San Luis council directs staff to proceed with proposed development-fee update after public hearing

The San Luis City Council directed staff to proceed without changes to the land-use assumptions and infrastructure improvement plan that underlie a proposed update to the city’s development fees, following a public hearing and a motion that passed 4 to 2 with two abstentions.

The vote moves forward a process required by state law that could raise fees paid at the time of building permits; staff said the update is part of a multi-step schedule that includes a first public hearing in late May, formal adoption in April, and an effective date in September.

Development services Director Jose Guzman told the council the meeting was part of the process for updating development fees, which are based on land-use assumptions and an infrastructure improvement plan and are assessed at the time of permit issuance. "The fees are not required at this stage, but they are included to allow council to provide initial feedback," Guzman said. He presented comparisons to nearby jurisdictions and figures showing the current and proposed fee levels.

Guzman said the current impact fee for a house is $5,232 and that the proposed schedule would move the city closer to peer rates. He also presented permit-cost comparisons for a 1,200-square-foot home, saying the building-permit total is now about $9,796 and would rise to $13,975 with the proposed fee adjustments. Guzman said the city’s consultant, Ben Griffin of Tishler (listed in the meeting material), presented the reports and proposed fees at a January work session; Griffin was expected to join by Zoom but staff said his participation was uncertain.

During public comment, resident James Allen Jr. said he had seen the figures and called the change "a pretty big jump," urging council to consider waiting because potential federal projects could affect local development conditions. "When the federal lines go through, it could change ... a whole level of things at this end of our city," Allen said.

After closing the public hearing, Council member Javier Vargas moved to "direct staff to proceed without change," a motion seconded by Council member Maria Cecilia Cruz. The council chair announced the motion carried "4 to 2 with 2 abstentions," with Mayor Nieves Bridal Dal and Council member Sevin recorded as abstaining.

Staff told council that, if moved forward on the schedule presented, the administrative steps would include a first public hearing targeted for May 28, adoption actions in April, and a proposed effective date of Sept. 22 for any new fee schedule. Guzman reiterated that the fees are collected at permit issuance and do not affect current homeowners unless they purchase a new home after the fees take effect.

The council’s direction authorizes staff to continue the public-notice and ordinance-preparation steps; the council did not adopt new fees at the meeting. Further hearings and formal adoption votes are scheduled before any fee changes become effective.