3,009 $136
Site & Design
Site & Design Major Deposit $34,555.20 $38,444 $3,888
Subdivision (Minor) Four or Less Parcels
Parcel Map Each $5,982.76 $5,757 ($226)
Preliminary Parcel Map, Minor Each $7,167.40 $7,730 $563 Parcel Map, Minor with Exception Each $4,380.18 $8,733 $4,353 Preliminary Parcel Map, Minor with Exception Deposit $11,335.04 $19,506 $8,171 Subdivision - (Major) Five or More Parcels
Subdivision Final Map Each $7,153.03 $8,539 $1,386
Tentative Map Deposit $13,227.77 $19,942 $6,714
Use Permit
Conditional Use Permit - Director Level Each $8,825.84 $9,075 $249 Conditional Use Permit - Director Level - Amendment Each New $4,255 N/A Conditional Use Permit - Alcohol Each New $3,893 N/A
Conditional Use Permit - Alcohol - Amendment Each $4,655.12 $1,886 ($2,769) Temporary Use Permit Each $1,752.79 $2,138 $386
Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 49

Fee Category Unit Current Fee17 Total Cost18 $ Change
Variance
Variance - Director's Level Each $5,638.58 $6,859 $1,220 Wireless Permit
Wireless Tier 1 Flat $4,099.70 $3,703 ($397)
Wireless Tier 2 Deposit $8,826.75 $21,532 $12,706
Wireless Tier 3 Deposit $9,374.08 $25,175 $15,801
Zone Change
Planned Community Zone Change - Minor Change Flat $2,302.33 $7,487 $5,185 Planned Community Zone Change Deposit $11,264.44 $36,431 $25,166 Zone Change Regular Deposit $9,384.67 $21,858 $12,474
Retail Waiver
Retail Waiver Flat New $8,387 N/A

FIRE PREVENTION
Compliance Fees
Emergency Response Fee - Hazmat Per person per hour $472.88 $483 $10 Hazmat Plan Submittal min 5 hrs. Modified $2,024 N/A
Hazmat Closure
Partial Closure min 3 hrs. Modified $1,318 N/A
Full Closure min 8 hrs. Modified $3,342 N/A
Hazmat Work Submittal Without Approved Plans and/or Permits 2x Fee $82.18-
$1,101.33 2x Fee N/A
Hazmat Closure Without Approved Plans and/or Permits 2x Fee $82.18-
$1,101.33 2x Fee N/A
Review of Emergency Planning Guide *only assessed if not part of annual submittal Per hour Modified $483 N/A
General & Miscellaneous Fees Fire Prevention Plan Check Hourly Fire Prevention Per hour $258.19 $353 $95
Development Services - Fire Per hour $258.19 $353 $95
HazMat Per hour $258.19 $353 $95
Hazardous Materials Classification Permits
Compressed Gas Annually $474.06 $483 $9
Corrosives Annually $474.06 $483 $9
Cryogenic Fluid Annually $474.06 $483 $9
Flammable and Combustible Liquids Annually $474.06 $966 $492 Flammable Gas Annually $473.08 $483 $10
Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 50

Fee Category Unit Current Fee17 Total Cost18 $ Change
Flammable Solids Annually $474.06 $483 $9
Health Hazard (Liquids & Solids) Annually $474.06 $483 $9 Liquefied Petroleum Gases Annually $474.06 $483 $9
Organic Coatings Annually $474.06 $483 $9
Organic Peroxides Annually $474.06 $483 $9
Other Hazardous Materials - Unclassified Annually $474.06 $483 $9 Ovens - Industrial Baking or Drying Annually $474.06 $966 $492 Oxidizers (Liquids & Solids) Annually $474.06 $483 $9
Oxidizing Gas Annually $474.06 $483 $9
Pyrophoric Gas Annually $474.06 $483 $9
Pyrophoric Materials (Liquids & Solids) Annually $474.06 $483 $9 Pyrotechnical Special Effects Material Annually $474.06 $483 $9 Radioactive Materials or Sources Annually $474.06 $966 $492 Refrigeration Equipment Annually $509.13 $483 ($26)
Spraying/Dipping Annually $454.58 $483 $28
Tire Recapping/Tire Storage Annually $1,890.25 $1,860 ($30) Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gas Annually $474.06 $966 $492 Toxic, Highly Toxic, Moderately Toxic, Health Hazard Materials Annually $474.06 $966 $492 Unstable Reactive Gas Annually $474.06 $483 $9
Unstable Reactive Materials (Liquids & Solids) Annually $474.06 $483 $9 Water Reactive Materials (Liquids & Solids) Annually $474.06 $483 $9 Additional Approvals for Hazardous Materials Storage Permit Per occurrence (includes up to 2 hours) Per occurrence $1,030.19 $836 ($195) Per hour for time above two hours Per hour $674.31 $418 ($257) Business Plan (HMBP) Per location $674.31 $724 $50
Level I Facility Per location $474.06 $724 $250
Level II Facility Per location $951.77 $1,207 $255
Level III Facility Per location $1,903.55 $3,138 $1,235 Petroleum Aboveground Storage Tank Annually $951.77 $1,931 $979 Provisional Hazmat Storage (6 Month) Each $951.77 $836 ($116) Liquid or Gas-Fueled Powered Equipment (i.e. Generator, Welders, Portable Light Units, etc.)
First Equipment Each $471.71 $483 $11
Each Additional Equipment at Same Location Each New $121 N/A Temporary Generator / Backup Power Supply Each New $1,318 N/A Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 51

Fee Category Unit Current Fee17 Total Cost18 $ Change
Battery Operated Equipment
Up to 10 pieces of Equipment Each New $483 N/A
Each Additional Equipment at Same Location Each New $121 N/A Operate a Tank Vehicle to Transport Flammable/Combustible Liquids Per vehicle $634.00 $724 $90 Temporary Certificate of Occupancy - Hazmat Per occurrence New $966 N/A Inspection Fees
Additional Inspection or Reinspection Fee (2-hour minimum) Fire Prevention Per hour $473.48 $465 ($8)
Development Services - Fire Per hour $473.48 $465 ($8)
HazMat Per hour $473.48 $483 $9
After Hours Inspection Fee*
Fire Prevention Per hour $709.34 $530 ($179)
Development Services - Fire Per hour $709.34 $530 ($179) HazMat Per hour $709.34 $555 ($154)
As-Built Plan Check and Additional Work Each $946.96 $818 ($129) Care Facility Inspection Including Fire Clearance
Facilities with 7-25 clients Per inspection $471.71 $465 ($7) Facilities with more than 25 clients Per inspection $946.96 $1,860 $913 Christmas Tree Lot/Pumpkin Patch Each $471.71 $465 ($7) High Rise Building - Certificate of Compliance
Annually for up to 7 hours Annually $3,708.19 $3,255 ($453) Each additional hour Per hour $507.08 $465 ($42)
Hospital Inspections
Annually for up to 7 hours Annually New $3,255 N/A
Each additional hour Per hour New $465 N/A
Outside Cooking Booths/Food Trucks Each $709.34 $465 ($244) Standby Fire Watch - Fire Inspector Per hour per person $471.71 $465 ($7) Temporary Occupancy Permit for Vendors/Stock Occupancy Per occurrence $1,523.55 $2,213 $689 Hazmat Temporary Occupancy Permit for Vendors/Stock Occupancy Per occurrence New $2,284 N/A Business Inspection Per Inspection New $465 N/A
Consultations:

Additional Hours Over Plan Review/Site Visit N/A
Fire Prevention Per hour $337.79 $353 $15
Development Services - Fire Per hour $337.79 $353 $15
HazMat Per hour $337.79 $353 $15
Item 23
Attachment A, Exhibit 6 - Planning
and Development Services Cost of
Service Study and Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 52

Fee Category Unit Current Fee17 Total Cost18 $ Change
Alternate Means and Methods Application (2 hr. minimum) N/A Fire Prevention Per application $1,009.75 $836 ($174)
HazMat Per application $1,009.75 $836 ($174)
Appeals to Decisions N/A
Fire Prevention Per hour $471.71 $483 $12
Development Services - Fire Per hour $471.71 $483 $12
HazMat Per hour $471.71 $483 $12
Consultation Fee N/A
Fire Prevention Per hour $471.71 $434 ($38)
Development Services - Fire Per hour $471.71 $434 ($38) HazMat Per hour $471.71 $440 ($32)
Investigations:

Environmental Hazard Release Per hour per person New $418 N/A Hazmat Per hour per person New $483 N/A
Fire Investigation Per hour per person New $465 N/A
Services:

Emergency Responder Radio Coverage Testing Fee Per Hour $667.12 $465 ($202) Hydrant Flow Fee Per occurrence $471.71 $698 $226
Life Safety & Fire Protection
Hydrant Installation/Modification - Private Per device $237.62 $818 $580 Sprinkler NFPA 13D - Base Base New $994 N/A
Sprinkler NFPA 13D - Per head Per Head New $4 N/A
All Other (Non-NFPA 13D) Automatic Fire Sprinkler
Installation/Modification $0.00 N/A
1 - 19 Sprinkler Heads Flat $1,055.58 $1,692 $636
20 or more Sprinkler Heads Base $2,334.23 $2,919 $584
Per head Per head $3.89 $11 $7
Express Fire Protection Plan Check Fee Per occurrence $235.27 $458 $223 Fire Alarm System Installation and Modification Flat $1,379.79 $1,988 $609 Plus per device or contact point Per device or contact point $31.09 $41 $10 Fire Prevention Inspection of Private Schools (min 2 hours) Per hour $473.48 $465 ($8) Fire Protection and Fire Access Plan Review for New Developments or Additions (min 2 hours) Per hour New $434 N/A
Multifamily dwellings, hotels & motels 3-10 units Annually $471.71 $465 ($7) Multifamily dwellings, hotels & motels 11-25 units Annually $471.71 $930 $458 Item 23
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Fee Category Unit Current Fee17 Total Cost18 $ Change
Multifamily dwellings, hotels & motels 26-100 units Annually $946.96 $1,395 $448 Multifamily dwellings, hotels & motels 101-250 units Annually $1,418.67 $2,325 $907 Multifamily dwellings, hotels & motels greater than 250 units Annually $1,418.67 $2,790 $1,372 Other Automatic Extinguishing Systems Per occurrence $1,283.57 $1,395 $112 Site Disaster / Emergency Preparedness Planning Per hour $471.71 $446 ($26) Standpipe System - Wet, Dry, or Combination Each $946.96 $1,636 $689 Temporary Certificate of Occupancy Per occurrence $1,024.20 $1,395 $371 Underground Fire Service Line (Includes 4 hrs. of inspection and 1 hr. of plan check) Per occurrence $2,229.25 $2,213 ($16)
Verification of Fire Protection System Maintenance and Certification Annually per system $86.89 $39 ($48) Specific Hazard Permits
Candles and Open Flames in Assembly Areas Per permit $471.71 $465 ($7) Hot Work (i.e. Spark/Flame Producing) Operations Each $529.56 $465 ($64) Occupant Load Increase - Temporary Public Assembly Per permit $471.71 $1,283 $811 Place of Assembly Annually - base per address $951.77 $930 ($22) Each additional assembly Each add'l New $233 N/A
Tent/Canopy or Air Supported Structure Per permit $992.81 $1,171 $178

PUBLIC WORKS
Encroachment Permit
A. Dumpster, Container Each $407.35 $475 $67
B. Non-Residential - Single Day Each $1,631.37 $2,053 $422 C. Non-Residential Short-Term (Less than 5 days) Each $1,902.94 $2,281 $378 D. Non-Residential Long-Term (More than 5 days) Each $2,609.41 $2,931 $321 E. Additional Non-Residential Long-Term (More than 5 days) Monthly Per month $917.04 $934 $17 F. Fence Each $2,005.08 $1,999 ($7)
G. Residential Each $1,038.00 $1,277 $239
Parklet Permit:

Initial Application Fee Per Application $1,860.00 $4,549 $2,689 License Fee for Use of Right-Of-Way Per sq. ft. $10.71 $11 $0 Refundable Deposit Per Application $2,500.00 $2,500 $0
Renewal Fee Per Application $232.50 $549 $317
Grading / Excavation
A. 101 - 1,000 cubic yards
First 100 cubic yards Base $246.97 $1,550 $1,303
Each additional 100 cubic yards or fraction thereof Each additional $246.97 $322 $75 Item 23
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Fee Category Unit Current Fee17 Total Cost18 $ Change
B. 1,001 - 10,000 cubic yards
First 1,000 cubic yards Base $2,469.69 $4,010 $1,540
Each additional 1,000 cubic yards or fraction thereof Each additional $233.20 $554 $320 C. 10,001 or more cubic yards
First 10,000 cubic yards Base $4,801.63 $8,398 $3,597
Each additional 10,000 cubic yards or fraction thereof Each additional $906.21 $2,034 $1,128 General & Miscellaneous Fees
Miscellaneous Public Works Inspection Per hour $253.85 $195 ($59) Miscellaneous Public Works Plan Check Per hour $298.13 $243 ($55) Inspection Fees
Tree Inspection for Private Development Per inspection $236.15 $764 $527 Wet Season Construction Site Stormwater Inspection
Per Inspection (charged monthly October thru April) Per inspection $360.12 $312 ($48) Per hour thereafter, charged monthly October thru April Per hour $120.04 $208 $88 Off Hour Inspection Per Hour $310.62 $244 ($66)
Permit Fees

1. Temporary Discharge to Storm Drain from Non-Exclusionary Construction Site Dewatering Per request plus consultant costs $18,212.73 $17,329 ($884)

2. Additional Temporary Discharge to Storm Drain from Non- Exclusionary Construction Site Dewatering
Per week for the duration of
dewatering activities $387.67 $373 ($15)
Certificate of Compliance / Certificate of Correction / Map Amendment Per Occurrence $5,659.98 $4,577 ($1,083) A. Construction in Public Right-of-Way ($1.00 - $5,999) Per occurrence $817.66 $971.18 $154 B. Construction in Public Right-of-Way ($6,000 - $25,999) Base $817.66 $971.18 $154 B. Construction in Public Right-of-Way ($6,000 - $25,999) % of Value 10.70% 18.37% $0.08 C. Construction in Public Right-of-Way ($26,000 - $100,999) Base $2,923.29 $5,430.35 $2,507 C. Construction in Public Right-of-Way ($26,000 - $100,999) % of Value 13.70% 10.61% ($0) D. Construction in Public Right-of-Way ($101,000 - $500k) Base $13,033.27 $15,854.43 $2,821 D. Construction in Public Right-of-Way ($101,000 - $500k) % of Value 10.70% 2.30% ($0.08) E. Construction in Public Right-of-Way ($500k-$1m) Base $55,726.27 $25,267.42 ($30,459) E. Construction in Public Right-of-Way ($500k-$1m) % of Value 10.70% 2.49% ($0.08) F. Construction in Public Right-of-Way ($1m+) Base $109,226.27 $38,175.31 ($71,051) F. Construction in Public Right-of-Way ($1m+) % of Value 10.70% 1.25% ($0.09) Polychlorinated Biphenyls (PCBs) Permit Review Fee Per Hour $256.81 $229.74 ($27) Right of Way Closure Management Each $103.31 $95.89 ($7) Storm Drain Plan Check Fee Each $1,225.01 $2,718.39 $1,493 Item 23
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and Development Services Cost of
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The following table shows the current and fully burdened hourly rates by position type reviewed through this study:

TABLE 19: HOURLY RATES
Position
Current Hourly
Rate
Fully Burdened
Hourly Rate
Associate Planner $247.09 $339.41
Building / Planning Technician $198.69 $325.82
Code Enforcement Lead $268.08 $297.53
Engineer $229.88 $229.74
Engineering Tech III $169.37 $191.77
Landscape Architect / Park Planner $255.37 $230.74
Planning Manager $314.41 $436.80
Planner $258.99 $343.26
Principal Planner $306.54 $393.54
Senior Engineer $272.88 $274.66
Senior Planner $298.69 $369.26
Building - Inspections and Investigations - Unclassiﬁed $356.01 $297.81 Building - Additional Plan Review $276.04 $351.21
Planning - Miscellaneous Plan Check & Inspection $278.57 $361.37 Public Works - Miscellaneous Plan Check $319.31 $242.86

APPENDIX B: FULLY BURDENED HOURLY RATES
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As part of the cost-of-service (user fee) study for the City of Palo Alto, Matrix Consulting Group conducted a comparative survey of user fees. The City identiﬁed ﬁve jurisdictions to be included in the comparative survey: Menlo Park, Mountain View, San Jose, Santa Clara, and Sunnyvale. The project team then reviewed public documents (i.e., agenda items, staff reports, budgets, fee schedules, and ordinances), and or contacted jurisdictions to get comparative information.

While this report will provide the City with a reasonable estimate and understanding of the true costs of providing services, many jurisdictions also wish to consider the local “market rates” for services as a means for assessing what types of changes in fee levels their community can bear. However, a comparative survey does not provide adequate information regarding the relationship of a jurisdiction’s cost to its fees.

The following sections detail various factors to consider when reviewing comparative survey results, as well as graphical comparisons of current fees and total calculated costs for various permits issued or services provided by the City.

ECONOMIC FACTORS
To provide additional context to the comparative survey information, the project team collected economic factors for the jurisdictions included. Three important economic factors to consider when comparing fees across multiple jurisdictions are population, budget, and workforce size. The following tables rank each jurisdiction from smallest to largest for each of these economic factors:

TABLE 20: RANKING OF JURISDICTIONS BY POPULATION
Jurisdiction 2024 Est. Population
Menlo Park 31,023
Palo Alto 65,057
Mountain View 81,458
Santa Clara 131,886
Sunnyvale 150,872
San Jose 956,433
TABLE 21: RANKING OF JURISDICTIONS BY CITYWIDE TOTAL BUDGET19 Jurisdiction FY24/25 Budget
Menlo Park $131,496,718
Mountain View $536,104,674
Sunnyvale $730,098,454
Palo Alto $1,269,242,117
Santa Clara $1,482,954,629
San Jose $5,334,969,564

19 To ensure appropriate comparisons, full operating budget (all funds) has been used for all jurisdictions.

APPENDIX C: COMPARATIVE SURVEY
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TABLE 22: RANKING OF JURISDICTIONS BY WORKFORCE SIZE
Jurisdiction FY24/25 FTE
Menlo Park 293
Mountain View 710
Sunnyvale 957
Palo Alto 1,092
Santa Clara 1,153
San Jose 6,985

Based on the data shown in the previous tables, Palo Alto ranks in the higher middle of surveyed jurisdictions in terms of workforce size and budget, and in the lower half of surveyed jurisdictions in terms of population.

RECENCY FACTOR
While the previous comparative information can provide some perspective when comparing Palo Alto’s fees with surveyed jurisdictions, other key factors to consider are when a jurisdiction’s fee schedule was last updated and when the last comprehensive analysis was completed. The following tables detail when each surveyed jurisdiction last conducted a fee analysis and when they last updated their fee schedule.

TABLE 23: LAST FEE STUDY CONDUCTED
Jurisdiction Response
Mountain View FY 09-1020
Menlo Park FY 17-18
San Jose FY 17-18
Sunnyvale FY 16-17
Santa Clara FY 23-24
TABLE 24: LAST FEE SCHEDULE UPDATE
Jurisdiction Response
Menlo Park FY 24/25
Mountain View FY 24/25
San Jose FY 24/25
Sunnyvale FY 24/25
Santa Clara FY 24/25
Based on the data presented in the above tables, only Santa Clara has conducted a fee study in the last 5 years. All surveyed jurisdictions have updated their fee schedules within the last year.

Although these metrics may seem similar, many jurisdictions will update their fee schedules without completing or conducting a comprehensive fee analysis. For example, while the City of Mountain View

20 Mountain View is currently undergoing a fee study.

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has updated its fees annually, it hasn’t completed a fee study in the last 10 years. Although the fee amounts are updated, the basis upon which those fee amounts are calculated has not been evaluated.

It is important to note that even though jurisdictions may have conducted fee studies, fees are not always adopted at full cost recovery. The comparative results will only show the adopted fees for the surveyed jurisdictions, not necessarily the full cost associated with the comparable service.

ADDITIONAL FACTORS
Along with keeping the statistics outlined in the previous sections in mind, the following issues should also be noted when considering market surveys in setting fees for service:
• Each jurisdiction and its fees are different, and many are not based on the actual cost of providing services.
• The same fee with the same name may include more or less steps or sub-activities. In addition, jurisdictions provide varying levels of service and have varying levels of costs associated with providing services such as staﬃng levels, salary levels, indirect overhead costs, etc.

Market surveys can run the risk of creating a confusing excess of data that will obscure rather than clarify policy issues. Because each jurisdiction is different, Matrix Consulting Group recommends that the information contained in the market comparison of fees be used as a secondary decision-making tool, rather than a tool for establishing an acceptable price point for services.

COMPARATIVE SURVEY RESULTS
As part of this study, the project team conducted a survey of how the City’s current user fees and calculated full cost compare to other similarly sized and regionally located jurisdictions. The following subsections provide a comparative look at several fee-related services provided by the City versus the surveyed jurisdictions.

NEW SINGLE-FAMILY HOME VALUED AT $421,857, 3,632 SQ. FT.

Currently, the Building Division charges a fee of $12,993 for a new 3,632 square foot single-family home valued at $421,857. Through this study, the project team calculated the full cost of this service to be $11,726. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

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Cost of Service Study and
Municipal Fee
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Palo Alto’s current fee ($12,993) and calculated full cost ($11,726) are higher than the jurisdictional average of $11,227 . Santa Clara ($13,102) and San Jose ($13,905) also have fees higher than the jurisdictional average. Menlo Park ($9,929), Mountain View ($8,454), and Sunnyvale ($10,746) have fees lower than the average and both Palo Alto’s current fee and full costs.

R-2 MULTI-FAMILY VALUED AT $28,006,595, 194,500 SQ. FT.

Currently, the Building Division charges a fee of $359,948 for a 194,500 square foot R-2 multi-family building valued at $28,006,595. Through this study, the project team calculated the full cost of providing this service to be $213,731. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($359,948) is above the jurisdictional average of $291,299. The City’s full cost is below the jurisdictional average and more in alignment with Santa Clara and Mountain View’s fees.

ADU VALUED AT $198,523; 528 SQ. FT.

Currently, the Building Division charges a fee of $6,115 for a 528 square foot ADU valued at $198,523.

Through this study, the project team calculated the full cost of this service to be $6,384. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions. $-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale New Single Family Home - $421,857 (3,632 sq. ft.)
Fee Average
$-
$100,000
$200,000
$300,000
$400,000
$500,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale R-2 Multi-Family - $28,006,595 (194,500 sq. ft.)
Fee Average
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Palo Alto’s current fee ($6,115) and calculated full cost ($6,384) are signiﬁcantly higher than the jurisdictional average ($3,728). Sunnyvale has the most comparable fee at $6,000). Mountain View’s fee ($3,956) falls around the average, while the other three jurisdictions fall below average. It should be noted that Palo Alto (current fee), Sunnyvale, and Mountain View charge this fee based on valuation, while Menlo Park, San Jose, and Santa Clara charge their fees based on square footage. The full cost fe e under the new proposed schedule would be charged based on the type of ADU, rather than the valuation or square footage. Importantly, fees associated with ADU’s have recently begun to be set below cost recovery to address local housing issues.

BUSINESS TENANT IMPROVEMENT VALUED AT $597,255, 5,852 SQ. FT.

Currently, the Building Division charges a fee of $18,395 for a 5,852 square foot tenant improvement valued at $597,255. Through this study, the project team calculated the full cost of providing this service to be $16,173. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($18,395) and full cost ($16,173) are higher than the jurisdictional average of $11,733. Menlo Park’s fee of $5,076, which is based on square footage is driving the overall average lower. If Menlo Park is removed, then the jurisdictional average is $13,398, which is much closer to the City’s Full cost.

$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Accessory Dwelling Unit - $198,523 (528 sq. ft.)
Fee Average
$-
$5,000
$10,000
$15,000
$20,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Business TI - $597,255 (5,852 sq. ft.)
Fee Average
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NEW BUSINESS VALUED AT $1,068,079, 5,444 SQ. FT.

Currently, the Building Division charges a fee of $32,897 for a new 5,444 square foot business valued at $1,068,079. Through this study, the project team calculated the full cost of this service to be $30,025.

The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($32,897) and full cost ($30,025) are signiﬁcantly higher than the jurisdictional average of $18,517. All other jurisdictions’ fees are below Palo Alto’s fees but close to average and relatively comparable to each other.

WATER HEATER
Currently, the Building Division charges a fee of $281 for a water heater. Through this study, the project team calculated the full cost of this service to be $298. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($281) and full cost fee ($298) is slightly higher than the jurisdictional average of $198. San Jose ($319) and Santa Clara ($325) are higher than average but lower than Palo Alto’s calculated full cost. San Jose’s fee is most comparable to Palo Alto’s current fee. Mountain View’s fee at $44 is skewing the average. If Mountain View was removed, then the average fee would be $237 which $-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale New Business - $1,068,079 (5,444 sq. ft.)
Fee Average
$0
$50
$100
$150
$200
$250
$300
$350
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Water Heater
Fee Average
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would be more in alignment with Palo Alto’s current and full cost fees. Fees associated with water heater permits are often set below cost recovery to encourage compliance.

SINGLE-FAMILY RE-ROOF VALUED AT $8,000
Currently, the Building Division charges a fee of $406 for a 2,500 square foot Single Family Re-roof Permit valued at $8,000. Through this study, the project team calculated the full cost of this service to be $538. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($406) and calculated full cost ($538) are higher than the jurisdictional average of $372. The current fee is most comparable to San Jose’s fee ($463), while the full cost is most comparable to Santa Clara’s fee ($671). Sunnyvale ($337), Mountain View ($238), and Menlo Park ($152) all have fees that fall below average.

SINGLE-FAMILY BATHROOM REMODEL (DIRECT REPLACEMENT NON-STRUCTURAL) VALUED AT $15,000, 50 SQ. FT
Currently, the Building Division charges a fee of $406 for a Single-Family Bathroom Remodel permit with no structural changes. Through this study, the project team calculated the full cost of providing this service to be $596. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.
$0
$100
$200
$300
$400
$500
$600
$700
$800
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Single-Family Re-roof - $8,000 (2,500 sq. ft.)
Fee Average
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Palo Alto’s current fee ($406) and calculated full cost ($596) is below the jurisdictional average of $717.

San Jose ($1,234) and Sunnyvale ($1,156) both charge higher fees than Palo Alto’s full cost.

SINGLE-FAMILY RESIDENTIAL PHOTOVOLTAIC SYSTEM
Currently, the Building Division charges a fee of $350 for a Single-Family Residential Photovoltaic System. Through this study, the project team calculated the full cost of providing this service to be $1,346. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($350) is below the jurisdictional average of $441, which is below the state fee of $450. The City’s full-cost fee is the highest among surveyed jurisdictions.

SINGLE-FAMILY RESIDENTIAL ENERGY STORAGE SYSTEM
Currently, the Building Division charges a fee of $350 for a Single-Family Residential Energy Storage System. Through this study, the project team calculated the full cost of providing this service to be $1,688. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.
$0
$500
$1,000
$1,500
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Single-Family Bathroom Remodel (Direct Replacement Non- Structural) - $15,000 (50 sq. ft)
Fee Average
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Single-Family Residential Photovoltaic System
Fee Average
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Palo Alto’s current fee ($264) is below the jurisdictional average of $645. Other than the City of Satna Clara, other jurisdictions utilize valuation or other types of fees to recover the costs associated with Residential energy storage systems.

SB330
Currently, the Planning Division charges a fee of $2,962 for an SB330 review. Through this study, the project team calculated the full cost of this service to be $3,006. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($2,962) and full cost ($3,006) are similar, and both are near but slightly above the jurisdictional average of $2,403. Santa Clara charges the highest fee at $5,900, while Menlo Park charges the lowest fee at $800. It is important to note that Menlo Park’s fee is a deposit, however, so all costs will be recovered and the ﬁnal amount charged may be signiﬁcantly higher.

CONDITIONAL USE PERMIT – DIRECTOR LEVEL
Currently, the Planning Division charges a fee of $9,099 for a Conditional Use Permit (CUP) processed at the director level. Through this study, the project team calculated the full cost of this service to be $9,068. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.
$0
$500
$1,000
$1,500
$2,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Single-Family Residential ESS
Fee Average
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
Palo Alto - Current Palo Alto - Full
Cost
Menlo Park San Jo se Santa Clara Sunnyvale
SB330
Fee Average
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Palo Alto’s current fee ($9,099) and calculated full cost ($9,068) are near but slightly lower than the jurisdictional average of $9,607. Its fees are most in alignment with Menlo Park’s initial deposit of $10,000.

PRE-APPLICATION STAFF CONSULTATION
Currently, the Planning Division charges a fee of $916 for a pre-application staff consultation or meeting.

Through this study, the project team calculated the full cost of this fee to be $1,149. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($916) and calculated full cost ($1,149) are signiﬁcantly higher than the jurisdictional average of $416; the City’s fees are not comparable to any surveyed jurisdiction. Notably, however, Menlo Park ($400) charges this fee as a deposit. Of the two remaining jurisdictions who include a fee for pre-application meetings on their fee schedule, Santa Clara ($522) charges more than the average but less than Palo Alto’s current fee and San Jose ($325) charges less than the jurisdictional average.

