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

Finance Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: March 4, 2025
Report #:2501-4019
TITLE
Recommend City Council Adopt Planning and Development Services Cost of Services Study and Proposed Municipal Fee Adjustments

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

EXECUTIVE SUMMARY
This report presents the findings of the Planning and Development Services Cost of Services Study, conducted by Matrix Consulting Group, and recommends municipal fee adjustments to achieve cost recovery of City services related to planning entitlements and permitting. The study evaluates the actual costs of providing development-related services, including Building, Planning, Fire Prevention, and Public Works, and identifies areas where fees are misaligned with service demands.

Key recommendations include refining valuation-based fees for commercial and multi-family projects, adjusting discretionary planning fees to reduce General Fund impacts, and updating fire prevention and hazardous materials permitting fees to better reflect staff time and regulatory requirements. Additionally, the Technology Surcharge is recommended for an increase to cover rising costs of digital permitting and cybersecurity, while extending the Development Services Reserve Fund Policy will help stabilize revenue fluctuations and maintain long-term service continuity.

The proposed adjustments align fees with actual service costs while considering policy-driven subsidies for minor residential improvements, sustainability initiatives, and community-benefit projects. The study finds that Building (97% cost recovery) and Public Works (84% cost recovery) fees are near full recovery, while Planning (71% cost recovery) and Fire Prevention (72% cost

recovery) potentially impacting the General Fund to a greater degree. Where fees are increasing noticeably, the Finance Committee may consider phased implementation strategies to ease financial impacts, particularly for small businesses and housing-related projects. If approved, new fees will take effect 60 days after City Council adoption.

BACKGROUND
A cost of services study determines appropriate user fees for services that provide direct benefits to individuals or businesses, ensuring beneficiaries pay their fair share or services rendered rather than shifting costs to general taxpayers.

This study calculates service costs based on staffing, operational expenses, and service demands.

Costs adjust over time with changes to regulatory and policy direction, staffing levels and inflation. Periodic reviews ensure fees remain aligned with actual costs. By law, these fees cannot exceed the reasonable cost of providing a service; anything above that is considered a special tax requiring voter approval.

The Planning and Development Services (PDS) Department charges fees for a range of development-related services, including:
Building Permits – Ensuring compliance with State and local codes. Planning Applications – Zoning approvals, conditional use permits, and variances. Fire Prevention Inspections – Ensuring compliance to fire codes. Public Works Permits – Encroachments, grading, and street improvements.

Without cost recovery, these services would require General Fund financial support, diverting resources from other programs. Other charges, such as fines and penalties, are not user fees and are governed by separate policy considerations. Impact fees, which fund infrastructure improvements related to new development, are also not included in this study and are evaluated through separate fee studies.

Between comprehensive fee studies, PDS fees are adjusted annually as part of the citywide municipal fee update using the Engineering News-Record (ENR) Construction Cost Index or the General Rate of Increase (GRI). However, these adjustments do not fully capture changes in workload, changes to regulatory complexity, or technology costs, leading to fee misalignments over time.

Cost Recovery Level Policy
The City Council’s 2015 User Fee Cost Recovery Level Policy1 categorizes fees into three recovery levels:

1. Low (0–30%) – Broad public benefits or where fee would discourage compliance with regulatory requirements (e.g., long-range planning, affordable housing, subsidized planning or building permits).

2. Medium (30%–70%) – Mixed public/private benefits (e.g., discretionary reviews).

3. High (70%–100%) – Primarily private benefits (e.g., building permits, inspections).

In addition, the City targets 70–100% recovery for regulatory services, with Council discretion to subsidize fees for policy reasons.
2016 Fee Study Results and Subsequent Efforts
The last comprehensive fee study was in 2016, when PDS operated as two separate departments—Planning and Community Environment 2 and Development Services 3. Those studies led to fee revisions to address misalignments. In 2022, the City engaged Matrix Consulting Group (Matrix) for another study, which identified under-recovery in several areas, particularly Current Planning and Fire Prevention. However, fee adjustments were postponed due to economic uncertainty following the pandemic and the City’s efforts in 2023 focusing on the Fire Prevention program’s organization operations without updating such fees.

