BUDGET AND AUDIT COMMITTEE
Roger Dickinson, Chair, District 2
Karina Talamantes, District 3
Caity Maple, District 5
Eric Guerra, District 6
COMMITTEE STAFF
Mindy Cuppy, City Clerk
Leyne Milstein, Interim City Manager
Farishta Ahrary, City Auditor
Matthew Ruyak, Assistant City Attorney
Budget and Audit
Committee
City Hall Complex
915 I Street Sacramento, CA 95814
Published by the Office of the City Clerk
(916) 80
8-7200
SU
PPLEMENTAL MATERIAL
Description: Attached is supplemental material received after publishing the agenda, the update of Attachment 3. The attached staff report replaces the original staff report in its entirety.
For the Meeting of: Tuesday, March 25, 2025 at 11:00 a.m.
Agenda Item: Discussion Item 7
7. Proposed Fire Prevention Fee Adjustments
F
ile ID: 2025-00774
Location: Citywide
R
ecommendation: 1) Review the proposed Fire Prevention Fee adjustments; and 2) pass a Motion forwarding to the City Council for consideration.
C
ontact: Tilden Billiter, Deputy Chief, (916) 808-1603; Jason Lee, Fire Marshal, (916) 808-1620, Fire Department
City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00774 3/25/2025 Discussion Item 7.
Proposed Fire Prevention Fee Adjustments
File ID: 2025-00774
Location: Citywide
Recommendation: 1) Review the proposed Fire Prevention Fee adjustments; and 2) pass a Motion forwarding to the City Council for consideration.
Contact: Tilden Billiter, Deputy Chief, (916) 808-1603; Jason Lee, Fire Marshal, (916) 808-1620, Fire Department.
Presenter: Tilden Billiter, Deputy Chief, (916) 808-1603; Jason Lee, Fire Marshal, (916) 808-1620, Fire Department
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A (Current & Proposed SFD Fire Prevention Fees) - Updated 4-Exhibit B (Regional Fee Comparisons)
Description/Analysis
Issue Detail: On February 7, 2006, the City Council formally adopted a Citywide Fees and Charges Policy (Resolution No. 2006-106) to ensure that City fees and charges reflect the Council’s direction regarding recovery of costs related to providing programs and services. The last fee increase for the Fire Prevention program was included in the February 6, 2018 Citywide Fees and Charges (Resolution No. 2018-0059). In July 2024, the Fire Department contracted with a third-party consultant, MGT of America Consulting, LLC dba MGT Consulting, to conduct a user fee study, which was completed in March 2025. Based on the consultant’s findings, staff are recommending fee adjustments to the Fire Prevention program to recover costs associated with providing these services.
In addition to the proposed fee adjustments, staff recommend the adoption of a new development inspection and plan check fees to recover the cost of the required services to process plan checks and inspect new developments. Other agencies in the region charge these fees to offset the cost of the services for planning review and inspections.
File ID: 2025-00774 3/25/2025 Discussion Item 7.
The changes to the City’s Fire Prevention program fees are summarized in Exhibit A.
Policy Considerations: The changes are consistent with Council’s adopted Fees and Charges Policy and support the City’s budget sustainability and fiscal responsibility goals.
Proposition 26 was passed by the voters on November 2, 2010, amending Article XIII C of the State constitution. According to the ballot measure, the intent of the measure is to ensure the effectiveness of Propositions 13 and 218 by providing a definition of a “tax” for state and local purposes “so that neither the Legislature nor local governments can circumvent these restrictions on increasing taxes by simply defining new or expanded taxes as ‘fees’.” Thus, under Proposition 26, a tax has been defined broadly to include any levy, charge or exaction of any kind imposed by a local government, except for seven specified categories of charges. Moreover, the City bears the burden of proving that a fee or charge is not a tax. The proposed fees are not a tax under Proposition 26 because of exception 3 (licenses and permits).
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3); 15378 (b) (2)].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Fire Prevention Service fees were last increased in 2018.
The Department hired a consultant to determine the costs of providing fire prevention services and the resulting fees that would recover these costs. The proposed fees are based on recovering the direct staff costs for providing services. Department and citywide overhead costs known as indirect costs have not been included. In addition, the proposed fees are similar to those charged in the Sacramento region and some of the initial fees were further refined to be more in line with other comparable agencies in the region.