$0
$5,000
$10,000
$15,000
$20,000
$25,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Conditional Use Permit - Director Level
Fee Average
$0
$200
$400
$600
$800
$1,000
$1,200
Palo Alto - Current Palo Alto - Full Cost Menlo Park San Jo se Santa Clara Pre-Application Staff Consultation
Fee Average
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MATRIX CONSULTING GROUP 66

PARCEL MAP – MINOR, 4 OR LESS PARCELS
Currently, the Planning Division charges a fee of $6,168 for a minor parcel map review. Through this study, the project team calculated the full cost of this service to be $5,753. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($6.169) and calculated full cost ($5,753) are very close to the jurisdictional average of $5,700. As with the prior fee, Menlo Park charges a deposit for this service ($6,000). Of the remaining jurisdictions, none are comparable to Palo Alto’s current fee or full cost. San Jose ($8,125) and Santa Clara ($8,361) charge signiﬁcantly above average, while Sunnyvale ($3,675) and Mountain View ($2,338) charge below average.

VARIANCE
Currently, the Planning Division charges a fee of $5,813 for a variance. Through this study, the project team calculated the full cost of this service to be $6,8547. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($5,813) and full cost ($6,854) are both slightly above the jurisdictional average of $5,409. Santa Clara charges the highest fee ($10,405), while Sunnyvale charges the lowest fee ($2,263). $0
$2,000
$4,000
$6,000
$8,000
$10,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Parcel Map - Minor, 4 or Less Parcels
Fee Average
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Variance
Fee Average
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 67

Menlo Park charges this fee as a deposit ($3,000). Mountain View ($3,362) and San Jose ($7,743) charge the fees most comparable to Palo Alto.

AUTOMATIC FIRE SPRINKLER INSTALLATION/MODIFICATION VALUED AT $25,000; 20

SPRINKLER HEADS
Currently, Fire charges a fee of $2,510 for an Automatic Fire Sprinkler Installation/Modiﬁcation Permit with 20 sprinkler heads. Through this study, the project team calculated the full cost of this service to be $2,915. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($2,510) and calculated full cost ($2,915) are above the jurisdictional average ($1,232). Palo Alto’s current and full cost is most comparable to San Jose’s fee ($1,924).

FIRE ALARM SYSTEM INSTALLATION AND MODIFICATION VALUED AT $25,000; 1 SYSTEM Currently, Fire charges a fee of $1,484 for a Fire Alarm System Installation and Modiﬁcation Permit for one system. Through this study, the project team calculated the full cost of this service to be $1,986. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($1,484) is near the jurisdictional average of $1,280; the City’s full cost ($1,986), however, falls well above average. The current fee is most comparable to Menlo Park’s fee ($1,303). Palo $0
$1,000
$2,000
$3,000
$4,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Automatic Fire Sprinkler Installation/Modification - $25,000 (20 sprinkler heads)
Fee Average
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Fire Alarm System Installation and Modification - $25,000 (1 system)
Fee Average
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 68

Alto’s calculated full cost is most comparable to San Jose’s fee ($2,544), the highest fee among the surveyed jurisdictions. Mountain View charges the lowest fee at $447.

TREE INSPECTION FOR PRIVATE DEVELOPMENTS
Currently, the Public Works Division charges a fee of $254 for a private development tree inspection.

Through this study, the project team calculated the full cost of this service to be $764. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($254) is lower than the jurisdictional average of $421 and is most comparable to Menlo Park’s fee ($210). The City’s calculated full cost ($764) is much higher than average but is comparable to Mountain View’s fee ($778). The fees for San Jose ($452), Santa Clara ($295), and Sunnyvale ($372) fall between Palo Alto’s current fee and calculated full cost.

DUMPSTER/CONTAINER ENCROACHMENT PERMIT, 1 WEEK
Currently, the Public Works Division charges a fee of $438 for a Dumpster/Container Encroachment Permit for one week. Through this study, the project team calculated the full cost of this service to be $475. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

$0
$200
$400
$600
$800
$1,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Tree Inspection for Private Developments
Fee Average
$0
$100
$200
$300
$400
$500
Palo Alto - Current Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara
Dumpster/Container Encroachment Permit, 1 week
Fee Average
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 69

Palo Alto’s current fee ($438) and full cost ($475) are above the jurisdictional average of $225 for this type of encroachment permit. Menlo Park charges the lowest fee at $120, while Santa Clara charges the highest fee at $421. Both Palo Alto’s current fee and calculated full cost are most comparable to Santa Clara’s fee.

GRADING VALUED AT $50,000; 10,000 CUBIC YARDS
Currently, the Public Works Division charges a fee of $5,163 for a 10,000 cubic yard Grading Permit valued at $50,000. Through this study, the project team calculated the full cost of this service to be $8,398. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.

Palo Alto’s current fee ($5,163) is above the jurisdictional average of $4,972 and is most comparable to Menlo Park’s fee ($4,786). The City’s calculated full cost ($8,996) is above the jurisdictional average but still falls below San Jose’s fee ($11,236). Sunnyvale charges the lowest fee at $1,177. It is important to note that Sunnyvale does not charge their fee based on project size or valuation; the fee schedule only differentiates between single-family/duplex projects and all others.

CONSTRUCTION IN THE PUBLIC RIGHT-OF-WAY VALUED AT $500,000; 5,000 SQ. FT.

Currently, the Public Works Division charges a fee of $56,707 for construction in the public right-of-way valued at $500,000 (or 5,000 square feet). Through this study, the project team calculated the full cost of this service to be $25,267. The following graph shows how the division’s current fee and full cost compare to the surveyed jurisdictions.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Grading - $50,000 (10,000 cubic yards)
Fee Average
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 70

Palo Alto’s current fee ($56,707) is above average ($51,039) but comparable to Santa Clara’s fee ($58,511) and Menlo Park’s fee ($58,320). The City’s calculated full cost ($25,267) is well below average and only comparable to Sunnyvale’s fee ($16,321).

SUMMARY
Based upon the comparative survey, the City’s calculated full cost is generally higher than the City’s current fees and both are generally higher than the jurisdictional average of comparable cities, except for building fees, where the full cost brings that more in alignment. It is important to note with many of the comparative jurisdictions not having completed a recent study, the comparative fees may not reﬂect the current cost of the services provided.

Additionally, the results of this survey only show the fees adopted by council, not the cost recovery policy decisions for departments or a jurisdiction. As such, the results of this survey should be used as a secondary decision-making tool and cannot be used to determine if costs are “too high” or “too low” as the basis upon which fees are set in other jurisdictions are variable.

$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Palo Alto -
Current
Palo Alto - Full
Cost
Menlo Park Mountain View San Jo se Santa Clara Sunnyvale Construction in Public Right-of-Way - $500,000 (5,000 sq. ft.) Fee Average
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*

BUILDING
Building Permit Fees
Base Fee for All Standalone Permits Per permit $305
Base Fee for Small or Medium Sq. Ft. / Valuation Permits Per permit $1,221 Base Fee for Larger Sq. Ft. / Valuation Permits Per permit $4,578 Single-Family / Duplex Residential (Sq. Ft.) Permit Fees:
0-250 sq. ft. Each $655
251-500 sq. ft Each $1,310
501-1,000 sq. ft. Each $1,474
1,001 - 1,500 sq. ft. Each $2,457
1,501 - 2,000 sq. ft. Each $2,785
2,001 - 2,500 sq. ft. Each $4,914
2,501 - 3,000 sq. ft. Each $5,078
3,001 - 3,500 sq. ft. Each $5,569
3,500 - 4,000 sq. ft. Each $5,733
4,001 - 4,500 sq. ft. Each $5,897
4,501 - 5,000 sq. ft Each $6,060
5,001 - 5,500 sq. ft. Each $6,552
5,501 - 6,000 sq. ft. Each $7,207
6,001 - 6,500 sq. ft. Each $7,535
6,500 sq. ft+ Base $8,190
6,500 sq. ft. Each Addl 500 sq. ft. $630
Multi-Family & Commercial (Valuation) Permit Fees:
$0 - $2,000 Base $1,310
$2,001 - $25,000 Base $1,310
$2,001 - $25,000 Each Addl. $1,000 or fraction thereof $28.49 $25,001 - $50,000 Base $1,966
$25,001 - $50,000 Each Addl. $1,000 or fraction thereof $39.31 $50,001 - $100,000 Base $2,948
$50,001 - $100,000 Each Addl. $1,000 or fraction thereof $22.93 $100,001 - $500,000 Base $4,095
$100,001 - $500,000 Each Addl. $1,000 or fraction thereof $8.19 $500,001 - $1,000,000 Base $7,371
$500,001 - $1,000,000 Each Addl. $1,000 or fraction thereof $18.02 $1,000,001 - $5,000,000 Base $16,380
$1,000,001 - $5,000,000 Each Addl. $1,000 or fraction thereof $8.19 $5,000,001 - $10,000,000 Base $49,139
$5,000,001 - $10,000,000 Each Addl. $1,000 or fraction thereof $6.55 $10,000,001 - $25,000,000 Base $81,898
$10,000,001 - $25,000,000 Each Addl. $1,000 or fraction thereof $2.18 $25,000,001 - $50,000,000 Base $114,657
$25,000,001 - $50,000,000 Each Addl. $1,000 or fraction thereof $1.97 $50,000,000+ Base $163,795
$50,000,000+ Each Addl. $1,000 or fraction thereof $0.98 Demolition Per permit $1,195
Deconstruction (Initiation / Intake) Per permit $1,073
Commercial Interior Non-Structural Demolition Per permit $501 Construction & Demolition (C&D)
Commercial and Multi-Family Projects greater than or equal to $25,000.00 in Valuation Per permit $518 Single Family and Two Family Projects greater than $25,000.00 and less than $75,000.00 in Valuations Per permit $518 Single Family and Two Family Projects greater than $75,000.00 in Valuation Per permit $554 Electrical Permits
Generator
Single-Family P
er Permit $785
Multi-Family / Commercial Per Permit $1,450
Electrical Service - New or Replacement
Less than 400 amp Per Permit $621
400 amp and Greater Per Permit $958
Rewiring (Single Family Residential Only) Per Permit $665 Temporary Electric Service (Power Pole, Pedestal, etc.) Per Permit $164 Misc. Permit - Not Otherwise Listed
Single-Family Residential Permits / Equipment Not Listed Above Per Permit $580 Multi-Family / Commercial Permits / Equipment Not Listed Above Per Permit $754 Electrical Permits - Electrical Vehicle Charging Stations Multi-Family / Commercial (Level 1 and 2)
BBD\
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
1-6 Stations Per Permit $4,326
Each addl 6 stations Per Group $1,134
Multi-Family / Commercial (Level 3 and 4)
1-6 Stations Per Permit $5,238
Each addl 6 stations Per Group $1,134
Single-Family (Level 1 and 2) Per Permit $1,327
Single-Family (Level 3) Per Permit $1,527
Electrical Permits - Photovoltaic Systems (PV)
Multi-Family / Commercial System (10kW or less) Per Permit $1,938 Multi-Family / Commercial System (11kW-49kW) Per Permit $2,613 Multi-Family Commercial System (50kW or greater) Per Permit $3,471 Multi-Family / Commercial System - Reinstallation Per Permit $1,349 Single-Family Systems (10kW or less) Per Permit $1,481
Single-Family Systems (greater than 10kW) Per Permit $1,868 Single-Family - Reinstallation Per Permit $1,002
SolarAPP+ PV Per Permit $655
SolarAPP+ PV and ESS Per Permit $1,331
Energy Storage Systems (ESS)
Single-Family System Per Permit $1,859
Multi-Family / Commercial System Per Permit $3,255
General & Miscellaneous Fees
ADU - Stand-Alone Detached - Excluding Master Permits Per Permit $7,024 ADU - Stand-Alone Detached - Master Permit Per Model $2,537 ADU - Stand-Alone Detached - Site Construction - Site Specific Related to Master Per Permit $5,241 ADU - Stand-Alone Detached - Pre-fab Site Specific Related to Master Per permit $3,757 Address Change - First address change Per address $401
Each additional Per address $100
Awnings (Groups of 5)
Single-Family Per group $337
Multi-Family / Commercial Per group $1,672
Bathroom Remodel
Single-Family (Direct Replacement Non-Structural) Per Permit $655 Multi-Family (Direct Replacement, Non-Structural) Per Permit $829 Single/Multi-Family (Other) Per Permit $1,002
Instant Permit Per Permit $655
Cell Tower Building Review Per Permit $2,729
Deck or Balcony - Single Family Per Permit $865
Doors, windows and skylights (Group of 5) - Structural
Single-Family Per group $601
Multi-Family/Commercial Per group $875
Doors, windows and skylights (Group of 10) - Non-Structural Single Family Per group $515
Multi-Family/Commercial Per group $601
Dryrot Repair/Replacement - Single Family
Structural Per Permit $838
Non-Structural Per Permit $501
Electric Service and Safety Inspection Per hour $328
Extension of Building Permit or Building Permit Application Per application $262 Foundation Repair - Single Family Residential (No Basement) Per Permit $561 Green Building Special Inspector
Initial Review Per application $414
Renewal Update Per application $207
Inspections and Investigations
Outside of Normal Business Hours (2 hour minimum) Per hour $378 Unclassified (2 hour minimum) Per hour $328
Kitchen Remodel
Single-Family (Direct Replacement, Non-Structural) Per Permit $491 Multi-Family (Direct Replacement, Non-Structural) Per Permit $665 Single/Multi-Family (Remodel, not direct replacement) Per Permit $829 Instant Permit Per Permit $491
Progress & Partial Inspections (Up to 30 minutes inspection) Per inspection $164 Reactivation of Expired Building Permit
Multiple Outstanding Inspections % of Original Building Permit Fee 50% Final Inspection Only
g,
whichever is less $402
Application Per permit plus Plan Check Fees $99
BBD\
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
Real Property Research Fee (1-hour minimum) Per hour $305 Building Reinspection Fee
Multi-Family Residential and Commercial (up to 30 minute inspection) Per Inspection $164 Single-Family
Primary Inspection Type (1 hour) Per Inspection $328
Secondary Inspection Type (30 minutes) Per Inspection $164 Request of Release of Building Plans and Documents Per request $305 Re-Roof:

Re-Roof - Multi-Family / Commercial
First 5,000 sf Per Permit $1,357
Each additional 2,500 sf Each additional 2,500 sf $328
Re-Roof-Single Family Overlay Per permit $328
Re-Roof - Single Family Per permit $592
Retaining Walls
First 100 LF Per Permit $1,583
Each additional 100 LF Each additional 100 LF $229
Siding Repair/Replacement (in-kind) Per Permit $328
Sign Permit (Group of 5)
Illuminated Per Permit $825
Non-Illuminated Per Permit $498
Monument Per Permit $721
Seismic Retrofit - Brace and Bolt - Single Family Residential Per Permit $501 Industrial Storage Racks / Cabinets Per Permit $675
Stucco Repair/Replacement Each $328
Swimming Pool / Spa
Single-Family Per Permit $1,302
Multi-Family / Commercial Per Permit $2,440
Deferred submittal/revisions - Base Charge
Per Application $694
Hourly Charge Per hour $347
Mechanical Permits
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling Unit) Single-Family Per Permit $538
Multi-Family / Commercial (Groups of 5)
Direct replacements Per Permit $992
New - with curb Per Permit $1,694
New - without curb Per Permit $1,357
Instant Permit - Single-Family Heat Pump Mechanical New/Replacement Per Permit $328 Boilers, Compressors, and Absorption Systems / Water Heaters Single Family / Multi Family Per Permit $328
Commercial Per Permit $598
Instant Permit - Single-Family Heat Pump Water Heater New/Replacement Per Permit $328 Furnace, Flue, and Associated Ducts
Single Family / Multi Family Per permit $501
Commercial Per permit $695
Miscellaneous Permit - not otherwise listed Per Permit $328 Per hour Per hour $328
Process Piping System Per permit $501
Process Piping System - Hazardous Per permit $889
Swimming Pool Heater - Direct Replacement Per permit $538 Ventilation and Exhaust System - Single-Family / Multi-Family Each $501 Plan Review Fees
Additional Plan Review Per hour $347
Alternate Materials, Design Methods of Construction (AMMR) Per application $988 Certified Access Specialist (CASp) Review/Consultation Flat $655 Building Plan Check:

Single-Family Residential % of Bldg Permit Fee 125%
Commercial & Multi-Family % of Bldg Permit Fee 95%
Fire and Life Safety Plan Check:

Single-Family Residential % of Bldg Permit Fee 8%
Commercial & Multi-Family % of Bldg Permit Fee 40%
Public Works Plan Check:

Single-Family Residential % of Bldg Permit Fee 35%
Commercial & Multi-Family % of Bldg Permit Fee 15%
Zoning Plan Check
Single-Family Residential % of Bldg Permit Fee 35%
BBD\
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
Commercial & Multi-Family % of Bldg Permit Fee 15%
Zero Waste Plan Check
Commercial & Multi-Family % of Bldg Permit Fee 0.48%
Traffic Engineering Plan Check
Commercial & Multi-Family % of Bldg Permit Fee 0.06%
Plumbing Permits
Backflow protective device Each $224
Building Sewer System - Direct Replacement Per permit $388 Gas Piping System Per permit $561
Sand Oil Interceptor and Grease Traps Per permit $1,008 Plumbing Fixtures - New / Direct Replacement (Groups of 5) Per group $328 Solar Hot Water System Per permit $665
Storm Drain System Per permit $448
Potable Water System - Repair / Direct Replacement Per permit $388 Plumbing Permits - Graywater Systems
Clothes washer System / Simple System Per permit $561
Complex System Per permit $898
Miscellaneous Permit - not otherwise listed Per permit $328 Per hour Per hour $388
Use & Occupancy Permits
Certificate of Use and Occupancy
Stand-alone Per application $1,431
Included in Associated Building Permit Per application $188 Certificate of Use and Occupancy - Replacement Per application $148 Temporary Occupancy Permit
Multi-Family Residential, Non-Residential, and Other Commercial Per application $3,072 Single Family and Commercial Tenant Improvement less than 10,000 sq. ft. Per application $1,265 Appeal Per Hour $454
Consultation Per Hour $454
PLANNING $0
Appeals
Appeal Costs Exceeding Appeals Filing Fee Deposit $7,000 Appeals and Request for Hearing before City Council or Planning & Transportation Commission Per Application $618 Architectural Review
Architectural Review - Major Project Deposit $40,000
Architectural Review - Minor Project (ARB Review) Each $12,606 Architectural Review - Minor Project (Staff Review) Each $6,418 Design Enhancement Exception Each $3,977
Preliminary Review Each $9,056
Signs - (ARB Review/Exceptions) Per application $7,347
Signs, Minor Façade Changes, Landscaping, Accessory Structures or Similar Minor Changes to a Building Exterior - (Staff Review, unless OTC) Per application $3,115
Streamlined Housing Development Review Each $27,250
Comprehensive Plan Change
Comprehensive Plan Change Deposit $30,000
Comprehensive Plan Maintenance Fee % of Valuation 0.14% Development Agreement
Annual Review Deposit $6,000
Development Agreement Deposit $35,000
Director's Approval
Home Improvement Exception Each $4,741
Planning Fee Waiver Each $0
Documents & Photocopies
Administrative Extensions and Zoning Letters Applicable hourly rate Flat Fee $389 Property Research requiring more than 30 minutes Applicable hourly rate Per Hour $376 Environmental Impact Assessment
CEQA Categorical Exemption Each $819
En
vironmental Document (Staff Prepared) Deposit $15,000
Mitigation Monitoring - Environmental Impact Report Deposit $6,000 Mitigation Monitoring - Mitigated Negative Declaration Deposit $4,000 Historic Resource
Demolition Application for Historic Buildings Each $1,992 Historic Resource Review - Major Project Each $7,287
Historic Resource Review - Minor Project (Staff Review) Each $3,347 Historic Resource Review of Individual Review Application Each $1,237 Mills Act Contract - Establish or Withdraw Deposit $4,000 Transfer of Development Rights Projects Deposit $6,000
Williamson Act Contract - Establish or Withdraw Deposit $4,000 Individual Review
BBD\
Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
Expansion of Existing Two-Story greater than 150 sq. ft. Each $8,134 Individual Review - Minor Revisions to Approved Projects Each $4,116 Individual Review Refund Fee 2 hr. rate $756
New Two-Story Addition or New Two-Story Home Each $15,848 Preliminary Individual Review and SB9 with Architect Per occurrence $1,141 Other Application Fees
Contract Administrative % of Cost 25%
Planning Compliance Fee Deposit $1,000
Pre-Screening fee Flat $6,817
SB9 Applications Each $5,696
Public Noticing - Up to 150 ft. Radius Each $359
Public Noticing - 600 ft. Radius Each $359
Public Noticing beyond 600 ft. Radius Each $359
Recording Fee with County Pass through Actual Cost
Day Care Center Each $9,280
Pre-Application Staff Consultation Fee Each $1,265
SB 330 Pre-Application Fee Each $3,310
Site & Design
Site & Design Major Deposit $40,000
Subdivision (Minor) Four or Less Parcels
Parcel Map Each $6,333
Preliminary Parcel Map, Minor Each $8,503
Parcel Map, Minor with Exception Each $9,606
Preliminary Parcel Map, Minor with Exception Deposit $20,000 Subdivision - (Major) Five or More Parcels
Subdivision Final Map Each $9,392
Tentative Map Deposit $20,000
Use Permit
Conditional Use Permit - Director Level Each $9,983
Conditional Use Permit - Director Level - Amendment Each $4,680 Conditional Use Permit - Alcohol Each $4,282
Conditional Use Permit - Alcohol - Amendment Each $2,075 Temporary Use Permit Each $2,352
Variance
Variance - Director's Level Each $7,545
Wireless Permit
Wireless Tier 1 Flat $4,074
Wireless Tier 2 Deposit $25,000
Wireless Tier 3 Deposit $30,000
Zone Change
Planned Community Zone Change - Minor Change Flat $8,236 Planned Community Zone Change Deposit $40,000
Zone Change Regular Deposit $25,000
Retail Waiver
Retail Waiver Flat $9,226
FIRE PREVENTION $0
Compliance Fees
Emergency Response Fee - Hazmat Per person per hour $507 Hazmat Plan Submittal min 5 hrs $2,125
Hazmat Closure
Par
tial Closure min 3 hrs $1,384
Full Closure min 8 hrs $3,509
Hazmat Work Submittal Without Approved Plans and/or Permits 2x Fee 2x Fee Hazmat Closure Without Approved Plans and/or Permits 2x Fee 2x Fee Review of Emergency Planning Guide *only assessed if not part of annual submittal Per hour $507 General & Miscellaneous Fees Fire Prevention Plan Check Hourly Fire Prevention Per hour $370
Development Services - Fire Per hour $388
HazMat Per hour $370
Hazardous Materials Classification Permits
Compressed Gas Annually $507
Corrosives Annually $507
Cryogenic Fluid Annually $507
Flammable and Combustible Liquids Annually $1,014
Flammable Gas Annually $507
Flammable Solids Annually $507
Health Hazard (Liquids & Solids) Annually $507
Liquefied Petroleum Gases Annually $507
Organic Coatings Annually $507
Organic Peroxides Annually $507
Other Hazardous Materials - Unclassified Annually $507
BBD\
Operate a Tank Vehicle to Transport Flammable/Combustible Liquids Item 23
Attachment A, Exhibit 6 -
Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

Item 23: Staff Report
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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
Ovens - Industrial Baking or Drying Annually $1,014
Oxidizers (Liquids & Solids) Annually $507
Oxidizing Gas Annually $507
Pryophoric Gas Annually $507
Pryophoric Materials (Liquids & Solids) Annually $507
Pryotechnical Special Effects Material Annually $507
Radioactive Materials or Sources Annually $1,014
Refrigeration Equipment Annually $507
Spraying/Dipping Annually $507
Tire Recapping/Tire Storage Annually $1,953
Toxic, Highly Toxic, Moderately Toxic, Health Hazard Gas Annually $1,014 Toxic, Highly Toxic, Moderately Toxic, Health Hazard Materials Annually $1,014 Unstable Reactive Gas Annually $507
Unstable Reactive Materials (Liquids & Solids) Annually $507 Water Reactive Materials (Liquids & Solids) Annually $507 Additional Approvals for Hazardous Materials Storage Permit Per occurrence (includes up to 2 hours) Per occurrence $877 Per hour for time above two hours Per hour $439
Business Plan (HMBP) Per location $760
Late Fee for Hazardous Materials Storage Permit % of HazMat Fee Level I Facility Per location $760
Level II Facility Per location $1,267
Level III Facility Per location $3,295
Petroleum Aboveground Storage Tank Annually $2,028
Provisional Hazmat Storage (6 Month) Each $877
Liquid or Gas-Fueled Powered Equipment (i.e. Generator, Welders, Portable Light Units, etc.) First Equipment Each $507
Each Additional Equipment at Same Location Each $127
Temporary Generator / Backup Power Supply Each $1,384
Battery Operated Equipment
Up to 10 pieces of Equipment Each $507
Each Additional Equipment at Same Location Each $127
Per vehicle $760
Temporary Certificate of Occupancy - Hazmat Per occurrence $1,014 Inspection Fees
Additional Inspection or Reinspection Fee (2-hour minimum) Fire Prevention Per hour $488
Development Services - Fire Per hour $512
HazMat Per hour $507
After Hours Inspection Fee*
Fire Prevention Per hour $557
Development Services - Fire Per hour $583
HazMat Per hour $583
As-Built Plan Check and Additional Work Each $859
Care Facility Inspection Including Fire Clearance
Facilities with 7-25 clients Per inspection $488
Facilities with more than 25 clients Per inspection $1,953 Christmas Tree Lot/Pumpkin Patch Each $488
High Rise Building - Certificate of Compliance
Annually for up to 7 hours Annually $3,418
Each additional hours Per hour $488
Hospital Inspections
Annually for up to 7 hours Annually $3,418
Each additional hours Per hour $488
Outside Cooking Booths/Food Trucks Each $488
Standby Fire Watch - Fire Inspector Per hour per person $488 Temporary Occupancy Permit for Vendors/Stock Occupancy Per occurrence $2,324 Hazmat Temporary Occupancy Permit for Vendors/Stock Occupancy Per occurrence $2,398 Business Inspection Per Inspection $488
Consultations:

Additional Hours Over Plan Review/Site Visit
Fire Prevention Per hour $370
Development Services - Fire Per hour $388
HazMat Per hour $370
Alternate Means and Methods Application (2 hr minimum)
Fire Prevention Per application $878
HazMat Per application $878
Appeals to Decisions
Fire Prevention Per hour $508
Development Services - Fire Per hour $532
HazMat Per hour $508
BBD\
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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
Consultation Fee
Fire Prevention Per hour $455
Development Services - Fire Per hour $477
HazMat Per hour $462
Investigations:

Environmental Hazard Release Per hour per person $439
Hazmat Per hour per person $507
Fire Investigation Per hour per person $488
Services:

Emergency Responder Radio Coverage Testing Fee Per Hour $488 Hydrant Flow Fee Per occurrence $732
Life Safety & Fire Protection
Hydrant Installation/Modification - Private Per device $859 Sprinkler NFPA 13D - Base Base $1,044
Sprinkler NFPA 13D - Per head Per Head $4
All Other (Non-NFPA 13D) Automatic Fire Sprinkler Installation/Modification 1 - 19 Sprinkler Heads Flat $1,776
20 or more Sprinkler Heads Base $3,065
Per head Per head $11
Express Fire Protection Plan Check Fee Per occurrence $481 Fire Alarm System Installation and Modification Flat $2,088 Plus per device or contact point Per device or contact point $43 Fire Prevention Inspection of Private Schools (min 2 hours) Per hour $488 Fire Protection and Fire Access Plan Review for New Developments or Additions (min 2 hours) Per hour $455 Multifamily dwellings, hotels & motels 3-10 units Annually $488 Multifamily dwellings, hotels & motels 11-25 units Annually $977 Multifamily dwellings, hotels & motels 26-100 units Annually $1,465 Multifamily dwellings, hotels & motels 101-250 units Annually $2,442 Multifamily dwellings, hotels & motels greater than 250 units Annually $2,930 Other Automatic Extinguishing Systems Per occurrence $1,465 Site Disaster / Emergency Preparedness Planning Per hour $468 Standpipe System - Wet, Dry, or Combination Each $1,717 Temporary Certificate of Occupancy Per occurrence $1,465 Underground Fire Service Line (Includes 4 hrs of inspection and 1 hr of plan check) Per occurrence $2,324 Verification of Fire Protection System Maintenance and Certification Annually per system $41 Specific Hazard Permits
Candles and Open Flames in Assembly Areas Per permit $488 Hot Work (i.e. Spark/Flame Producing) Operations Each $488 Occupant Load Increase - Temporary Public Assembly Per permit $1,347 Place of Assembly Annually - base per address $977
Each additional assembly Each add'l $244
Tent/Canopy or Air Supported Structure Per permit $1,229 PUBLIC WORKS $0
Encroachment Permit
A. Dumpster, Container Each $522
B. Non-Residential - Single Day Each $2,258
C. Non-Residential Short-Term (Less than 5 days) Each $2,509 D. Non-Residential Long-Term (More than 5 days) Each $3,224 E. Additional Non-Residential Long-Term (More than 5 days) Monthly Per month $1,027 F. Fence Each $2,198
G. Residential Each $1,405
Parklet Permit:

Initial Application Fee Per Application $5,004
License Fee for Use of Right-Of-Way Per sq. ft. $10.71
Refundable Deposit Per Application $2,750
Renewal Fee Per Application $604
Grading / Excavation
A. 101 - 1,000 cubic yards
First 100 cubic yards Base $1,705
Each additional 100 cubic yards or fraction thereof Each additional $354 B. 1,001 - 10,000 cubic yards
First 1,000 cubic yards Base $4,411
Each additional 1,000 cubic yards or fraction thereof Each additional $609 C. 10,001 or more cubic yards
First 10,000 cubic yards Base $9,238
Each additional 10,000 cubic yards or fraction thereof Each additional $2,238 General & Miscellaneous Fees
Miscellaneous Public Works Inspection Per hour $215
Miscellaneous Public Works Plan Check Per hour $267
Inspection Fees
Tree Inspection for Private Development Per inspection $840 BBD\
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Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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FY2026 Proposed Fee
*The list below includes the 5% Technology Fee and 5% Reserve Fee to reflect the published fee amount.