Since 2022, costs have continued rising, and permit application volumes have increased alongside State housing mandates and local development trends. Since the last comprehensive fee study nine years ago, the City has expanded staffing levels within PDS to support permit processing and development review, including the addition of positions on the data team, current and long- range planning, and building inspection. Staffing levels in fire prevention and public works have also increased since then. This study updates the City’s fee structure to align with these changes, ensuring financial sustainability while balancing cost recovery, economic development, housing production, and service efficiency.

In 2024, the City re-engaged Matrix to update and conclude this effort and the results are provided in Attachment C. Without the proposed adjustments:
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
2 City Council, March 28, 2016; Agenda Item #7, SR#6638, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/id6638.pdf
3 City Council, December 12, 2016; Agenda Item #22, SR#7525, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/id-7525-ccm-121216.pdf
Certain fees will remain under-recovered, requiring continued General Fund subsidies. Service levels in other General Fund supported programs may decline if permit revenue shortfalls persist.
Staffing reductions may be needed to balance expenses with costs and may result in permitting and inspection service delays.
Potential risk of overcharging for services that require less staff time due to improved efficiencies or workflow changes.

Implementing the proposed fee adjustments will better align the services provided by the City’s planning and permitting operations to actual costs. The City Council may consider phased increases to minimize larger fee increases while maintaining service quality.

ANALYSIS
Methodology
The study used an activity-based costing approach, a standard methodology that calculates the full cost of service delivery based on:
Staff time, operating expenses, and department overhead. Historical permit volume trends.
Indirect costs such as administration, IT, and facilities. Regional benchmarking to assess cost recovery and competitiveness.

Fee Structures
PDS fees recover the cost of permit processing and inspections, ensuring applicants cover service costs rather than impacting the General Fund. Fees fall into three primary categories:
Flat Fees: Fixed rates for services with predictable service requirements like minor permits.
Valuation-Based Fees: Used for building permits, scaling with project valuation to reflect size and complexity.
Deposit-Based Fees: Applied to complex applications requiring extended staff time, reconciled based on actual work performed.

Flat fees provide cost certainty for applicants and are structured to recover staff time for straightforward plan reviews and inspections. Valuation-based fees ensure larger projects contribute proportionally to staff workload. The study also evaluates cost alignment for commercial and multi-family projects to ensure fees accurately reflect service demands, with proposed refinements discussed later in this report.

While the study calculates full cost recovery in accordance with the Cost Recovery Level Policy, the City Council retains discretion to adjust fees based on policy priorities. In the past, the Council has subsidized the planning fees associated with childcare facilities to reduce costs for establishing those uses. The Finance Committee is encouraged to consider other subsidies to achieve regulatory compliance with certain minor trade permits, advance carbon reduction goals, or reduce costs related to housing development.

Policy Considerations and Impact
The Finance Committee must balance cost recovery with broader policy objectives, including housing production, economic development, sustainability, and public engagement. While the study recommends aligning fees with actual service costs, the City Council retains discretion to subsidize select fees where public benefits justify General Fund support.

Implications of Valuation-Based Methodology Changes
Proposed changes primarily impact commercial and multi-family developments by shifting to a base fee plus multiplier model, ensuring larger projects contribute proportionally while preventing over-recovery in high-value developments. The existing valuation-based structure does not always correlate with staff effort, leading to fee disparities. The new tiered approach improves fairness and aligns fees with actual review complexity.

For residential projects, the valuation-based structure remains, but refinements better reflect service complexity. Single-family home permits will continue to be assessed based on construction valuation to maintain cost recovery while avoiding excessive burdens on homeowners making renovations or additions.

Impact on Key Stakeholder Groups
The proposed changes will affect different applicant groups in distinct ways:
Homeowners and Small-Scale Residential Projects – Minor home improvement fees remain stable.
Commercial Developers and Large-Scale Projects – Expanded valuation tiers ensure larger developments contribute proportionally without overpaying, preventing undue financial strain on major projects.
Small Businesses and Tenant Improvements – Minimal fee increases ensure affordability while maintaining full cost recovery.
Affordable and Multi-Family Housing Developers – New valuation tiers create more predictable costs, making project financing and feasibility clearer, benefiting affordable housing initiatives.
Community Service Providers (e.g., childcare centers, affordable housing projects, sustainability projects) – Reduced fees remain for projects that align with accessibility and environmental goals.