Financial Considerations: The Fire Department proposes adjustments to the current rate structure which will reflect the cost of providing fire prevention services and bring the City’s fees more in line with the fees charged within the region as shown in Exhibit B. Staff is also recommending an annual inflation adjustment, based on the Consumer Price Index, so that fees keep up with service provision costs and to prevent sharp fee increases every few years when a fee study is conducted. Other jurisdictions in the region, such as Sacramento Metropolitan Fire District, use this methodology.
Revenue estimates for this increase total approximately $3.2 million annually. The City is currently in a structural budget deficit, with a $62.2 million deficit projected for Fiscal Year (FY) 2025/26 and deficits growing in future fiscal years as cost growth outpaces revenues. On February 25, 2025,
File ID: 2025-00774 3/25/2025 Discussion Item 7.
deficits growing in future fiscal years as cost growth outpaces revenues. On February 25, 2025, Council approved the one-time use of prior year savings to address the FY2025/26 budget gap resulting in the City now needing $44.1 million in budget balancing solutions. On March 7, 2025, the City published budget balancing options that have been identified by City departments. This fee increase is option R9 and approval of this fee increase will help balance the FY2025/26 budget and as it is an ongoing balancing strategy, it will lower forecasted deficits in future fiscal years.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO
Adopted by the Sacramento City Council
PROPOSED FIRE PREVENTION FEE ADJUSTMENTS
BACKGROUND
A. The Fire Department Fire Prevention Services is responsible for providing inspections, permits and oversee new construction in the City of Sacramento. These services are General Fund activities supported by fees charged for services.
B. On February 7, 2006, the City Council adopted the Citywide Fees and Charges policy (Resolution No. 2006-106).
C. The last increase of Fire Prevention fees occurred with the revision of the Citywide Fees and Charges policy (Resolution No. 2018-0059) on 2/6/2018.
D. The costs to provide Fire Prevention Services have increased significantly over the past seven years.
E. The most recent revision of the Citywide Free and Charges policy (Resolution No. 24-153) occurred in May 2024 without an increase in Fire Prevention fees.
F. The existing Fire Prevention fees do not include a provision to adjust fees based on annual inflation. The ability to adjust fees annually will allow for recovery of increasing labor and service and supply costs.
G. Proposed new Fire Prevention fees and fee adjustments are set forth in Exhibit A.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The existing Fire Prevention fees and fee adjustments in the Citywide Fees and Charges policy are amended as shown in Exhibit A.
Section 2. Exhibit A is part of this resolution.
Section 3. The Citywide Fees and Charges policy for the Fire Prevention Program is amended to include an annual fee increase beginning July 1, 2025, and each July 1st thereafter, by the percentage change in the Consumer Price Index (CPI) Series Title: Urban Wage Earners and Clerical Workers the U.S. City Average, All Urban Consumers —not seasonally adjusted, for San Francisco-Oakland- San Jose, CA as published by the U.S.
Department of Labor, Bureau of Labor Statistics for the twelve (12) month period ending
annually, and CPI increases will be implemented, provided that the increase doesn’t exceed the cost of providing services.
Section 4. The Fire Prevention fee changes will be effective July 1, 2025.
City of Sacramento
Fire Departments Fire Prevention Fees
Fire Prevention Fees: Effective July 1, 2025
Permit Fee Description SFD Current
Fee
Proposed
Fee 1
Aerosol Products (>500 LBS) $343 $601
Amusement Buildings $851 $1,465
Apartment 3-15 Units - Self Certification $51 $108
Apartment 16-30 Units $274 $481
Apartment 31-60 Units $357 $625
Apartment 61-100 Units $442 $769
Apartment 101-150 Units $524 $908
Apartment151-200 Units $611 $1,057
Apartment 201-250 Units $696 $1,201
