Fairfield staff to return with major overhaul of building-permit fees after council review

Jeff Thomas, Fairfield’s chief building official, presented a consultant-led 2026 building-fee study that would restructure permit charges to more closely match the city’s actual cost of plan review, inspections and code enforcement.

"These permit fees help recover our costs for administration of plan review, inspection, and code enforcement services within the city to ensure a safe built environment," Thomas said, adding that the city’s hourly rates had outpaced actual costs after years of CPI adjustments. He told the council the proposed schedule would lower many hourly fees by roughly 5 to 18 percent while producing a net increase of about 12 to 12.7 percent for new-footprint residential and valuation-based commercial permits compared with simply applying the current CPI-based schedule.

The study showed that many common homeowner permits—bathroom remodels and swimming pools among them—would see substantial fee reductions (examples cited by staff included a 60 percent reduction for some bathroom remodel fee lines and a near-58 percent reduction for some pool permits). Conversely, a 2,500-square-foot single-family residential permit would move from roughly $6,500 under current fees to about $7,600 under the proposed schedule. A sample 10,000-square-foot commercial retail building modeled in the presentation would rise from about $16,000 to nearly $18,800 under the proposal.

Thomas said the changes aim to realign fees so larger projects more accurately cover the city’s service costs while reducing the burden on typical small residential work. He also reported outreach to the development community, including the Bay Area Building Industry Association, and said most developers told staff that modest fee increases do not deter projects when service levels are reliable.

Council members pressed staff on legal constraints around fees, noting state case law that requires fees to be tied to cost and warning that overcharging can prompt courts to require reductions or refunds. The city attorney said staff and counsel will continue vetting the schedule to ensure compliance with state law before any final action.

Members also asked why neighboring Vacaville’s fees appeared lower; Thomas said Vacaville appears to be subsidizing permits from general funds and staff will verify details. The city manager noted other jurisdictions are reviewing user fees as well.

Rather than taking an immediate vote, the council signaled by consensus that staff should return with the proposed fee ordinance and implementing resolution at the April 7 meeting for formal action. The item will next be brought back with final legal review and recommended adjustments.

What’s next: staff will prepare the ordinance and resolution, include any inflators and statutory compliance checks, and present the item on April 7 for a formal vote.