User Fee Study
City of San Pablo
2 Purpose: Current Adopted Policy & Methodology
1. Current City Council Adopted Policy:
• Explore and Sustain New Revenue Enhancements to the City’s General Fund (Policy No. #405); and
• Tier I Implementation: (Administrative – Related), Master Fee Schedule Update (with Cost Allocation Plan) (Policy No. #405.3) adopted in FY 2025-27 Council Priority Workplan, effective April 7, 2025; and
2. Current Use Fee Adopted Methodology: By Resolution No. #2021-055, effective July 1 of each fiscal year, fees are increased annually based on Bureau of Labor Statistics for Building, Planning, and Public Works. 3 What are User Fees
• Provide private benefit with limited to no community benefit • State law requires that 1) individual use of the service must be voluntary, and 2) fees must reasonably relate to the services provided
• Fee levels & cost recovery determined through City Council fee adoption
• Does not include development impact fees, utility rates, taxes, etc.
4 Why Update User Fees
• Subsidies in services impact the General Fund
o Private & specific benefit services are subsidized by general fund o Reduces ability provide services such as public safety & community events/programs
• Decreased department funding can impact service quality/delivery • Cost recovery knowledge and planning
o Provides clarity of pressures on City resources
o Enables City to strategize and set fees to benefit of the City and community
o State requirements for reasonable cost-based fees
5 User Fee Objectives & Steps
• Determine full cost of providing services or programs o Review fee schedules based on service delivery
o Identify potential new fees (not currently collected) o Remove or restructure obsolete fees
o Using fully-burdened rates, calculate full cost recovery • Update fees for services based on cost analysis
o Incorporate or establish cost recovery goals
Subsidies allow access to services and can promote compliance o Identify appropriate fee levels that:
Promote local policies and objectives
Maintain legal compliance with state law
6 Scope of the Study
• Review and calculate cost of providing services and related fees charged by the following departments and divisions:
• General - Finance
• Police and Code Enforcement
• Public Works
• City Manager’s Office
• Community Services
• Planning
• Building
• City Attorney
7 Data & City Staff Participation
• Primary types of data used:
o Expenditure data
o Staffing structures
o Central service/Indirect overhead
o Productive/billable hours
o Time estimates to complete tasks
o City/Department input, feedback and policies
• Staff support throughout process essential to ensure analysis fidelity 8 Summary Steps of the Study
Model
Development
Data
collection
Build fee
model
Overhead
and FBHR
Calculation
Cost Analysis
Staff
meetings
Update fee
schedules
Staffing and
time data
Full cost for
services
Set Cost
Recovery
Current cost
recovery
Target cost
recovery
Fee Study
Report
Create draft
report
Staff report
review
Finalize
report
Updated Fee
Adoption
Public
Hearing
9 Fee Structures
Flat Fees
• Reasonable time estimates for providing service
Actual Cost / Deposit Based Fees
• Services are billed using Fully Burdened Hourly Rates Fees determined by project size
• Programmic analysis determines the cost relationship between project size and cost of service
Recreation Activities / Programs / Rental / Use Fees
• Fees can be set based on policy, usage characteristics, comparison, and market based Fines / Penalties
• Not a cost-based fee, set to deter activity, without being overburdensome 10 Cost of Service Calculation
• Primary types of data used:
o Salary & Benefits
o Services and supply costs
o Indirect support costs
o System and maintenance costs
• Hourly rates structured to account for direct work hours Salary &
Benefits
Productive
Hours
Salary &
Benefit
Rate
Direct and
Indirect
Overhead
Fully
Burdened
Hourly
Rate