Apartment 251-300 Units $781 $1,345
Apartment 301-350 Units $781 $1,345
Apartment 351-400 Units $865 $1,489
Apartment 401-450 Units $950 $1,633
Apartment 451-500 Units $1,036 $1,777
Apartment 501+ Units $1,036 $1,921
Arson - Background Check $33 $48
Arson - Report Copies $56 $119
Artists Live and Work $343 $601
Aviation Facilities $851 $1,465
Candles/open flames $259 $457
Cannabis Grow Facility or Dispensary $470 $817
Carnivals/Fairs $386 $673
Cellulose Nitrate Film $343 $601
Combustible Storage $513 $889
Compressed Gases $343 $601
Consultation Fee $169 $288
Copy of Reports (Each Document) $6 $108
Cryogens $343 $601
Daycare (9-14) Occupants $343 $268
Daycare (15-49) Occupants $428 $745
Daycare (50-99) Occupants $428 $745
Daycare (Commercial 100+) Occupants $428 $745
Dry Cleaning Plant $428 $745
Dust Producing Oper/storage $428 $745
Exhibit/Trade Shows $682 $1,177
Explosive Blasting Agent Storage $513 $889
Failure to Prepare/Cancel $343 $601
Flammable/Combustible Liquids $343 $601
City of Sacramento
Fire Departments Fire Prevention Fees
Fire Prevention Fees: Effective July 1, 2025
Permit Fee Description SFD Current
Fee
Proposed
Fee 1
Floor Finish $343 $601
Fruit Ripening $343 $601
Garage Repairs/Motor Vehicle Fuel $428 $745
Hazardous Materials $513 $889
Hazardous Production Facilities $809 $1,393
Heliport/Helistop $259 $457
Helistop (Special Event) $343 $601
High Piled Storage $428 $745
Hood System $386 $673
Hot Food Vendor- Annual $301 $529
Hot Works/ Cutting and Welding $343 $601
Hotel/Motel (3-8 Rooms) $343 $601
Hotel/Motel (9-16 Rooms) $428 $745
Hotel/Motel (17-30 Rooms) $513 $889
Hotel/Motel (31-60 Rooms) $597 $1,033
Hotel/Motel (61-90 Rooms) $724 $1,249
Hotel/Motel (91-120 Rooms) $809 $1,393
Hotel/Motel (120+ Rooms) $894 $1,537
Hourly Inspection Fee $169 $288
Inspection- After Hours (Special Event Inspections) $254 $432 Institution (14 or Less) Occupants $528 $922
Institution (15-49) Occupants $909 $1,570
Institution (50-199) Occupants $1,291 $2,218
Institution (200+) Occupants $1,630 $2,794
Knox Box Servicing $84 $144
Late Payment Fee $107 $107
Liquid Petroleum Gas (LPG) $343 $601
Lumber Yard/Woodwork $640 $1,105
Magnesium $343 $601
Malls $1,234 $2,113
Marinas $428 $745
Multi Story Bldg (75 FT +) $0.0038 $0.004
Notice and Order to Abate $2,737 $4,691
Notice and Order to Abate - Appeal $1,666 $2,884
Open Burning $216 $385
Organic Coating Application $343 $601
Ovens (Industrial Baking/Drying) $343 $601
Places of Assembly (A-1) $540 $1,465
City of Sacramento
Fire Departments Fire Prevention Fees
Fire Prevention Fees: Effective July 1, 2025
Permit Fee Description SFD Current
Fee
Proposed
Fee 1
Places of Assembly (A-2 & A-3) 100+ $450 $986
Places of Assembly (A-2 & A-3) 50-99 $327 $889
Places of Assembly (A-4 & A-5) $654 $7,045
Pyrotechnics and Special Effects $301 $529
Pyrotechnics Public Display $301 $529
Radioactive Materials $470 $809
Refrigeration Equipment $343 $601
Re-Issuance of Annual Permit $30 $65
Residential Care Facility (<25) Occupants $169 $288
Residential Care Facility (25+) Occupants $169 $288
Special Event Planning N/A $600
Schools $169 $288
Spraying or Dipping $343 $601
Technology Fee $0.10 $0.11
Temporary Membrane Structures $216 $385
Tire Storage (> 1000 Cubic FT) $470 $817
Wood Products $470 $817
Development Fee Changes: Effective July 1, 2025
Development Fee: Administrative Fee $82 $173
Development Fee: Fire Plan Review Fee $149 $255
Development Fee: Fire Inspection Fee - New Building 2 $0.093 $0.11 Development Fee: Fire Inspection Fee -Tenant Improvement $0.059 $0.08 Development Fee: Plan Review- Schools Per Hour $108 $473 Development Fee: Minimum Permit Fee $169 $288
Development Fee: Overtime / Expedite Plan Check $253 $432 Development Fee: Regular Time $169 $288
* New fees are listed as N/A in the current fee column
1 Fees will be adjusted annually, beginning July 1, 2025, and each July 1st thereafter, by the percentage change in the Consumer Price Index (CPI)
Series Title: Urban Wage Earners and Clerical Workers, not seasonally adjusted, as published by the U.S.
Department of Labor, Bureau of Labor
Statistics for the twelve (12) month period ending December 31 of the preceding year.
