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Council delays decision on revised building‑permit and plan‑check fees after heated debate

East Palo Alto City Council Meeting · July 29, 2025
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Summary

Council continued consideration of a comprehensive master fee schedule following an extended debate over higher building‑permit and plan‑check fees, time‑and‑materials alternatives for large projects, and the potential effect on housing feasibility. Members voted to continue the item to early September for further fiscal analysis and hypothetical prototypes.

The City Council heard a lengthy presentation and debate on proposed changes to the master fee schedule — including substantial increases in some building‑permit and plan‑check fees — and ultimately voted to continue the item so staff can return with additional analysis.

Finance director Tomo defended the proposed fee schedule as full cost‑recovery and said the city could offer negotiated time‑and‑materials or developer‑reimbursement approaches on a case‑by‑case basis. Council member Lincoln and others said higher flat fees risked making housing developments infeasible and proposed holding housing‑related fees at existing levels while allowing time‑and‑materials billing for large projects. “I move that we adopt the master fee schedule with 2 modifications,” Lincoln said, calling for retaining existing housing‑related fees and using time‑and‑materials billing on projects over $10 million as staff suggested.

Council members disagreed on whether staff should have discretion to apply time‑and‑materials without returning to the council; others argued fees should reflect consultant and staff cost recovery. After multiple motions and amendments, the council approved a substitute motion to continue the fee schedule discussion and asked staff to return in September with quantified fiscal impacts, prototype examples of typical residential projects, and the estimated subsidy cost if housing fees remain unchanged. The continuation passed on a roll‑call vote.