***NOT YET APPROVED***
1 0160209_20260922_ay16
Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Making Findings Regarding the Reasonable Cost to Issue Permits for Solar Energy Systems and Amending the Fiscal Year 2027 Municipal Fee Schedule to Update Fees for Service in the Planning and Development Services Department
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On June 15, 2026, the City Council adopted the Fiscal Year 2027 Municipal Fee Schedule, reflecting updated fees for the Planning and Development Services Department.
B. The Planning and Development Services Department has implemented a streamlined permitting process for Electric Vehicle Charging Stations, which will result in lower costs for permit applicants. in the Adopted FY 2027 Municipal Fee Schedule.
C. The City now desires to amend the FY 2027 Municipal Fee Schedule to reduce the fees for Electric Vehicle Charging Stations.
D. California Government Code Section 66015 sets forth a limit on the permit fees a city may charge for residential and commercial photovoltaic systems unless the city makes a written finding, as part of a resolution or ordinance, providing substantial evidence of the reasonable cost to issue the permit.
E. In 2025, the City conducted an extensive fee study that determined the time, effort, and resources necessary to issue various permits, including permits for residential and commercial solar energy systems.
F. The final fee study, titled Report on Development Cost of Services (User Fee) Study and dated February 2025, describes the methodology and calculations performed to determine fees for each permit type. The final fee study is available for review with the Planning and Development Services Department and is incorporated into these findings as if set forth fully herein.
G. Fees for residential and commercial solar energy systems, set forth in the adopted FY2026-2027 Municipal Fee Schedule, are based on the final fee study, but were not enforceable because the adopting ordinance inadvertently omitted supporting findings.
H. Depending on the nature of the project, multiple fees stated in the Municipal Fee Schedule may be applied to fully represent the reasonable cost of issuing a permit.
I. In addition to these permit fees, the City has adopted the California Building Codes, with local amendments, as well as local permitting procedures to streamline the submittal ***NOT YET APPROVED***
2 0160209_20260922_ay16
and approval of permits for solar energy systems pursuant to the practices and policies in state guidelines, the checklists and standard plans in the California Solar Permitting Guidebook, and model ordinances.
J. The final fee study included only administrative approval procedures for solar energy systems, reducing costs in accordance with Government Code Section 65850.5.
K. The fee amounts supported by the final fee study are necessary to maintain appropriate staffing levels, which ensure a quick and streamlined approval process.
L. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on October 19, 2026, hold an open and public meeting on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting the amendments was made available to the public at least 10 days prior to the hearing.
M. Fees in the Municipal Fee Schedule are for government services provided directly to the payor that are not provided to those not charged. The amount of this fee does not exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art.
XIII C, Section l(e)(2), such fees are not a tax.
N. The amount of new or increased fees and charges is no more than necessary to cover the reasonable costs of the governmental activity, and the manner in which those costs are allocated to a payer bears a fair and reasonable relationship to the payer's burden on, or benefits received from, the governmental activity.
SECTION 2. The Council of the City of Palo Alto amends the Fiscal Year 2026-2027 Municipal Fee Schedule by adopting service fees for the Planning and Development Services Department as set forth in Exhibit “A” and incorporated here by reference to reflect its interest in encouraging electrification efforts and day care uses.
SECTION 3. The Council finds that this ordinance is not a “project” under CEQA because it has no potential for resulting in either a direct or reasonably foreseeable indirect change in the environment.
//
//
//
//
//
//
***NOT YET APPROVED***
3 0160209_20260922_ay16
SECTION 4. This ordinance shall be effective upon adoption as an amendment to the City’s Fiscal Year 2027 budget. Pursuant to Government Code Section 66017, all Planning and Development Services Department fees relating to a “development project,” as defined in Government Code Section 66000, shall become effective no sooner than sixty (60) days from the date of adoption.
INTRODUCED and PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________ City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________ Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
***NOT YET APPROVED***
4 0160209_20260922_ay16
Exhibit A
Fee Category and Fee Title FY 2027 Cost
Electrical Permits - Electrical Vehicle Charging
Stations
Multi-Family/Commercial (Level 1 and 2)
$3,492 per permit for 1 - 6 stations
Multi-Family/Commercial (Level 1 and 2)
$1,084 per permit for each addl. 6 stations
Multi-Family/Commercial (Level 3 and 4)
$3,981 per permit for 1 - 6 stations
Multi-Family/Commercial (Level 3 and 4)
$1,084 per permit for each addl. 6 stations
Residential - Single-Family, Duplex, and Individual
Condiminium Units (Level 1 and 2)
$322 per station
Residential - Single-Family, Duplex, and Individual
Condiminium Units (Level 3)
$512 per station