Planning department proposes two-phase fee overhaul to achieve full cost recovery

The Santa Clara County Department of Planning and Development presented a comprehensive fee study May 29 recommending a two-year, phased increase to planning, building and land-development fees to achieve full cost recovery for departmental services.

Director Jacqueline Anciano and Deputy Director Stuart Petrie summarized the department's review, which covered planning services, land development engineering, fire marshal services, surveying and code enforcement. The department found it was under-recovering by about $3.5 million in total when comparing FY24 fee revenue to the calculated cost of providing services.

Petrie described the approach: clean up fee descriptions, add fees for services that lacked one (for example, a tree-removal permit), expand fee categories for clarity, move fees to align them with the sections that provide the services and eliminate obsolete fees. The department proposes a two-phased schedule: a first set of adjustments effective Aug. 4, 2025, and a second phase effective July 1, 2026.

Anciano said the study also creates combined "combined development permit" fees for concurrent applications, which can reduce fees when applicants submit multiple related requests at once, and corrects solar fees to match state caps where applicable. A worked example in the report showed a net per-unit fee for a single-family construction scenario that reflected combined-application efficiencies.

Committee members praised the phased approach and the combined-application structure as a way to reduce duplication and produce clearer pricing for applicants. There were no public speakers.

Motion and vote: Supervisor Irene Aranas moved to approve the proposed fee adjustments and forward them to the Board of Supervisors; the motion was seconded and carried by roll-call. Vice chairperson Arenas voted yes; Chairperson Abe Koga voted aye. The Board will consider the item at its next meeting.