Fee Category Unit Proposed FY2026 Fee*
Wet Season Construction Site Stormwater Inspection
Per Inspection (charged monthly October thru April) Per inspection $343 Per hour thereafter, charged monthly October thru April Per hour $229 Off Hour Inspection Per Hour $269
Permit Fees

1. Temporary Discharge to Storm Drain from Non-Exclusionary Construction Site Dewatering Per request plus consultant costs $19,062 Per week for the duration of dewatering
activities $410
Per Occurrence $5,035
Actual Cost Actual Cost
Per occurrence $1,068
Base $1,068
% of Value 20.21%
Base $5,973
% of Value 11.67%
Base $17,440
% of Value 2.53%
Base $27,794
% of Value 2.74%
Base $41,993
% of Value 1.37%
Per Hour $253
Each $105

2. Additional Temporary Discharge to Storm Drain from Non-Exclusionary Construction Site Dewatering Certificate of Compliance / Certificate of Correction / Map Amendment Subdivision Map Act Applications
A. Construction in Public Right-of-Way ($1.00 - $5,999) B. Construction in Public Right-of-Way ($6,000 - $25,999) B. Construction in Public Right-of-Way ($6,000 - $25,999) C. Construction in Public Right-of-Way ($26,000 - $100,999) C. Construction in Public Right-of-Way ($26,000 - $100,999) D. Construction in Public Right-of-Way ($101,000 - $500k) D. Construction in Public Right-of-Way ($101,000 - $500k) E. Construction in Public Right-of-Way ($500k-$1m)
E. Construction in Public Right-of-Way ($500k-$1m)
F. Construction in Public Right-of-Way ($1m+)
F. Construction in Public Right-of-Way ($1m+)
Polychlorinated Biphenyls (PCBs) Permit Review Fee
Right of Way Closure Management
Storm Drain Plan Check Fee Each $2,990
BBD\
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Planning and
Development Services
Cost of Service Study and
Municipal Fee
Adjustments

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CITY OF PALO ALTO
Finance Committee
Regular Meeting
Tuesday, April 29, 2025

Agenda Item

2. Recommendation to the City Council to Approve the Citywide Cost of Services Study and Proposed Municipal Fee Adjustments.

Late Packet Report, Staff Presentation
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Citywide Cost of Services
Study and Municipal Fee
Adjustments

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Finance Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: April 29, 2025
Report #:2503-4351
TITLE
Recommend City Council Adopt Citywide Cost of Services Study and Proposed FY 2026 Municipal Fee Adjustments

RECOMMENDATION
Staff recommends that the Finance Committee recommend that the City Council amend the citywide municipal fees as outlined in Attachment A as part of the FY26 budget and municipal fee schedule, informed by the findings of the Cost of Services Study (Attachment B).

EXECUTIVE SUMMARY
This report presents the findings of the Citywide Cost of Services Study, conducted by Matrix Consulting Group, and proposes updates to the City’s Municipal Fee Schedule to better align fees with the actual cost of services. The study evaluated fees across multiple departments— Administrative Services (Revenue and Real Estate), City Clerk, Community Services, Fire Emergency Medical Services (EMS), Police, Public Works, and Animal Control—using a standard cost-of-services methodology.

The study found that the City is under-recovering costs for most fee-based services. While some fees already achieve full or near-full cost recovery, others—particularly in Community Services and Fire EMS—fall well below target recovery levels. To promote financial sustainability and ensure consistency with State law and Council policy, the report recommends fee adjustments where feasible, while recognizing the need for continued subsidies where community benefit or regulatory compliance is a priority.

If approved, the updated fees would take effect on July 1, 2025, as part of the FY 2026 budget.

BACKGROUND
The City of Palo Alto periodically conducts cost of services studies to ensure that municipal fees accurately reflect the cost of delivering services. These studies evaluate user fees for services that provide direct benefits to individuals or businesses, ensuring that costs are fairly distributed rather than subsidized by general taxpayers.

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Citywide Cost of Services
Study and Municipal Fee
Adjustments

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Fees are determined based on staffing, operational expenses, and service demands, which fluctuate over time due to regulatory changes, policy updates, staffing levels, and inflation. To maintain alignment with actual costs, the City periodically reviews and adjusts fees as necessary.

State law prohibits municipalities from charging fees that exceed the reasonable cost of providing a service; any amount beyond that would constitute a special tax requiring voter approval. Cost of services studies help uphold transparency, fiscal responsibility, and fairness in the City's fee structure.

The City charges fees across a range of municipal services, including:
▪Community and Recreational Services – Parks, libraries, arts programs, and facility rentals. ▪Administrative and Regulatory Services – Real estate conveyance, records requests and duplications.
▪Transportation and Parking – Traffic engineering, parking permits, and street use fees. ▪Public Safety Services – Fire prevention, emergency medical response, and police services.

Without appropriate cost recovery, these services would require support from other funding sources, such as the General Fund taxes. Other charges, such as fines and penalties, are not considered user fees and are governed by separate policy considerations. Additionally, impact fees—which fund infrastructure improvements related to new development—and utility rates fall outside the scope of this study and are evaluated through separate processes.

Between comprehensive fee studies, the City makes annual adjustments through the municipal fee update process, applying the General Rate of Increase (GRI). The GRI serves as an inflationary adjustment, accounting for projected cost increases in salaries, contract expenses, and overhead for the upcoming fiscal year. However, these standardized increases do not fully account for workload fluctuations, regulatory complexity, or technological advancements, which can lead to fee misalignments over time. Conducting periodic cost of services studies helps ensure that fees remain equitable, transparent, and aligned with actual service costs. 2013 Fee Study and Subsequent Efforts
The City’s last comprehensive fee study was initiated in FY 2013 and involved multiple Finance Committee updates, culminating in the adoption of the User Fee Cost Recovery Level Policy in 20151. This policy established a structured framework for setting cost recovery levels based on service type and the balance of public versus private benefit.

Fees were categorized into three cost recovery levels:

1. Low (0–30%) – Services with broad public benefits or where fees could discourage compliance with regulatory requirements (e.g., police patrol, public safety). 1 City Council, May 18, 2015; Agenda Item #6, SR#5735,
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2015/5735.pdf
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Study and Municipal Fee
Adjustments

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2. Medium (30%–70%) – Services with mixed public and private benefits (e.g., recreation programs).

3. High (70%–100%) – Services that primarily benefit individuals or businesses (e.g., building permits, inspections).

As part of the 2013 study, the City engaged a consultant to assess the full cost of services, evaluate alternative service delivery models, and recommend adjustments to user fees. The study found significant variation in cost recovery across departments, with some fees not fully covering service costs while others were more closely aligned. The analysis also explored efficiency improvements, including potential public-private partnerships and service outsourcing for select functions.

In April 20152, the City Council reviewed the study’s findings and considered the draft User Fee Cost Recovery Level Policy. Discussions focused on fee affordability, particularly for youth programs, and the need for targeted subsidies to ensure equitable access. The Council also evaluated the introduction of new fees, adjustments to under-recovered services, and phased implementation strategies to mitigate financial impacts on users.

Although the City has made annual fee adjustments since adopting the 2015 policy, shifting service costs, evolving regulatory mandates, and operational advancements have caused misalignments between fees and actual service costs. Some fees no longer reflect current service delivery expenses, necessitating a new comprehensive review to ensure that fees remain financially sustainable and aligned with the City's cost recovery policy.

ANALYSIS
Methodology
The study used a bottom-up, activity-based costing approach to estimate the full cost of providing each fee-related service. The cost of services includes:
▪Staff time and salaries
▪Departmental and citywide overhead
▪Operational and indirect costs
Fee Structures
Fees fall into several categories, depending on the nature of the service:
▪Flat Fees: Applied to services with predictable workloads. ▪Time-Based Fees: Based on hourly rates for staff effort. ▪Deposit-Based Fees: Used for complex or variable-cost services; reconciled at actual cost. 2 City Council, April 6, 2015; Agenda Item #1, SR#4966, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2015/id-4966-cost-of-services-study.pdf Item 23
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Study and Municipal Fee
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▪Cost Recovery Percentage Fees: Aligned with Council’s Cost Recovery Level Policy (Low, Medium, High).

Policy Considerations and Impacts
The Finance Committee may consider several policy issues when evaluating the proposed fee adjustments:
▪Cost Recovery Policy by Program Area:

The City has formalized cost recovery targets for each department or program area. Doing so increases transparency, guides future fee setting, and establishes a clear policy framework for evaluating subsidy levels.
▪Phased Implementation:

Where significant increases are proposed, Council may consider phased fee adjustments to ease the financial impact on users.
▪Ongoing Fee Updates:

The City performs comprehensive cost of services studies periodically and updates fees annually using inflationary indices, unless defined by State law.

Fee Study Summary Findings
The study evaluates current fees across multiple departments and identifies where updates are needed to align charges with the actual cost of providing services. The analysis supports targeted adjustments consistent with the City’s Cost Recovery Level Policy, while preserving flexibility for policy-driven subsidies based on community benefit and supporting higher cost recovery such as City rentals and/or CSD specialized services.

Administrative Services Department – Revenue Collections and Real Estate Fee updates in these programs align with high cost recovery (70% - 100%) for services such as parking permit investigation and property conveyance. Some transactions are infrequent such as general easement vacation and telecommunication application process, and as such no time study data was available. In such cases, Staff recommendation would be to use the current process of annually applying the general rate of increase (GRI).

City Clerk’s Office
The Clerk’s fees were reviewed primarily for compliance with state law with one fee eliminated, several copy fees added and one proposed fee increase.

Community Services Department
The study found that CSD (recreation and Cubberley divisions) recovers approximately 61% of its full costs, consistent with industry norms for community benefit programs. In addition to the overall cost recovery range typically seen in relation to parks and recreation fees, there are typical cost recovery target ranges based upon Matrix Consulting Group's experience Item 23
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Study and Municipal Fee
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conducting recreation fee studies. The Division’s youth and adult programming are on the higher end of the cost recovery range and consistent with City cost recovery policy. At 130%, the parks, fields, and court rentals generate revenues above cost; a typical trend seen for rentals. Revenues and cost recovery levels for rentals reflect the optional nature, as the community can choose to use the City’s amenities, and the individual benefit of rentals. The CSD fees are under review and will be brought to Finance Committee with other citywide fees scheduled on May 7th with the expected recommendation to either remain unchanged, apply GRI or another rate of change, and incorporates the City cost recovery policy. These CSD fees will be provided to Finance Committee during the budget study sessions.

Fire Department – EMS Services
The study shows EMS fees recover only 28% of their full cost. While the City billed for nearly $11.6 million in transport related services, it only received roughly $4.7 million in offsetting revenue. When comparing the $4.7 million to their total annual costs, the service reflects a financial deficit where revenues fall approximately $12 million below expenses, resulting in a cost recovery rate of only 28%. The proposed fees are updated to reflect the actual cost and City cost recovery policy ranges and includes a new First Responder fee.

Police Department and Animal Control
The Police Department’s fees show a mix of under- and over-recoveries but generally under- recover. The proposed fees reflect the actual cost, City cost recovery range, and pricing to incentive pet owners to alter (spay/neuter) their animals. Staff recommends five new animal control fees and modifying the fee cost recovery policy for multiple fee categories within special events and animal control fees.

Public Works Department
The majority of the services provided by Public Works Operations are charged hourly, with some of those services showing under-recoveries, and others show over-recoveries. Recommended changes include increased hourly rates and better alignment between fee structure and review effort. Some fees will remain subsidized where public benefit outweighs private gain.

Storm Drain staff provide services related to flood variance, flood zone determination, and temporary elevation benchmarks. With the exception of Flood Zone Determination Letter, the fees charged for Storm Drain services are within the typical cost recovery range of 80% to 100%.

The proposed storm drain fees reflect the actual costs and City cost recovery policy ranges.

Wastewater Treatment staff provide services relating to industrial waste discharge, and recycled water. All fees charged by wastewater staff show an under-recovery, the largest being for basic industrial waste discharge. Overall, fees associated with wastewater services are below the typical cost recovery level of 80% to 100%. The proposed wastewater treatment fees reflect the actual cost and City cost recovery policy ranges.

Next Steps
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Study and Municipal Fee
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The Finance Committee is requested to review the proposed fee adjustments, make any necessary modifications, and determine whether to forward them to the City Council for approval as part of the FY 2026 budget process for Council adoption.

FISCAL/RESOURCE IMPACT
The proposed adjustments aim to align fees with actual costs for services rendered, maintain or improve cost recovery and reduce potential impacts on City funds, especially General Fund. If adopted and upon full implementation, it is estimated to generate approximately $1 million of General Fund revenues. For FY 2026, it is estimated to generate approximately $0.7 million above FY 2025 activities, which is not currently in the FY 2026 budget.

STAKEHOLDER ENGAGEMENT
Matrix collaborated with City staff across City departments to ensure accurate cost calculations.

Public input opportunities are available through Finance Committee and City Council meetings.

The City has met all public noticing and hearing requirements under Government Code § 66016, ensuring transparency in the fee update process.

ATTACHMENTS
Attachment A: Proposed Fee Adjustment Listing
Attachment B: Citywide Cost of Services Study Report
APPROVED BY:

Lauren Lai, Administrative Services Director
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CITY CLERK FEES
Fee Name Unit Current Fee Total Cost Recommended Fee Codes City Cost Recovery Range Policy
Appeals
Appeal Costs Exceeding Appeals Filing Fee DepositRefer To Planning and Development Services High - 70.1% - 100% Appeals and Request for Hearing before City Council or
Planning & Transportation Commission Each Refer To Planning and Development Services High - 70.1% - 100% Documents & Photocopies
Fair Political Practices Commission PhotocopiesPer Page $0.10 $0.10 $ 0.10 CA Govt Code § 81008(a). CA Govt Code § 81008(a).

Black & White Per Page $0.10 $0.10 $ 0.10 GOV § 7922.530. GOV § 7922.530.

Color Per Page $0.25 $0.25 $ 0.25 GOV § 7922.530. GOV § 7922.530.

Digital Copy Each GOV § 6253.9(a). GOV § 6253.9(a).

Domestic Partner Registry
Domestic Partners Registration Fee Each $38 $78 $ 65.00 High - 70.1% - 100% Subscriptions
Candidate Filing Fee Each $25 $25 $25 ELEC § 10228 ELEC § 10228 Actual Cost
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Study and Municipal Fee
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ASD - REAL ESTATE
Fee Name Unit Current Fee Total Cost Recommended
Fee Codes City Cost Recovery Range Policy
Conveyance
Commercial/Non-Residential/Residential - Long Term (More than 12 months) Each$1,750 $4,613 $3,234 High - 70.1% - 100% Consent to Assignment, Amendment, Extension or Hypothecation of a lease or sublease where the City is lessor Each $780 $1,648 $1,155 High - 70.1% - 100% Easement Document Preparation and Processing (Commercial & Residential) Each$1,700 $1,648 $1,648 High - 70.1% - 100% License/Grant Deed Preparation Each $1,930 $4,613 $3,234 High - 70.1% - 100% Property Transfer Tax Exemption Fee Each $245 $577 $404 High - 70.1% - 100% Public Notice Mailing/Posting/Advertising (Commercial & Residential) Deposit$116 $116 $116 High - 70.1% - 100% Telecommunication Application Processing Fee Each $3,426 High - 70.1% - 100% Easement Vacation
General Each $4,892 High - 70.1% - 100%
Summary Each $2,083 $3,295 $2,310 High - 70.1% - 100%
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Study and Municipal Fee
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ASD - REVENUE COLLECTIONS
Fee Name Unit Current Fee Total Cost Recommended Fee Codes City Cost Recovery Range Policy Documents & Photocopies
Mailing (Certified) Receipt required(determined by Postal Service) Each $4 $23 10 $ High - 70.1% - 100% Miscellaneous
Duplicate Receipt Each $9 $36 15 $ High - 70.1% - 100% Returned Payment Charge (California Civil Code Section 1719) Each $25 $25 25 $ CIV § 1719(a) CIV § 1719(a) Parking
Permit Investigation (non-refundable) Each $23 $36 36 $ High - 70.1% - 100% Recreational Vehicle/Oversized Vehicle Per Application $22 $90 80 $ High - 70.1% - 100% Item 23
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FIRE FEES
Fee Name Unit Current Fee Total Cost
Recommended
Fee Codes City Cost Recovery Range Policy
Compliance Fees
Engine Company Second Reinspection Per Hour $279 $994 $994 High - 70.1% - 100% Paramedics
Transport Mileage Per Mile $35 $32 $32 Medium - 30.1% - 70.0% BLS Per Occurrence $2,556 $3,188 $3,188 Medium - 30.1% - 70.0% ALS Per Occurrence $2,966 $3,897 $3,897 Medium - 30.1% - 70.0% First Responder Fee Per Occurrence New $497 $497
Oxygen Per Occurrence $179 $283 $283 Medium - 30.1% - 70.0% FireMed Business Tiers
1 Per Unit $20 $20
2 Per Unit $100 $100
3 Per Unit $200 $200
4 Per Unit $500 $500
5 Per Unit $1,000 $1,000
FireMed Residential Per Household $8 $8
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Study and Municipal Fee
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POLICE FEES
Fee Name Unit Current Fee Total CostRecommended
Fee Codes
Current City Cost
Recovery Range
Policy
Proposed Cost recovery
Background Check
OPM/DOD Background Check Per Application $5 $112 $5 Low - 0.0% - 30.0% None - fee set by code Impoundment Fees - Vehicle
Vehicle Impoundment Fee Each $158 $162 $160 Medium - 30.1% - 70.0% High - 70.1% - 100% Vehicle Repossession Receipt Each $15 $15 $15 Ca. Gov. Code § 26751 Ca. Gov. Code § 26751None - fee set by code Towed Stored Vehicle Fee Each New $162 160 New
Personnel Rates
Emergency Response Fee Per Incident Actual Cost Medium - 30.1% - 70.0% Special Fees
Clearance Letter Each $35 $131 $92 High - 70.1% - 100% High - 70.1% - 100% Digital Media Reproduction Fee Each $65 $281 $197 High - 70.1% - 100% High - 70.1% - 100% Location Crime Statistics Fee Each $86 $359 $251 High - 70.1% - 100% High - 70.1% - 100% Offsite Document Retrieval Per Item Actual Cost High - 70.1% - 100% High - 70.1% - 100% Report Copy Fee Each $15 $15 $15 EVI § 1563(b)(6) EVI § 1563(b)(6) None - fee set by code Research Fee Per Hour $160 $245 $172 High - 70.1% - 100% Subpoena Fee For Documents Per Hour $24 $24 $24 EVI § 1563(b)(1) EVI § 1563(b)(1) None - fee set by code Civil Subpoena Appearance Fee Per Person Per Day $275 $275 $275 GOV § 68097.2 (b) GOV § 68097.2 (b) None - fee set by code Firearms Dealer
Firearms Dealer Master Permit - New Per Year $3,564 $3,637 $3,637 High - 70.1% - 100% High - 70.1% - 100% Firearms Dealer Master Permit - Renewal Per Year $644 $970 $970 High - 70.1% - 100% High - 70.1% - 100% Miscellaneous
Helicopter Landing Fee Per Occurrence $79 $81 $81 High - 70.1% - 100% High - 70.1% - 100% One Day Liquor Permit Fee:

For Profit Rate Per Permit $65 $76 $76 High - 70.1% - 100% High - 70.1% - 100% Non-Profit Rate Per Permit $49 $76 $53 High - 70.1% - 100% Medium - 30.1% - 70.0% Secondhand Dealers
DOJ Per Application $300 $300 $300 High - 70.1% - 100% High - 70.1% - 100% New Per Application $481 $242 $242 High - 70.1% - 100% High - 70.1% - 100% Renewal Per Application $120 $121 $121 High - 70.1% - 100% High - 70.1% - 100% Taxicab
Master License:

New Per Year $3,589 $7,274 $7,274 High - 70.1% - 100% High - 70.1% - 100% Renewal Per Year $1,609 $2,425 $2,425 High - 70.1% - 100% High - 70.1% - 100% Driver:

New Per Year $65 $242 $242 High - 70.1% - 100% High - 70.1% - 100% Renewal Per Year $65 $81 $81 High - 70.1% - 100% High - 70.1% - 100% Vehicle Inspection for Each Vehicle Per Year $92 $81 $81 High - 70.1% - 100% High - 70.1% - 100% Replacement or Transfer Fee Each $80 $40 $40 High - 70.1% - 100% High - 70.1% - 100% Valet Parking
Permit Application Per Application $863 $970 $970 High - 70.1% - 100% High - 70.1% - 100% Permit Application Renewal (Annual) Per Year $130 $242 $242 High - 70.1% - 100% High - 70.1% - 100% Short-Term Application Fee Per Application $406 $229 $229 High - 70.1% - 100% High - 70.1% - 100% Special Events
Personnel Rates for events where 100% of the proceeds go to a Profit Organization:

Community Services Officer Per Hour $111 $215 $215 High - 70.1% - 100% High - 70.1% - 100% Police Agent Per Hour $245 $272 $272 High - 70.1% - 100% High - 70.1% - 100% Police Officer Per Hour $206 $244 $244 High - 70.1% - 100% High - 70.1% - 100% Police Reserve Per Hour $88 $58 $58 High - 70.1% - 100% High - 70.1% - 100% Police Sergeant Per Hour $272 $291 $291 High - 70.1% - 100% High - 70.1% - 100% Personnel Rates for events where 80% of the proceeds go directly to Non-Profit Organizations:

Community Services Officer Per Hour $92 $215 $151 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Agent Per Hour $212 $272 $190 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Officer Per Hour $171 $244 $171 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Reserve Per Hour $72 $58 $41 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Sergeant Per Hour $232 $291 $204 High - 70.1% - 100% Medium - 30.1% - 70.0% Personnel Rates for events where 80% or more of the proceeds go directly to Non-Profit Organizations or events declared as co-sponsored by the City of Palo Alto:

Community Services Officer Per Hour $87 $215 $118 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Agent Per Hour $185 $272 $150 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Officer Per Hour $160 $244 $134 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Reserve Per Hour $65 $58 $32 High - 70.1% - 100% Medium - 30.1% - 70.0% Police Sergeant Per Hour $205 $291 $160 High - 70.1% - 100% Medium - 30.1% - 70.0% Special Fees:

Special Event Permit
201 - 400 Attendees Per Permit $334 $582 $407 High - 70.1% - 100% High - 70.1% - 100% 401 – 600 Attendees Per Permit $359 $2,036 $1,425 High - 70.1% - 100% High - 70.1% - 100% Each Add’l 200 Attendees Each $53 $291 $204 High - 70.1% - 100% High - 70.1% - 100% Film / Photography Permit:

Large Commercial Filming Per Permit $306 $582 $582 High - 70.1% - 100% Low-Impact Filming Permit (Cast & Crew 35 or less)Per Permit $306 $291 $291 High - 70.1% - 100% Student Filming / Photography Per Permit $306 $291 $291 High - 70.1% - 100% Photography Permit Per Permit $306 $145 $145 High - 70.1% - 100% Temporary Street Closure Each Refer to PW Fee
Schedule High - 70.1% - 100%
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POLICE ANIMAL SERVICES
Fee Name Unit Current Fee Total Cost Recommended Fee Codes Current City Cost Recovery Range Policy Proposed Cost recovery
Animal Permits
Boarding Per Permit $219 $384 $384 Medium - 30.1% - 70.0% High - 70.1% - 100% Breeding Permit - Cat, Dog, or Bird Per Permit $133 $384 $384 Medium - 30.1% - 70.0% High - 70.1% - 100% Kennel, Birds, or Animals Per Permit $219 $384 $384 High - 70.1% - 100% High - 70.1% - 100% Livery Stable, Boarding Stable Per Permit $219 $384 $384 High - 70.1% - 100% High - 70.1% - 100% Livestock / Apiary Per Permit $80 $220 $80 High - 70.1% - 100% Medium - 30.1% - 70.0% Pet Shop/Groomer Per Permit $219 $384 $384 Low - 0.0% - 30.0% High - 70.1% - 100% Pet Show Per Permit $80 $327 $80 Low - 0.0% - 30.0% Low - 0.0% - 30.0% Pony Ride, Pony Ring Per Permit $219 $327 $219 Low - 0.0% - 30.0% Medium - 30.1% - 70.0% Traveling Menagerie or Petting Zoo Per Permit $219 $327 $219 High - 70.1% - 100% Medium - 30.1% - 70.0% Dangerous Animal Permit Per Permit $432 $384 $432 Low - 0.0% - 30.0% High - 70.1% - 100% Disposal
Service Fee Each $60 $107 $107 High - 70.1% - 100%
Impoundment Fees
Impoundment Fees - Cat:

First Offense Per Occurrence $36 $213 $64 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Second Offense Per Occurrence $54 $213 $75 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Third and Subsequent Offenses Per Occurrence $74 $213 $85 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Impoundment Fees - Dog - Licensed:

First Offense Per Occurrence $36 $213 $64 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Second Offense Per Occurrence $54 $213 $75 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Third Offense Per Occurrence $72 $213 $85 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Fourth Offense Per Occurrence $135 $213 $135 Medium - 30.1% - 70.0% High - 70.1% - 100% Fifth to Tenth Offense Per Occurrence $181 $213 $181 Medium - 30.1% - 70.0% High - 70.1% - 100% Eleventh and Subsequent Offenses Per Occurrence $203 $213 $203 Medium - 30.1% - 70.0% High - 70.1% - 100% Impoundment Fees - Dog - Unlicensed:

First Offense Per Occurrence $61 $213 $84 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Second Offense Per Occurrence $93 $213 $95 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Third Offense Per Occurrence $115 $213 $105 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% Fourth Offense Per Occurrence $154 $213 $154 Medium - 30.1% - 70.0% High - 70.1% - 100% Fifth to Tenth Offense Per Occurrence $209 $213 $209 Medium - 30.1% - 70.0% High - 70.1% - 100% Eleventh and Subsequent Offenses Per Occurrence $246 $213 $246 Medium - 30.1% - 70.0% High - 70.1% - 100% Impoundment Fees - General:

Other Animals (Small) - Bird, Rabbit, Reptile, etc.Per Occurrence $31 $213 $32 Medium - 30.1% - 70.0% Low - 0.0% - 30.0% Other Animals (Large) - Horse, Cow, Pig, Goat, etc.Per Occurrence $123 $213 $123 Medium - 30.1% - 70.0% Medium - 30.1% - 70.0% State Mandated Fees:

CA Food &
Agri Code §
30804.7
CA Food & Agri Code § 30804.7
First Offense Per Occurrence $35 $35 $35 Medium - 30.1% - 70.0% None - fee set by code Second Offense Per Occurrence $50 $50 $50 Medium - 30.1% - 70.0% None - fee set by code Third and Subsequent Offenses Per Occurrence $100 $100 $100 Medium - 30.1% - 70.0% None - fee set by code Pet Licenses
12 Months
Unaltered Per Dog $45 $52 $73 Low - 0.0% - 30.0% High - 70.1% - 100% Spayed or Neutered (Altered) Per Dog $22 $52 $26 Low - 0.0% - 30.0% Medium - 30.1% - 70.0% Senior Citizen / Veteran Per Dog New $52 $20 New Medium - 30.1% - 70.0% 24 Months
Unaltered Per Dog $67 $71 $102 Low - 0.0% - 30.0% High - 70.1% - 100% Spayed or Neutered (Altered) Per Dog $33 $71 $44 Low - 0.0% - 30.0% Medium - 30.1% - 70.0% Senior Citizen / Veteran Per Dog New $71 $28 New Medium - 30.1% - 70.0% 36 Months
Unaltered Per Dog $90 $90 $161 Low - 0.0% - 30.0% High - 70.1% - 100% Spayed or Neutered (Altered) Per Dog $45 $90 $58 Low - 0.0% - 30.0% Medium - 30.1% - 70.0% Senior Citizen / Veteran Per Dog New $90 $44 New Medium - 30.1% - 70.0% Service Dog Tag Per Dog New $52 $36 New Medium - 30.1% - 70.0% Rabies Exemption Per Dog New $38 $27 New Medium - 30.1% - 70.0% Replacement License Tags (Dogs) Each $5 $33 $10 Low - 0.0% - 30.0% Low - 0.0% - 30.0% Special Fees
Animal Control Officer Per Hour $91 $213 $213 Low - 0.0% - 30.0% High - 70.1% - 100% Quarantine Home Inspection Fee Each $46 $427 $128 Low - 0.0% - 30.0% Low - 0.0% - 30.0% Item 23
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PUBLIC WORKS FEES
Fee Name Unit Current Fee Total CostRecommended
Fee CodesCity Cost Recovery Range Policy
Maintenance & Repair
Regular Time:

