DEVELOPMENT SERVICES FEE UPDATE
City Council Meeting
November 4, 2025
Gabe Osburn, Director
Planning & Economic Development
1 BACKGROUND
2 2004 – Financial Strategies Adopted
• Established a policy goal of full cost recovery for development- related services: “For all services determined to be development- related, a cost recovery level of 100% is desired.”
March 5, 2024 – Comprehensive Fee Update
• Set fees at full cost
• Resulted in both increases and decreases
• Approved targeted fee reductions to advance City development goals February 4, 2025 – Council Study Session
• Reviewed community feedback on the adopted fee schedule • Discussed proposed refinements to address feedback and improve efficiency
ANNUAL REVIEW
Annual Review Objectives
• Assess real-world application of the fee structure and project impacts
• Document issues and potential solutions identified
through implementation
• Gather community feedback on adopted fees
• Enable Council to make timely adjustments without major delays
3 4
PERMITTING REVENUE & EXPENDITURES
FISCAL YEAR TOTALS
5 PERMITTING REVENUE & EXPENDITURES
FISCAL YEAR FIRST QUARTER TOTALS
PROPOSED FEE CHANGES
GENERAL FEES
6 Fee Type Change
Type
Current Basis Current Fee Proposed
Adjustment
Advanced
Planning
Surcharge
Reduction 12.26% on existing
building, planning, and
engineering fees
Varies,
currently no
cap
Cap at
$5,000
Technology
Surcharge
Reduction 5.69% on existing
building, planning, and
engineering fees
Varies,
currently no
cap
Cap at
$2,500
Application
Extension
Neutral Two separate
duplicative fees
$28.96 and
$155.94
Single fee
$76
7 PROPOSED FEE CHANGES
PLANNING FEES
Fee Type Change
Type
Current Basis Current Fee Proposed Adjustment
Hillside
Development
Director
Review
Increase Applies to
reconstruction
due to natural
disaster on
hillsides
No current
fee
Set fee at $838
Tree Removal Reduction Applies to
removal of
trees on
private
property
Single Fee
$1,677
Tiered fee:
Tier 1 – $118
Tier 2 – $353
Tier 3 – $706
Multiple
Entitlement
Applications
for Single
Project
Reduction Multiple
entitlements
required for a
single project
Varies,
currently
pay per
application
Apply current published
fee for highest
application; 50%
reduction for all
additional applications
8 PROPOSED FEE CHANGES
PLANNING FEES - CONTINUED
Fee Type Change
Type
Current Basis Current
Fee
Proposed
Adjustment
Parcel Map
Waiver
Decrease Applies to waiver
parcel requirement
on minor subdivision
proposals
$8,958 $2,047
Environmental
Document
Creation and
Review
Neutral Applies to creation
and review of
environmental
documents
Currently
no fee for
legal
counsel
Applicant pays
full CEQA
consultant
costs and
outside counsel
fees
Minor
Summary
Vacations
Decrease Adds new fee
category for right-of-
way vacations that
are minor in scope
$9,620 $2,974
9 PROPOSED FEE CHANGES
ENGINEERING FEES
Fee Type Change
Type
Current Basis Current Fee Proposed
Adjustment
Encroachment
Permit –
Debris
Container
Reduction Placement of debris
bin in public right-of-
way
$399.57 $136
Single Lot
Commercial
Sidewalk
Replacement
Reduction Encroachment
permit for replacing
less than 100' of
public sidewalk
along a single
commercial lot
Varies,
currently no
limit on
length of
replacement
50% reduction;
average permit
fee ≈ $600
Certificate of
Compliance
Increase Determines legal
status of existing
parcels and enables
new minor
subdivisions
Single fee
$1,555.16
Subdividing
Land - $1,539
Standard -
$2,173
10 Fee Type Change
Type
Current Basis Current Fee Proposed
Adjustment
Plan Review and
Inspection –
New
Construction
Increase Establishes
minimum plan
review and
inspection fee on
small projects
Varies, no
current
minimum
Plan check fee:
$126
Inspection fee:
$102
Temporary
Certificate of
Occupancy
Increase Additional
inspections
associated with
temporary
occupancy prior to
permit final
$193.04 $580
Type I and II
Exhaust Hood
Increase Standalone
installation of
specialized exhaust
hood systems
$166.49 $569
PROPOSED FEE CHANGES
BUILDING FEES
11 • Majority of proposed fee modifications involve either low-dollar amounts or involve permit types with low
usage.
• Proposed fee reduction associated with multiple
entitlement application for a single project and single lot sidewalk restoration have biggest impact on revenue.
• Under normal permitting volumes, modifications are
anticipated to reduce annual revenue by approximate
$40,000 per year.
FISCAL IMPACT
12 • Amend fees per Exhibit A attached to resolution
• Fees take effect 60 days after resolution adoption
• Authorize the Planning and Economic Development
Director to adjust all fee types identified within
Attachment 1 on July 1st of each year based on price
changes as identified by the Consumer Price Index
RECOMMENDATION