A recent study comparing services and fees between the town and other municipalities suggests that Los Gatos provides services that surpass those of other cities, which also means that the town's fees are at times higher.

Examples of town services include processing an application and working with the applicant on a housing project, or renting out town facilities for group functions.

To address the discrepancy in providing these services, the town considered charging a higher fee to applicants, subsidizing the cost or adjusting—and decreasing—the level of certain services.

Using a combination of all three solutions, town staff came up with a proposal that would streamline the process of handling applications for development projects, such as construction of new homes. This would result in lower costs overall as well as expedite the process. For instance, rather than hiring a consultant to review an application, the town could have its own staff do the work.

The town currently retrieves about 60 percent of incurred costs for all development-related fees. The town council's approval of fee adjustments last week includes fee increases for 17 development applications and permits that would result in an 80 to 100 percent cost recovery rate.

Fees that will now allow the town to achieve a 100 percent cost recovery rate are typically for service to developers and are of a larger scale. Individual homeowners wishing to add on to their homes will pay lower fees, allowing for an 80 percent cost recovery.

Notable fee adjustments in services provided through the community development department include a $1,462 increase to an architecture and site application for a new nonresidential project. An architecture and site application for a minor project, such as homeowners requesting add-ons to a single home, would more than double, from $543 to $1,195. Additional fee adjustments include a $304 increase to apply for a variance, a $213 increase to a zone change and a $1,338 increase to a planned development application that does not involve a general or specific plan amendment.

Other town services with fee adjustments include the neighborhood center. The monthly lease rate for space at the center will increase from $1.17 per square foot to $1.75 per square foot. This 3.5 percent increase will affect two long-term tenants: a San José State University foundation and the Teen and Family Counseling Center. Neither tenant has seen an increase in their lease rate since 1991. Also, renting out the center's large hall for a private party will cost $20 more per hour for residents, or $40 more per hour for nonresidents.

Within the parks and public works department, fees for an engineering plan check and inspections will increase 1 percent from the current rate. Grading inspections for areas in excess of 15 cubic yards will increase from $1 to $1.40 per cubic yard.

With the adjusted fees, the additional revenue to the town's general fund is estimated at $80,000 to $100,000 annually.

As council members deliberated over whether to approve the proposed fee adjustments last week, Councilwoman Diane McNutt expressed a desire to postpone voting until the public had been provided with further notices so that they could weigh in on the decision-making process. Two members of the public spoke during the public hearing.

Finance Director Steve Conway said notice of the scheduled public hearing had been posted 10 business days in advance and that the town had placed advertisements in local newspapers.

The council approved the adjustments in service fees in a 4-1 vote, with McNutt dissenting.