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Council continues cost-allocation and fee schedule for further review of building fees

East Palo Alto City Council · June 17, 2025
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Summary

Consultants presented a cost-allocation and user-fee study showing roughly 86% cost recovery citywide; council asked staff to re-examine building permit and some residential repair fees and continued final adoption to July 15 to allow broader input from developers and targeted subsidy analysis.

Matrix Consulting presented the cost-allocation plan and a master fee schedule that recalculates fees by applying updated time assumptions and overhead allocations. The consultant said the city currently recovers roughly 86% of full costs, leaving an estimated $500,000 gap across fee-supported services: "the city is roughly recovering about 86% of its costs," the consultant said.

Council members and stakeholders raised concerns about how the recalculated fees would affect small residential repairs and building permits; the rent stabilization program also saw a proposed jump in per-unit recovery that staff said reflects lost units and additional program staffing. After public comment and developer requests for more review, council directed staff to re-examine building-related fees and set a date certain of July 15 to return with targeted analysis and outreach results.