Reao and Oonsider

"Because the fee studies examined did not routinely discuss prior subsidies, Santa Rosa City Counci! Members were disadvantaged in recognizing excessively large changes." Response: The draft and final versions of the Development Related Cost of Service Fee Study, including the initial draft version released to the public, identified the current and proposed fees for allfee types. The proposed fees identified in the initial draft study reflected a reasonable full cost recovery for the associated service, which is consistent with State law. On January 30,2024, the City Council held a study session related to the City's draft Development Related Cost of Service Fee Study. The presentation involved an overview of the fee types that have historically received subsidies, as wel! as the justification for all previous subsidies. The City Council provided staff with recommendations and guidance regarding specific use and application types that should be analyzed for potential fee reductions through the development of the Final Development Related Cost of Service Fee Study. On March 5,2024, the City Council held a public hearing and adopted Resolution No. RES-2024-033 related to development permit fees. As part of the resolution, Council adopted reductions to certain permit application fees, including appeals, affordable housing, downtown housing development of four units or greater, daycare facilities and grocery stores in designated "food deserts". A fee reduction for LMA Permits was not included in the list of reductions. However, given the concerns raised by the community, staff returned to the Council on February 4,2025 with a public hearing item to consider a fee reduction for homeowner submitted LMA Permits. At that meeting the Council adopted a resolution reducing homeowner submitted LMA Permit fees by 92o/o, which was the average subsidy provided prior to the March 5,2024 development permit fee adoption. Although the fee subsidies were discussed during the adoption process and the proposed and existing fees were identified in the presented documents, City staff recognizes the need to ensure that the City Council and the public clearly understand the specific proposed modifications when large scale changes to a fee schedule are presented. Future fee studies and the associated presentation documents will clearly highlight previously subsidized fee categories that are proposed to shift to full cost recovery when large scale fee schedule updates are proposed. Revised lune 2022 Response to GJ Report Form