REPORT TO COUNCIL
SUBJECT
Title
Annual Review of Proposed Fees and Charges for Fiscal Year 2025/26
Report
REPORT IN BRIEF
The City's fees and charges are reviewed and adjusted annually in accordance with Council Policy 7.1.1 (Fiscal-Long Range Goals and Financial Policies). This annual evaluation ensures that all fees and charges of the City are aligned with the costs of providing fee-related services, except for those fees that are legally mandated, market-based, or subsidized at the Council's direction.
Each year, the City Council reviews recommended changes to the City's fees and charges. The June 3, 2025, public hearing provides an opportunity for public input and comment on proposed fees and charges. This hearing will be followed by Council consideration to adopt updated and new fees on June 17, 2025.
BACKGROUND
The attached Fee Schedule (Attachment 1) references all City fees, except utility rates, SMaRT Station Public Haul Gate rates, and fees for recreation services. Fees related to utility services (i.e., water, garbage, and sewer) are scheduled to be adopted on June 17, 2025, by separate Council action when the utility rates are set (RTC No. 25-0365). SMaRT Station Public Haul Gate Rates are established administratively by the Director of Environmental Services based on disposition costs for recyclables and residues, allowing for the flexibility to adjust rates as market conditions change, which is the standard practice for transfer stations and disposal facilities. Fees for recreation services are established administratively by the Director of Library and Recreation Services. Those fees are established based on market conditions and Council-adopted policies to ensure fairness and accessibility.
EXISTING POLICY
Council Policy 7.1.1 Fiscal -Long Range Goals and Financial Policies:
7.1B.5.2 - User charges and fees should be adjusted at least annually to avoid sharp changes.
7.1B.5.4 - User fees should be established at levels which reflect the full cost of providing those services.
7.1B.5.5 - Council may determine for any service whether a subsidy from the General Fund is in the public interest.
California Government Code Section 66016(a): Prior to levying a new fee or service charge, or prior to approving an increase in an existing fee or service charge, a local agency shall hold at least one open and public meeting, at which oral or written presentations can be made, as part of a regularly scheduled meeting. Pursuant to Government Code Section 66018, a published notice for this public hearing has been printed in the Sunnyvale Sun.
ENVIRONMENTAL REVIEW
The annual review of the City’s fees and charges does not require environmental review under the California Environmental Quality Act (CEQA) because it is a fiscal activity that does not commit the City to a specific project that will have a significant effect on the environment. (CEQA Guidelines, Section 15378(b)(4).)
DISCUSSION
Council Fiscal Policy guides staff to set fees for services to recover costs where possible and legally allowed. Staff continues to ensure that all fees not legally limited, market-based, or subsidized, provide for full cost recovery. The results of these efforts have been incorporated into the Recommended FY 2025/26 Fee Schedule (Attachment 1), which details all recommended fees. For ease of administration, many fees have been rounded to the nearest logical unit of measurement.
After a detailed staff review of fees, necessary adjustments have been made to the proposed Fee Schedule. Legally limited fees remain unchanged. Periodically, staff reviews various fees in detail and adjusts them according to the cost of service, typically every three to five years. In the intervening periods, fees are adjusted by a general inflation factor. The City’s proposed annual inflation rate of 4% is an average derived from the City’s year-over-year changes of citywide personnel costs. Fees related to construction price changes are proposed to increase by 2.3% following the Construction Cost Index (CCI) year-over-year change for the period of December 2023 to December 2024, as reported by Engineering News-Record. According to the United States Bureau of Labor Statistics, the Consumer Price Index for Urban Services in the San Francisco Area (CPI-U SF) experienced an annual average increase of 2.8% from 2023 to 2024. New fees or fees proposed for adjustment by an amount greater than the factors discussed above are detailed below. Administrative updates and descriptive language updates are highlighted in red.
The Recommended FY 2025/26 Fee Schedule (Attachment 1) details all proposed fees. Most fees take effect at the start of the new fiscal year, except for development impact fees, which are required to take effect 60 days after adoption, as specified in Government Code Section 66017. These fees will become effective on August 18, 2025.
New Fees
General
1.06 Public Charging Station Use Fee, B. Public Charging Station Idle Fee
A review of similar fees charged by other local agencies indicates that Public Charging Stations typically charge an idle fee to encourage users to move their vehicle once it is charged, making the charger available for others. It is recommended that an idle fee of $1.50 per hour be implemented to free up chargers. This rate falls in the mid-range of other local agencies and was not designed to fully recover City costs given that fees for this service are influenced by other providers in the market.