11 Fee Cost Composition Example
Fully Burdened Hourly
rates predominately used
to calculate full cost for
fees
Important to keep in mind
all processes, personnel,
cross department, and
indirect support involved
to calculate full cost for
services
Fee or
Service
Permit
Reviewer
Inspector
City
Engineer
City Clerk
Clerical Staff
Department
Director
12 General - Finance
•Analysis of services relied upon a time-based analysis •Current fee amounts are subsidizing services
•Suggested fee notes:
o An increase to 8 fees
o 6 fees would remain as currently set
o The average fee change would be an increase of 0.3%
13 Police and Code Enforcement
•Time based analysis for flat fees
•Current fee amounts are subsidizing services
•Suggested fee notes:
o An increase to 14 fees
o 3 fees would decrease
o 16 fees would remain as currently set
o The average fee change would be an increase of 7%
14 Public Works
•Time based analysis for flat fees
•Current fee amounts are subsidizing services
•Suggested fee notes:
o An increase to 10 fees
o 3 fees would decrease
o 39 new fees would be added
o 18 fees would remain as currently set
o The average fee change would be a decrease of 2% for current fees 15 Community Services
• Facility rental fees are set based on policy considerations, usage factors, and market factors
• Overall program cost analysis found that the program is currently operating at 5% cost recovery
• Suggested fee notes:
o An increase or change to 11 fees
o 1 Summer Camp Deposit being added. It is not an increase to the overall fee for the camp; the deposit reduces the amount owed per week for each participant/family. o 1 fee would decrease
o 310 fees would remain as currently set
o The average fee change would be an increase of 0.02%
16 Community Services Fee Comparison
City of San Pablo City of El Cerrito City of Pinole City of Hercules City of Martinez Pleasant Hill P & R District
Fee Description Current Fee Suggested Fee Fee Fee Fee Fee Fee Pre-K $3.63 per hr. $3.99 per hr. $13.25 per hr. $10 per hr. $7.36 per hr. $7.50 per hr. $15.44 per hr.
Extended Care
8a-9:30/4-6pm
$1.10 per hr. $1.32 per hr. $13.25 per hr. $45 per hr. N/A N/A $15.44 per hr.
Youth Camp $2.75 per hr. $3.03 per hr. $8.22 per hr. $6 per hr. $6.84 per hr. $8.33 per hr. $8.75 per hr.
Teen Camp $3.30 per hr. $3.63 per hr. $9.44 per hr. N/A $5.33 per hr. $8.33 per hr. N/A Summer Camp
Deposit
$25 $25 (added) $49 N/A $26 N/A N/A
Cancellation Fee $10 $25
(if less than 2 wks.)
$49 N/A $26 $10
(14 days notice)
$10
(10 days notice)
Security Cost per
guard for rentals
$35 per hr. $38 per hr. Renter provides $25 per hour Market +$12 per hr. per guard
Renter provides N/A
Facility Rental
Maintenance Fee
$5 per hr. $8 per hr. Included in their
fee
Included in their
fee
Included in their
fee
Included in their
fee
Included in their fee
Senior Social Trips
(Fee range)
$5 - $35
Members
$5-$75 Mem, + 50%
Non-Member
Range based on
cost of trips
Range $8- $40 Range $1 - $205 Range based on
cost of trips
Range based on
cost of trips
Senior Specialty
Events/Lunches
$5 - $20 Mem $5-$50 Both Range based on
cost of program
Range based on
cost of program
Range based on
cost of program
Range based on
cost of program
Range based on
cost of program
17 Planning
• Time based analysis for flat fees
• Current fee amounts are subsidizing services
• Suggested fee notes:
o An increase to 24 fees
o 32 fees would decrease
o 1 new General Plan Update fee would be added
o 10 fees would remain as currently set
o The average fee change would be an increase of 2%
18 Planning Comparisons
City of El Cerrito City of Pinole City of Hercules City of Martinez City of Pleasant Hill
Fee Description Current Fee Suggested Fee Fee Fee Fee Fee Fee Planning
Tentative Subdivision Map -
Major (up to 30 lots) $10,949.00 $11,023.00 $29,331.00 $7,500 Deposit Deposit
determined by
staff
$15,000 Deposit $208 per hour
