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Council, FIC press staff for fee‑study transparency as permit fees rise sharply in draft
Summary
Committee members and councilors asked staff for the fee‑study calculations and a communications/implementation plan after the proposed study would substantially raise fees for many small projects; staff said vendor software is proprietary but will provide inputs and formulaic approach.
Members of Los Altos Hills’ City Council and Finance & Investment Committee on May 15 urged staff to produce detailed calculations and an implementation plan for a new fee study that the town says will materially change permit and service charges.
"How can we make a decision without knowing? I mean, can we get these calculations?" a committee member asked during the session, pressing staff to share the math used by the vendor.
Staff said the vendor’s model is proprietary and cannot be handed over as an editable file, but that the town will provide the underlying inputs and the formulaic approach used to produce results. "It's proprietary to the vendor," one staff member said about access to the model, while adding that the town can supply the data and method that drove the numbers.
Concerns focused on distributional effects: staff and committee members said the updated fee structure contains fixed‑cost allocations that lift smaller projects’ fees more sharply than larger projects, creating disproportionate effects for residents doing smaller remodels and routine work. Committee discussion included specific examples — permitting fees and replacement‑permit charges such as water‑heater permits — and multiple members urged a line‑by‑line review before council adoption.
FIC members also requested an implementation and communications plan and suggested a phased approach or targeted subsidies for priority items (staff noted there was appetite to subsidize accessory dwelling unit fees). Several committee members proposed that staff publish monthly tracking of fee revenue after implementation so the council can monitor whether actual collections align with projections.
Next steps: staff said the fee study and supporting detail will be presented again to FIC and then to the City Council; the council is scheduled to hold the public hearing on the fee study at its June 18 meeting.