Construction & Repair Per Hour $184 $185 $185 High - 70.1% - 100% Electric Vehicle Charger Connection Per Connection $0.00 to $2.00 $0.00 to $2.00 High - 70.1% - 100% Electric Vehicle Charger Connection Overstay Per Hour $0.00 to $5.00 $0.00 to $2.00 High - 70.1% - 100% Electric Vehicle Charging Per Kilowatt Hour $0.24 0.25 High - 70.1% - 100% Newsrack Impoundment Fee High - 70.1% - 100%
First Day Base $208 208
Each Subsequent Day Each Subsequent Day $3 3
Supervision Per Hour $187 $228 $228 High - 70.1% - 100% Sweeping Services Per Hour $151 $179 $179 High - 70.1% - 100% Traffic Control/Graffiti Services Per Hour $138 $163 $163 High - 70.1% - 100% Traffic Property Damage Per Hour $138 $163 $163 High - 70.1% - 100% Tree Services Per Hour $161 $172 $172 High - 70.1% - 100% Overtime & Holiday:

Construction & Repair Per Hour $272 $222 $222 High - 70.1% - 100% Supervision Per Hour $282 $276 $276 High - 70.1% - 100% Sweeping Services Per Hour $227 $213 $213 High - 70.1% - 100% Traffic Control/Graffiti Services Per Hour $208 $194 $194 High - 70.1% - 100% Traffic Property Damage Per Hour $208 $194 $194 High - 70.1% - 100% Tree Services Per Hour $226 $208 $208 High - 70.1% - 100% Disposal Each Actual Cost Actual Cost
Use of Equipment Each Actual Cost Actual Cost
Map/Plan Review Fees
Home Improvement Exception - Trees Per Application $487 $575 $575 High - 70.1% - 100% IR Review - Trees Per Application $759 $575 $575 High - 70.1% - 100% Tree Removal
Protected Tree Removal Per Removal $499 $460 $460 High - 70.1% - 100% Record Management Fee Per File $32 $174 $174 High - 70.1% - 100% Tree Removal
Per Inch of Damage
Plus Planting
Installation
$153 153
High - 70.1% - 100%

PUBLIC WORKS STORM DRAINS
Flood Variance Fee Each
City Cost
plus 15% High - 70.1% - 100%
Flood Zone Determination Letter Per Letter $147 $419 $419 High - 70.1% - 100% Storwater Treatment Feature Operations and Maintenance Inspecitions:

Up to 3 hours Base $599 $540 $540 High - 70.1% - 100%
Per hour therafter Per hour therafter $123 $187 $187 High - 70.1% - 100% Temporary Elevation Benchmarks per benchmark $500 $505 $505 High - 70.1% - 100% PUBLIC WORKS WASTEWATER Total Cost
Industrial Waste Discharge Fees:

Automotive Per Year $699 $1,523 $1,523 High - 70.1% - 100% Basic Per Year $4,120 $5,735 $5,735 High - 70.1% - 100% Best Management Practices (BMP) Per Year $1,541 $2,856 $2,856 High - 70.1% - 100% Exceptional Waste Per Permit Modified $3,473 $3,473 High - 70.1% - 100% Full Per Year Modified $6,898 $6,898 High - 70.1% - 100% Groundwater Per Year $1,576 $1,614 $1,614 High - 70.1% - 100% Industrial Waste Discharge Fees - Liquid Waste Disposal Fee:

Septic Tank & Portable Toilet Waste Disposal Permit Processing Each $105 $542 $542 High - 70.1% - 100% Discharge Fee Per Gallon $0.1 $0.77 $0.10 High - 70.1% - 100% Recycled Water Fees:

Recycled Water Permit Processing Per permit $52 $452 $452 High - 70.1% - 100% Item 23
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PALO ALTO, CA

COST OF SERVICES (USER FEE)
STUDY – MUNICIPAL FEES
APRIL 2025
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MATRIX CONSULTING GROUP

INTRODUCTION AND EXECUTIVE SUMMARY 1
LEGAL FOUNDATIONS AND POLICY 4
USER FEE STUDY METHODOLOGY 7
RESULTS OVERVIEW 9
OFFICE OF THE CITY CLERK 10
COMMUNITY SERVICES 12
FIRE EMS 18
POLICE 25
POLICE – ANIMAL CONTROL 29
PUBLIC WORKS 32
REAL ESTATE AND PROPERTY MANAGEMENT 35
REVENUE COLLECTION 37
COST RECOVERY CONSIDERATIONS 38

TABLE OF CONTENTS
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The report, which follows, presents the results of the Cost of Services (User Fee) Study conducted by Matrix Consulting Group for the City of Palo Alto, California.

PROJECT BACKGROUND AND OVERVIEW
The purpose of this study is to evaluate and determine the full cost (direct and indirect) of providing a variety of city services. Matrix Consulting Group analyzed the cost-of-service relationships that exist between fees for service activities in the following departments: City Clerk, Revenue, Real Estate, Public Works, EMS, and Community Services. The results of this study provide a tool for understanding current service levels and the cost for those services.

TABLE 1: OVERVIEW OF COST COMPONENTS
Cost Component Description
Direct Fiscal Year 2025 Budgeted salaries, benefits, and allowable expenditures.

Indirect Program, departmental, clerical, and Citywide support.

Together, the cost components in the table above comprise the calculation of the total “full” cost of providing a service, regardless of whether a fee for that service is charged.

The work accomplished by Matrix Consulting Group in the analysis of the proposed fees for service involved the following steps:
• Department / Program Staff Interviews: The project team interviewed department / program staff regarding their needs for clariﬁcation to the structure of existing fee items or for addition of new fee items.
• Data Collection: Data was collected for each permit / service, including time estimates. In addition, all budgeted costs and staﬃng levels for Fiscal Year 2025 were entered into Matrix Consulting Group’s analytical software model.
• Cost Analysis: The full cost of providing each service included in the analysis was established.

INTRODUCTION AND EXECUTIVE SUMMARY
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• Review and Approval of Results with City Staff: Department management has reviewed and approved these documented results.

A more detailed description of user fee methodology and legal and policy considerations are provided in subsequent chapters of this report.

SUMMARY OF RESULTS
Overall, this study found that the City is under-recovering for most of its administrative, EMS, Public Works, and Recreation services. Each of these service areas serve a different population and constituency, and should be reviewed individually to determine how and where fees should be set.

CONSIDERATIONS FOR COST RECOVERY POLICY AND UPDATES
Matrix Consulting Group recommends that the City use the information contained in this report to discuss, adopt, and implement formal Cost Recovery Policies, including mechanisms for the annual or biennial update of fees for service.

ADOPT A FORMAL COST RECOVERY POLICY
The Government Finance Oﬃcers Association’s (GFOA) best practices for Establishing Government Charges and Fees states that governmental entities should adopt formal policies regarding charges and fees which include the jurisdiction’s intention to recover the full cost or partial costs of providing services, sets forth circumstances under which the jurisdiction might set a charge for fee at less than or more than 100% of full cost, and outlines the considerations that might inﬂuence the jurisdiction’s pricing decision.

Matrix Consulting Group strongly recommends that the Council adopt a formalized, individual cost recovery policy for each service area included in this Study. Whenever a cost recovery policy is established at less than 100% of the full cost of providing services, a known gap in funding is recognized and may then potentially be recovered through other revenue sources. Matrix Consulting Group considers a formalized cost recovery policy for various fees for service an industry Best Management Practice.

ADOPT AN ANNUAL FEE UPDATE / INCREASE MECHANISM
The purpose of a comprehensive update is to completely revisit the analytical structure, service level estimates and assumptions, and to account for any major shifts in cost components or organizational structures that have occurred since the City’s previous analysis. It’s recommended the City adopts the practice of conducting comprehensive analyses every three to ﬁve years as this practice captures any changes to organizational structure, processes, as well as any new service areas.

GFOA best practices for Establishing Government Charges and Fees states that governmental entities should review, and update charges and fees periodically based on factors such as the impact of inﬂation, other cost increases, adequacy of cost recovery, use of services, and the competitiveness of current rates to avoid large infrequent fee increases. Therefore, it is recommended the City continue to practice Item 23
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of conducting comprehensive analyses every ﬁve to seven years as this practice captures any changes to organizational structure, processes, code amendments, as well as any new service areas.

In between comprehensive updates, the City should utilize published industry economic factors such as Consumer Price Index (CPI) or other regional factors to update the cost calculations established in the Study on an annual or biennial basis. The annual increase factor should be consistent across all departments / services and be agreed upon by City Council. The City currently updates its fees every year based on CPI or internal cost factors.

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This section of the report is intended to provide an overview of the legal rules and regulations that govern what is considered a fee for service, how those fees can be calculated, general principles, philosophies, and general policy considerations for setting fees for service.

LEGAL FRAMEWORK
A “user fee” is a charge for service provided by a governmental agency to a public citizen or group.

California has several Government Codes and Propositions that regulate fees for service, with the purpose of ensuring that fees are reasonable and justiﬁed. The most prominent and relevant of these includes:
• Proposition 26: Passed in 2010, speciﬁcally outlined the difference between a fee and a tax and dictates that fees must be directly related to a service and cannot exceed the reasonable cost of that service.
• Government Code § 50076: clariﬁes that fees for service costs are not special taxes and do not need voter approval.
• Government Code § 65104: gives local governments the authority to charge planning and zoning fees to recover processing costs.

When determining fees for service it is important to ensure there is a direct beneﬁt – the service is provided directly to the payer, and that it is cost based, and does not exceed the reasonable cost of providing the service.

EXCEPTIONS TO THE RULE
While Proposition 26 deﬁnes what constitutes a user fee, and how those fees can be determined, it also provides a key exception for fees charged for facility or property rentals. This exception outlines that fees for use of government property (e.g., renting public buildings, parks, or event spaces) are voluntary transactions. Therefore, governments can charge market-based rental fees for these services.

LEGAL FOUNDATIONS AND POLICY
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TABLE 2: SERVICES IN RELATION TO BENEFIT RECEIVED

Funding for local government is obtained from a myriad of revenue sources such as taxes, ﬁnes, grants, special charges, user fees, etc. In recent years, alternative tax revenues, which typically offset subsidies for services provided to the community, have become increasingly limited. These limitations have caused increased attention on user fee activities as a revenue source that can offset costs otherwise subsidized (usually) by the general fund. In Table 3, services in the “global beneﬁt” section tend to be funded primarily through voter-approved tax revenues. In the middle of the table, one typically ﬁnds a mixture of taxes, user fees, and other funding sources. Finally, in the “individual / group beneﬁt” section of the table lie the services provided by local government that are typically funded almost entirely by user fee revenue.

The following are two central concepts regarding the establishment of user fees:
v Fees should be assessed according to the degree of individual or private beneﬁt gained from services. For example, the processing and approval of a land use or building permit will generally result in monetary gain to the applicant, whereas Police services and Fire Suppression are examples of services that are essential to the safety of the community at large. v A proﬁt-making objective should not be included in the assessment of user fees. In fact, California laws require that the charges for service be in direct proportion to the costs associated with providing those services. Once a charge for service is assessed at a level higher than the actual cost of providing a service, the term “user fee” no longer applies. The charge then becomes a tax subject to voter approval.

Therefore, it is commonly accepted that user fees are established at a level that will recover up to, and not more than, the cost of providing a particular service.

GENERAL POLICY CONSIDERATIONS REGARDING USER FEES
Undoubtedly, there are programs, circumstances, and services that justify a subsidy from a tax-based or alternative revenue source. However, it is essential that jurisdictions prioritize the use of revenue sources for the provision of services based on the continuum of beneﬁt received. "Global" Community
Beneﬁt
•Police
•Park Maintenance
•Fire Suppression
"Global" Beneﬁt and an
Individual or Gorup
Beneﬁt
•Recreation / Community
Services
•Fire Prevention
Individual or Group
Beneﬁt
•Building Permits
•Planning and Zoning
Approval
•Engineering Development
Review
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Within the services that are typically funded by user fees, the Matrix Consulting Group recognizes several reasons why City staff or the Council may not advocate the full cost recovery of services. The following factors are key policy considerations in setting fees at less than 100 percent of cost recovery:
• Limitations posed by an external agency. The State or an outside agency will occasionally set a maximum, minimum, or limit on the jurisdiction’s ability to charge a fee. Examples includes time spent copying and retrieving public documents and / or transportation permits. • Encouragement of desired behaviors. Keeping fees for certain services below full cost recovery may provide better compliance from the community. For example, if the cost of a permit for changing a water heater in residential home is higher than the cost of the water heater itself, many citizens will avoid pulling the permit.
• Beneﬁt received by user of the service and the community at large is mutual. Many services that directly beneﬁt a group or individual equally beneﬁt the community. Examples include Planning Design Review, historical dedications, and certain types of special events.

SUMMARY OF LEGAL RESTRICTIONS AND POLICY CONSIDERATIONS Once the full cost of providing services is known, the next step is to determine the “rate” or “price” for services at a level which is up to, and not more than, the full cost amount. The Council is responsible for this decision, which often becomes a question of balancing service levels and funding sources. The placement of a service or activity within the continuum of beneﬁt received may require extensive discussion and at times fall into a “grey area.” However, with the resulting cost of services information from a User Fee Study, the Council can be assured that the adopted fee for service is reasonable, fair, and legal. The City will need to review all fees for service in this analysis. Where subsidies are identiﬁed, they City should increase the fees to reduce the deﬁcit; where over-recoveries are identiﬁed, the fee must be reduced to comply with the law.

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The results of these allocations provide detailed documentation for the reasonable determination of the actual cost of providing each service.

DIRECT
(Salaries, Beneﬁts,
Productive Hours)

INDIRECT
(Departmental Admin,
Services & Supplies,
Citywide Overhead etc.)
Total Cost

USER FEE STUDY METHODOLOGY
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• Estimates match the current or proposed staﬃng levels to ensure there is no over-allocation of staff resources to fee and non-fee related activities.

The alternative to time estimating is actual time tracking, often referred to billing on a “time and materials” basis. Except in the case of anomalous or very large and complex projects, the Matrix Consulting Group believes this approach to not be cost effective or reasonable for the following reasons:
• Accuracy in time tracking is compromised by the additional administrative burden required to track, bill, and collect for services in this manner.
• Additional costs are associated with administrative staff’s billing, refunding, and monitoring deposit accounts.
• Customers often prefer to know the fees for services in advance of applying for permits or participating in programs.
• Departments can better predict revenue streams and staff needs using standardized time estimates and anticipated permit volumes.

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The motivation behind a cost of services (User Fee) analysis is for the City Council and Departmental staff to maintain services at a level that is both accepted and effective for the community and to maintain control over the policy and management of these services.

It should be noted that the results presented in this report are not a precise measurement. In general, a cost-of-service analysis takes a “snapshot in time,” where a ﬁscal year of ﬁnancial and operational information is utilized. Changes to the structure of fee names, along with the use of time estimates, allow only for a reasonable projection of subsidies and revenue. Consequently, the Council and Department staff should rely conservatively upon these estimates to gauge the impact of implementation going forward.

Discussion of results in the following chapters is intended as a summary of extensive and voluminous cost allocation documentation produced during the Study. Each chapter will include detailed cost calculation results for each major permit category including the following:
• Modiﬁcations: discussions regarding any proposed revisions to the current fee schedule, including elimination or addition of fees.
• “Per Unit” Results: comparison of the full cost of providing each unit of service to the current fee for each unit of service (where applicable).
• Annualized Results: utilizing volume of activity estimates annual subsidies and revenue impacts were projected where appropriate.

The full analytical results were provided to City staff under separate cover from this summary report.

RESULTS OVERVIEW
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The Oﬃce of the City Clerk serves as a municipal recordkeeper, with duties that include processing ordinances and resolutions, preparing Council agendas and minutes, and managing municipal elections.

This Oﬃce also acts as the City’s repository for records and process records requests. The fees examined within this study relate to appeals, documents & photocopies, domestic partner registries, and subscriptions. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Oﬃce of the City Clerk.

FEE SCHEDULE MODIFICATIONS
In discussions with City Clerk staff, the following modiﬁcations to the current fee schedule were proposed:
• Eliminated Fees: the ‘Certiﬁcation Fee’ was removed from the schedule as this service is no longer provided by Clerk staff.
• New Fees: fees for ‘Black and White’, ‘Color’, and ‘Digital Copy’ services were added to the fee schedule to collect additional revenues for these services.

The modiﬁcations noted above ensure that the proposed fee schedule better reﬂets the services being provided by City Clerk staff.

DETAILED RESULTS
The Oﬃce of the City Clerk collects fees for appeals, document and photocopy services, domestic partner registries, and subscription related services. The total cost calculated for each service includes direct staff costs, and Departmental and Citywide overhead. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 3: TOTAL COST PER UNIT RESULTS – CITY CLERK
Fee Name Unit Current Fee Total Cost Difference
Appeals
Appeal Costs Exceeding Appeals Filing Fee Deposit Refer To Planning and Development Services Appeals and Request for Hearing before City
Council or Planning & Transportation Commission Each Refer To Planning and Development Services Documents & Photocopies
Fair Political Practices Commission Photocopies1 Per Page $0.10 $0.10 $0 Black & White2 Per Page $0.10 $0.10 $0
Color2 Per Page $0.25 $0.25 $0
Digital Copy3 Each Actual Cost

1 The total cost associated has been set according to CA Govt Code § 81008(a). 2 The total cost associated has been set according to GOV § 7922.530. 3 The total cost associated has been set according to GOV § 6253.9(a).

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Fee Name Unit Current Fee Total Cost Difference
Domestic Partner Registry
Domestic Partners Registration Fee Each $38 $78 ($40) Subscriptions
Candidate Filing Fee4 Each $25 $25 $0
Both Appeal fees refer to the Planning and Development Services section of the municipal fee schedule, as depending on the type of application being appealed, these amounts can vary. All Document and Photocopy fees, as well as Subscription fees have been set to align with state codes. The ‘Domestic Partners Registration Fee’ shows a current subsidy of $40.

ANNUAL RESULTS
Due to the nature of City Clerk fees, most of which are set by the state, no annual results were calculated.

4 The total cost associated has been set according to ELEC § 10228 Item 23
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The Community Services Department (CSD) provides a variety of recreational opportunities, including parks, hiking trails, ﬁtness facilities, pools, and a municipal golf course. It also offers engaging programs for all ages, from educational classes to art exhibits and the Palo Alto Jr. Museum and Zoo. The focus of this analysis was the programmatic cost recovery associated with the following divisions: Arts and Sciences, Open Space, Parks and Golf, and Recreation and Cubberley. The following sections outline the cost recovery associated with the Community Services department as a whole, as well as each division.

COMMUNITY SERVICES DEPARTMENT COST RECOVERY
The typical cost recovery for parks and recreational service is between 20% and 50%. This range reﬂects the belief that these services primarily beneﬁt the community at large and therefore should be subsidized through taxpayers. As part of this analysis, the project team calculated the cost recovery for the Community Services Department based on its direct costs of operations and accounting for any indirect costs (Departmental / Divisional administration and Citywide overhead).

Direct cost recovery compares budgeted costs against generated revenues. To determine direct departmental cost recovery, the project team compared FY24 budgeted revenues to FY25 budgeted costs. The following table shows by program: Revenue, Budget, the associated difference, and cost recovery percentage.

TABLE 4: CSD DEPARTMENTAL COST RECOVERY – DIRECT COSTS
Division FY24 Rev FY25 Exp5 Cost Recovery
CSD Arts and Sciences $4,673,381 $10,105,808 46%
CSD Open Space, Parks and Golf $6,174,447 $16,169,915 38% CSD Recreation and Cubberley $5,853,093 $7,916,070 74% Total $16,700,920 $34,191,793 49%
The Department is at a 49% cost recovery level on a direct cost basis. This direct cost recovery is on the higher end of the typical cost recovery (20-50%). The range of cost recovery levels between programs is typical for parks and recreation fees. For example, the optional nature of fees related to recreation services usually equates to those fees being set closer to cost recovery. On the other hand, services provided in relation to youth or senior services tend to be subsidized to account for the community beneﬁt.

Total cost recovery looks at direct program costs, departmental / divisional administration, and citywide overhead and compares those costs against generated revenues. For programmatic services to be provided, recreation management and administration staff support is needed. Furthermore, support

5 The FY25 Budget does not include CSD Administration, as those costs are considered part of the overhead.

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services are also needed from other City departments, including Finance, Human Resources, City Attorney, Facility, Maintenance, and so forth. The following table shows by division the indirect costs:

TABLE 5: CSD DEPARTMENTAL COST RECOVERY – INDIRECT COSTS INCLUDED Division Depart. OH6 Citywide OH Total Indirect Cost CSD Arts and Sciences $927,089 $1,876,689 $2,803,778
CSD Open Space, Parks and Golf $1,483,399 $1,684,736 $3,168,135 CSD Recreation and Cubberley $726,206 $1,297,111 $2,023,317 Total $3,136,694 $4,858,536 $7,995,230
The project team accounted for roughly $8 million in indirect overhead costs. The table below compares FY24 Revenue to FY25 Total Direct and Indirect Costs (Full Cost), highlighting the difference and associated cost recovery percentage.

TABLE 6: CSD DEPARTMENTAL COST RECOVERY – FULL COSTS
Division FY24 Rev FY25 Full Cost Cost Recovery
CSD Arts and Sciences $4,673,381 $12,909,585 36%
CSD Open Space, Parks and Golf $6,174,447 $19,338,050 32% CSD Recreation and Cubberley $5,853,093 $9,939,387 59% Total $16,700,920 $42,187,023 40%
Based on the analysis, the Department has a Full Cost recovery level of 40%, which is still within the typical range of 20-50% for parks and recreation services. Of the total direct and indirect expenditures, approximately 81% are direct expenditures, 12% is Citywide overhead, and 7% is Administrative costs.

ARTS & SCIENCES COST RECOVERY
The Arts & Sciences Division offers a variety of visual and performing arts programs for youth and adults. Additionally, it oversees the daily operations of the Art Center, Junior Museum and Zoo (JMZ), Children’s Theatre, Community Theatre, Cubberley Theatre, the Public Art Program, and the Cubberley Artist Studios Program. The following table shows by cost center: Revenue, Budget, the associated difference, and cost recovery percentage.

TABLE 7: ARTS & SCIENCES COST RECOVERY – DIRECT COSTS
Division FY24 Rev FY25 Exp7 Cost Recovery
Visual Arts, Classes, Exhibitions $1,458,479 $2,912,659 50% Community Theater $198,608 $526,696 38%
Junior Museum & Zoo $2,226,536 $3,770,337 59%
Children's Theater $784,891 $2,329,639 34%
Total $4,668,515 $9,539,331 49%

6 This represents the FY25 budgeted expenditures for the CSD Community Services Administration division only as the remaining divisions (i.e. Animal Shelter, Human Services Administration, Child Care Services, etc.) are not overhead to all of CSD.
7 The FY25 Budget does not include Arts & Culture Administration, as these costs are considered part of the overhead.

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The Arts & Sciences division is at a 49% cost recovery level on a direct cost basis. This direct cost recovery is within the typical cost recovery (20-50%). The next table shows associated indirect costs included:

TABLE 8: ARTS & SCIENCES COST RECOVERY – INDIRECT COSTS INCLUDED Division Depart. OH8 Citywide OH Total Indirect Cost Visual Arts, Classes, Exhibitions $245,592 $220,601 $466,193 Community Theater $44,410 $3,705 $48,115
Junior Museum & Zoo $317,910 $587,606 $905,516
Children's Theater $196,432 $394,237 $590,669
Total $804,345 $1,206,149 $2,010,494
The project team accounted for roughly $2 million in indirect overhead costs. The table below compares FY24 Revenue to FY25 Total Direct and Indirect Costs (Full Cost), highlighting the difference and associated cost recovery percentage.

TABLE 9: ARTS & SCIENCES COST RECOVERY – FULL COSTS
Division FY24 Rev FY25 Full Cost Cost Recovery
Visual Arts, Classes, Exhibitions $1,458,479 $3,378,852 43% Community Theater $198,608 $574,812 35%
Junior Museum & Zoo $2,226,536 $4,675,853 48%
Children's Theater $784,891 $2,920,309 27%
Total $4,668,515 $11,549,825 40%
Based on the analysis, the Arts & Sciences division has a full cost recovery level of 40%. Of the total direct and indirect expenditures, approximately 83% are direct expenditures, 10% is Citywide overhead, and 7% is Administrative costs.

In addition to the overall cost recovery range typically seen in relation to parks and recreation fees, there are typical cost recovery target ranges based upon the Matrix Consulting Group's experience conducting recreation fee studies. On the low end, classes and programs tend to have a 30% to 50% cost recovery as the intention is to balance cost recovery without inhibiting attendance or producing barriers to entry. The Division’s classes and programs are on the higher end of this cost recovery range, which makes sense as the classes / programs offered are unique (ceramics, science, etc) and this drives the desirability. Facility rentals tend to be on the higher end at 50% to 80% cost recovery as rentals are primarily for individual beneﬁt and the community has the option to use the City’s facilities or other facilities based on their needs. The Divisions facility cost recoveries are lower than this cost recovery range.

8 This represents the proportionate split of the FY25 budgeted expenditures for both the CSD Administration and Arts & Culture Administration division across all Arts & Science speciﬁc cost centers.

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OPEN SPACE, PARKS & GOLF COST RECOVERY
The Open Space, Parks, and Golf Division is responsible for the upkeep and operations of the City’s parkland and open spaces. Additionally, it maintains a full-service golf complex. The following table shows by cost center: Revenue, Budget, the associated difference, and cost recovery percentage.

TABLE 10: OPEN SPACE, PARKS & GOLF COST RECOVERY – DIRECT COSTS Division FY24 Rev FY25 Exp9 Cost Recovery
Parks $318,377 $3,263,358 10%
Facilities $777,232 $8,877,486 9%
Golf $5,078,837 $3,639,805 140%
Total $6,174,447 $15,780,648 39%
The Open Space, Parks & Golf Division is at a 39% cost recovery level on a direct cost basis. This direct cost recovery is within the typical cost recovery (20-50%). The next table shows by the indirect costs included:

TABLE 11: OPEN SPACE, PARKS & GOLF COST RECOVERY – INDIRECT COSTS INCLUDED Division Depart. OH10 Citywide OH Total Indirect Cost Parks $97,113 $370,383 $205,193
Facilities $264,182 $1,129,580 $558,197
Golf $108,316 $128,904 $228,863
Total $469,612 $1,628,867 $992,253
The project team accounted for roughly $992,253 in indirect overhead costs. The table below compares FY24 Revenue to FY25 Total Direct and Indirect Costs (Full Cost), highlighting the difference and associated cost recovery percentage.

TABLE 12: OPEN SPACE, PARKS & GOLF COST RECOVERY – FULL COSTS Division FY24 Rev FY25 Full Cost Cost Recovery
Parks $318,377 $3,936,047 8%
Facilities $777,232 $10,829,446 7%
Golf $5,078,837 $4,105,888 124%
Total $6,174,447 $18,871,380 33%
Based on the analysis, the Open Space, Parks & Golf division has a full cost recovery level of 33%. Of the total direct and indirect expenditures, approximately 84% are direct expenditures, 8% is Citywide overhead, and 9% is Administrative costs.

9 The FY25 Budget does not include Open Space & Science Administration, as these costs are considered part of the overhead.
10 This represents the proportionate split of the FY25 budgeted expenditures for both the CSD Administration and Open Space & Science Administration division across all Open Space & Science speciﬁc cost centers.

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Typically, maintenance cost centers are support and do not generate high levels of revenue, this is reﬂected in the low-cost recovery. At 124%, the Golf program generates a high amount of revenue. This excess in cost recovery is typical for specialized services.

RECREATION & CUBBERLEY COST RECOVERY
The Recreation and Cubberley Division is responsible for various youth and adult programming, including sports, camps, aquatics, special events, and much more. Additionally, it oversees the operations of three community centers, a teen center, the MakeX studio, and, through a public-private partnership, the Rinconada Pool. The following table shows by cost center: Revenue, Budget, the associated difference, and cost recovery percentage.

TABLE 13: RECREATIONS & CUBBERLEY COST RECOVERY – DIRECT COSTS Division FY24 Rev FY25 Exp11 Cost Recovery
Adult Classes & Programs $264,978 $448,565 59%
Aquatics $9,717 $71,698 14%
Youth Classes & Programs $1,712,792 $2,431,945 70%
Recreation Facilities $2,449,245 $3,526,093 69%
Parks, Fields, & Courts $1,411,534 $712,006 198%
Special Events $640 $259,405 0%
Total $5,848,906 $7,449,712 79%
The Recreation & Cubberley division is at a 79% cost recovery level on a direct cost basis. This direct cost recovery is higher than the typical cost recovery (20-50%). The next table shows by the indirect costs included:

TABLE 14: RECREATIONS & CUBBERLEY COST RECOVERY – INDIRECT COSTS INCLUDED Division Depart. OH12 Citywide OH Total Indirect Cost Adult Classes & Programs $58,690 $57,340 $116,030
Aquatics $9,381 $17,794 $27,175
Youth Classes & Programs $318,196 $129,396 $447,592
Recreation Facilities $461,355 $718,160 $1,179,515
Parks, Fields, & Courts $93,159 $281,959 $375,118
Special Events $33,941 $32,982 $66,923
Total $1,237,631 $974,721 $2,212,352
The project team accounted for roughly $2.2 million in indirect overhead costs. The table below compares FY24 Revenue to FY25 Total Direct and Indirect Costs (Full Cost), highlighting the difference and associated cost recovery percentage.