Conditional Use Permit $5,107.00 $4,906.00 $2,239.00 $5,726.00 $7,339.00 $10,000 Deposit $208 per hour Major Design Review $4,326.00 $4,410.00
Variable
Residential 5-10 units - $5,763
Residential 11+ units - $ $8,597
Nonresidential - 10,000+ SF - $7,421
Small - $4,086
Medium - $10,977
Large - $20,000 Deposit
$7,468.00 $10,000 Deposit $208 per hour
General Plan Amendment $12,773.00 $13,219.00 $22,131.00 $10,000 Deposit $10,000 Deposit $10,000 Deposit $208 per hour City of San Pablo
19 Building
• Time based analysis for new fees
• Overall program cost analysis found that the program is currently operating at 90% cost recovery
• Current fees are subsidizing services
• Staff is recommending private benefit service fees changed to obtain 100% cost recovery
• Projects over $1,000,000 to be based on valuation, rather than flat fee • Suggested fee notes:
o An Increase to 420 fees
o 150 fees would decrease
o 32 new fees would be added
o 16 fees would remain as currently set
o The suggested fee changes would result in an average increase of 10.7% 20 Building Comparisons
City of El
Cerrito
City of
Pinole City of Hercules City of
Martinez
City of
Pleasant Hill
Fee Description Current Fee Suggested Fee Fee Fee Fee Fee Fee New Construction - R3 New ADU
Up to 1,000 sq ft
Uses Contra Costa
County Fee Schedule
Plan Check $3,771.00 $4,173.00 $4,337.31 $2,462.38 $1,005.18 $1,677.74 $1,700.29 Inspection $1,954.00 $2,162.00 $6,672.79 $3,283.17 $1,408.59 $4,415.09 $2,125.36 House Remodel
Up to 3,000 sq ft
Plan Check $1,616.00 $1,788.00 $3,875.30 $5,702.92 $1,300.39 $3,971.90 $4,835.70 Inspection $1,047.00 $1,158.00 $5,962.00 $7,603.89 $1,751.71 $10,452.36 $6,044.62 New Construction - Residential
Multifamily
Up to 2,000 sq ft
Plan Check $7,801.00 $8,633.00 $6,828.15 $3,949.74 $1,813.69 $2,716.54 $2,188.45 Inspection $3,975.00 $4,399.00 $10,504.85 $5,266.32 $2,348.30 $7,148.79 $2,735.56 New Construction - R3 Addition
Up to 100 sq ft
Plan Check $1,724.00 $1,907.00 $747.50 $469.50 $165.07 $337.18 $326.69 Inspection $1,023.00 $1,132.00 $1,150.00 $626.00 $253.52 $887.33 $408.36 City of San Pablo
21 Policy Recommendations
• General standard: individuals or groups who receive private benefit from service should pay 100% of cost
• Suggested fee changes result in minor impact on fee users • In certain situations, subsidization is an effective public policy tool:
o Encourage participation
o Ensure compliance when cost is prohibitive to residents o Promote access to services
• Recommend that City utilize inflation factor to annually adjust fees based on BLS, CPI, MOU, or another factor
• Comprehensive fee study every 5 years
22 Policy Recommendations, cont.
PLANNING FEES:
• Housing Element action programs include reduction of fee for lot mergers (Program I-E).
Proposed fee includes this reduction in line with estimated staff time (from $2,188 to $1,638).
• Proposed reduction in ADU/SB 9 planning fees is consistent with FY 2025-27 Council Priority Workplan Policy 301.4, with estimated staff time reduced from $1,275 to $766.
BUILDING FEES:
• Housing Element programs (I-F, I-J, 2-I) include reduced fees for affordable housing and “missing middle” housing. This opportunity for fee reductions will be added as a footnote in the fee schedule. This will involve a reduction in building permit fees for projects meeting minimum affordability criteria, to be granted on a per project basis, consistent with Housing Element goals.
23 Recommendation:
A. Receive Presentation; and
B. City staff recommends that the City Council:
1. Adopt the updated City of San Pablo Master Fee Schedule for Planning, Building, Public Works, Community Services, Police, and other City-wide municipal services; and
2. Adopt an annual inflation factor adjustment based on the “Bureau of Labor Statistics, Employment Cost Index - total compensation for State and local government workers - all workers” to be applied effective July 1st of each fiscal year beginning July 1, 2026.
Questions