To: Honorable Mayor and Members of City Council
From: Donna Lee, Finance Director
Prepared By: Frank Herrera, Accounting Supervisor
TITLE:
Title
Update of Citywide User Fees
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution amending Resolution R2026-014 adopting the City’s Master Fee Schedule to revise select fees and charges and to clarify updated effective dates for implementation.
Body
DISCUSSION:
On February 3, 2026, the City Council adopted Resolution R2026-014 approving the City’s Master Fee Schedule with an effective date of 60 days following adoption as required by state law, or upon implementation of the City's new permitting system, whichever occurred later. The permitting system implementation is still underway with a go-live date anticipated later this year. In addition at the February meeting, the Council directed staff to conduct a comprehensive review of several fee categories to ensure they are aligned with the Council’s established Focus Areas and policy priorities. The review included evaluating the purpose, structure, and cost-recovery basis of the identified fees, as well as assessing whether any adjustments are warranted to better support the City’s strategic objectives.
Staff has completed its review and is recommending several amendments to the adopted fee schedule, as outlined below and in Exhibit A. The review confirmed that many of the evaluated fees are appropriately structured, consistent with current policy direction, and do not present barriers to advancing the Council’s identified Focus Areas. The fees are in line with other comparable agencies and represent reasonable cost recovery goals for services provided allowing the City to continue using general fund resources for community wide priorities. Where adjustments are recommended, as outlined below, they are intended to align with other local agencies, allow for a phased in approach over the next three years, or improve clarity.
In addition, staff recommends removing the connection between the fee schedule effective date and implementation of the permitting system. Because more than 60 days have passed since adoption of the February 3, 2026 resolution, staff recommends establishing an effective date of July 1, 2026, for the updated Master Fee Schedule. Any new fee revisions adopted by the City Council on May 19, 2026, would become effective no sooner than 60 days following adoption of the resolution amending Resolution R2026-014, resulting in an anticipated effective date of August 1, 2026.
EV Charging Fee
At the February 3, 2026 meeting, City Council adopted a new EV Charging Fee of $0.35 per kWh, representing an estimated subsidy of $.01 per kWh. Consistent with Council’s direction to review fees in relation to established Council Focus Areas, staff recommends reducing the EV charging rate to $0.25 per kWh. The proposed rate matches the rate charged by the Napa Valley Transportation Authority. NVTA owns 46 charging ports and charges $0.25 per kWh at their public stations. If approved, the revised fee would become effective on August 1, 2026.
Following the additional staff review of the fee schedule, staff is recommending the following revisions:
Appeals to Planning Commission and Cultural Heritage Commission
Appeal fees to the Planning Commission and Cultural Heritage Commission were adopted on February 3, 2026 at the full cost recovery amount of $4,558. Staff is recommending these fees should be in line with the Council appeal fee 3.1 of $911, and if approved, will become effective on August 1, 2026. The fee would increase to $938 in 2027, $966 in 2028, and $994 in 2029 and $1,023 in 2030.
Cardroom Dealer Permits
The renewal cycle for cardroom dealer permits has been revised from semi-annual (every six months) to annual. This change aligns the City’s practices with those of neighboring jurisdictions and reduces administrative burden for both staff and permit holders.
DUI Response
The amended schedule clarifies the maximum fee cost recovery may not exceed $12,000 per incident per Government Code 53155.
Fees Not Included in This Update
Development impact fees, solid waste collection rates, and water rates were not reviewed as part of the Citywide User Fee Study and are not included in the proposed amendments to the Master Fee Schedule. These fees are established and updated through separate processes and will continue to be reviewed independently, as needed.
FINANCIAL IMPACTS:
The proposed fee amendments will have varying fiscal impacts depending on the specific fee adjustment. Certain changes will improve cost recovery for City services, while others, such as the proposed reduction to the EV Charging Fee and phased implementation of select appeal fees, will reduce cost recovery in support of broader City Council policy objectives. Overall fiscal impacts are expected to be minimal and can be absorbed within existing operating budgets.
CEQA:
The Finance Director has determined that the recommended actions described in this agenda report are not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Proposed Fee Revisions
EX B - Proposed Updated Master Fee Schedule
NOTIFICATION:
Legal Ad published in the Napa Valley Register on Thursday, May 7 and May 14, 2026.