Effect on Program Area Fees
Proposed updates improve cost recovery across all program areas while keeping fees fair and service-aligned.
Building (97% cost recovery) – Valuation tier refinements create a more equitable fee structure, ensuring better alignment between revenue and staff workload. Current Planning (71% cost recovery) – Increased fees for discretionary entitlements reduce General Fund subsidies while better reflecting staff effort for review-intensive applications.
Fire Prevention (72% cost recovery) – Adjustments to fire plan check and hazardous materials permitting fees ensure high-risk occupancies contribute proportionally while maintaining public safety.
Public Works (84% cost recovery) – Encroachment and stormwater compliance fees are updated to reflect actual staff review time, particularly for undergrounding and green infrastructure projects.

Encouraging Housing Development
The proposed fee adjustments streamline permitting processes and reduce uncertainty to support housing production while maintaining financial sustainability:
A tiered valuation-based structure for multi-family projects improves cost predictability, allowing developers to budget more accurately.
Lower preliminary project review fees encourage early-stage engagement, reducing costly delays and resubmittals in later permitting phases. Targeted subsidies remain for affordable housing projects, reinforcing local and state housing mandates while ensuring cost recovery stability.

Additionally, deposit-based fees remain unchanged, ensuring applicants only pay for the actual staff time required for their projects. This approach prevents overpayment while maintaining flexibility in cost recovery for complex applications.

Fee Study Summary Findings
The user fee study identifies a $2.6 million shortfall in cost recovery based on the current fee rates for development-related services. With the current fee rates, Planning and Development Services would recover 93% of costs, leaving a $1.2 million gap, while Fire Prevention would recover only 72%, creating a $1.4 million gap. Without the fee adjustments recommended in this report, this shortfall may require General Fund support in the future. The study recommends aligning fees with actual service costs where feasible, while considering appropriate subsidies. It also recommends annual adjustments to keep pace with inflation.

The City recognizes the need to balance cost recovery with the financial feasibility of development, particularly for housing. Staff continues to review the financial impact of fees, including impact fees, to ensure alignment with policy goals. The Finance Committee may also consider this balance when discussing potential subsidies to support housing and economic development.

Key changes include eliminating outdated fees, introducing new fees, restructuring valuation- based fees, and ensuring better transparency in surcharges. Additionally, the study highlights the need to capture cross-departmental costs for Planning, Fire, Public Works, and Transportation.

These findings provide a path forward to improve financial sustainability, ensure fair cost distribution, and maintain high-quality services for the community.

The study used FY 2024 actual revenues and FY 2025 adopted expenses across PDS program areas. Cost recovery levels vary due to differences in service complexity, staffing costs, and fee structures. Current Planning and Fire Prevention have lower cost recovery because discretionary reviews, inspections, and regulatory requirements involve extensive staff time that is not fully captured in existing fees. In contrast, Building has a higher cost recovery rate as most permit fees are structured to cover plan check and inspection costs. While staffing has increased since the last fee study, cost recovery is also impacted by workload demand, evolving service needs, and fee adjustments over time.

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. 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 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
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.

Since the last fee study, Public Works has expanded staffing levels to address increasing permit volume, new stormwater compliance requirements, and growing demands for infrastructure 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.

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.
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 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.

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

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.

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

PALO ALTO , CA

REPORT ON DEVELOPMENT COST

OF SERVICE (USER FEE) STUDY
MAY 202 5

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

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

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 .

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.

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 5

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.

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.

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 City 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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 6

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 7

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 8

• 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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 9

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 10

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 11

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 12

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 13

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 .

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 14

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)

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 15

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 16

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)

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 17

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 18

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 19

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 20

- 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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 21

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 .

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 22

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 23

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 .

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 24

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 25

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 26

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 .

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 27

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 28

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 29

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 30

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 31

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%

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 32

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 33

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 34

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:

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 35

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 36

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 37

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 38

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 39

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 40

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 41

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

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

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

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

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

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

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

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

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

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

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

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 53

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 54

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 55

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 56

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 57

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 58

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.

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 59

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 60

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 61

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 62

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 63

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 64

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

MATRIX CONSULTING GROUP 65

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

DEVELOPMENT COST OF SERVICE (USER FEE) STUDY

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

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

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

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

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
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\
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\
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\
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\
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 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\
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\
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\

Palo Alto City CouncilJune 16, 2025

Palo Alto City Council
June 16, 2025