Exhibit B
City of Sacramento
Base Fee Comparisons of Local Fire Departments Fire Prevention Fees Fire Prevention Fees: Effective July 1, 2025
Permit Fee Description
SFD
Current
Fee
Proposed
Fee 1
%
Varianc
e
Metro Roseville
West
Sacra
mento
Average
Comparison
s
Aerosol Products (>500 LBS) $343 $601 55% $630 $390 N/A $510 Amusement Buildings $851 $1,465 53% $947 $296 $231 $491 Apartment 3 -15 Units - Self Certification $51 $108 72% $473 $390 N/A $431 Apartment 16 -30 Units $274 $481 55% $630 $584 $346 $520 Apartment 31 -60 Units $357 $625 55% $947 $584 $346 $625 Apartment 61 -100 Units $442 $769 54% $1,262 $584 $346 $730 Apartment 101 -150 Units $524 $908 54% $1,262 $584 $346 $730 Apartment151 -200 Units $611 $1,057 53% $1,262 $584 $346 $730 Apartment 201 -250 Units $696 $1,201 53% $1,262 $584 $346 $730 Apartment 251 -300 Units $781 $1,345 53% $1,262 $584 $346 $730 Apartment 301 -350 Units $781 $1,345 53% $1,578 $584 $346 $836 Apartment 351 -400 Units $865 $1,489 53% $1,578 $584 $346 $836 Apartment 401 -450 Units $950 $1,633 53% $1,578 $584 $346 $836 Apartment 451 -500 Units $1,036 $1,777 53% $1,578 $584 $346 $836 Apartment 501+ Units $1,036 $1,921 60% $1,578 $584 $346 $836 Arson - Background Check $33 $48 37% N/A N/A N/A N/A
Arson - Report Copies $56 $119 72% N/A N/A N/A N/A
Artists Live and Work $343 $601 55% N/A N/A N/A N/A
Aviation Facilities $851 $1,465 53% $1,262 N/A $231 $746 Candles/open flames $259 $457 55% N/A N/A $231 $231
Cannabis Grow Facility or Dispensary $470 $817 54% N/A $390 N/A $390 Carnivals/Fairs $386 $673 54% 947 N/A $231 $589
Cellulose Nitrate Film $343 $601 55% $630 $390 $231 $417 Combustible Storage $513 $889 54% $630 $390 $231 $417
Compressed Gases $343 $601 55% $630 N/A 231 $430
Consultation Fee $169 $288 52% N/A N/A N/A N/A
Copy of Reports (Each Document) $6 $108 179% N/A N/A N/A N/A Cryogens $343 $601 55% $630 $390 $231 $417
Daycare (9 -14) Occupants $343 $268 25% $630 $584 N/A $607 Daycare (15 -49) Occupants $428 $745 54% $630 $584 N/A $607 Daycare (50 -99) Occupants $428 $745 54% $947 $776 N/A $861 Daycare (Commercial 100+) Occupants $428 $745 54% $1,420 N/A N/A $1,420 Dry Cleaning Plant $428 $745 54% $630 N/A N/A $630
Dust Producing Oper/storage $428 $745 54% $630 $390 $231 $417 Exhibit/Trade Shows $682 $1,177 53% $630 $972 $231 $611 Explosive Blasting Agent Storage $513 $889 54% $788 N/A $231 $510 Failure to Prepare/Cancel $343 $601 55% N/A N/A N/A N/A Flammable/Combustible Liquids $343 $601 55% $630 $390 $231 $417 Floor Finish $343 $601 55% $630 $390 $231 $417
Fruit Ripening $343 $601 55% $630 $390 $231 $417
Garage Repairs/Motor Vehicle Fuel $428 $745 54% $630 $390 $231 $417 Hazardous Materials $513 $889 54% $1,292 $390 $231 $637 Hazardous Production Facilities $809 $1,393 53% $1,292 $390 $231 $637 Heliport/Helistop $259 $457 55% N/A $390 N/A $390
Helistop (Special Event) $343 $601 55% N/A $390 N/A $390 High Piled Storage $428 $745 54% $788 $1,354 $231 $791 Hood System $386 $673 54% $1,354 N/A N/A $1,354
Hot Food Vendor - Annual $301 $529 55% N/A N/A N/A N/A Hot Works/ Cutting and Welding $343 $601 55% $630 $296 $231 $385 Hotel/Motel (3 -8 Rooms) $343 $601 55% $788 $390 $246 $475 Hotel/Motel (9 -16 Rooms) $428 $745 54% $788 $390 $346 $475 Hotel/Motel (17 -30 Rooms) $513 $889 54% $947 $584 $346 $625 Hotel/Motel (31 -60 Rooms) $597 $1,033 53% $947 $584 $346 $625 Hotel/Motel (61 -90 Rooms) $724 $1,249 53% $947 $584 $346 $625 Hotel/Motel (91 -120 Rooms) $809 $1,393 53% $1,262 $584 $346 $730 Hotel/Motel (120+ Rooms) $894 $1,537 53% $1,578 $584 $346 $836 Hourly Inspection Fee $169 $288 52% $315 $390 $231 $312 Inspection - After Hours (Special Event
