Sonoma council adopts master fee schedule after study that finds $1.1 million fee shortfall

The Sonoma City Council on June 3 unanimously adopted a resolution approving a cost-allocation plan, accepting a citywide fee study and adopting a master fee schedule that raises a range of permit, encroachment and special-event fees.

Consultant Courtney Ramos of Matrix Consulting told the council the study reviewed roughly 483 fee line items across departments and found the city collected about $750,000 in fee revenue while the cost to provide those fee‑related services was about $1.8 million — a shortfall of approximately $1.1 million. "It shows us that indirect cost piece that we're then able to layer elsewhere," Ramos said, summarizing the methodology for calculating fully burdened hourly rates and service times.

Community development director Jennifer Gates and staff presented specific changes the council voted to adopt, including a proposed 23% general‑plan maintenance fee applied to major building permits, conversion of many building fees from valuation-based charges to square-footage and occupancy formulas, and increased technology and plan-check charges. Gates used examples to illustrate impacts: in one example a new single‑family building permit rose from about $10,000 under the current schedule to roughly $14,660 under the proposed master fee, and an ADU example showed increases of about $3,293 plus plan-check fees (totaling roughly a $4,000 increase in the example).

Parks and recreation director Dave Jans outlined a move away from flat plaza rental fees to hourly rental rates and new options such as picnic‑table or bench reservations. Staff proposed a 25% discount for residents and a 50% discount for local nonprofits for certain rentals. Jans said staff planned to pilot a limited reservations program and would seek software and operational changes before rolling out reservations citywide.

Several council members asked staff to pair fee increases with streamlined permitting and stronger communication. "If everything is exactly the same and they're still filling out forms and delays and whatever, then they're going to resent the increases," one councilmember said, urging that ease of use accompany price changes.

Staff also proposed in‑lieu fees for specific exactions: a proposed tree in‑lieu fee of $700; a public art in‑lieu option of 1% of project valuation for commercial or multifamily projects over $250,000 (with common exceptions for affordable housing and nonprofits); and an off‑street parking in‑lieu benchmark of $32,000. The city attorney reminded the council that in‑lieu fees must have a legal nexus to the impacts they address.

Members of the public who spoke during the hearing included resident Connie Schleylein, who praised staff for "doing a course correction," and Howard Eisenstark, chair of the Pang Lai Sister Cities Committee, who urged consideration for nonprofit projects when fees are applied.

During discussion the finance committee’s recommendation that the master fee schedule reflect a 100% cost‑recovery goal was highlighted, with staff noting exceptions and council discretion to reduce or waive fees on a project‑by‑project basis. Gates said adopted fees would become effective 60 days after adoption; because the meeting was June 3, she stated staff expects them to take effect around August 2, 2026.

Councilmember Ding moved to adopt the resolution; the roll call vote was unanimous (Councilmember Ding — aye; Councilmember Farrah Rivas — aye; Councilmember Gurney — yes; Vice Mayor Lowe — aye; Mayor Ron Wallander — yes). The resolution found the actions exempt from CEQA and adopted the cost allocation plan, accepted the user‑fee study and adopted the master fee schedule.

Next steps described by staff include implementation work (software updates and permit‑process changes), communication outreach to affected permit applicants, and monitoring fee revenue and service impacts with the budget and future check‑ins; staff recommended an annual CPI escalator and periodic comprehensive reviews every few years.

Provenance: The public hearing was opened by Mayor Ron Wallander and introduced at the dais at the start of the hearing. Staff presentations and the roll call vote are recorded in the meeting transcript. The consultant’s findings and the fee examples were presented by Courtney Ramos and Jennifer Gates and discussed at length before the final motion to adopt the resolution.

Ending: The council adopted the master fee schedule and resolution by unanimous vote; staff will implement the changes and return monitoring information as revenues and operations warrant.