TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Jasmine Elo, Management Analyst
SUBJECT: Changes to Fees Charged by Assessor, Recorder, County Clerk; Fire Marshal; Information Technology Services; Planning, Building and Environment Services - Building Division; and Public Works, and updating the Schedule of Penalties.
RECOMMENDATION
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Conduct a public hearing, adopt resolutions changing certain fees for Assessor, Fire Marshal, Public Works, the Building Division of Planning, Building and Environmental Services, and updating the Schedule of Penalties; and introduction and intent to adopt an ordinance changing certain fees for Assessor, Recorder-County Clerk, and Information Technology Services; (Fiscal Impact: $2.4 million Revenue; $1.1 million General Fund; $992,000 Building Fund; $300,800 Fire Fund; Not Budgeted; Discretionary)
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BACKGROUND
State law allows government agencies to recover the cost of providing certain services by charging fees to those receiving the services. Napa County establishes fees for services and periodically updates those fees. Some fees may be established by resolution while others require ordinances, depending on the particular fee and state law.
The most recent comprehensive update was approved by the Board of Supervisors (Board) on November 5, 2024, pursuant to Resolution No. 2024-119. The changes to County fees were based on a User Fee Study (2024 Study) conducted by MGT Consulting Group (MGT) using FY 2023-24 salary and benefit costs. The 2024 Study describes MGT’s calculation methodology and data used to revise fees for Planning, Building and Environmental Services (PBES), Local Enforcement Agency, Fire, Public Works, Animal Shelter, Clerk of the Board, Agriculture Commission and Weights & Measures. The County’s Public Services Employees’ Memorandum of Understanding was adopted near the conclusion of the study’s calculation and the 4% cost-of-living adjustment was incorporated.
MGT recently prepared an addendum (2025 Addendum) to the 2024 Study which recommends changes to fees for departments and divisions not included in the 2024 Study, as well as revisions to fees for some of the departments and divisions that were included in the 2024 Study. These departments include the Building Division of PBES, Assessor, Recorder-County Clerk, and Information Technology Services - Geographic Information Services (GIS). Minor revisions are also recommended for Fire and Public Works fees to align with revisions to fees for the Building Division. MGT used FY 2023-24 and FY 2024-25 budgeted expenditures, staffing costs and operational information in preparing for the 2025 Addendum. The 2025 Addendum includes changes to fees for Environmental Health, but those proposed changes are still under review and will be presented to the Board at a future meeting.
On December 14, 2023, the Board adopted Resolution No. 2023-163, updating the Schedule of Penalties to reflect recent changes to state law. However, the updated schedule was not incorporated when the Board adopted a Resolution No. 2024-119 approving changes to fees recommended by the 2024 Study. That resolution reflected the old Schedule of Penalties. Staff recommends re-integrating the previously-adopted Schedule of Penalties as indicated in the corresponding new resolution included with this item.
To help avoid clerical errors in the future, and to improve access and control edits to department fees, the decades-old Fee Policy Manual will be replaced by a fee chart or matrix (Fee Matrix) maintained by the CEO’s Office. Changes to fees will still need Board approval through resolution or ordinance, but narratives, footnotes, and multi-year escalators approved by the Board can be updated in the Fee Matrix without bringing it back to the Board for review. The Fee Matrix will be a public document.
Study Highlights:
The Building division currently has fees set to recover 75% of actual costs. Staff recommends increasing recovery to 97% for applicant fees, as well as fee reductions on some permits and fee increases on others to keep the cost aligned with the level of effort required to provide the services and to stay within State cost recovery limits. New fee categories are also being recommended for adoption to reflect current services and activities.
The Assessor department currently has thirteen fees that are not recovering the full cost to provide the services. Cost recovery percentages range from 15% to 93%. Staff recommend increasing all the fees to recover the cost to the County for providing these services, except for the Assessor Certification fee. The 2025 Addendum also found that six fees could be too high, and the recommendation is to lower these fees to cost of providing the service.
The Recorder-County Clerk currently has a cost recovery range of 60% to 90% for twenty-four of their fees. Staff recommend increasing these fees to recover the cost to the County for providing these services and a new fee to recover the cost of processing a returned check.
The GIS division currently has two user fees: copies of information provided on DVD and copies provided on external hard drive. Staff recommends repealing the copies on DVD fee as it is no longer requested by customers, maintaining the current fee for copies on an external hard drive, and adding an hourly rate fee to their schedule.
The Fire Marshal and Public Works departments had a fee analysis presented to the Board in November 2024 and are now recommending revisions based on their review of Building plans and permits. The Fire Marshal’s Office currently collects 22% of the Building fee for their review and is recommending an increase to 50%, reflecting the expanded scope of review that now includes wildfire risk mitigation, evaluation of road and street access for emergency vehicles, and verification of adequate water supply systems for fire protection, along with compliance in many other areas required under applicable fire and life safety codes. Fire Marshal is also requesting repeal of the Fireworks Display fee as these displays are no longer permitted in the County. Fire Marshal will further review MGT’s recommendation of a Fire Hazard Abatement Warrant fee and return to the Board with a broader update to the Napa County Code.
The effective date for these fee changes will be July 7, 2025. Like the fee adjustments approved by the Board in 2024, these fees will be increased on July 1, 2026, by 3.5% to reflect the cost-of-living increases in the County’s Public Services Employees’ Memorandum of Understanding, and subsequent annual increases reflecting the Consumer Price Index for the San Francisco Area.
Procedural Requirements:
1. Open Public Hearing
2. Staff Report
3. Public Comment
4. Close Public Hearing
5. Motion, second, discussion, and vote to adopt Resolutions
6. Motion, second, discussion, and vote on intention to adopt the Ordinance
Recommended Actions:
1. Adopt the resolutions changing certain fees for Assessor, Fire Marshal, Public Works, the Building Division of Planning, Building and Environmental Services, and updating the Schedule of Penalties, and
2. Introduction and intent to adopt an ordinance changing certain fees for Assessor, Recorder-County Clerk, and Information Technology Services.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The County may establish fees to recover the cost of providing certain services from those receiving the services. Generally, fees must be lowered if they exceed the cost of providing the services, and fees should be increased if they are less than the cost of providing services to avoid General Fund tax revenues subsidizing the services. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Revenues better offset expenses. |
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Consequences if not approved: |
General Fund tax revenues will subsidize delivery of services in some instances. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines sections 15273(a)(1) as fees necessary to meet operating expenses, including employee wage rates and fringe benefits, and 15273(a)(2) as fees for the purchase or leasing supplies, equipment, or materials.