City Council to consider updates to Planning & Building permit fees
Proposal would better align fees with cost of service, adopt cost recovery policy
City Council will consider a proposal to update Planning & Building permit fees and adopt a formal cost recovery policy at their regular meeting on Monday, September 15, 2025.
City Council meeting: Planning & Building permit fees
Monday, September 15, 2025, 6:00pm
Piedmont City Hall, 120 Vista Avenue
Zoom: https://piedmont-ca-gov.zoom.us/j/82500567382
Agenda | Staff Report
The proposed updates follow a comprehensive fee study conducted earlier this year. Considered a best practice in municipal operations, fee studies compare the cost of providing services to the fees charged to ensure they are fair, transparent, and based on data. The study found that current fees only recover 73% of the cost of permit services, resulting in an under-recovery of more than $400,000 per year.
Right-sizing fees so each permit reflects the cost of services provided
If adopted, the proposal would adjust planning permit and building permit fees so they reflect the actual cost of processing. The goal is not to raise revenue, but to ensure each permit type is charged fairly and in proportion to the staff time and resources required to process it.
Proposed updates include:
- Revised fee schedule: Most permit fees would increase to better reflect actual staff time and resources, while some obsolete fees would be eliminated. In some cases, fees would decrease.
- New and expanded categories: New fees would be added to reflect recent changes in State law. Certain existing fees, such as solar permits, would be expanded into separate categories for residential and commercial projects.
- Added valuation tiers: Two new valuation tiers would be created for very large construction projects ($10 million and $25 million), scaling fees proportionally with the complexity of review.
- Flat-fee conversions: Many common building permits (such as water heaters, HVAC systems, and EV chargers) would be converted from valuation-based to flat fees, making costs more predictable and aligned with the service provided.
Alongside the fee updates, the Council will consider adopting a formal policy documenting that the City’s goal is to set Planning & Building fees at 100% cost recovery, with exceptions only when a defined community benefit justifies a subsidy – such as potential reduced fees for residential solar permits as a way to support Piedmont’s climate action goals.
If adopted, the new fee schedule would take effect on January 1, 2026, allowing time for community outreach and education.
Fee updates part of a broader effort to modernize permit services
The fee study was initiated by the City Council during the FY24-25 budget process, along with an organizational assessment presented earlier this year. Together, these reviews aim to strengthen the Planning & Building Department’s capacity to provide timely, high-quality service to the community.
The City has taken other steps to improve permit services in recent years:
- In 2023, the City launched its first major digital service with the introduction of online permitting
- A large backlog of building permits that began accumulating during the COVID-19 pandemic was fully cleared last year
The proposed fee and cost recovery policy updates are the next step in aligning operations with best practices, ensuring services are delivered efficiently, equitably, and sustainably.
###