1.07 Credit Card Convenience Fee
The City spends approximately $950,000 annually on credit card fees across all funds. To recover those fees, it is recommended that a 2.7% service fee be implemented for all credit card transactions except online utility payments. It is recommended to exclude online utility payments since the current fees are below market and benchmarking shows that neighboring municipalities are also not passing on those fees. Utility payments made by credit card in person at City Hall would be assessed the fee. This change will be implemented on January 1, 2026, to provide sufficient time to notify residents and businesses, as well as to update the software and credit card terminals used throughout the City.
Office of the City Manager
3.02 Provision of Notary Public Services
Two new fees have been added: D. Oath of Deposition Witness and E. Certificate of Deposition. These $7.00 fees are provided for under California Government Code Section 8211(c) relating to the existing Section 3.02.C. Deposition fee.
Department of Public Safety
7.11 Civil Penalties for Parking Violations, SS. Daylighting
Daylighting refers to parking too close to an intersection, crosswalk, or other designated area, which obstructs visibility for drivers and pedestrians. A fine of $53.00 is proposed, as per California Vehicle Code Section 22500(N).
Non-Standard Fee and Charge Adjustments
The following fees are adjusted by an amount other than the City’s labor rate increase, CCI inflation increase, or CPI-U SF inflation increase:
General
1.06 Public Charging Station Use Fee, A. Public Charging Station Use Fee
Electric vehicle charging station customers are currently paying $1.50 per hour for charging at City-operated charging stations. A review of similar fees charged by other local agencies indicates that Public Charging Stations typically charge per kilowatt-hour (kWh). It is recommended that the fee unit be updated to $.25 per kWh. This recommendation falls in the mid-range as compared to other local agencies.
Department of Community Development
4.02 Planning Permit Fees
Since 2014, the City has retained an appraiser to provide data on land sales in Sunnyvale for the prior year. This data is used to establish the land value (for park dedication in-lieu fees) based on average sales price of unentitled (no project approved) residentially zoned sites. The Housing Element is based on data from an appraisal report prepared for the FY 2022/23 when the in-lieu fee was valued at $185 per square foot of land. For FY 2023/24 the adopted park dedication in-lieu fee was $180 per square foot. For FY 2024/25 the appraisal report indicated very few land sales (for purposes of residential development) and the fee was reduced to $151 per square foot of land.
The appraisal report for FY 2025/26 indicates a land value of $175 per square foot; however, staff is recommending a 30% reduction from the highest land value ($185/sf) to $130 per square foot to implement Housing Element Program H19. Staff recommends continued preparation of annual appraisal reports to track actual land values of residentially zoned land and that the discounted value ($130/sf) be adjusted annually by three percent (3%) or actual land value, whichever is less. As part of implementing the provisions in Housing Element Program H19, staff is completing a study to update and restructure the park dedication requirements to include more tiers for higher density housing, with the tiers potentially conducting a study to update and restructure the park dedication requirements, incorporating more tiers for higher-density housing. These tiers may be based on ranges of unit sizes (square footage) rather than development density (units per acre).
4.03 Building Division Fees
California Government Code 66015 limits the amount that can be collected for D3. Photovoltaic Systems. The issuance fee has increased by 4%, and as a result, the base fee has decreased to keep the total fee below the state-mandated cap.
Department of Public Works
8.06 Municipal Golf Course Green Fees
Golf customers choose to play at Sunnyvale’s courses based on the cost, location, and quality of the course. All Golf fees have been increased by approximately 10% to cover increases in expenditures and decrease the golf funds' dependency on external subsidies. Staff also completed the annual Golf Market Survey (Attachment 2) as reference to neighboring course fees. Recommended fees for FY 2025/26 are on par with fees at neighboring courses.
Dynamic pricing will continue for Weekday and Weekend/Holiday, 18-hole play for non-residents. The minimum price is the rack rate, and the maximum price (+$5 on weekdays and +$10 on weekends) is applied during prime times when the course is in use. Dynamic pricing is also being added at Sunnyvale Municipal for Weekday Twilight, Weekend/Holiday Twilight for non-residents, and Super Twilight for all rounds of golf.
