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Included in the agenda packet for the canceled May 12 San Juan City Council Study Session meeting was a copy of a revised draft of the Comprehensive User Fee Study conducted by Matrix Consulting Group, which was first presented at the April 21 City Council Meeting.
The city has never before completed such a study, according to City Manager Ashley Collick, which means, in some cases, that the city was partly subsidizing the cost of certain services. The fee changes in the study are only advisory until reviewed and approved by the San Juan Bautista City Council.
In identifying the “full cost” (direct and indirect) of services in Building, Code Enforcement, Engineering, Planning, and Recreation, Matrix found what the study referred to as “a broad pattern of under-recovery of expenses” across most city departments.
The study was commissioned to identify the full direct and indirect costs of services in those departments.
In creating the report, Matrix analyzed 214 line items across all city departments to identify which ones were costing the city more than the current charge for the corresponding service.
Matrix interviewed all staff to clarify the structure of existing fee items and identify additional fees as needed. For each permit or service, data was collected, including time estimates. All budgeted costs and staffing levels for Fiscal Year 2025-26 were also entered into the calculations.
According to the report, Matrix then used what is referred to as a “bottom-up” approach in the evaluation, calculating the total average time spent by staff on a given fee-related task and multiplying that by the “fully burdened rate,” a calculation of costs based on employee salary, benefits, productive hours, city costs and any other overhead.
The fees proposed in the study are capped so as not to exceed actual expenses, which would otherwise be classified as “special taxes” by three California statutes:
- Proposition 26, which defines the difference between a fee and a tax and requires that fees must be directly related to a service and cannot exceed the reasonable cost of providing that service
- Government Code § 50076, which clarifies that fee-for-service costs are not special taxes and do not require voter approval if they do not exceed service costs
- Government Code § 65104, which grants local governments the authority to charge planning and zoning fees to recover processing costs
The only exceptions allowed by law are for fees for the use of city property, such as park or facility rentals, which are considered voluntary transactions. These can be set at market rates rather than at cost recovery levels.
To establish benchmarks, Matrix also considered the fee structures of seven California cities of similar size, staffing, budgets and needs to San Juan Bautista: Biggs, Colma, Del Rey Oaks, Gonzales, Lakeport, Rio Dell and Rolling Hills. All of the cities updated their fee schedules within the last seven years.
There was no obvious pattern in the differences between the fees charged by those cities and those of San Juan. For example, the city currently charges $25 for tree removal, the lowest rate among the various cities. The average between cities was $711, with Colma having the highest fee at $1,833. Matrix calculated the full cost of this service to be $487, an increase of $462.
The draft submitted to the council on April 21 is substantially identical to the draft up for consideration at the next study session. There is one additional item: a “Vacancy Registration Fee” of $316 per property per month, which is not in the first draft, and “per hour” has been added to the description of the baseball field rental fee.
Some of the fee changes are dramatic. For example, the fee for a general plan amendment rose from $3,675 to $16,000, an increase of $12,325. And some services that had no fees or fixed fees now have fees attached, such as $27 to rent a BBQ pit/bench area in a park.
The 10 highest fee revisions
The following table highlights the ten highest fee revisions in relation to the current charges and the total cost of providing the service.
Proposed rates for services listed as “new” include:
Building Department
Construction and Demolition Review: $179
Construction and Demolition Penalty: 3% of project valuation
Technology Surcharge: 10% of permit fee
Advanced Planning Maintenance Fee: 12% of building permit fee
Electrical permit—Standalone Permit Issuance: $120
Mechanical permit—Standalone Permit Issuance: $120
Plumbing permit—Standalone Permit Issuance: $120
Code Enforcement
Notice of Violation: $987
Notice to Abate a Public Nuisance: $987
Post-Deprivation Notice: $1,036
Stop Work Notice: $641
Unsafe to Occupy Notice: $641
Vacancy Notice: $493
Notice of Refusal to Issue Permits: $497
Release of Notice of Violation: $690
Notice of Noncompliance (recorded with the San Benito County Recorder): $518
Notice of Pendency (recorded with the San Benito County Recorder): $518
Vacancy Registration Fee: $316 per property per month
Engineering Department
Permit Issuance: $89
Subdivision Map Check—Final Map: $5,000 deposit
Subdivision Map Check—Parcel Map: $4,000 deposit
Certificate of Compliance (Lot Line Adjustment, Lot Merger): $1,000 deposit
Encroachment Permit and Improvement Plan Check/Inspection: 3% of Construction Cost
Annual Utility Encroachment Permit: $1,236
Minor Encroachment Permits (Residential Driveway, Pods, etc.): $494
Planning Department
Amendment/Modification: 50% of the Initial Application
Architectural and Site Review (Commercial/Industrial/Wireless or Miscellaneous): $7,250
Architectural and Site Review (Residential): $6,454
Business License Fee: $204
Conditions of Approval—Mitigation Monitoring: $1,000 deposit
Hearing Continuation Request by Applicant: $1,362
Development Agreement: $5,000 deposit
Initial Study/ND/MND, non-complex project (Staff Review): $2,000 deposit
Planning Commission Extension: $2,476
General Plan Text Amendment: $13,000 deposit
Historic Resources Review—Administrative: $4,067
Historic Resources Review—Commission: $7,000 deposit
Historic Resources Review—Evaluation: Actual Cost deposit
Miscellaneous Planning Review or Research: $159 per hour
Mobile Home Rent Review: $5,340
Planning Inspection / Review: $159 per hour
Pre-Application Review: $3,590
Public Noticing Fee: Actual Cost
SB9 Urban Lot Split: $2,000 deposit
SB330 Application: $7,091
Sign Program (2 or more signs): $1,000 deposit
Temporary Use Permit (standard): $2,635
Zoning Text/Map/Ordinance Amendment: $16,000 deposit
Zoning Clearance Letter: $159 per hour (minimum 3 hours)
Zoning Verification Letter: $238
Any Other Application/Entitlement Not Listed: $1,000 deposit
Planning Division Plan Check (Up to $100,000 valuation): $487
Planning Division Plan Check (Over $100,000 valuation): $965
Affordable Housing Project/Agreement: $2,000 deposit
Complex Project: $8,000 deposit
Technology Surcharge: 10% of Fee
Recreation (Parks and Recreation)
City Park Permit—BBQ Pit/Bench Area: $27
Baseball Field Rental: $49 per field per hour
Refund or Cancellation Processing Fees: $51
Background Check Fees: Actual Cost
Special Events—Additional Inspection: $95
Special Events—Encroachment Permit: (See Public Works Fee Schedule)
Special Events—Public Works Staff Time: $95 per hour
Food Truck Vendor Fee (Single Event): $168
Food Truck Vendor Fee (Multiple Events/Annual): $336
Special Events—Events that Include Alcohol: 15% of Permit Fee
Special Events—Alcohol License Processing Fee: $168
Community Hall Rental—Events that Include Alcohol: 15% of Permit Fee
Community Hall Rental—Alcohol License Processing Fee: $168
Library Rental—Meeting Room Rental: $59
Library Rental—Full Library Rental (Closed Hours Only): $176
In a handful of cases, fees were decreased. For example, the fee for a Residential Home Demolition Permit decreased from $480 to $257.
Again, the changes in the study are only advisory. The City Council may suggest modifications before it is accepted and implemented.
It will be reviewed by the council to obtain input on cost recovery policies and fee-setting priorities at the next study session, scheduled for May 26, which follows the regular May 19 meeting.
The full fee schedule report is included in the agenda packet for the canceled May 12 City Council Study Session.
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