11 The FY25 Budget does not include Recreation & Cubberley Administration, as these costs are considered part of the overhead.
12 This represents the proportionate split of the FY25 budgeted expenditures for both the CSD Administration and Recreation & Cubberley Administration division across all Recreation & Cubberley speciﬁc cost centers.

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TABLE 15: RECREATIONS & CUBBERLEY COST RECOVERY – FULL COSTS Division FY24 Rev FY25 Full Cost Cost Recovery
Adult Classes & Programs $264,978 $564,596 47%
Aquatics $9,717 $98,873 10%
Youth Classes & Programs $1,712,792 $2,879,537 59%
Recreation Facilities $2,449,245 $4,705,608 52%
Parks, Fields, & Courts $1,411,534 $1,087,124 130%
Special Events $640 $326,328 0%
Total $5,848,906 $9,662,065 61%
Based on the analysis, the Recreation & Cubberley division has a full cost recovery level of 61%. Of the total direct and indirect expenditures, approximately 77% are direct expenditures, 10% is Citywide overhead, and 13% is Administrative costs.

In addition to the overall cost recovery range typically seen in relation to parks and recreation fees, there are typical cost recovery target ranges based upon Matrix Consulting Group's experience conducting recreation fee studies. Typically, classes and programs have a 30% to 50% cost recovery. The Division’s youth and adult programming are on the higher end of the cost recovery range. At 130%, the parks, ﬁelds, and court rentals generate additional revenues above cost. This excess in cost recovery is typical for rentals partially due to their optional nature, as the community can choose to use the City’s amenities, and in part due to the individual beneﬁt of rentals.

SUMMARY
Overall, the Community Services Department is within the typical cost recovery range, and while classes / programs are within range, rentals and specialized services are higher in cost recovery. The department should utilize the target cost recovery ranges as a guideline to setting rates. Within these larger program categories, there can be different cost recovery targets for sub-programs or subsections. For example, within Recreation, there would be different cost recovery goals for adult vs. youth services.

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The City provides comprehensive in-house ambulance and emergency medical services, which includes staﬃng its ﬁre engines with Fireﬁghter / Paramedics for Advanced Life Safety (ALS) and Basic Life Safety (BLS) calls, as well as several ambulances. The following subsections discuss the current EMS related cost per transport, the full cost calculated for the different types of services (i.e., ALS, BLS, etc.), mileage charge, oxygen use, as well as the annual revenue impacts.

EMS SPECIFIC LEGAL FRAMEWORK
EMS fees have traditionally been considered under the umbrella of user fees or fees for service. As such, these fees are subject to the same legal rules and regulations as other user fees, i.e., the fee cannot exceed the cost to provide the service. However, EMS fees are unique from other fees for service as the fee payer dictates the rate they will pay, which is often less than the current fee charged for the service.

For example, traditionally, if the fee for a water heater permit is $150, any individual who pulls a water heater permit must pay $150. However, in the case of EMS fees, if the fee for transport is $150, depending upon your insurance provider, the City may get paid $0, $50, $100, or the full $150. Therefore, the two types of fees are not equal.

While the City has historically set its EMS fees at full cost, it has run into the traditional conundrum of not being able to achieve full cost recovery, as the fee charged is not the fee rate paid. The focus of this analysis is to provide the City with defensible, full cost fees. Depending on the City’s payor mix, the City will not be able to recover the full cost of EMS services, however, it will be in full compliance with the law.

EMS COST PER TRANSPORT CALCULATION
To calculate the full cost associated with EMS fees, the project team evaluated the City’s direct and indirect costs associated with these activities. The City has the following types of expenses that are EMS-related:
• EMS Program: this program houses the direct costs associated with EMS staff, supplies, and contract services, such as billing.
• Indirect Costs: These costs reﬂect departmental overhead associated with the Fire Chief and other support personnel, as well as Citywide overhead associated with Finance, Human Resources, etc. • EMS Staffed Fireﬁghters: The City has recently increased its staﬃng associated with EMS services to include additional ﬁreﬁghter paramedics to increase the number of transports they can provide.

The following table shows the total FY25 budgeted EMS costs based on these expenses:

FIRE EMS
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TABLE 16: TOTAL EMS-RELATED COSTS
Expense Type FY25 Budget
Direct EMS Expenses $5,910,989
Citywide and Departmental Overhead $896,281
EMS Staffed Fireﬁghters $7,214,994
Total EMS Related Expenses $13,602,558
The total Fire EMS related costs are roughly $13.6 million. To determine the total cost per transport the project took the $13.6 million in EMS costs and divided it by the average total number of transports conducted by the Department over the past three ﬁscal years, as shown in the following table:

TABLE 17: TOTAL EMS COST PER TRANSPORT
Expense Type FY25 Budget
Direct EMS Expenses $3,602,558
Total # of Transports 3,840
Total Cost Per Transport $3,543
Based upon EMS direct and indirect costs of $13.6 million and approximately 3,800 annual transports, the City’s cost per transport is approximately $3,543.

ALS AND BLS COST CALCULATION
While $3,543 is the overall cost per transport, this is converted into two types of fees – Advanced Life Support (ALS) and Basic Life Support (BLS). The typical methodology for converting eh overall cost per transport to these two service areas is based upon a factor that can be applied to each depending upon the level of effort. This factor is based upon discussions with staff, ensuring that the overall split of services totals the overall revenue to be recovered. The following table shows the calculation of the cost for each service area based on the cost per transport, the effort factor, and the resulting full cost per unit.

TABLE 18: COST CALCULATION PER UNIT – ALS AND BLS
Category Cost Per Transport Effort Factor Cost Per Unit ALS $3,543 1.1 $3,897
BLS $3,543 0.9 $3,188
As the table indicates, the total cost calculated is $3,897 for an ALS transport and $3,188 for a BLS transport. The following table compares the City’s current fee, to the full cost calculated:

TABLE 19: TRANSPORT FEES – COST PER UNIT COMPARISON
Category Current Fee Full Cost Difference
ALS Transport Base Rate $2,966 $3,897 ($931)
BLS Transport Base Rate $2,556 $3,188 ($632)
The City is under-recovering for both its transportation categories, with the ALS subsidy at $931 and the BLS subsidy at $632.

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MILEAGE CALCULATION
Along with the ability to bill for transportation and treatment-related activities, the City can also bill for the mileage that is incurred from the transportation scene to the hospital. The mileage charge is typically meant to account for maintenance, fuel, and replacement costs. In FY25 the EMS program budgeted $419,706 for vehicle equipment maintenance, fuel, and replacement costs.

To determine the cost per mile, the project team divided the $419,700 by the average number of miles billed for transport-related activities. The following table shows the resulting cost per mile:

TABLE 20: COST PER MILE CALCULATION
Category Amount
Total EMS Mileage Cost $419,706
Avg Mileage Billed 13,268
Total Cost Per Mile $31.63
The total cost per mile was calculated at $31.63. The following table compares the current fee per mile to the full cost per mile:

TABLE 21: MILEAGE– COST PER UNIT COMPARISON
Category Current Fee Full Cost Difference
Mileage $35 $32 $3
Based on the cost calculated, the City is over-recovering by approximately $3 per mile. It is important to note that even though the City shows an over-recovery, due to its payor mix it does not actually receive $35 per mile. The actual reimbursement amount depends on the payor mix of the agency.

OXYGEN CALCULATION
As with the mileage charge, the City also bills for oxygen usage. The cost for oxygen usage was calculated based on the rental and re-ﬁlling costs for oxygen and the number of tanks. The following table shows the cost per tank calculation:

TABLE 22: COST PER TANK CALCULATION
Category Amount
Oxygen Cost $7,075
Total # of Oxygen Tanks 15
Cost Per Tank $472
The cost per tank through this study was calculated at $472. However, each trip or use of oxygen does not take up a full tank. The project team calculated the number of trips it takes to utilize a full oxygen tank. This trip calculation was done based on the average number of transports, the average number of oxygen uses, and the percentage of time the tank is reﬁlled / checked. The following table shows the number of trips calculated per oxygen tank utilization:

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TABLE 23: # OF TRIPS PER OXYGEN TANK CALCULATION
Category Amount
Total # of Transports 3,840
Total # of Oxygen Uses 1,152
# of Trips per Oxygen Tank 3.33
% of Time Tank is Reﬁlled / Check 50%
# of Trips per Oxygen Tank – Utilized 1.67
Even though, on average, it takes a little over three trips before the oxygen tank would need to be reﬁlled, based upon discussion with staff, the City does not wait until the oxygen tank is fully depleted before reﬁlling it. As such, the tank is reﬁlled or checked about every one and a half trips. The following table takes the total cost per tank and then divides it by the number of trips per oxygen tank utilization to determine the cost per oxygen use:

TABLE 24: COST PER OXYGEN USE
Category Amount
Cost Per Tank $472
# of Trips per Oxygen Tank – Utilized 1.67
Cost Per Oxygen Use $283
The total cost per oxygen use calculated is $283. The following table compares the City’s current fee to the total cost calculated and the resulting difference:

TABLE 25: OXYGEN – COST PER UNIT COMPARISON
Category Current Fee Full Cost Difference
Oxygen Use $179 $283 ($104)
The City is under-recovering by approximately $100 per oxygen use, recovering approximately 63% of its costs.

COMPLIANCE FEES
The City currently assess an hourly fee for engine company inspections. This fee is only assessed when the engine company is required to perform a second reinspection. The following table compares the City’s current fee to the total cost calculated and the resulting difference:

TABLE 26: EMS – COMPLIANCE FEES
Category Current Fee Full Cost Difference
Engine Company Second Reinspection $279 $994 ($715)
The City’s current fee is under-recovering by approximately $700. While the large difference can be attributed to increased costs associated with Engine services, the more likely reason for the large disparity is due to the current fee not being set at full cost recovery.

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FIRST RESPONDER FEE
While discussing current EMS services with City staff, it was noted that the current ALS and BLS fees only account for EMS speciﬁc costs, but do not cover the costs associated with engine incident responses. Therefore, it was proposed that a First Responder Fee be established to provide the City with a mechanism to recover these costs. Based on a thirty (30) minute call out, the full cost calculated for the First Responder Fee would be $497.

ANNUAL REVENUE IMPACTS
As noted at the beginning of this chapter, EMS services differ from other fee-related services, as the user is billed after services are provided, typically with bills going through insurance companies ﬁrst.

Depending on the user’s insurance, the City may only receive a fraction of the amount billed. Therefore, based on the make-up of the users of EMS services, the revenue the City receives is dramatically lower than what is billed. The following subsections outline the City’s current payer mix and annual cost recovery.

PAYOR MIX
Those who use EMS transport services typically fall into one of ﬁve (5) categories: Medicaid, Medicare, Private Insurance, Worker’s Comp, or Other. The following table outlines the payor mix for EMS services in as well as the average recovery for Fiscal Year 2024.

TABLE 27: EMS SERVICE PAYOR MIX
Payor Type FY24 % of Payors Average Recovery
Medicaid 15% 43%
Medicare 53% 26%
Private Insurance 26% 86%
Worker’s Comp 1% 34%
Other 5% 5%
For Medicaid and Medicare services, the insurance provider sets a standard amount it will reimburse for various EMS services – regardless of the fees billed by the service provider. The amount the City receives from Private Insurance, Worker’s Comp, and Other users depends on the medical plan of the individual.

As shown in the table above, the majority of the City’s users are on Medicare which has an average recovery rate of 26%, while the highest recovery rate (86%) belongs to those with Private Insurance, who comprise roughly 25% of the total users.

ANNUAL REVENUE RECOVERY – CURRENT FEE
There are two types of annual revenue recoveries that can be calculated for EMS services:

1. Potential Revenue vs. Total Cost: this compares assumed revenue generation based on 100% collection of fees billed compared to the full cost of providing the service.

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2. Annual Revenue Collected vs. Annual Cost: this shows the amount collected compared to the annual cost associated with those activities.

Based upon the current fee charged by the Fire Department for EMS-related activities and the projected annual cost, the project team calculated that the department would have had a $5.2 million deﬁcit or recovered approximately 69% of its costs. The following table shows by fee category the annual amount billed, the annual cost, and the surplus / deﬁcit:

TABLE 28: EMS ANNUAL COST RECOVERY – BILLED VS TOTAL COST Category Potential Revenue Total Cost Difference
Transport Mileage $464,380 $419,698 $44,682
BLS $3,023,748 $3,771,849 ($748,101)
ALS $7,880,662 $10,354,075 ($2,473,413)
First Responder Fee $1,908,170 ($1,908,170)
Oxygen $206,208 $326,016 ($119,808)
Total $11,574,998 $16,779,808 ($5,204,810)
Of the $5.2 million, the biggest impact relates to ALS related transports, while nearly $2 million is related to First Responder services which aren’t currently being assessed. However, as noted above, what the City bills is not what the City recovers. Therefore, the following table compares the revenue collected by the City to the City’s total cost of providing services, and the associated difference:

TABLE 29: EMS ANNUAL COST RECOVERY – RECOVERED VS TOTAL COST Category Recovered Revenue Total Cost Difference
Transport Mileage $207,757 $419,698 ($211,941)
BLS $1,192,728 $3,771,849 ($2,579,121)
ALS $3,283,567 $10,354,075 ($7,070,508)
First Responder Fee $0 $1,908,170 ($1,908,170)
Oxygen $53,614 $326,016 ($272,402)
Total $4,737,667 $16,779,808 ($12,042,141)
While the City billed for nearly $11.6 million in transport related services, it only received roughly $4.7 million in offsetting revenue. When comparing the $4.7 million to their total annual costs, their deﬁcit is approximately $12 million, resulting in a cost recovery rate of only 28%.

ANNUAL REVENUE RECOVERY – TOTAL COST
Should the City increase their fees to reﬂect the full cost of providing EMS services, including implementation of the First Responder fee, they would see an increase in annual revenue. The following compares current collected revenue to projected revenue collections based on a full cost fee and estimates a potential revenue increase.

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TABLE 30: EMS ANNUAL COST RECOVERY – POTENTIAL REVENUE
Category Recovered Revenue Revenue at Full Cost Fee Potential Revenue Increase Transport Mileage $207,757 $191,897 ($15,860)
BLS $1,192,728 $1,351,895 $159,166
ALS $3,283,567 $3,813,738 $530,171
First Responder Fee $0 $374,400 $374,400
Oxygen $53,614 $84,764 $31,150
TOTAL $4,737,667 $5,816,694 $1,079,027
Should the City adopt EMS transport fees at the full cost shown in this report, based on the average annual workload it could generate approximately $5.8 million in revenue, which would represent an increase of roughly $1 million. Projected revenue associated with the First Responder Fee assumes 75% recovery from only Private Payors. However, given that the First Responder fee is new, and the ability for the City to recover these billed services is unknown, we would conservatively project the City’s potential revenue increase at only $700,000.

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The Palo Alto Police Department is responsible for providing emergency and non-emergency public safety services to the citizens of Palo Alto. As part of this duty, the department administers fees for background checks, vehicle impoundments, and variety of permits for speciﬁc businesses, such as taxicabs and ﬁrearms dealers. Oﬃcers also assist with Special Events and administer related fees accordingly. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Police Department.

FEE SCHEDULE MODIFICATIONS
In discussions with Police Department staff, the following modiﬁcations to the current fee schedule were proposed:
• Eliminated Fees: The following fees were eliminated as they represent services no longer offered by the Police Department:
– Adult Entertainment – Closing-out Sale
– Adult Entertainment – Closing-out Sale Renewal (Two Maximum) – Background Check – New
– Department of Justice Fingerprint and Rolling Fee
– FBI Fingerprint Fee
– Noise Exception Permit
– Parenting Project Materials
– Parenting Project Program
– Valet Parking – Sign & Curb Markings
• New Fees: Police Department staff proposed the addition of the following fees to the fee schedule, as they represent either services already offered and not codiﬁed or new services the City would like to offer:
– Civil Subpoena Appearance Fee
– Towed Stored Vehicle Fee
• Expanded Fees: Staff proposed expanding the ‘Taxicab – Driver’ fee to include two categories (‘New’ and ‘Renewal’) to better account for a difference in processing time. • Modiﬁed Fees: The ‘Subpoena Fee’ was clariﬁed to read ‘Subpoena Fee for Documents,’ and the ‘Special Event / Film Permit’ fee was modiﬁed to read ‘Film / Photography Permit.’ The modiﬁcations noted above ensure that the proposed fee schedule better reﬂets the services being provided by Police Department staff.

POLICE
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DETAILED RESULTS
The Police Department collects fees for high-risk business regulation, vehicle impoundments, special events, and miscellaneous administrative tasks. The total cost calculated for each service includes direct staff costs and Departmental, Divisional, and Citywide overhead. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 31: TOTAL COST PER UNIT RESULTS – POLICE
Fee Name Unit Current Fee Total Cost Difference
Background Check
OPM/DOD Background Check Per Application $5 $112 ($107) Impoundment Fees - Vehicle
Vehicle Impoundment Fee Each $158 $162 ($4)
Vehicle Repossession Receipt13 Each $15 $15 $0
Towed Stored Vehicle Fee Each New $162
Personnel Rates
Emergency Response Fee Per Incident Actual Cost
Special Fees
Clearance Letter Each $35 $131 ($96)
Digital Media Reproduction Fee Each $65 $281 ($216)
Location Crime Statistics Fee Each $86 $359 ($273)
Offsite Document Retrieval Per Item Actual Cost
Report Copy Fee14 Each $15 $15 $0
Research Fee Per Hour $160 $245 ($85)
Subpoena Fee For Documents15 Per Hour $24 $24 $0
Civil Subpoena Appearance Fee16
Per Person Per
Day $275 $275 $0
Firearms Dealer
Firearms Dealer Master Permit - New Per Year $3,564 $3,637 ($73) Firearms Dealer Master Permit - Renewal Per Year $644 $970 ($326) Miscellaneous
Helicopter Landing Fee Per Occurrence $79 $81 ($2)
One Day Liquor Permit Fee:

For Proﬁt Rate Per Permit $65 $76 ($11)
Non-Proﬁt Rate Per Permit $49 $76 ($27)
Secondhand Dealers
DOJ Per Application $300 $300 $0
New Per Application $481 $242 $239
Renewal Per Application $120 $121 ($1)
Taxicab
Master License:

New Per Year $3,589 $7,274 ($3,685)
Renewal Per Year $1,609 $2,425 ($816)
Driver:

New Per Year $65 $242 ($177)

13 Ca. Gov. Code § 26751
14 EVI § 1563(b)(6)
15 EVI § 1563(b)(1)
16 GOV § 68097.2 (b)
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Fee Name Unit Current Fee Total Cost Difference
Renewal Per Year $65 $81 ($16)
Vehicle Inspection for Each Vehicle Per Year $92 $81 $11 Replacement or Transfer Fee Each $80 $40 $40
Valet Parking
Permit Application Per Application $863 $970 ($107)
Permit Application Renewal (Annual) Per Year $130 $242 ($112) Short-Term Application Fee Per Application $406 $229 $177 Special Events
Personnel Rates for events where 100% of the proceeds go to a Profit Organization:

Community Services Oﬃcer Per Hour $111 $215 ($104)
Police Agent Per Hour $245 $272 ($27)
Police Oﬃcer Per Hour $206 $244 ($38)
Police Reserve Per Hour $88 $58 $30
Police Sergeant Per Hour $272 $291 ($19)
Personnel Rates for events where 80% of the proceeds go directly to Non-Profit Organizations:

Community Services Oﬃcer Per Hour $92 $215 ($123)
Police Agent Per Hour $212 $272 ($60)
Police Oﬃcer Per Hour $171 $244 ($73)
Police Reserve Per Hour $72 $58 $14
Police Sergeant Per Hour $232 $291 ($59)
Personnel Rates for events where 80% or more of the proceeds go directly to Non-Profit Organizations or events declared as co-sponsored by the City of Palo Alto:

Community Services Oﬃcer Per Hour $87 $215 ($128)
Police Agent Per Hour $185 $272 ($87)
Police Oﬃcer Per Hour $160 $244 ($84)
Police Reserve Per Hour $65 $58 $7
Police Sergeant Per Hour $205 $291 ($86)
Special Fees:

Special Event Permit
201 - 400 Attendees Per Permit $334 $582 ($248)
401 – 600 Attendees Per Permit $359 $2,036 ($1,677)
Each Add’l 200 Attendees Each $53 $291 ($238)
Film / Photography Permit:

Large Commercial Filming Per Permit $306 $582 ($276) Low-Impact Filming Permit (Cast &
Crew 35 or less) Per Permit $306 $291 $15
Student Filming / Photography Per Permit $306 $291 $15 Photography Permit Per Permit $306 $145 $161
Temporary Street Closure Each Refer to PW Fee Schedule
The Police Department’s fees show a mix of under- and over-recoveries but generally under-recover. The largest undercharge is for a New Taxicab Master License at about $3,700. The smallest deﬁcit is for the ‘Secondhand Dealers – Renewal’ fee at just $1. Of the fees that show over-recoveries, the largest overcharge is for a ‘Short-Term Application Fee’ for Valet Parking at around $175, and the smallest is the ‘Vehicle Inspection for Each Vehicle’ fee for taxicab drivers at approximately $10.

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ANNUAL RESULTS
Because of the limited workload information available for Police, no annual results were calculated.

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The Animal Control Division of the Palo Alto Police Department oversees enforcement of animal-related ordinances, responds to issues involving animals in the City, and provides permits and licensing for pets and livestock and related events. The fees examined in this study related to animal permits, disposal, animal impoundments, pet licenses, and pet quarantines. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Animal Control Division.

FEE SCHEDULE MODIFICATIONS
In discussions with Animal Control staff, the following modiﬁcations to the current fee schedule were proposed:
• Eliminated Fees: The following fees were eliminated as they represent services no longer offered by Animal Control:
– Disposal – Dogs, Cats, Rabbits (up to 20lbs)
– Disposal – Dogs (up to 75lbs)
– Disposal – Dogs (76lbs and over)
– Disposal – Each Additional Animal
– Disposal – Large Animals (up to 150lbs)
– Disposal – Small Animals and Birds
– Riding Academy
– Special Impoundment Fee – Dog
• New Fees: Police Department staff proposed the addition of the following fees to the fee schedule, as they represent either services already offered and not codiﬁed or new services the City would like to offer:
– Pet Licenses – Senion Citizen / Veteran
– Rabies Exemption
– Service Dog Tag
• Modiﬁed Fees: The names of the following fees were modiﬁed to provide greater clarity:
– Animal Permits – Dangerous Animal Permit
– Animal Permits – Livestock / Apiary
– Animal Permits – Pet Show
– Animal Permits – Traveling Menagerie or Petting Zoo
POLICE – ANIMAL CONTROL
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– Disposal – Service Fee
– Pet Licenses – Spayed or Neutered (Altered)
– Pet Licenses – Unaltered
The modiﬁcations noted above ensure that the proposed fee schedule better reﬂets the services being provided by Animal Control.

DETAILED RESULTS
Animal Control collects fees for animal-related permitting, impoundment, pet licenses, and miscellaneous other services. The total cost calculated for each service includes direct staff costs, and Departmental, Divisional, and Citywide overhead. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 32: TOTAL COST PER UNIT RESULTS – ANIMAL CONTROL
Fee Name Unit Current Fee Total Cost Difference
Animal Permits
Boarding Per Permit $219 $384 ($165)
Breeding Permit - Cat, Dog, or Bird Per Permit $133 $384 ($251) Kennel, Birds, or Animals Per Permit $219 $384 ($165) Livery Stable, Boarding Stable Per Permit $219 $384 ($165) Livestock / Apiary Per Permit $80 $220 ($140)
Pet Shop/Groomer Per Permit $219 $384 ($165)
Pet Show Per Permit $80 $327 ($247)
Pony Ride, Pony Ring Per Permit $219 $327 ($108)
Traveling Menagerie or Petting Zoo Per Permit $219 $327 ($108) Dangerous Animal Permit Per Permit $432 $384 $48
Disposal
Service Fee Each $60 $107 ($47)
Impoundment Fees
Impoundment Fees - Cat:

First Offense Per Occurrence $36 $213 ($177)
Second Offense Per Occurrence $54 $213 ($159)
Third and Subsequent Offenses Per Occurrence $74 $213 ($139) Impoundment Fees - Dog - Licensed:

First Offense Per Occurrence $36 $213 ($177)
Second Offense Per Occurrence $54 $213 ($159)
Third Offense Per Occurrence $72 $213 ($141)
Fourth Offense Per Occurrence $135 $213 ($78)
Fifth to Tenth Offense Per Occurrence $181 $213 ($32) Eleventh and Subsequent Offenses Per Occurrence $203 $213 ($10) Impoundment Fees - Dog - Unlicensed:

First Offense Per Occurrence $61 $213 ($152)
Second Offense Per Occurrence $93 $213 ($120)
Third Offense Per Occurrence $115 $213 ($98)
Fourth Offense Per Occurrence $154 $213 ($59)
Fifth to Tenth Offense Per Occurrence $209 $213 ($4)
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Fee Name Unit Current Fee Total Cost Difference
Eleventh and Subsequent Offenses Per Occurrence $246 $213 $33 Impoundment Fees - General:

Other Animals (Small) - Bird, Rabbit, Reptile,
etc. Per Occurrence $31 $213 ($182)
Other Animals (Large) - Horse, Cow, Pig,
Goat, etc. Per Occurrence $123 $213 ($90)
State Mandated Fees17
First Offense Per Occurrence $35 $35 $0
Second Offense Per Occurrence $50 $50 $0
Third and Subsequent Offenses Per Occurrence $100 $100 $0 Pet Licenses
12 Months
Unaltered Per Dog $45 $52 ($7)
Spayed or Neutered (Altered) Per Dog $22 $52 ($30)
Senior Citizen / Veteran Per Dog New $52
24 Months
Unaltered Per Dog $67 $71 ($4)
Spayed or Neutered (Altered) Per Dog $33 $71 ($38)
Senior Citizen / Veteran Per Dog New $71
36 Months
Unaltered Per Dog $90 $90 $0
Spayed or Neutered (Altered) Per Dog $45 $90 ($45)
Senior Citizen / Veteran Per Dog New $90
Service Dog Tag Per Dog New $52
Rabies Exemption Per Dog New $38
Replacement License Tags (Dogs) Each $5 $33 ($28)
Special Fees
Animal Control Oﬃcer Per Hour $91 $213 ($122)
Quarantine Home Inspection Fee Each $46 $427 ($381)
Animal Control’s fees generally under-recover the associated costs. The fee that shows the largest under- recovery is the ‘Quarantine Home Inspection Fee’ at around $400, followed by the fee for a ‘Breeding Permit – Cat, Dog, or Bird’ ($250). The fee with the smallest undercharge is the ‘Impoundment Fees – Dog – Unlicensed – Fifth to Tenth Offense’ at about $5. Only two fees show an over-recovery (‘Dangerous Animal Permit’ and ‘Impoundment Fees – Dog – Unlicensed – Eleventh and Subsequent Offenses’), both of which can be considered penalties.

ANNUAL RESULTS
Because of the limited workload information available for Animal Control, no annual results were calculated.

17 CA Food & Agri Code § 30804.7
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The Public Works department aims to ensure the City’s infrastructure is well-maintained, promote the protection of the City’s urban forest, and protect quality of life through the prevention of pollution, and promotion of environmental policies and regulations. Though the Department provides a variety of services that span multiple funds, the focus of this analysis was on Operations, Storm Drain, and Wastewater services. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Animal Control Division.

FEE SCHEDULE MODIFICATIONS
In discussions with Public Works staff, some minor modiﬁcations to each division’s fee structures were proposed. These modiﬁcations are outlined in the following points:
• Operations: Staff determined that the addition of two fees: Disposal and Use of Equipment would help better outline the services provided. Conversely, Overtime & Holiday rates associated with Electric Vehicle Charger Connections and Charging, as well as Newsrack Impoundment were removed as those services are no longer needed or provided.
• Storm Drain: Staff determined that the Storm Drain Inspection Fee should be renamed to better reﬂect the service being provided to: Stormwater Treatment Feature Operations and Maintenance Inspection.

Additionally, the Base fee was lowered from four (4) hours to three (3) hours. • Wastewater Treatment: Staff determined that the Exceptional Waste – (High Volume) and Exceptional Waste (Low Volume) categories under Industrial Waste Discharge should be consolidated into a singular fee. Similarly, the Full (Categorical) and Full (Non-Categorical) were also consolidated into a singular fee, along with the Septic Tank & Portable Toilet Waste Disposal fees which were consolidated into a single per gallon Discharge fee
The modiﬁcations outlined above strengthen the schedules associated with each division, and ensure that the services provided are clearly identiﬁed, and accurately reﬂect the time associated with each service.

