PREPARED BY: ALLEN TAI DATE OF MEETING: 06/15/2026
SUBJECT:
TITLE
CONSIDER (1) ADOPTING A RESOLUTION IMPLEMENTING THE FY 2026-2027 BUILDING, PLANNING, AND PUBLIC WORKS USER FEE INCREASES THE CITY COUNCIL PREVIOUSLY DETERMINED SHALL TAKE EFFECT ON JULY 1, 2026, BASED ON THE BUREAU OF LABOR STATISTICS EMPLOYMENT COST INDEX, AND (2) ADOPTING A RESOLUTION APPLYING THE WEST CONTRA COSTA TRANSPORTATION ADVISORY COMMITTEE (WCCTAC) APPROVED INFLATIONARY FACTOR INCREASES TO WCCTAC SUBREGIONAL TRANSPORTATION MITIGATION PROGRAM (STMP) FEES EFFECTIVE JULY 1, 2026, PURSUANT TO SECTION 15.62.040 OF THE SAN PABLO MUNICIPAL CODE
CEQA: This proposed action is not a project as defined by CEQA. CEQA Guidelines Section 15378(b)(4) states that “project” does not include the creation of government funding mechanisms or other governmental fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
Focus on Economic Development and Fiscal Diversification is a major adopted policy goal and Explore and Sustain New Revenue Enhancements to the City’s General Fund is Priority No. 405 under the FY 2025-27 City Council Priority Workplan, as adopted on April 7, 2025.
BACKGROUND
In 2025, the City of San Pablo performed a cost-of-service study for Building, Planning, and Public Works user fees consistent with City Council Priority #405.3. On November 17, 2025, the City Council, by Resolution 2025-141, adopted a Master Fee Schedule per the methodology described in the cost-of-service study and determined that the fees would be increased annually based on that methodology effective July 1, 2026, and each July 1st thereafter. As the inflationary factor methodology has been adopted through the public hearing process, no additional public hearings are required for adopting the annual inflationary adjustments to the fee schedule. The remainder of this report explains the inflation factor for next fiscal year as well as minor language revisions to the fee schedule recommended by staff.
City Council Adopted Fee Methodology
The City Council adoption of the Master Fee Schedule included an annual escalation factor to account for inflation and to maximize cost recovery until the next user fee study. The City Council-approved annual escalation factor is to be based on the annual 12-month Bureau of Labor Statistics, Employment Cost Index: total compensation for State and local government workers- all workers for the San Francisco Bay Area, which is published in April of every year. Per City Council direction, this inflationary factor is to be applied annually effective July 1 as part of annual updates to user fees to make sure that the fees keep pace with inflation.
The inflationary factor for the twelve-month (not seasonally adjusted) rate for state and local government workers, reported on April 30, 2026, was 3.5%. This rate has been applied to increase the current Building, Planning, and Public Works user fees that will take effect July 1, 2026 (Exhibit 1 to Attachment A).
Authority to Pass Through Specific Costs
The footnotes in the current fee schedule grants the Planning Manager, Building Official, and Public Works Director authority to establish fees for services that are not specifically included in the schedule. To improve clarity, ensure consistency in fee determination, and better reflect current administrative practices, staff recommend revising this language. The proposed clarification authorizes the City Manager or the City Manager’s designees, which in practice have been the Community Development and Public Works Directors, to set fees for unlisted services based on established hourly rates that have been approved by the City Council and will pass through any direct costs necessary to process an application to the applicant, as follows:
“For any services requested of City staff that are not listed in this fee schedule, the City Manager or the City Manager’s designee shall determine the appropriate fee based on the established hourly rates for the relevant department or division. In addition, the City shall pass through to the applicant any specific costs incurred from the use of external service providers and applicable City time and materials costs when such costs are necessary to process the application.”
Other FY2025-27 Fee Schedule Updates
As part of the annual adjustment to the fee schedule, staff has identified administrative and clerical corrections to the fee schedule necessary to improve customer service. In addition, the updated fee schedule for Planning, Building, and Public Works includes modifications to match adopted hourly rates and to assign fees for certain common activities that are not currently captured in the fee schedule. A summary list of these modifications to the fee schedule is contained in Attachment D.
West Contra Costa Regional Transportation Fee
Separate from local user fees, the West County Subregional Transportation Mitigation Program (STMP) was created to meet regional traffic mitigation requirements under Contra Costa County’s voter approved transportation sales tax measures, Measure C (1988) and Measure J (2004). These measures require local jurisdictions to charge STMP fees on new development to help fund regional transportation improvements. In response to significant traffic impacts, West County jurisdictions and the West Contra Costa Transportation Advisory Committee (WCCTC) updated the STMP and completed a new nexus study in 2019, which forms the basis of the current fee structure. All West County cities and the County adopted the updated program to ensure new development contributes its fair share to regional circulation and transit projects. STMP fees are collected at building permit issuance or building occupancy, depending on the project, and support congestion relief and transit enhancements throughout the region.
Ordinance 2019-001, adopted by the City Council in 2019, amended Chapter 15.62 of the San Pablo Municipal Code to update the STMP and establish the use of the Engineering News Record (ENR) Construction Cost Index for the San Francisco Bay Area to adjust fees annually. This inflation based adjustment is consistent with industry standards and ensures that fees remain current with changes in construction costs. Under this requirement, STMP fees are adjusted each July 1 based on the ENR SF Bay Area Construction Index for the preceding February. For July 1, 2026, the WCCTC has informed the City that this methodology results in a +0.1% increase in STMP fees (Attachment B).
FISCAL IMPACT
The proposed user fees maintain cost recovery for applicable fee-related activities in accordance with the 2025 user fee study approved by the City Council via Resolution 25-141.
The adoption of WCCTC STMP fees has no fiscal impact to the City of San Pablo budget.
ATTACHMENTS
Att A. RES 2026-### Annual Fee Increase
Exh 1. Fee Schedule
Att B. RES 2026-### Applying the West Contra Costa Transportation Advisory Committee (WCCTC) Approved Inflationary Factor to the West County Subregional Transportation Mitigation Fees (STMP) effective July 1, 2026
Att C. 2025-141 City Council Master Fee Schedule Resolution, adopted November 17, 2025
Att D. Summary list of modifications to FY2026-27 Building, Planning, and Public Works Fee Schedules.