Weekday
• Sunnyvale - Resident (18 Holes) - $42 to $46
• Sunnyvale - Non-Resident (18 holes) - $46-$51* to $50-$55*
• Sunnyvale - Senior 60+ (18 Holes) - $35 to $37
• Sunnyvale - Junior ≤16 (18 Holes) - $17 to $19
• Sunnyvale - Morning Back (9 Holes) - $35 to $39
• Sunken Gardens - Resident (9 Holes) - $23 to $25
• Sunken Gardens - Non-Resident (9 Holes) - $25 to $28
• Sunken Gardens - Junior ≤16 (9 Holes) - $17 to $19
Weekday Twilight (starts at 1pm)/Replay
• Sunnyvale - (18 Holes) - $35 to $39-$44*
• Sunnyvale - Super Twilight (starts at 4pm) (18 Holes) - $25 to $28-$33*
• Sunnyvale - Replay (18 Holes) - $24 to $27
• Sunnyvale - Junior ≤16 (18 Holes) - $17 to $19
• Sunken Gardens Replay (9 Holes) - $17 to $19
Weekend/Holiday
• Sunnyvale - Resident (18 Holes) - $54 to $60
• Sunnyvale - Non-Resident (18 holes) - $60-$70* to $66-$76*
• Sunnyvale - Junior ≤16 (18 Holes) - $25 to $28
• Sunnyvale - Morning Back (9 Holes) - $37 to $41
• Sunken Gardens - Resident (9 Holes) - $26 to $28
• Sunken Gardens - Non-Resident (9 Holes) - $29 to $32
• Sunken Gardens - Junior ≤16 (9 Holes) - $17 to $19
Weekend/Holiday - Twilight (starts at 1pm) /Replay
• Sunnyvale - Resident (18 Holes) - $35 to $38
• Sunnyvale - Non-Resident (18 Holes) - $40 to $44-$49*
• Sunnyvale - Super Twilight (starts at 4pm) (18 Holes) - $30 to $33-$38*
• Sunnyvale - Replay (18 Holes) - $24 to $27
• Sunnyvale - Junior ≤16 (18 Holes) - $25 to $28
• Sunken Gardens - Resident Replay (9 Holes) - $17 to $19
• Sunken Gardens - Non-Resident Replay (9 Holes) - $19 to $21
• Sunken Gardens - Junior ≤16 (9 Holes) - $17 to $19
School Team Play
• Sunnyvale - Sunnyvale Schools (18 Holes) - $800 to $850
• Sunnyvale - Non-Sunnyvale Schools (18 Holes) - $850 to $900
Sunnyvale Advantage Card (Residents Only)
• Sunnyvale (18 Holes) $260 to $285
• Sunken Gardens (9 Holes) - $185 to $205
Resident Golf Discount Card (Senior 60+, Junior ≤16, Disabled Only)
• Sunnyvale (18 Holes) - $235 to $260
• Sunken Gardens (9 Holes) - $170 to $185
Non-Resident Monthly Card
• M-F Sunnyvale (18 Holes) - $295 to $325
Tournament Fee
• Sunnyvale - Cart Fee Per Person (18 Holes) - $18 to $20
• Sunken Gardens - (9 Holes) - $5 to $5
Infrastructure Fee $1 - $1
* Dynamic Pricing for Sunnyvale Golf Course
Deletions
Library and Recreation Services
6.03 Community Special Event Fees, C. Refundable Damage Deposit
Refundable damage deposits for Community Special Events are based on the facility being used. The refundable damage deposit fee is recommended for deletion due to its lack of use and the absence of specific criteria for its application. As part of the event approval process, the City requires certificates of insurance from user groups to ensure coverage in the event of any damage resulting from the activity.
Department of Public Safety
7.08 Fire Prevention Permits and Fees,
Fire Prevention/Inspection/Service Fee, MM6. High Rises are currently divided by buildings above or below 40,000 square feet, but the fee is the same regardless of the building's square footage. As part of administrative cleanup, the terms “Per Floor < 40,000 sq ft” and “Per Floor > 40,000 sq ft” were merged and simplified to “Per floor,” as the fee is the same and calculated by floor.
Fees Not Expected to Cost Recover
Department of Community Development
4.06 Housing Division Fees, Below Market Rate (BMR) Program Fees
To align with Housing Goals, Policy H-2 Affordable Housing and Home Buyer Assistance, all Below Market Rate Program Fees are proposed to be flat with no inflation applied.
FISCAL IMPACT
Most new fees will become effective at the start of the new fiscal year on July 1, 2025. Exceptions include changes to Development Processing fees (i.e., filing, accepting, reviewing, approving, or issuing an application or permit) and mitigation fees, which take effect 60 days after adoption (in accordance with California Government Code Section 66017). The impact of proposed adjustments to these fees has been incorporated in the FY 2025/26 Recommended Budget. Attachment 1 presents the Recommended FY 2025/26 fee schedule, including proposed fees and charges.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
Notice of the public hearing on the proposed fees and charges was published in the Sunnyvale Sun on May 23, and May 30. Notice was sent to the Building Industry Association and the Tri-County Division of the California Apartment Association, which requested notice pursuant to the Government Code. Boards and commissions wishing to make comments, suggestions, or recommendations may testify at the public hearing.
STAFF RECOMMENDATION
Recommendation
Conduct a public hearing to solicit public input and provide direction to staff on any fees requiring further review before the June 17, 2025, Council meeting, where the proposed schedule will be considered for adoption.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Nancy Grove, Finance Manager
Reviewed by: Kurtis Mock, Budget Manager
Reviewed by: Dennis Jaw, Assistant Director of Finance
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. FY 2025/26 Recommended Fee Schedule
2. 2025 Golf Fee Market Survey