DETAILED RESULTS
The Public Works divisions included in this analysis collect a variety of fees for services. The total cost calculated for each service includes direct staff costs and Departmental, Divisional, and Citywide overhead. The following subsections outline the detailed per unit results for Operations, Storm Drain, and Wastewater.

OPERATIONS
Operations staff provide services relating to Maintenance and Repair, Map / Plan Review, and Tree Removals. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

PUBLIC WORKS
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TABLE 33: TOTAL COST PER UNIT RESULTS – PUBLIC WORKS OPERATIONS Fee Name Unit Current Fee
Total
Cost Difference
Maintenance & Repair
Regular Time:

Construction & Repair Per Hour $184 $185 ($1)
Electric Vehicle Charger Connection Per Connection $0.00 to $2.00 Electric Vehicle Charger Connection Overstay Per Hour $0.00 to $5.00 Electric Vehicle Charging Per Kilowatt Hour $0.24
Newsrack Impoundment Fee
First Day Base $208
Each Subsequent Day Each Subsequent Day $3
Supervision Per Hour $187 $228 ($41)
Sweeping Services Per Hour $151 $179 ($28)
Traffic Control/Graffiti Services Per Hour $138 $163 ($25) Traffic Property Damage Per Hour $138 $163 ($25)
Tree Services Per Hour $161 $172 ($11)
Overtime & Holiday:

Construction & Repair Per Hour $272 $222 $50
Supervision Per Hour $282 $276 $6
Sweeping Services Per Hour $227 $213 $14
Traffic Control/Graffiti Services Per Hour $208 $194 $14 Traffic Property Damage Per Hour $208 $194 $14
Tree Services Per Hour $226 $208 $18
Disposal Each Actual Cost
Use of Equipment Each Actual Cost
Map/Plan Review Fees
Home Improvement Exception - Trees Per Application $487 $575 ($88) IR Review - Trees Per Application $759 $575 $184
Tree Removal
Protected Tree Removal Per Removal $499 $460 $39
Record Management Fee Per File $32 $174 ($142)
Tree Removal
Per Inch of Damage
Plus Planting
Installation $153
The majority of the services provided by Operations are charged hourly, with some of those services showing under-recoveries, and others show over-recoveries. Fees associated with Electric Vehicle Charger Connections and charging were not evaluated through this analysis as they are not a time-based service. Newsrack impoundments and Tree Removals also weren’t reviewed as these are penalties.

Overall, Operations fees are generally recovering their costs on a per unit basis, and inline with typical cost recovery levels of between 80% and 100%.

STORM DRAIN
Storm Drain staff provide services relating to ﬂood variance, ﬂood zone determination, and temporary elevation benchmarks. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

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TABLE 34: TOTAL COST PER UNIT RESULTS – PUBLIC WORKS STORM DRAIN Fee Name Unit Current Fee Total Cost Difference
Flood Variance Fee Each City Cost plus 15%
Flood Zone Determination Letter Per Letter $147 $419 ($272) Stormwater Treatment Feature Operations and Maintenance Inspection:

Up to 3 Hours Base $59918 $540 $60
Per Hour Thereafter Per Hour Thereafter $123 $187 ($64) Temporary Elevation Benchmarks Per Benchmark $500 $505 ($5) The Flood Zone Determination Letter shows a subsidy of approximately $272, while the the base rate for a Stormwater Treatment Feature Operations and Maintenance Inspection shows an overage of $60. With the exception of the Flood Zone Determination Letter, the fees charged for Storm Drain services are within the typical cost recovery range of 80% - 100%.

WASTEWATER TREATMENT
Wastewater Treatment staff provide services relating to Industrial Waste Discharge, and Recycled Water.

The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 35: TOTAL COST PER UNIT RESULTS – PUBLIC WORKS WASTEWATER Fee Name Unit
Current
Fee
Total
Cost Difference
Industrial Waste Discharge Fees:

Automotive Per Year $699 $1,523 ($824)
Basic Per Year $4,120 $5,735 ($1,615)
Best Management Practices (BMP) Per Year $1,541 $2,856 ($1,315) Exceptional Waste Per Permit Modified $3,473 N/A
Full Per Year Modified $6,898 N/A
Groundwater Per Year $1,576 $1,614 ($38)
Industrial Waste Discharge Fees - Liquid Waste Disposal Fee:

Septic Tank & Portable Toilet Waste Disposal
Permit Processing Each $105 $542 ($437)
Discharge Fee Per Gallon $0.1019 $0.77 ($0.67)
Recycled Water Fees:

Recycled Water Permit Processing Per Permit $52 $452 ($400) All fees charged by Wastewater staff show an under-recovery, the largest being for Basic Industrial Waste Discharge at $1,615. Overall, fees associated with Wastewater services are below the typical cost recovery level of 80% - 100%.

18 The current fee has been modiﬁed to provide a true three-hour comparison. 19 The current fee has been modiﬁed to provide a true per gallon comparison.

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ANNUAL RESULTS
Workload statistics at a level suﬃcient to evaluate annual revenue impacts were not available, therefore no annual results were calculated.

Real Estate and Property Management is a division within the Administrative Services Department. This Division is responsible for the management of City-owned properties, including the acquisition, leasing, and sale of property. The fees examined within this study relate to Conveyance and Easement Vacation services. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Real Estate and Property Management division.

FEE SCHEDULE MODIFICATIONS
In discussions with Real Estate and Property Management staff it was determined that no modiﬁcations to the current fee structure were needed.

DETAILED RESULTS
The Real Estate and Property Management division collects fees associated with easement vacations, property transfer tax exemptions, and other conveyances. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 36: TOTAL COST PER UNIT RESULTS – REAL ESTATE AND PROPERTY MANAGEMENT Fee Name Unit
Current
Fee
Total
Cost Difference
Conveyance
Commercial/Non-Residential/Residential - Long Term (More than 12 months) Each $1,750 $4,613 ($2,863)
Consent to Assignment, Amendment, Extension or
Hypothecation of a lease or sublease where the City is lessor Each $780 $1,648 ($868) Easement Document Preparation and Processing
(Commercial & Residential) Each $1,700 $1,648 $52
License/Grant Deed Preparation Each $1,930 $4,613 ($2,683) Property Transfer Tax Exemption Fee Each $245 $577 ($332) Public Notice Mailing/Posting/Advertising (Commercial & Residential) Deposit $116 $116 $0
Telecommunication Application Processing Fee Each $3,426 Easement Vacation
General Each $4,892
Summary Each $2,083 $3,295 ($1,212)
All but one of the fees charged by Real Estate and Property Management staff show an under-recovery.

The largest subsidy relates to ‘Commerial / Non-Residential / Residential – Long Term (More than 12 months) Conveyance’ at $2,863, while the least subsidized fee is for a ‘Property Transfer Tax Examption

REAL ESTATE AND PROPERTY MANAGEMENT
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Conveyance’ at $13. ‘Easement Document Preparation and Processing (Commercial & Residential) Conveyance’ shows an over-collection of $52, and should be reduce in order to comply with current fee regulations.

It should be noted that time estiamtes were not provided by staff for services relating to ‘Telecommunication Application Processing Conveyance’ and ‘General Easement Vacation’, therefore, not total cost was calculated.

ANNUAL RESULTS
Given the minimal workload associated with the real estate and property management, no annual results were calculated.

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Revenue Collection is a division within the Administrative Services Department. This Division is responsible for the collection of general city revenues associated with utility billing, parking permits, TOT payments, and other miscellaneous receivables. The fees examined within this study relate to Documents and Photocopies, Parking, and Miscellaneous services. The following subsections discuss fee schedule modiﬁcations and detailed per unit results for the fee-related services provided by the Revenue Collection division.

FEE SCHEDULE MODIFICATIONS
In discussions with Revenue Collection staff, it was determined that Documents & Photocopies fees relating to ‘Annual Comprehensive Financial Report (ACFR)’, ‘Budget Book’, and ‘Municipal Fee Schedule’ would be eliminated. These fees are being removed as the associated materials can now be found on the City’s website, no longer requiring staff time for processing.

DETAILED RESULTS
The Revenue Collection division collects fees associated with certiﬁed mailings, duplicate receipts, returned checks, and parking permit investigations. The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 37: TOTAL COST PER UNIT RESULTS – REVENUE COLLECTION Fee Name Unit
Current
Fee
Total
Cost Difference
Documents & Photocopies
Mailing (Certified) Each $4 $23 ($18)
Miscellaneous
Duplicate Receipt Each $9 $36 ($27)
Returned Payment Charge (California Civil Code Section 1719)20 Each $25 $25 Parking
Permit Investigation (non-refundable) Each $23 $36 ($13) Recreational Vehicle/Oversized Vehicle
Per
Application $22 $90 ($68)
Of the services reviewed through this study all under-recover for the full cost of providing the service. The largest subsidy relates to ‘Recreation Vehicle / Oversized Vehicle’ at $68, while the smallest subsidy relates to ‘Permit Investigation (non-refundable)’ at $13.

ANNUAL RESULTS
Given the minimal workload associated with the reviewed services, no annual results were calculated.

20 The total cost associated has been set according to CIV § 1719(a).

REVENUE COLLECTION
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The following sections provide guidance regarding how and where to increase fees, determine annual update factors, and develop cost recovery policies and procedures.

FEE ADJUSTMENTS
This study has documented and outlined on a fee-by-fee basis where the City is under- and over- collecting for its fee-related services. City and Department management will now need to review the study results and adjust fees per Departmental and City philosophies and policies. The following dot points outline the major options the City has in adjusting its fees:
• Over-Collection: Upon review of the fees that were shown to be over-collecting for costs of services provided, the City should reduce the current fee to be in line with the full cost of providing the service. • Full Cost Recovery: For fees that show an under-collection for costs of services provided, the City may decide to increase the fee to full cost recovery immediately. • Phased Increase: For fees with signiﬁcantly low cost recovery levels, or which would have a signiﬁcant impact on the community, the City could choose to increase fees gradually over a set period of time.

The City will need to review the results of the fee study and associated cost recovery levels and determine how best to adjust fees. While decisions regarding fees that currently show an over-recovery are straightforward, the following subsections provide further detail on why and how the City should consider either implementing Full Cost Recovery or a Phased Increase approach to adjusting its fees.

Increasing fees associated with permits and services that are already close to full cost recovery can potentially bring a Department’s overall cost recovery level higher. Often, these minimal increases can provide necessary revenue to counterbalance fees that cannot be increased.

COST RECOVERY CONSIDERATIONS
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As an example, you may have a current fee of $200 with a full cost of $1,000, representing 20% cost recovery. If the current policy is 80% cost recovery, the current fee would need to increase by $600, bringing the fee to $800, to comply. Assuming this service is something the City provides quite often and affects various members of the community, an instant increase of $600 may not be feasible. Therefore, the City could take a phased approach, whereby it increases the fee annually over a set period until cost recovery is achieved.

Raising fees over a set period not only allows the City to monitor and control the impact to applicants but also ensure that applicants have time to adjust to signiﬁcant increases. Continuing with the example above, the City could increase the fee by $150 per year for the next four years, spreading out the increase. Depending on the desired overall increase and the impact to applicants, the City could choose to vary the number of years by which it chooses to increase fees. However, the project team recommends that the City not phase increases for periods greater than ﬁve years, as that is the maximum window after which a comprehensive fee assessment should be completed.

ANNUAL ADJUSTMENTS
Conducting a comprehensive analysis of fee-related services and costs annually would be quite cumbersome and costly. The general recommendation is that a comprehensive fee analysis should be conducted every three to ﬁve years. This allows jurisdictions to ensure they account for organizational changes, such as staﬃng levels and merit increases, and process eﬃciencies, code or rule changes, or technology improvements. Currently, Thousand Oaks updates their fees biennially based on a CPI factor; best practice would be to update these fees annually, even when the budget process is biennial.

Developing annual update mechanisms allows jurisdictions to maintain current levels of cost recovery, while accounting for increases in staﬃng or expenditures related to permit services. The two most common types of update mechanisms are Consumer Price Index (CPI) and Cost of Living Adjustment (COLA) factors. The following points provide further detail on each of these mechanisms:
• COLA / Personnel Cost Factor: Jurisdictions often provide their staff with annual salary adjustments to account for increases in local cost of living. These increases are not tied to merit or seniority but rather meant to offset rising costs associated with housing, gas, and other livability factors.

Sometimes these factors vary depending on the bargaining group of a speciﬁc employee. Generally, these factors are around two or three percent annually. • CPI / ECI Factor: A common method of increasing fees or cost is to look at regional cost indicators, such as the Consumer Price Index or Employment Cost Index. These factors are calculated by the Bureau of Labor Statistics, are put out at various intervals within a year, and are speciﬁc to states and regions.

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The City of Thousand Oaks should review its current options internally (COLA) as well as externally (CPI / ECI) to determine which option better reﬂects the goals of the Departments and the City. If choosing a CPI / ECI factor, the City should outline which CPI / ECI should be used, including speciﬁc region and adoption date. If choosing an internal factor, the City should be sure to specify which factor if multiple exist.

POLICIES AND PROCEDURES
This study has identiﬁed areas where the City is under-collecting the costs associated with providing services. This known funding gap is therefore being subsidized by other City revenue sources.

Development of cost recovery policies and procedures will ensure that current and future decision makers understand how and why fees were determined and set, as well as provide a road map for ensuring consistency when moving forward. The following subsections outline typical cost recovery levels and discuss the beneﬁts of developing target cost recovery goals and procedures for achieving and increasing cost recovery.

TYPICAL COST RECOVERY
The Matrix Consulting Group has extensive experience in analyzing local government operations across the United States and has calculated typical cost recovery ranges. The following table outlines typical cost recovery ranges by major service area.

TABLE 38: TYPICAL COST RECOVERY RANGES BY MAJOR SERVICE AREA Service Areas Typical Cost Recovery Ranges
Administration 40-70%
Public Works 80-100%
Parks & Recreation 20-50%
Information presented in the table above is based on the Matrix Consulting Group’s experience in analyzing local governments’ operations across the United States and within California and reﬂects typical cost recovery ranges observed by local adopting authorities.

DEVELOPMENT OF COST RECOVERY POLICIES AND PROCEDURES
The City should review current cost recovery levels and adopt formal policies regarding cost recovery.

These policies can be general in nature and apply broadly to the City as a whole or to individual departments and divisions speciﬁcally. Department-speciﬁc cost recovery policies would allow the City to better control the cost recovery associated with different types of services being provided and the community beneﬁt received.

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Black & White Per Page $0.10 $0.10 $ 0.10 GOV § 7922.530. GOV § 7922.530.

Color Per Page $0.25 $0.25 $ 0.25 GOV § 7922.530. GOV § 7922.530.

Digital Copy Each GOV § 6253.9(a). GOV § 6253.9(a).

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New Per Year $3,589 $7,274 $7,274 High - 70.1% - 100% High - 70.1% - 100% Renewal Per Year $1,609 $2,425 $2,425 High - 70.1% - 100% High - 70.1% - 100% Driver:

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PUBLIC WORKS FEES
Fee Name Unit Current Fee Total CostRecommended
Fee CodesCity Cost Recovery Range Policy
Maintenance & Repair
Regular Time:

Septic Tank & Portable Toilet Waste Disposal Permit Processing Each $105 $542 $542 High - 70.1% - 100% Discharge Fee Per Gallon $0.1 $0.77 $0.10 High - 70.1% - 100% Recycled Water Fees:

Recycled Water Permit Processing Per permit $52 $452 $452 High - 70.1% - 100% Item 23
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PALO ALTO, CA

COST OF SERVICES (USER FEE)
STUDY – MUNICIPAL FEES
APRIL 2025
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MATRIX CONSULTING GROUP

TABLE OF CONTENTS
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The report, which follows, presents the results of the Cost of Services (User Fee) Study conducted by Matrix Consulting Group for the City of Palo Alto, California.

TABLE 1: OVERVIEW OF COST COMPONENTS
Cost Component Description
Direct Fiscal Year 2025 Budgeted salaries, benefits, and allowable expenditures.

Indirect Program, departmental, clerical, and Citywide support.

Together, the cost components in the table above comprise the calculation of the total “full” cost of providing a service, regardless of whether a fee for that service is charged.

INTRODUCTION AND EXECUTIVE SUMMARY
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• Review and Approval of Results with City Staff: Department management has reviewed and approved these documented results.

A more detailed description of user fee methodology and legal and policy considerations are provided in subsequent chapters of this report.

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of conducting comprehensive analyses every ﬁve to seven years as this practice captures any changes to organizational structure, processes, code amendments, as well as any new service areas.

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LEGAL FRAMEWORK
A “user fee” is a charge for service provided by a governmental agency to a public citizen or group.

LEGAL FOUNDATIONS AND POLICY
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TABLE 2: SERVICES IN RELATION TO BENEFIT RECEIVED

Therefore, it is commonly accepted that user fees are established at a level that will recover up to, and not more than, the cost of providing a particular service.

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The results of these allocations provide detailed documentation for the reasonable determination of the actual cost of providing each service.

DIRECT
(Salaries, Beneﬁts,
Productive Hours)

INDIRECT
(Departmental Admin,
Services & Supplies,
Citywide Overhead etc.)
Total Cost

USER FEE STUDY METHODOLOGY
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• Estimates match the current or proposed staﬃng levels to ensure there is no over-allocation of staff resources to fee and non-fee related activities.

The alternative to time estimating is actual time tracking, often referred to billing on a “time and materials” basis. Except in the case of anomalous or very large and complex projects, the Matrix Consulting Group believes this approach to not be cost effective or reasonable for the following reasons:
• Accuracy in time tracking is compromised by the additional administrative burden required to track, bill, and collect for services in this manner.
• Additional costs are associated with administrative staff’s billing, refunding, and monitoring deposit accounts.
• Customers often prefer to know the fees for services in advance of applying for permits or participating in programs.
• Departments can better predict revenue streams and staff needs using standardized time estimates and anticipated permit volumes.

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It should be noted that the results presented in this report are not a precise measurement. In general, a cost-of-service analysis takes a “snapshot in time,” where a ﬁscal year of ﬁnancial and operational information is utilized. Changes to the structure of fee names, along with the use of time estimates, allow only for a reasonable projection of subsidies and revenue. Consequently, the Council and Department staff should rely conservatively upon these estimates to gauge the impact of implementation going forward.

The full analytical results were provided to City staff under separate cover from this summary report.

RESULTS OVERVIEW
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The modiﬁcations noted above ensure that the proposed fee schedule better reﬂets the services being provided by City Clerk staff.

OFFICE OF THE CITY CLERK
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ANNUAL RESULTS
Due to the nature of City Clerk fees, most of which are set by the state, no annual results were calculated.

4 The total cost associated has been set according to ELEC § 10228 Item 23
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5 The FY25 Budget does not include CSD Administration, as those costs are considered part of the overhead.

COMMUNITY SERVICES
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services are also needed from other City departments, including Finance, Human Resources, City Attorney, Facility, Maintenance, and so forth. The following table shows by division the indirect costs:

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The following table shows the total FY25 budgeted EMS costs based on these expenses:

FIRE EMS
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To determine the cost per mile, the project team divided the $419,700 by the average number of miles billed for transport-related activities. The following table shows the resulting cost per mile:

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ANNUAL REVENUE RECOVERY – CURRENT FEE
There are two types of annual revenue recoveries that can be calculated for EMS services:

1. Potential Revenue vs. Total Cost: this compares assumed revenue generation based on 100% collection of fees billed compared to the full cost of providing the service.

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2. Annual Revenue Collected vs. Annual Cost: this shows the amount collected compared to the annual cost associated with those activities.

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POLICE
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New Per Year $3,589 $7,274 ($3,685)
Renewal Per Year $1,609 $2,425 ($816)
Driver:

New Per Year $65 $242 ($177)

13 Ca. Gov. Code § 26751
14 EVI § 1563(b)(6)
15 EVI § 1563(b)(1)
16 GOV § 68097.2 (b)
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Special Event Permit
201 - 400 Attendees Per Permit $334 $582 ($248)
401 – 600 Attendees Per Permit $359 $2,036 ($1,677)
Each Add’l 200 Attendees Each $53 $291 ($238)
Film / Photography Permit:

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ANNUAL RESULTS
Because of the limited workload information available for Police, no annual results were calculated.

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First Offense Per Occurrence $36 $213 ($177)
Second Offense Per Occurrence $54 $213 ($159)
Third and Subsequent Offenses Per Occurrence $74 $213 ($139) Impoundment Fees - Dog - Licensed:

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Fee Name Unit Current Fee Total Cost Difference
Eleventh and Subsequent Offenses Per Occurrence $246 $213 $33 Impoundment Fees - General:

ANNUAL RESULTS
Because of the limited workload information available for Animal Control, no annual results were calculated.

17 CA Food & Agri Code § 30804.7
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PUBLIC WORKS
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TABLE 33: TOTAL COST PER UNIT RESULTS – PUBLIC WORKS OPERATIONS Fee Name Unit Current Fee
Total
Cost Difference
Maintenance & Repair
Regular Time:

Overall, Operations fees are generally recovering their costs on a per unit basis, and inline with typical cost recovery levels of between 80% and 100%.

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WASTEWATER TREATMENT
Wastewater Treatment staff provide services relating to Industrial Waste Discharge, and Recycled Water.

The following table details the fee name, current fee, total cost, and difference associated with each service offered.

TABLE 35: TOTAL COST PER UNIT RESULTS – PUBLIC WORKS WASTEWATER Fee Name Unit
Current
Fee
Total
Cost Difference
Industrial Waste Discharge Fees:

Septic Tank & Portable Toilet Waste Disposal
Permit Processing Each $105 $542 ($437)
Discharge Fee Per Gallon $0.1019 $0.77 ($0.67)
Recycled Water Fees:

18 The current fee has been modiﬁed to provide a true three-hour comparison. 19 The current fee has been modiﬁed to provide a true per gallon comparison.

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ANNUAL RESULTS
Workload statistics at a level suﬃcient to evaluate annual revenue impacts were not available, therefore no annual results were calculated.

FEE SCHEDULE MODIFICATIONS
In discussions with Real Estate and Property Management staff it was determined that no modiﬁcations to the current fee structure were needed.

REAL ESTATE AND PROPERTY MANAGEMENT
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ANNUAL RESULTS
Given the minimal workload associated with the real estate and property management, no annual results were calculated.

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ANNUAL RESULTS
Given the minimal workload associated with the reviewed services, no annual results were calculated.

20 The total cost associated has been set according to CIV § 1719(a).

REVENUE COLLECTION
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The following sections provide guidance regarding how and where to increase fees, determine annual update factors, and develop cost recovery policies and procedures.

COST RECOVERY CONSIDERATIONS
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PALO ALTO MUNICIPAL FEE STUDY REPORT

MATRIX CONSULTING GROUP 40

DEVELOPMENT OF COST RECOVERY POLICIES AND PROCEDURES
The City should review current cost recovery levels and adopt formal policies regarding cost recovery.

Item 23
Attachment A, Exhibit 7 -
Citywide Cost of Services
Study and Municipal Fee
Adjustments

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Citywide Cost of
Services Study
& Proposed Fee
Adjustments

Presenters:

Lauren Lai, Chief Financial Officer
Tuesday, April 29, 2025 www.paloalto.gov
Item 23
Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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1 PURPOSE
• Review the findings of the updated Cost of Services Study by Matrix Consulting Group (Attachment B)
• Services Covered: ASD (Revenue & Real Estate), City Clerk, Community Services, Fire Emergency Medical Services,
Police, Public Safety and Animal Control
• Ensure revenues align with the cost of providing services while considering cost recovery goals and subsidy
implications
• Provide Finance Committee with information to make a
recommendation to City Council (Attachment A)
Item 23
Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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2 CITY’S 2015 COST RECOVERY POLICY
▪ Fees should reflect actual costs of service
▪ Council discretion to subsidize based on policy priorities Item 23
Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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3 FEE STUDY TAKEAWAYS
• Administrative Services Department – Revenue Collections & Real Estate
▪ These fee align with high cost recovery (70% to 100%) for services such as duplication, parking permit investigations, property conveyance
• City Clerk
• Primarily for compliance with State law with one fee
eliminated, several copy fees added and one proposed fee increase
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Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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4 FEE STUDY TAKEAWAYS (continued)
• Community Services Department
▪ Recreation and Cubberley divisions recover 61% while rentals recover 130%, both consistent with industry norms for community benefit programs and rentals.
▪ Fee update forthcoming on FC May 7th
▪ Fire Emergency Medical Services (EMS)
▪ Recovers 28% of their full cost. Financial shortfall/deficit of $12 million
▪ Propose updating fees and new First Responder Fee
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Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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5 FEE STUDY TAKEAWAYS (continued)
• Police and Animal Control
▪ Under- / Over-recoveries, but generally under-recover. ▪ Proposed fees reflect actual costs and pricing to incentivize pet owners to alter their animals
▪ Recommend five new animal control fees
▪ Update cost recovery policy for special events and animal control fees
Item 23
Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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6 FEE STUDY TAKEAWAYS (continued)
• Public Works
▪ Mix cost recovery
▪ Align with hourly rates, and fees with review effort. ▪ Storm Drain
▪ Flood variance, flood zone determination, etc.
▪ Cost recovery within typical 80% to 100%
▪ Proposed fees reflect actual costs and City fee policy. ▪ Wastewater Treatment
▪ Industrial water discharge, recycled water, etc.
▪ All fees under-recovered, below typical 80% to 100%
▪ Proposed fees reflect actual costs and City fee policy.

Item 23
Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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7 FISCAL IMPACT & RECOMMENDATION
• FISCAL IMPACT: Upon full implementation, additional
$1 million of General Fund revenues. FY 2026 estimate
is $0.7 million, above FY 2026 budget.
• RECOMMENDATION:
▪ Staff recommends the Finance Committee
recommend that the City Council amend the
citywide municipal fees (Attachment A) as part of
the FY 2026 budget and municipal fee schedule
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Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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Item 23
Attachment A, Exhibit 7 - Citywide
Cost of Services Study and Municipal
Fee Adjustments

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ATTACHMENT B
1 RESOLUTION NO. XXXX
Resolution of the Council of the City of Palo Alto Establishing the City’s Appropriations Limit for Fiscal Year 2026
WHEREAS, under Article XIIIB of the Constitution of the State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit; and WHEREAS, since fiscal year 1991, the City is permitted to adjust its appropriations limit annually based on inflation and population adjustment factors; and WHEREAS, pursuant to Government Code Section 37200, the calculation of the appropriations limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2026, which was adopted by ordinance of the Council on June 16, 2025; and
WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of the appropriations limit has been determined, and the adjustment factors on which the calculation is based are a 6.44% percent change in California per capita income and a 0.31% percent change in the population growth for the City of Palo Alto; and WHEREAS, the documentation used in the determination of the appropriations limit has been made available to the general public for fifteen (15) days prior to the date of adoption of this resolution; and
WHEREAS, according to the final calculation, the City’s net appropriations subject to limitation are approximately $178.01 million.

NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:

SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2026, the final calculation of the appropriations limit of the City of Palo Alto has been determined in accordance with the adjustment factors referred to above, the documentation used in the determination of the calculation has been made available to the general public for the period of fifteen days as required by law, and the City’s appropriations are under the appropriations limit by approximately $56.61 million.

SECTION 2. The Council hereby adopts the final calculation of the appropriations limit of the City for Fiscal Year 2026, a copy of which is attached hereto as Exhibit 1.

Item 23
Attachment B - FY 2026
City Appropriations Limit
Resolution

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ATTACHMENT B
2 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the Section 15378(b)(4) of California Environmental Quality Act Guidelines because establishing the annual appropriations limit is a fiscal activity, and, therefore, no environmental assessment is necessary.

INTRODUCED AND PASSED: Enter Date Here
AYES:

NOES:

ABSENT:

ABSTENTIONS:

NOT PARTICIPATING:

ATTEST: APPROVED:

City Clerk Mayor
APPROVED AS TO FORM:

City Manager
City Attorney
Director of Administrative Services
Item 23
Attachment B - FY 2026
City Appropriations Limit
Resolution

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Attachment B, Exhibit 1
FY 2026 Adopted Budget 313.41$ 93.88$ 28.83$ 11.95$ 448.07$ Less:

Interfund Transfers (39.44)$ (7.43)$ (19.11)$ -$ (65.97)$ Allocated Charges (31.30)$ (0.48)$ (0.59)$ -$ (32.38)$ Non-Proceeds (62.53)$ (85.57)$ (11.32)$ (12.30)$ (171.71)$ Net Appropriations Subject to Limit 180.14$ 0.40$ (2.19)$ (0.35)$ 178.01$ FY 2025 Per Capita Income Change (CA Department of Finance) 6.44% Factor A 1.0644
FY 2025 Population Change (City of Palo Alto) 0.31%
Factor B 1.0031
$219.74

1.0677
$234.62
Net Appropriations Subject to Limit $178.01
Amount Under the Limit $56.61
2025 1.0362 1.0002 1.0364 219.74$ 173.10$ 46.64$ 2024* 1.0444 0.9975 1.0418 212.02$ 157.94$ 54.08$ 2023* 1.0755 1.0007 1.0763 203.52$ 138.39$ 65.13$ 2022* 1.0573 0.9944 1.0514 189.10$ 127.09$ 62.01$ 2021 1.0373 1.0037 1.0411 179.86$ 113.06$ 66.80$ 2020 1.0385 1.0033 1.0419 172.75$ 127.42$ 45.33$ 2019 1.0367 1.0099 1.0470 165.80$ 114.94$ 50.86$ 2018 1.0369 1.0082 1.0454 158.36$ 131.49$ 26.87$ 2017 1.0537 1.0130 1.0674 151.48$ 109.51$ 41.97$ 2016 1.0382 1.0113 1.0499 141.92$ 100.60$ 41.32$ 2015 0.9977 1.0150 1.0127 135.17$ 82.93$ 52.24$ * FY 2022-2024 Appropriation Limits restated to correct for Total Adjustment Factor calculation error in those fiscal years.

