DATE: April 7, 2026
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT
Title
Work Session on Tree Mitigation In-Lieu Fees
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RECOMMENDATION
Recommendation
That the City Council review the proposed recommendations and provide feedback, as necessary, on the allocation of collected Tree Mitigation In-Lieu Fee funds.
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SUMMARY
In December 2025, the City Council approved updates to the City’s Tree Preservation Ordinance (Ordinance). The Ordinance is contained within the Hayward Municipal Code (HMC) and establishes the guidelines for the protection of existing trees in the City of Hayward, as well as establishes the process for removing, replacement, and mitigation for trees covered by the Ordinance.
Tree replacement and mitigation on site is the preferred option when trees are removed to help re-establish tree canopy. There are, however, instances when trees cannot be replaced on site and as such the Ordinance establishes parameters to allow the applicant to provide off-site mitigation through the payment of in-lieu fees. The amount of mitigation required is based on the appraised value of the existing trees and any on or off-site mitigation is verified during the building permit process. Applicants have the option to mitigate all their tree removals on-site, pay an in-lieu fee for off-site mitigation equal to 125% of the assessed value, or provide some combination thereof.
Since Ordinance adoption, staff has identified options to allocate funds that align with the City’s long-term environmental and tree canopy goals. This report proposes an allocation of in-lieu fees for an annual estimated budget of $250,000. Staff is seeking feedback from Council on the proposed allocation and distribution of these funds, pending availability. Following Council feedback and direction, staff will finalize the program options in preparation for the FY27 budget adoption and update the funding tied to those programs accordingly.
ATTACHMENTS
Attachment I Staff Report
Attachment II Tree Canopy Cover by Parcel
Attachment III Canopy Cover Map