Inspections) $254 $432 52% $472 $584 $288 $448
Institution (14 or Less) Occupants $528 $922 54% $947 $298 N/A $623 Institution (15 -49) Occupants $909 $1,570 53% $1,292 $447 N/A $870 Institution (50 -199) Occupants $1,291 $2,218 53% $1,578 $447 N/A $10,113 Institution (200+) Occupants $1,630 $2,794 53% $4,102 $596 N/A $2,349 Knox Box Servicing $84 $144 53% $339 N/A N/A $339
Late Payment Fee $107 $107 0% N/A N/A N/A N/A
Liquid Petroleum Gas (LPG) $343 $601 55% $788 $299 $231 $439 Lumber Yard/Woodwork $640 $1,105 53% $788 $299 $231 $439 Magnesium $343 $601 55% $630 N/A $231 $431
Malls $1,234 $2,113 53% $947 $299 $231 $492
Marinas $428 $745 54% N/A N/A N/A N/A
Multi Story Bldg (75 FT +) $0.0038 $0.004 5% $2,524 N/A $461 $1,492 Notice and Order to Abate $2,737 $4,691 53% N/A N/A N/A N/A Notice and Order to Abate - Appeal $1,666 $2,884 54% N/A N/A N/A N/A Open Burning $216 $385 56% $78 N/A $115 $96
Organic Coating Application $343 $601 55% $788 N/A N/A $788 Ovens (Industrial Baking/Drying) $343 $601 55% N/A $299 N/A $299 Places of Assembly (A -1) $540 $1,465 92% $947 $447 $231 $541 Places of Assembly (A -2 & A-3) 100+ $327 $1,177 113% $788 $447 $231 $488 Places of Assembly (A -2 & A-3) 50-99 $450 $889 66% $473 $299 $231 $334 Places of Assembly (A -4 & A-5) $654 $7,045 166% $947 $599 $346 $630 Pyrotechnics and Special Effects $301 $529 55% $1,893 $600 N/A $1,246 Pyrotechnics Public Display $301 $529 55% $630 $895 N/A $763 Radioactive Materials $470 $809 53% N/A N/A $231 $231 Refrigeration Equipment $343 $601 55% $630 N/A N/A $630 Re-Issuance of Annual Permit $30 $65 74% N/A N/A N/A N/A Residential Care Facility (<25) Occupants $169 $288 52% $630 $150 N/A $390 Residential Care Facility (25+) Occupants $169 $288 52% $947 $150 N/A $549 Special Event Planning NA $600 NA N/A N/A N/A N/A
Schools $169 $288 52% $1,893 $599 N/A $1,246
Spraying or Dipping $343 $601 55% $630 N/A $231 $430 Technology Fee $0.10 $0.11 10% N/A N/A N/A N/A
Temporary Membrane Structures $216 $385 56% $788 $447 $231 $488 Tire Storage (> 1000 Cubic FT) $470 $817 54% $788 N/A $231 $339 Wood Products $470 $817 54% $788 $299 $231 $439
Development Fee Changes: Effective July 1, 2025
Development Fee: Administrative Fee $82 $173 71% $117 N/A N/A $117 Development Fee: Fire Plan Review Fee $149 $255 52% $315 N/A N/A $315 Development Fee: Fire Inspection Fee - New
Building 2
$0.11 $0.093 17% N/A N/A N/A N/A
Development Fee: Fire Inspection Fee -Tenant
Improvement $0.08 $0.059 30% N/A N/A N/A N/A
Development Fee: Plan Review - Schools Per
Hour $108 $473 126% $315 N/A N/A $315
Development Fee: Minimum Permit Fee $169 $288 52% N/A $150 N/A $150 Development Fee: Overtime / Expedite Plan
Check $253 $432 52% $692 $175 N/A $175
Development Fee: Regular Time $169 $288 52% $315 $150 N/A $232
* New fees are listed as N/A in the current fee
column
1 Fees will be adjusted annually, beginning July 1, 2025, and each July 1st thereafter, by the percentage change in the Consumer Price Index (CPI)
Series Title: Urban Wage Earners and Clerical Workers, not seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor
Statistics for the twelve (12) month period ending December 31 of the preceding year.