Factor A x Factor B
FY 2026 Adopted Appropriations Limit
On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors.

The City of Palo Alto remains well within its appropriations limit in FY 2026. Future year limit trends can be made based on the average change in regional population and income growth. The appropriations subject to limitation includes proceeds of taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds.

Fiscal Year Per Capita Income
Factor
Population
Change Factor
Total
Adjustment
Factor
Appropriations
Limit
Appropriations
Subject to Limit
Amount Under
the Limit

APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION
FOR FISCAL YEAR 2026 ADOPTED BUDGET
($ IN MILLIONS)

Total Budgeted Appropriations General Fund Capital
Projects Funds
Special
Revenue Funds
Debt Service
Fund
Combined
Funds
FY 2025 Adopted Appropriations Limit
Item 23
Attachment B, Exhibit 1 -
Appropriations Limit
Calculation

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Attachment C: Summary of Stanford Related Programs and Services Fund
Dept. or
Project Description
Operating Fire Fire Services Contract with Stanford University Stanford reimburses the City for providing Fire services to the University based on an agreement between the City and the University.

Operating Office of
Transp.

Palo Alto Link (PAL) On Demand Transit Services
Palo Alto Link services provide on-demand transit services, and Stanford provides funding for a portion of this service.

Operating Police Dispatch Communication Services Contract with Stanford University Stanford reimburses the City for providing dispatcher communication services to the University based on an agreement between the City and the University.

Capital PL-
16000
Quarry Road Improvements and Transit Center Access
Stanford is the lead on this project, and in order to continue with it, Palo Alto voters must undedicate a portion of El Camino Park (which is owned by Stanford and leased to the City) so that the land can be used for transit center access. A ballot measure proposing this action is expected in 2024.

Capital FD-24000 Fire Training Facility Replacement
This project will identify an appropriate site and construct a new fire training facility in Palo Alto. The current training facility is located on the Stanford University campus and is not owned by the City. A feasibility study will be conducted to determine the facility needs as well as an appropriate and available location for the new facility.

Capital FD-25000 Fire Equipment Replacement
This project will replace variety of equipment required for different types of emergency response and training, a portion of which is funded by Stanford and used to provide services to the University. The Fire Department completed a comprehensive assessment of all current primary equipment categories, as well as estimated costs and replacement schedules.

Item 23
Attachment C - FY 2026
Summary of Stanford
Investments

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Attachment D
AB2516 Reporting – Vacancy Data by Bargaining Unit
Bargaining
Unit
FY25 Adopted
FTE
Vacant
FTE
Vacant
%
SEIU 605.35 75.25 12.4%
UMPAPA 54 10 18.5%
IAFF 96 8 8.3%
FCA 4 0 0%
PAPOA 78 9 11.5%
PMA 7 0 0%
Legend and Group Descriptions:

SEIU – Service Employees International Union Local 521
Represents entry level to senior level classifications throughout the City, examples include librarians, maintenance workers, recreation coordinators, administrative associates, planners, engineers, and customer service representatives.

UMPAPA – Utilities Managers and Professional Employees of Palo Alto Represents utilities supervisors, managers, and assistant directors.

IAFF – International Association of Fire Fighters Local 1319 Represents firefighters, apparatus operators, captains and inspectors FCA – Fire Chiefs Association of Palo Alto (associated with IAFF) Represents battalion chiefs
PAPOA – Palo Alto Peace Officers Association
Represents officers, agents, and sergeants
PMA – Police Management Association
Represents lieutenants and captains
Item 23
Attachment D - AB2561
Reporting - Vacancy Data
by Bargaining Unit

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Public Works
Meeting Date: June 16, 2025
Report #:2504-4491
TITLE
Approval of Five Items to Support the Newell Road/San Francisquito Creek Bridge Replacement Project PE-12011: 1) Construction Contract No. C25194068 with Granite Construction Company in the Amount Not-to-Exceed $9,399,787 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders to the Contract up to a Not-to-Exceed Amount of $939,979; 2) Approval of Professional Services Contract No. C25190454 with Zoon Engineering, Inc, in the Amount of $2,559,915 for Construction Management Services through December 31, 2026; 3) Approval of Amendment No. 7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for Construction Support; 4) Approval of Amendment No. 3 to a Cost Share Agreement with Santa Clara Valley Water District Providing Local Matching Funds in the Amount $155,458 for Design, Right of Way Appraisal and Acquisition and Construction Support for the Newell Road/San Francisquito Creek Bridge Replacement Project; and 5) Adoption of a FY 2025 Budget Amendment in the Capital Improvement Fund; CEQA Status - Environmental Impact Report for Newell Road/San Francisquito Creek Bridge (Resolution No. 9889)

RECOMMENDATION
Staff recommends that the City Council:

1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C25194068 with Granite Construction Company, in the amount not-to- exceed $9,399,787 for the Newell Road/San Francisquito Creek Bridge Replacement Project (CIP PE-12011);
a. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Granite Construction Company for related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $939,787;

2. Approve and authorize the City Manager or their designee to execute the attached Professional Services Contract No. C25190454 with Zoon Engineering, Inc. to provide construction management services through December 31, 2026 and a total not-to- Item 24
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exceed amount of $2,559,915, including $2,327,196 for base services and $232,719 for additional services;

3. Approve and authorize the City Manager or their designee to execute Amendment No. 7 to Contract No. C12142825 with NV5, Inc. to extend the contract term through December 31, 2026 for construction support services;

4. Approve and authorize the City Manager or their designee to execute Amendment No. 3 to Cost Share Agreement A3581S with the Santa Clara Valley Water District in the amount of $155,458, providing local matching funds; and

5. Approve a Fiscal Year 2025 Budget Amendment for the Capital Improvement Fund (requires a 2/3 vote):
a. Increasing the revenue appropriation for the Newell Road/San Francisquito Creek Bridge Replacement Project (PE-12011) by $155,458 for Santa Clara Valley Water District’s local match contribution associated with completing design and right-of-way phases.

EXECUTIVE SUMMARY
Newell Road Bridge is a 114-year-old functionally obsolete bridge spanning between Woodland Avenue (East Palo Alto) and Newell Road (Palo Alto) over San Francisquito creek. The Newell Road/San Francisquito Creek Bridge Replacement Project (PE-12011) includes replacing the bridge, its abutments, and adjacent floodwalls with new structures along the same alignment to accommodate multi-modal access and improve flood control and execution of these recommended actions enables the implementation of the replacement project.

The project is primarily funded through the Highway Bridge Program (HBP), a federally funded program of the Federal Highway Administration (FHWA), whose contribution is 88.53% of the eligible project cost with a local match of the remaining 11.47% provided by Santa Clara Valley Water District (Valley Water). Federal funding is administered by the California Department of Transportation (Caltrans). Authorization to proceed with construction through Advance Construction (AC) was granted on April 14, 2025. Construction bids were solicited through OpenGov and five bids were received. The construction contract is being awarded to the lowest bidder. This staff report includes awarding two contracts for construction and construction management support services, and two amendments to existing contracts with consultants NV5 Inc., and Valley Water.

BACKGROUND
Replacement of the Newell Road Bridge is a key element of flood control for San Francisquito Creek. On June 1, 2020, Council approved the project and the Final Environmental Impact Report (EIR). The full background of the project’s progress and contract amendments can be Item 24
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found in the report supporting Council’s actions the project on June 22, 2021.1 On May 15, 2023, Council adopted Resolution 10108 authorizing the City Manager to sign grant-related documents with Caltrans that provided a $2,000,000 state earmark for the project.2 Additionally, Council approved a contract amendment for the right-of-way work and temporary construction easements on November 27, 2023 and December 18, 2023, respectively.3,4 A significant portion of the project extends into the City of East Palo Alto. This includes bridge abutments and associated floodwalls as well as raised roads, utilities adjustments to grade, new crosswalks, striping, retaining walls, street trees, and landscaping. Staff from both cities have worked collaboratively together throughout the various phases of the project, in part due to a Cooperation Agreement that Council approved on June 22, 2021.5 The HBP grant requires local agencies to secure formal approval from Caltrans prior to starting any phase of the project. If a local agency advances without authorization all or some of the grant funding is jeopardized. In June 2024, and with the knowledge that the Right of Way and Utility Certification phase would be completed soon, staff submitted a Request for Authorization to Caltrans requesting permission to advance into the construction phase.

Initially, Caltrans Local Assistance District 4 would not authorize the construction phase because funds were programmed in Federal Fiscal Years 2026/2027. However, Caltrans staff suggested that Palo Alto apply for Advance Construction. Advance Construction allows local agencies to begin projects with a delayed availability of project expense reimbursements. Caltrans approved the Right-of-Way and Utility Certification on October 10, 2024.

Given the project history and impacts that a delay may cause on other regional projects, including increased cost for construction and required permit or easement extensions, Palo Alto opted to apply for Advance Construction on November 15, 2024. Both the Request for Authorization and Advance Construction were reviewed and approved by three tiers: Caltrans Local Assistance, Headquarters in Sacramento, and ultimately the Federal Highway Administration. Palo Alto received the Notice to Proceed for the construction phase with Advance Construction authorization document (E76) on April 14, 2025. 1 City Council, June 22, 2021, Agenda Item #5 SR #12368; https://portal.laserfiche.com/Portal/DocView.aspx?id=171338&repo=r-704298fc& 2 City Council, May 15, 2023, Agenda Item #7; SR #2304-1248 https://portal.laserfiche.com/Portal/DocView.aspx?id=65987&repo=r-704298fc&searchid=06bba970-efa5-4cd4- 97af-6c6552896d28
3 City Council, November 27, 2023, Agenda Item #8; SR #2308-1944; https://portal.laserfiche.com/Portal/DocView.aspx?id=69112&repo=r-704298fc&searchid=4d4bd209-74eb-4ad4- 9bb4-0d97afbf8926
4 City Council, December 18, 2023, Agenda Item #18; SR #2312-2313; https://portal.laserfiche.com/Portal/DocView.aspx?id=69376&repo=r-704298fc&searchid=4d4bd209-74eb-4ad4- 9bb4-0d97afbf8926
5 City Council, June 22, 2021, Agenda Item #5 SR #12368; https://portal.laserfiche.com/Portal/DocView.aspx?id=171338&repo=r-704298fc& Item 24
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ANALYSIS
Construction Contract Solicitation
On April 15, 2025, an Invitation for Bids (IFB) for the Newell Road/San Francisquito Creek Bridge project was posted on OpenGov, the City’s eProcurement system. The bidding period was 28 days. The City received five bids from qualified contractors on May 13, 2025, as listed on the attached Bid Summary (Attachment A).

Table 1: Summary of invitation for Bids
Project Bid Name/Number IFB194068 Newell Road/San Francisquito Creek Bridge Replacement Project
Proposed Length of Project 548 Calendar Days
Number of Vendors Notified 3,604
Number of Bid Packages Downloaded by
Contractors
100
Total Days to Respond to Bid 28
Non-Mandatory Pre-Bid Meeting April 28, 2025
Number of Company Attendees at Pre-Bid
Meeting
10 Number of Bids Received 5
Base Bid Price Range $9,399,787 - $13,263,330
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/161126
The bids ranged from $9,399,787 to $13,263,330 and from 22% under the engineer’s estimate to 10% over the engineer’s estimate. Staff reviewed the submitted bids and recommends the acceptance of the base bid submitted by Granite Construction Company in the amount of $9,399,787, and that Granite Construction Company be declared the lowest responsible bidder.

The construction contingency amount of $939,979, which equals 10% of the total contract value, is requested for related, additional but unforeseen work, which may develop during the project, implemented via City-approved Change Order.

Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also contacted the listed references for Granite Construction Company and found that they have performed satisfactorily on past construction projects for other clients and the City. Staff recommends the approval of Contract No. C251940686 for the construction of the Newell Road/San Francisquito Creek Bridge Replacement Project. 6 Granite Construction Company Newell Road/San Francisquito Creek Bridge Replacement Project; Contract No.

C25194068;
https://www.paloalto.gov/files/assets/public/v/1/public-works/engineering-services/cip-contracts/c25194068- granite-construction_cc_6.16.2025_staff-report_rev1.pdf Item 24
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Construction Management Services Solicitation
Construction management services for the project include inspections, third-party materials testing, review and coordination of progress for submittals, invoices, payments, change orders and field employee interviews, regulatory permit requirements, and maintaining documentation necessary to complete the project and conform with Caltrans’ Local Assistance Procedures Manual.

On March 11, 2024, a Request for Proposals (RFP) for construction management services was posted on the City’s eProcurement platform, and 3,033 vendors were notified. The solicitation period was for 24 days. Three proposals were received. The solicitation closed on April 4, 2025.

Table 2: Summary of Solicitation Process for RFP
Proposal Description
RFP #190454 Construction Management Services for
Newell Road/San Francisquito Creek Bridge
Replacement Project
Proposed Length of Project 548 Calendar Days
Number of Vendors Notified 3,033
Number of Proposal Packages Downloaded 24
Total Days to Respond to Proposal 24
Pre-Proposal Meeting Yes
Pre-Proposal Meeting Date March 19, 2024
Number of Proposals Received 3
Number of Companies Selected for Interview 2
Range of Proposal Amounts Submitted $1,490,464 to $2,756,541 Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/83124
The proposals were evaluated and determined to be responsive to the criteria identified in the RFP. Zoon Engineering, Inc. was selected for the construction management services based on the depth and quality of their experience in construction management for Caltrans bridge construction projects, previous work with Palo Alto and East Palo Alto on other related projects, qualifications of their proposed project design team, and understanding of the project goals.

Staff recommends approval of Contract No. C25190454 with Zoon Engineering, Inc. (Attachment B).

Design Contract Amendment
NV5’s Original Contract C12142825 and Amendment No. 4 include funding for bidding and construction support services, which includes responding to requests for information, reviewing shop drawings, performing site visits and attending construction meetings. Contract Item 24
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Amendment No. 7 (Attachment C) with NV5, Inc. will extend the contract date to December 31, 2026 at no additional cost.

Valley Water Cost Share Agreement Amendment
Cost Share Agreement A3581S Amendment No. 2 with Valley Water was for the design and environmental review phase of the project.7 Amendment No. 3 (Attachment D) provides for reimbursement of expenses associated with completing the design and securing right-of-way and utility certification, increasing the reimbursement amount by Valley Water from $314,119 to $469,577. Staff is working on a separate agreement for the cost share of the construction cost associated with the project, and will bring this additional amendment to Council in the near future.

FISCAL/RESOURCE IMPACT
Funding for all recommendations in the report is available in the Fiscal Year 2025 Adopted Capital Improvement Program Newell Road/San Francisquito Creek Bridge Replacement project (PE-12011). The Caltrans Highway Bridge Program grant will provide reimbursement for 88.53% of eligible project costs, subject to disbursement of Advance Construction funding. The local match will be reimbursed by Valley Water for the remaining 11.47% of the project costs. The budget amendment recommended in this report increases the budget for the additional reimbursement from Valley Water.

Currently, the construction funds are programmed in Federal Fiscal Year 2026/2027. Caltrans authorized the City to advertise the project under Advance Construction in April 2025. Advance Construction allows local agencies to advance projects into the construction phase, but delays when funding reimbursement would be available. The earliest staff would be able to seek reimbursement from Caltrans is October 2026. Under the current administration, Advance Construction also comes with the risk that funding approvals could be rescinded.

Additionally, $2,000,000 in funding was provided through a state earmark as part of the Budget Act of 2022, which was received in October 2023. The reduced cost of the project due to lower than anticipated construction bids will be considered as staff evaluates capital budget expense reductions in light of the Fiscal Year 2026 budget discussions. 7 City Council, April 13, 2015, Agenda Item #1; SR #5549 https://portal.laserfiche.com/Portal/DocView.aspx?id=179951&repo=r-704298fc Item 24
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Table 3: Project Budget*
Highway Bridge
Program (CalTrans)
Valley Water
(Local Match)
City of Palo
Alto
State Earmark
Funds (Budget
Act of 2022) Totals
Design $1,548,349 $379,974 $612,848 $2,541,171
Right of Way $465,667 $89,603 $225,929 $781,199
Construction $8,400,202 $1,555,050 $1,602,286 $2,000,000 $13,557,538 Salary& Benefits $3,998,340 $3,998,340
Totals $10,414,218 $2,024,627 $6,439,403 $2,000,000 $20,878,248 *This table reflects the new project totals based off the construction bids. It reflects all expense and revenue actuals to date as well as future budgeted expenses and revenues. The previous total project budget as of the Fiscal Year 2025 Adopted budget $23,456,670.

STAKEHOLDER ENGAGEMENT
Significant stakeholder engagement was done during the environmental review phase.

Extensive public outreach will be conducted during the construction phase to keep the community informed, including flyers to be sent to adjacent residences and businesses, and notices posted online on Nextdoor and the City’s website.

ENVIRONMENTAL REVIEW
An Environmental Impact Report for the Newell Road/San Francisquito Creek Bridge Replacement Project was completed and certified by Council on June 1, 2020 (SR#11184), by adoption of resolution No. 9889.8

ATTACHMENTS
Attachment A: Contract No. C25194068 Bid Summary
Attachment B: Contract No. C25190454 with Zoon Engineering, Inc.

Attachment C: Amendment No. 7 to Contract No. C12142825 with NV5, Inc.

Attachment D: Amendment No. 3 to Cost Share Agreement with Santa Clara Valley Water District
APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
8 Resolution 9889, https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/resolutions/reso- 9889.pdf?t=62904.01
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BID SUMMARY COMPARISON
NEWELL ROAD BRIDGE REPLACEMENT - BRLS 5100 (017)
IFB 194068
PROJECT NO. PE-12011

ITEM L ITEM ITEM TOTAL TOTAL TOTAL TOTAL TOTAL TOTAL
NO. M CODE DESCRIPTION PRICE PRICE PRICE PRICE PRICE PRICE 1 1 LS 051240A CONSTRUCTION SURVEYS $79,501.50 $79,501.50 $25,950.00 $25,950.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $50,000.00 $50,000.00 $85,000.00 $85,000.00 2 1 LS 070030 LEAD COMPLIANCE PLAN $7,371.00 $7,371.00 $2,100.00 $2,100.00 $2,235.00 $2,235.00 $2,100.00 $2,100.00 $10,000.00 $10,000.00 $5,000.00 $5,000.00 3 1 LS 080060 LEVEL 2 CRITICAL PATH METHOD SCHEDULE $4,212.00 $4,212.00 $0.00 $0.00 $10,950.00 $10,950.00 $3,500.00 $3,500.00 $5,000.00 $5,000.00 $60,000.00 $60,000.00 4 1 LS 120090 CONSTRUCTION AREA SIGNS $42,120.00 $42,120.00 $21,500.00 $21,500.00 $21,500.00 $21,500.00 $21,500.00 $21,500.00 $20,000.00 $20,000.00 $28,000.00 $28,000.00 5 1 LS 120100 TRAFFIC CONTROL SYSTEM $421,200.00 $421,200.00 $100,000.00 $100,000.00 $540,000.00 $540,000.00 $43,300.00 $43,300.00 $325,000.00 $325,000.00 $200,000.00 $200,000 .00 6 1 LS 120402A TRAFFIC MANAGEMENT PLAN $11,056.50 $11,056.50 $2,500.00 $2,500.00 $3,000.00 $3,000.00 $7,500.00 $7,500.00 $10,000.00 $10,000.00 $5,000.00 $5,000.00 7 3 EA 128651 PORTABLE CHANGEABLE MESSAGE SIGN (EA) $56,862.00 $170,586.00 $15,000.00 $45,000.00 $16,200.00 $48,600.00 $29,000.00 $87,000.00 $25,000.00 $75,000.00 $25,000.00 $75,000.00 8 1 LS 130100 JOB SITE MANAGEMENT $47,490.30 $47,490.30 $30,000.00 $30,000.00 $100,000.00 $100,000.00 $88,000.00 $88,000.00 $300,000.00 $300,000.00 $475,000.00 $475,000.00 9 1 LS 130301 STORM WATER POLLUTION PREVENTION PLAN $113,724.00 $113,724.00 $3,300.00 $3,300.00 $2,740.00 $2,740.00 $595.00 $595.00 $50,000.00 $50,000.00 $5,000.00 $5,000.00 10 28 EA 130310 RAIN EVENT ACTION PLAN $526.50 $14,742.00 $425.00 $11,900.00 $120.00 $3,360.00 $500.00 $14,000.00 $100.00 $2,800.00 $325.00 $9,100.00 11 20 EA 130320 STORM WATER SAMPLING AND ANALYSIS DAY $1,158.30 $23,166.00 $425.00 $8,500.00 $120.00 $2,400.00 $500.00 $10,000.00 $425.00 $8,500.00 $500.00 $10,000.00 12 2 EA 130330 STORM WATER ANNUAL REPORT $3,159.00 $6,318.00 $750.00 $1,500.00 $1,200.00 $2,400.00 $2,500.00 $5,000.00 $2,000.00 $4,000.00 $825.00 $1,650.00 13 40 EA 131103 WATER QUALITY SAMPLING AND ANALYSIS DAY $1,158.30 $46,332.00 $1,200.00 $48,000.00 $60.00 $2,400.00 $500.00 $20,000.00 $1,200.00 $48,000.00 $487.00 $19,480.00 14 1 LS 131201 TEMPORARY CREEK DIVERSION SYSTEMS $52,650.00 $52,650.00 $100,000.00 $100,000.00 $70,000.00 $70,000.00 $222,000.00 $222,000.00 $125,000.00 $125,000.00 $350,000.00 $350,000.0 0 15 150 LF 140607A TEMPORARY WILDLIFE EXCLUSION FENCE $36.86 $5,528.25 $25.00 $3,750.00 $20.65 $3,097.50 $30.00 $4,500.00 $20.00 $3,000.00 $12.00 $1,800.00 16 1 LS 146007 INVASIVE SPECIES CONTROL $5,265.00 $5,265.00 $5,000.00 $5,000.00 $30,000.00 $30,000.00 $11,200.00 $11,200.00 $5,000.00 $5,000.00 $12,000.00 $12,000.00 17 1 LS 148006A VIBRATION MONITORING AND CONTROL $105,300.00 $105,300.00 $128,000.00 $128,000.00 $50,000.00 $50,000.00 $25,800.00 $25,800.00 $25,000.00 $25,000.00 $101,000.00 $101,000.00 18 820 LF 141103

REMOVE YELLOW THERMOPLASTIC TRAFFIC STRIPE
(HAZARDOUS WASTE) $13.16 $10,793.25 $16.00 $13,120.00 $27.95 $22,919.00 $16.00 $13,120.00 $20.00 $16,400.00 $29.00 $23,780.00 19 1 LS 141110 WORK AREA MONITORING (BRIDGE) $45,279.00 $45,279.00 $15,000.00 $15,000.00 $70,000.00 $70,000.00 $16,100.00 $16,100.00 $15,000.00 $15,000.00 $49,800.00 $49,800.00 20 1 LS 150103A SALVAGE WATER QUALITY SAMPLING STATION $1,053.00 $1,053.00 $1,500.00 $1,500.00 $8,224.39 $8,224.39 $2,000.00 $2,000.00 $10,000.00 $10,000.00 $3,000.00 $3,000.00 21 20 EA 150104A UTILITY POTHOLING $3,685.50 $73,710.00 $1,000.00 $20,000.00 $1,430.03 $28,600.60 $3,000.00 $60,000.00 $2,000.00 $40,000.00 $850.00 $17,000.00 22 400 LF 160110 TEMPORARY HIGH-VISIBILITY FENCE $12.11 $4,843.80 $25.00 $10,000.00 $26.94 $10,776.00 $10.00 $4,000.00 $5.00 $2,000.00 $9.00 $3,600.00 23 1,300 LF 160110A TEMPORARY VISUAL BARRIER $42.12 $54,756.00 $15.00 $19,500.00 $34.23 $44,499.00 $22.00 $28,600.00 $15.00 $19,500.00 $25.00 $32,500.00 24 23 EA 170101A REMOVE TREE $10,530.00 $242,190.00 $750.00 $17,250.00 $750.00 $17,250.00 $1,200.00 $27,600.00 $1,000.00 $23,000.00 $275.00 $6,325.00 25 16 EA 170102A TREE PRUNING, TRIMMING AND ROOT CUTTING $1,053.00 $16,848.00 $675.00 $10,800.00 $1,477.90 $23,646.40 $675.00 $10,800.00 $1,000.00 $16,000.00 $1,600.00 $25,600.00 26 1 LS 170103 CLEARING AND GRUBBING (LS) $63,180.00 $63,180.00 $75,000.00 $75,000.00 $57,739.93 $57,739.93 $34,850.00 $34,850.00 $250,000.00 $250,000.00 $40,000.00 $40,000.00 27 200 CY 190101 (F) - ROADWAY EXCAVATION $442.26 $88,452.00 $840.00 $168,000.00 $1,130.19 $226,038.00 $400.00 $80,000.00 $300.00 $60,000.00 $2,700.00 $540,000.00 28 F 210 CY 192003 (F) -STRUCTURE EXCAVATION (BRIDGE) $352.76 $74,078.55 $90.00 $18,900.00 $148.64 $31,214.40 $80.00 $16,800.00 $1,000.00 $210,000.00 $653.00 $137,130.00 29 F 743 CY 192037 (F) - STRUCTURE EXCAVATION (RETAINING WALL) $352.76 $262,096.97 $46.00 $34,178.00 $225.32 $167,412.76 $150.00 $111,450.00 $200.00 $148,600.00 $435.00 $323,205.00 30 F 60 CY 193003 (F) - STRUCTURE BACKFILL (BRIDGE) $352.76 $21,165.30 $400.00 $24,000.00 $725.60 $43,536.00 $400.00 $24,000.00 $100.00 $6,000.00 $550.00 $33,000.00 31 F 647 CY 193013 (F) - STRUCTURE BACKFILL (RETAINING WALL) $352.76 $228,232.49 $120.00 $77,640.00 $240.24 $155,435.28 $275.00 $177,925.00 $100.00 $64,700.00 $329.00 $212,863.00 32 1,418 CY 198010 IMPORTED BORROW (CY) $189.54 $268,767.72 $60.00 $85,080.00 $160.91 $228,170.38 $1.00 $1,418.00 $50.00 $70,900.00 $84.00 $119,112.00 33 9,385 SQFT 202007A SOIL PREPARATION AND FINE GRADING $1.05 $9,882.41 $0.90 $8,446.50 $0.50 $4,692.50 $0.50 $4,692.50 $0.50 $4,692.50 $2.00 $18,770.00 34 16 EA 204011 PLANT (GROUP K) (24" BOX) $895.05 $14,320.80 $750.00 $12,000.00 $500.00 $8,000.00 $550.00 $8,800.00 $550.00 $8,800.00 $962.00 $15,392.00 35 732 EA 204035 PLANT (GROUP A) (NO. 1) $31.59 $23,123.88 $28.00 $20,496.00 $20.00 $14,640.00 $30.00 $21,960.00 $30.00 $21,960.00 $36.00 $26,352.00 36 227 EA 204036 PLANT (GROUP B) (NO. 5) $52.65 $11,951.55 $60.00 $13,620.00 $60.00 $13,620.00 $65.00 $14,755.00 $65.00 $14,755.00 $77.00 $17,479.00 37 3 EA 204038 PLANT (GROUP U) (NO. 15) $684.45 $2,053.35 $250.00 $750.00 $300.00 $900.00 $300.00 $900.00 $300.00 $900.00 $320.00 $960.00 38 1,820 SQFT 204046A SOD $2.63 $4,791.15 $2.50 $4,550.00 $1.50 $2,730.00 $1.50 $2,730.00 $1.00 $1,820.00 $3.00 $5,460.00 39 1 LS 204099 PLANT ESTABLISHMENT WORK $9,687.60 $9,687.60 $8,100.00 $8,100.00 $4,500.00 $4,500.00 $4,500.00 $4,500.00 $5,000.00 $5,000.00 $11,000.00 $11,000.00 40 1,150 SQFT 205033 GRAVEL MULCH $5.27 $6,054.75 $5.00 $5,750.00 $3.00 $3,450.00 $3.00 $3,450.00 $3.00 $3,450.00 $6.50 $7,475.00 41 11,205 SQFT 205036A MULCH $2.11 $23,597.73 $1.20 $13,446.00 $1.00 $11,205.00 $1.00 $11,205.00 $1.00 $11,205.00 $1.50 $16,807.50 42 90 LF 205062 ROOT BARRIER $15.80 $1,421.55 $16.00 $1,440.00 $11.00 $990.00 $11.00 $990.00 $11.00 $990.00 $20.00 $1,800.00 43 5,400 SQFT 206409A EXISTING IRRIGATION MODIFICATIONS $8.42 $45,489.60 $6.25 $33,750.00 $3.85 $20,790.00 $3.85 $20,790.00 $5.00 $27,000.00 $8.00 $43,200.00 44 2 EA 206500A

POINT OF CONNECTION TO TAP EXISTING WATER MAIN
AND INSTALL SERVICE LINE $7,897.50 $15,795.00 $4,000.00 $8,000.00 $5,000.00 $10,000.00 $14,188.00 $28,376.00 $8,000.00 $16,000.00 $24,900.00 $49,800.00 45 7 EA 206569A REMOTE CONTROL VALVE $1,053.00 $7,371.00 $725.00 $5,075.00 $550.00 $3,850.00 $550.00 $3,850.00 $550.00 $3,850.00 $930.00 $6,510.00 46 2 EA 206701A WEATHER SENSOR $526.50 $1,053.00 $750.00 $1,500.00 $500.00 $1,000.00 $500.00 $1,000.00 $500.00 $1,000.00 $963.00 $1,926.00 47 2 EA 206702A CONTROLLER $5,265.00 $10,530.00 $5,500.00 $11,000.00 $5,000.00 $10,000.00 $5,000.00 $10,000.00 $5,000.00 $10,000.00 $7,060.00 $14,120.00 48 2 EA 208400A WATER METER $4,212.00 $8,424.00 $2,800.00 $5,600.00 $5,000.00 $10,000.00 $1,000.00 $2,000.00 $500.00 $1,000.00 $18,700.00 $37,400.00 49 2 EA 208420A BACKFLOW PREVENTER $3,685.50 $7,371.00 $10,500.00 $21,000.00 $6,500.00 $13,000.00 $6,500.00 $13,000.00 $5,000.00 $10,000.00 $13,500.00 $27,000.00 50 2 EA 208442 FLOW SENSOR $1,579.50 $3,159.00 $1,500.00 $3,000.00 $1,000.00 $2,000.00 $1,000.00 $2,000.00 $1,000.00 $2,000.00 $1,925.00 $3,850.00 51 1,800 SQFT 208451A SPRAY IRRIGATION $2.63 $4,738.50 $3.25 $5,850.00 $5.00 $9,000.00 $5.00 $9,000.00 $5.00 $9,000.00 $4.00 $7,200.00 52 2,785 SQFT 208452A DRIP IRRIGATION $3.16 $8,797.82 $5.00 $13,925.00 $6.00 $16,710.00 $6.00 $16,710.00 $6.00 $16,710.00 $6.00 $16,710.00 53 26 EA 208453A TREE BUBBLER $105.30 $2,737.80 $300.00 $7,800.00 $100.00 $2,600.00 $100.00 $2,600.00 $100.00 $2,600.00 $385.00 $10,010.00 54 2 EA 208560A MASTER VALVE $1,579.50 $3,159.00 $1,200.00 $2,400.00 $1,500.00 $3,000.00 $1,500.00 $3,000.00 $1,000.00 $2,000.00 $1,540.00 $3,080.00 55 2 EA 208568A GATE VALVE $789.75 $1,579.50 $725.00 $1,450.00 $550.00 $1,100.00 $550.00 $1,100.00 $550.00 $1,100.00 $930.00 $1,860.00 56 165 LF 208592A MAINLINE $16.85 $2,779.92 $18.00 $2,970.00 $65.00 $10,725.00 $65.00 $10,725.00 $65.00 $10,725.00 $96.00 $15,840.00 57 2 EA 208649 QUICK COUPLING VALVE $789.75 $1,579.50 $490.00 $980.00 $600.00 $1,200.00 $600.00 $1,200.00 $600.00 $1,200.00 $628.00 $1,256.00 58 3 EA 208684A DRIP CONTROL VALVE $1,263.60 $3,790.80 $800.00 $2,400.00 $550.00 $1,650.00 $550.00 $1,650.00 $550.00 $1,650.00 $1,025.00 $3,075.00 59 194 CY 210110 IMPORTED TOPSOIL $252.72 $49,027.68 $160.00 $31,040.00 $136.00 $26,384.00 $136.00 $26,384.00 $135.00 $26,190.00 $205.00 $39,770.00 60 973 CY 260203 CLASS 2 AGGREGATE BASE (CY) $315.90 $307,370.70 $180.00 $175,140.00 $215.90 $210,070.70 $150.00 $145,950.00 $110.00 $107,030.00 $270.00 $262,710.00 61 3.9 TON 390100 PRIME COAT $2,895.75 $11,293.43 $650.00 $2,535.00 $1,912.23 $7,457.70 $1,200.00 $4,680.00 $1,000.00 $3,900.00 $4,910.00 $19,149.00 62 857 TON 390132 HOT MIX ASPHALT (TYPE A) $339.07 $290,579.56 $175.00 $149,975.00 $193.08 $165,469.56 $188.00 $161,116.00 $225.00 $192,825.00 $266.00 $227,962.00 63 77 LF 394073 PLACE HOT MIX ASPHALT DIKE (TYPE A) $121.10 $9,324.32 $40.00 $3,080.00 $110.45 $8,504.65 $50.00 $3,850.00 $10.00 $770.00 $144.00 $11,088.00 64 2.3 TON 397005 TACK COAT $2,764.13 $6,357.49 $650.00 $1,495.00 $2,730.02 $6,279.05 $3,600.00 $8,280.00 $1,000.00 $2,300.00 $5,340.00 $12,282.00 65 31,426 SQFT 398001 REMOVE ASPHALT CONCRETE PAVEMENT (SQFT) $13.16 $413,644.73 $1.00 $31,426.00 $2.00 $62,852.00 $0.70 $21,998.20 $2.00 $62,852.00 $3.00 $94,278.00 66 219 SQYD 398200 COLD PLANE ASPHALT CONCRETE PAVEMENT $84.24 $18,448.56 $45.00 $9,855.00 $54.33 $11,898.27 $12.00 $2,628.00 $35.00 $7,665.00 $45.00 $9,855.00 67 150 CY 401050 JOINTED PLAIN CONCRETE PAVEMENT $710.78 $106,616.25 $500.00 $75,000.00 $824.72 $123,708.00 $1,000.00 $150,000.00 $825.00 $123,750.00 $1,630.00 $244,500.00 68 1,122 SQYD 418005 REMOVE CONCRETE PAVEMENT (SQYD) $94.77 $106,331.94 $25.00 $28,050.00 $75.10 $84,262.20 $30.00 $33,660.00 $60.00 $67,320.00 $65.00 $72,930.00 69 2,953 SQFT 474000A (F) - BLOCK WALL $83.17 $245,589.02 $150.00 $442,950.00 $224.30 $662,357.90 $150.00 $442,950.00 $200.00 $590,600.00 $184.00 $543,352.00 70 615 LF 490608 54" CAST-IN-DRILLED-HOLE CONCRETE PILING $1,368.90 $841,873.50 $1,020.00 $627,300.00 $833.99 $512,903.85 $1,100.00 $676,500.00 $1,200.00 $738,000.00 $1,228.00 $755,220.00 71 1 LS 500001 PRESTRESSING CAST-IN-PLACE CONCRETE $103,194.00 $103,194.00 $92,500.00 $92,500.00 $109,500.00 $109,500.00 $115,000.00 $115,000.00 $100,000.00 $100,000.00 $135,000.00 $135,000 .00 72 F 166 CY 510053 (F) - STRUCTURAL CONCRETE, BRIDGE $2,579.85 $428,255.10 $3,700.00 $614,200.00 $1,867.01 $309,923.66 $2,100.00 $348,600.00 $4,500.00 $747,000.00 $1,820.00 $302,120.00 73 F 260 CY 510054 (F) - STRUCTURAL CONCRETE, BRIDGE (POLYMER FIBER) $2,869.43 $746,050.50 $1,200.00 $312,000.00 $1,488.85 $387,101.00 $3,300.00 $858,000.00 $1,000.00 $260,000.00 $2,400.00 $624,000.00 74 F 235 CY 510060 (F) - STRUCTURAL CONCRETE, RETAINING WALL $1,579.50 $371,182.50 $2,100.00 $493,500.00 $1,992.90 $468,331.50 $2,500.00 $587,500.00 $1,800.00 $423,000.00 $2,335.00 $548,725.00 75 F 4.2 CY 510503A (F) -MINOR CONCRETE (BIORETENTION CHECK DAM) $3,159.00 $13,267.80 $11,000.00 $46,200.00 $2,942.36 $12,357.91 $5,000.00 $21,000.00 $3,000.00 $12,600.00 $8,450.00 $35,490.00 76 F 5.8 CY 510535A (F) -MINOR CONCRETE (HEADWALL) $6,000.00 $34,800.00 $4,200.00 $24,360.00 $4,841.01 $28,077.86 $2,700.00 $15,660.00 $4,000.00 $23,200.00 $3,080.00 $17,864.00 77 96 LF 519088 JOINT SEAL (MR 1") $115.83 $11,119.68 $165.00 $15,840.00 $84.27 $8,089.92 $175.00 $16,800.00 $225.00 $21,600.00 $285.00 $27,360.00 78 F 214,400 LB 520102 (F) - BAR REINFORCING STEEL (BRIDGE) $2.37 $507,967.20 $2.00 $428,800.00 $1.34 $287,296.00 $1.34 $287,296.00 $2.00 $428,800.00 $1.75 $375,200.00 79 F 59,300 LB 520103 (F) - BAR REINFORCING STEEL (RETAINING WALL) $3.16 $187,328.70 $2.00 $118,600.00 $1.40 $83,020.00 $1.40 $83,020.00 $2.00 $118,600.00 $1.80 $106,740.00 80 200 LF 600017 REMOVE RETAINING WALL (LF) $105.30 $21,060.00 $100.00 $20,000.00 $193.02 $38,604.00 $135.00 $27,000.00 $250.00 $50,000.00 $235.00 $47,000.00 81 1 LS 600097 BRIDGE REMOVAL $105,300.00 $105,300.00 $100,000.00 $100,000.00 $131,946.27 $131,946.27 $133,200.00 $133,200.00 $300,000.00 $300,000.00 $275,000.00 $275,0 00.00 82 1,738 SQFT 627001A BIORETENTION PLANTER $105.30 $183,011.40 $250.00 $434,500.00 $144.44 $251,036.72 $50.00 $86,900.00 $160.00 $278,080.00 $275.00 $477,950.00 83 369 LF 641101 12" PLASTIC PIPE $336.96 $124,338.24 $140.00 $51,660.00 $466.78 $172,241.82 $350.00 $129,150.00 $160.00 $59,040.00 $820.00 $302,580.00 84 1,048 LF 641103A 4" PLASTIC PIPE $63.18 $66,212.64 $90.00 $94,320.00 $145.12 $152,085.76 $55.00 $57,640.00 $30.00 $31,440.00 $32.00 $33,536.00 85 80 LF 641105A 6" PLASTIC PIPE $73.71 $5,896.80 $117.00 $9,360.00 $217.31 $17,384.80 $300.00 $24,000.00 $150.00 $12,000.00 $460.00 $36,800.00 86 30 LF 641106A 8" PLASTIC PIPE $110.57 $3,316.95 $200.00 $6,000.00 $581.33 $17,439.90 $300.00 $9,000.00 $40.00 $1,200.00 $470.00 $14,100.00 87 237 LF 680286A 4" PERFORATED PLASTIC PIPE UNDERDRAIN $52.65 $12,478.05 $70.00 $16,590.00 $37.26 $8,830.62 $40.00 $9,480.00 $25.00 $5,925.00 $31.00 $7,347.00 88 11 EA 680288A CLEANOUT $1,053.00 $11,583.00 $1,500.00 $16,500.00 $880.51 $9,685.61 $900.00 $9,900.00 $1,000.00 $11,000.00 $2,360.00 $25,960.00 89 70 LF 703233 GRATED LINE DRAIN $573.89 $40,171.95 $1,300.00 $91,000.00 $136.33 $9,543.10 $1,400.00 $98,000.00 $500.00 $35,000.00 $430.00 $30,100.00 90 3 EA 705510A 12" CHECK VALVE $3,159.00 $9,477.00 $20,000.00 $60,000.00 $3,536.22 $10,608.66 $12,500.00 $37,500.00 $7,000.00 $21,000.00 $7,155.00 $21,465.00 91 4 EA 707501A AREA DRAIN $6,318.00 $25,272.00 $8,000.00 $32,000.00 $5,473.79 $21,895.16 $4,000.00 $16,000.00 $4,000.00 $16,000.00 $4,650.00 $18,600.00 92 2 EA 707502A DRY WELL $3,159.00 $6,318.00 $15,000.00 $30,000.00 $9,730.32 $19,460.64 $27,000.00 $54,000.00 $25,000.00 $50,000.00 $23,000.00 $46,000.00 93 5 EA 707505A OVERFLOW STRUCTURE $4,212.00 $21,060.00 $10,000.00 $50,000.00 $18,249.14 $91,245.70 $5,500.00 $27,500.00 $10,000.00 $50,000.00 $7,525.00 $37,625.00 94 2 EA 707506A STORM DRAIN MANHOLE $11,709.36 $23,418.72 $13,000.00 $26,000.00 $32,032.67 $64,065.34 $16,400.00 $32,800.00 $20,000.00 $40,000.00 $12,150.00 $24,300.00 95 2 EA 707507A CURB INLET RETENTION STRUCTURE $5,000.00 $10,000.00 $20,000.00 $40,000.00 $29,163.64 $58,327.28 $22,500.00 $45,000.00 $20,000.00 $40,000.00 $14,500.00 $29,000.00 96 193 LF 710136 REMOVE PIPE (LF) $126.36 $24,387.48 $50.00 $9,650.00 $69.26 $13,367.18 $50.00 $9,650.00 $80.00 $15,440.00 $495.00 $95,535.00 97 3 EA 710150 REMOVE INLET $2,295.54 $6,886.62 $2,200.00 $6,600.00 $2,960.84 $8,882.52 $1,500.00 $4,500.00 $5,000.00 $15,000.00 $2,240.00 $6,720.00 98 1 EA 710243A REPLACE GRATE $1,053.00 $1,053.00 $1,400.00 $1,400.00 $1,332.72 $1,332.72 $1,500.00 $1,500.00 $4,000.00 $4,000.00 $1,900.00 $1,900.00 99 31 SQYD 720009A REMOVE CONCRETE BAG SLOPE PROTECTION $421.20 $13,057.20 $300.00 $9,300.00 $63.67 $1,973.77 $300.00 $9,300.00 $300.00 $9,300.00 $360.00 $11,160.00 100 41 SQYD 721814A CONCRETE BAG SLOPE PROTECTION $1,684.80 $69,076.80 $930.00 $38,130.00 $468.92 $19,225.72 $700.00 $28,700.00 $1,000.00 $41,000.00 $1,430.00 $58,630.00 101 1,740 CY 723050
ROCK SLOPE PROTECTION (1/4 T, CLASS V, METHOD B)
(CY) $232.50 $404,554.18 $270.00 $469,800.00 $369.74 $643,347.60 $400.00 $696,000.00 $300.00 $522,000.00 $352.00 $612,480.00 102 553 CY 723080
ROCK SLOPE PROTECTION (60 LB, CLASS II, METHOD B)
(CY) $352.76 $195,073.52 $270.00 $149,310.00 $263.23 $145,566.19 $200.00 $110,600.00 $200.00 $110,600.00 $345.00 $190,785.00 103 1,100 SQYD 729011 ROCK SLOPE PROTECTION FABRIC (CLASS 8) $6.32 $6,949.80 $15.00 $16,500.00 $1.16 $1,276.00 $3.00 $3,300.00 $3.00 $3,300.00 $29.00 $31,900.00 104 920 LF 730010 MINOR CONCRETE (CURB) $300.00 $276,000.00 $58.00 $53,360.00 $40.00 $36,800.00 $65.00 $59,800.00 $50.00 $46,000.00 $96.00 $88,320.00 105 126 SQFT 730070 DETECTABLE WARNING SURFACE $84.24 $10,614.24 $60.00 $7,560.00 $45.31 $5,709.06 $50.00 $6,300.00 $45.00 $5,670.00 $79.00 $9,954.00 106 1,383 LF 731505A MINOR CONCRETE (CURB AND GUTTER) $105.30 $145,629.90 $70.00 $96,810.00 $70.36 $97,307.88 $100.00 $138,300.00 $80.00 $110,640.00 $72.00 $99,576.00 107 2,876 SQFT 731517A MINOR CONCRETE (DRIVEWAY) $20.01 $57,540.13 $18.00 $51,768.00 $17.58 $50,560.08 $35.00 $100,660.00 $20.00 $57,520.00 $25.00 $71,900.00 108 6,600 SQFT 731522A MINOR CONCRETE (SIDEWALK) $17.90 $118,146.60 $14.00 $92,400.00 $21.00 $138,600.00 $25.00 $165,000.00 $15.00 $99,000.00 $16.50 $108,900.00 109 8 EA 731624A MINOR CONCRETE (CURB RAMP) $5,265.00 $42,120.00 $3,800.00 $30,400.00 $2,874.54 $22,996.32 $3,500.00 $28,000.00 $3,000.00 $24,000.00 $5,640.00 $45,120.00 110 1,044 LF 731710 REMOVE CONCRETE CURB (LF) $31.59 $32,979.96 $20.00 $20,880.00 $17.83 $18,614.52 $40.00 $41,760.00 $20.00 $20,880.00 $14.00 $14,616.00 111 7,499 SQFT 731821A REMOVE CONCRETE SIDEWALK AND DRIVEWAY (SQFT) $8.42 $63,171.58 $4.00 $29,996.00 $3.76 $28,196.24 $7.00 $52,493.00 $5.00 $37,495.00 $5.00 $37,495.00 112 540 LB 750501 (F) -MISCELLANEOUS METAL (BRIDGE) $30.00 $16,200.00 $20.00 $10,800.00 $19.06 $10,292.40 $40.00 $21,600.00 $25.00 $13,500.00 $24.00 $12,960.00 113 181 LF 770001A 10" PVC WATER MAIN $336.96 $60,989.76 $370.00 $66,970.00 $218.66 $39,577.46 $750.00 $135,750.00 $765.00 $138,465.00 $893.00 $161,633.00 114 4 EA 770002A 10" VALVES FOR WATER MAIN $3,159.00 $12,636.00 $6,400.00 $25,600.00 $5,139.69 $20,558.76 $6,000.00 $24,000.00 $5,000.00 $20,000.00 $8,300.00 $33,200.00 115 1 EA 780249A REPLACE FIRE HYDRANT ASSEMBLY AND LATERAL $15,000.00 $15,000.00 $19,800.00 $19,800.00 $13,313.53 $13,313.53 $22,850.00 $22,850.00 $15,000.00 $15,000.00 $28,700.00 $28,700.00 116 1 EA 780251A

REPLACE FIRE HYDRANT ASSEMBLY AND LATERAL TO
FINISHED GRADE $15,000.00 $15,000.00 $8,800.00 $8,800.00 $13,313.53 $13,313.53 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $16,255.00 $16,255.00 117 2 EA 780252A

ADJUST SANITARY SEWER CLEANOUT TO FINISHED
GRADE $2,106.00 $4,212.00 $2,200.00 $4,400.00 $2,090.75 $4,181.50 $1,500.00 $3,000.00 $250.00 $500.00 $1,725.00 $3,450.00 118 1 EA 780253A ADJUST SANITARY SEWER MANHOLE TO FINISHED GRADE $2,632.50 $2,632.50 $3,100.00 $3,100.00 $2,358.34 $2,358.34 $4,500.00 $4,500.00 $1,000.00 $1,000.00 $4,455.00 $4,455.00 119 3 EA 780255A ADJUST WATER VALVE TO FINISHED GRADE $2,106.00 $6,318.00 $1,700.00 $5,100.00 $5,073.59 $15,220.77 $2,000.00 $6,000.00 $1,000.00 $3,000.00 $1,535.00 $4,605.00 120 1 EA 780261A

RELOCATE GAS MAIN AND ADJUST GAS VALVE TO
FINISHED GRADE $4,212.00 $4,212.00 $4,100.00 $4,100.00 $35,555.12 $35,555.12 $64,400.00 $64,400.00 $10,000.00 $10,000.00 $67,000.00 $67,000.00 121 521 LF 780434A PAINT CURB (2-COAT) (LF) $12.64 $6,583.36 $6.00 $3,126.00 $10.07 $5,246.47 $6.00 $3,126.00 $6.00 $3,126.00 $14.00 $7,294.00 122 3,698 SQFT 780460 (F) - ANTI-GRAFFITI COATING $11.06 $40,886.94 $7.90 $29,214.20 $4.20 $15,531.60 $7.90 $29,214.20 $10.00 $36,980.00 $20.00 $73,960.00 123 1 LS 783001A PRECAST STAIR SYSTEM $42,120.00 $42,120.00 $67,000.00 $67,000.00 $78,259.47 $78,259.47 $18,800.00 $18,800.00 $75,000.00 $75,000.00 $27,000.00 $27,000.00 124 20 EA 783002A STEEL BOLLARD $1,579.50 $31,590.00 $1,043.00 $20,860.00 $1,043.00 $20,860.00 $1,500.00 $30,000.00 $1,000.00 $20,000.00 $1,325.00 $26,500.00 125 1 LS 783003A RECONSTRUCT DRIVEWAY PILASTERS AND GATES $52,650.00 $52,650.00 $35,000.00 $35,000.00 $28,478.69 $28,478.69 $58,100.00 $58,100.00 $15,000.00 $15,000.00 $45,000.00 $45,000.00 126 123 LF 803015 REMOVE WOOD FENCE $52.65 $6,475.95 $68.00 $8,364.00 $42.60 $5,239.80 $20.00 $2,460.00 $70.00 $8,610.00 $135.00 $16,605.00 127 225 LF 803111A REMOVE AND REPLACE WOOD FENCE AND GATE $210.60 $47,385.00 $102.00 $22,950.00 $102.00 $22,950.00 $100.00 $22,500.00 $100.00 $22,500.00 $138.00 $31,050.00 128 66 EA 810230 PAVEMENT MARKER (RETROREFLECTIVE) $26.85 $1,772.20 $15.00 $990.00 $55.94 $3,692.04 $15.00 $990.00 $15.00 $990.00 $28.00 $1,848.00 129 7 EA 820250 REMOVE ROADSIDE SIGN $157.95 $1,105.65 $150.00 $1,050.00 $150.00 $1,050.00 $150.00 $1,050.00 $150.00 $1,050.00 $123.00 $861.00 130 1 EA 820310 REMOVE ROADSIDE SIGN PANEL $105.30 $105.30 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $85.00 $85.00 131 5 EA 820530 RESET ROADSIDE SIGN $365.39 $1,826.96 $350.00 $1,750.00 $350.00 $1,750.00 $350.00 $1,750.00 $350.00 $1,750.00 $635.00 $3,175.00 132 1 EA 820560

RESET ROADSIDE SIGN (STRAP AND SADDLE BRACKET
METHOD) $105.30 $105.30 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $575.00 $575.00 133 14 EA 820610 RELOCATE ROADSIDE SIGN $400.14 $5,601.96 $350.00 $4,900.00 $350.00 $4,900.00 $350.00 $4,900.00 $350.00 $4,900.00 $635.00 $8,890.00 134 F 444 LF 833088 (F) - TUBULAR HANDRAILING $130.57 $57,973.97 $149.00 $66,156.00 $149.00 $66,156.00 $149.00 $66,156.00 $150.00 $66,600.00 $215.00 $95,460.00 135 898 LF 839515A STEEL HANDRAILING $157.95 $141,839.10 $183.00 $164,334.00 $183.00 $164,334.00 $183.00 $164,334.00 $190.00 $170,620.00 $239.00 $214,622.00 136 F 330 LF 839716A (F) - CONCRETE BARRIER (TYPE 85SW MODIFIED) $842.40 $277,992.00 $920.00 $303,600.00 $827.50 $273,075.00 $880.00 $290,400.00 $900.00 $297,000.00 $878.00 $289,740.00 137 F 114 LF 839717A (F) - CONCRETE BARRIER (TYPE 85A) $526.50 $60,021.00 $1,020.00 $116,280.00 $1,071.31 $122,129.34 $940.00 $107,160.00 $1,000.00 $114,000.00 $1,200.00 $136,800.00 138 223 SQFT 840516

THERMOPLASTIC PAVEMENT MARKING (ENHANCED WET
NIGHT VISIBILITY) $24.00 $5,352.00 $15.00 $3,345.00 $20.14 $4,491.22 $15.00 $3,345.00 $15.00 $3,345.00 $26.00 $5,798.00 139 134 SQFT 840518A

GREEN THERMOPLASTIC PAVEMENT MARKING
(ENHANCED WET NIGHT VISIBILITY) $26.33 $3,527.55 $28.00 $3,752.00 $39.16 $5,247.44 $28.00 $3,752.00 $28.00 $3,752.00 $50.00 $6,700.00 140 775 LF 846007
6" THERMOPLASTIC TRAFFIC STRIPE (ENHANCED WET
NIGHT VISIBILITY) $8.42 $6,528.60 $4.00 $3,100.00 $11.19 $8,672.25 $4.00 $3,100.00 $4.00 $3,100.00 $8.00 $6,200.00 141 96 LF 846008
6" THERMOPLASTIC TRAFFIC STRIPE (ENHANCED WET
NIGHT VISIBILITY) (BROKEN 8-4) $7.37 $707.62 $4.00 $384.00 $11.19 $1,074.24 $4.00 $384.00 $4.00 $384.00 $8.00 $768.00 142 965 LF 846013
12" THERMOPLASTIC TRAFFIC STRIPE (ENHANCED WET
NIGHT VISIBILITY) $10.53 $10,161.45 $10.00 $9,650.00 $20.14 $19,435.10 $10.00 $9,650.00 $10.00 $9,650.00 $19.00 $18,335.00 143 839 LF 840657A PAINT TRAFFIC STRIPE (2-COAT) (CALTRANS DETAIL 22) $3.16 $2,650.40 $5.50 $4,614.50 $4.47 $3,750.33 $5.50 $4,614.50 $5.00 $4,195.00 $10.00 $8,390.00 144 388 LF 840658A PAINT TRAFFIC STRIPE (2-COAT) (CALTRANS DETAIL 27B) $3.16 $1,225.69 $2.40 $931.20 $8.95 $3,472.60 $2.40 $931.20 $2.00 $776.00 $5.00 $1,940.00 145 50 LF 840659A PAINT TRAFFIC STRIPE (2-COAT) (CALTRANS DETAIL 40) $3.16 $157.95 $2.20 $110.00 $8.95 $447.50 $2.20 $110.00 $2.00 $100.00 $5.00 $250.00 146 2 EA 870138A CONTROLLER ELECTRICAL SERVICE $8,424.00 $16,848.00 $4,000.00 $8,000.00 $4,000.00 $8,000.00 $25,000.00 $50,000.00 $5,000.00 $10,000.00 $5,000.00 $10,000.00 147 1 LS 871901A CONDUIT SYSTEM AND PULL BOXES $75,000.00 $75,000.00 $180,000.00 $180,000.00 $180,000.00 $180,000.00 $183,000.00 $183,000.00 $200,000.00 $200,000.00 $215,000.00 $215,000 .00 148 1 LS 872131 MODIFY LIGHTING SYSTEMS $100,000.00 $100,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $65,500.00 $65,500.00 $20,000.00 $20,000.00 $25,000.00 $25,000.00 149 1 LS 999990 MOBILIZATION $1,092,842.14 $1,092,842.14 $930,000.00 $930,000.00 $927,334.61 $927,334.61 $988,000.00 $988,000.00 $1,000,000.00 $1,000,000.00 $885,000. 00 $885,000.00 150 1 LS 051250A MAINTAIN AND RELOCATE ERUV $10,000.00 $10,000.00 $6,500.00 $6,500.00 $7,887.18 $7,887.18 $6,500.00 $6,500.00 $10,000.00 $10,000.00 $12,000.00 $12,000.00 151 1 LS 784000A REMOVE AND REPLACE BRICK/PATH IN-KIND $10,000.00 $10,000.00 $7,000.00 $7,000.00 $11,647.24 $11,647.24 $7,500.00 $7,500.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00 Sub Total = $12,041,263.55 $9,399,787.40 $10,303,233.57 $10,099,123.60 $10,707,482.50 $13,263,330.50 Percentage Lower/Higher than Engineer's Estimate = -21.94% -14.43% -16.13% -11.08% 10.15% Lowest Bidder = $9,399,787.40
Contingencies (10%) = $1,204,126.35 $939,978.74
PROJECT TOTAL COST $13,245,389.90 $10,339,766.14
Bid Amounts Received = $10,303,250.00 $10,488,823.60
Gordon N. Ball, Inc Joseph J. Albanese, Inc

QUANTITY UNIT UNIT COST UNIT COST UNIT COST UNIT COST UNIT COST UNIT COST IFB Post Date 4/15/2025
IFB Due Date 5/13/2025-3:00pm
Engineer's Estimate Granite Construction Company A & B Construction Ghilotti Construction
Company
1 of 1 S:\PWD\STORM\CIP\PE-12011 Newell Bridge Project\0.2 Contractor Bid Proposals\Bid Summary\Bid Summary Comparison Item 24
Attachment A - Contract
No. C25194068 Bid
Summary

Item 24: Staff Report
Pg.
8 Packet Pg. 1023 of 1138

Professional Services
Rev. Oct 16,2024

Page 1 of 34 ends

Palo Alto City CouncilJune 16, 2025

Palo Alto City Council
June 16, 2025