CITY OF SAN MATEO
RESOLUTION NO._ _(2024)
ACCEPTING THE ANNUAL REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES, IN-LIEU FEES, LINKAGE FEES AND CAPACITY CHARGES FOR THE YEAR ENDED JUNE 30, 2024, AND MAKING FINDINGS
REGARDING DEVELOPMENT IMPACT FEES AND IN-LIEU FEES COLLECTED BUT NOT EXPENDED WHEREAS, Government Code Sections 66000 et seq., commonly known as the Mitigation Fee Act, regulate the imposition, collections, expenditure, and reporting of development impact fees; and WHEREAS, Government Code Section 66001 requires that certain information be made available to the public regarding development impact fees on an annual basis; and WHEREAS, Government Code Section 66001 requires the City Council to make findings describing the continuing need for impact fees every five years specifying the intended use of any unexpended impact fees; and
WHEREAS, the City of San Mateo assesses three development impact fees - Wastewater Treatment Plant Phase II Expansion Fee, Transportation Improvement Fee, and Park Impact Fee; and WHEREAS, the City of San Mateo also collects in-lieu fees, linkage fees, and wastewater capacity charges; and
WHEREAS, Government Code Section 66013(d) requires for the City, within 180 days of after the last day of each fiscal year, to make certain public information available relating to the wastewater capacity charge; and
WHEREAS, even though a court has not yet ruled that linkage fees are subject to the state Mitigation Fee reporting requirements, the City of San Mateo adheres to those requirements for linkage fees in addition to development impact fees, and based on recent case law, in-lieu fees; and WHEREAS, the City Council of the City of San Mateo has read and considered the Development Impact Fees, In-Lieu Fees, and Linkage Fees Annual Report for the Year Ended June 30, 2024, and all accompanying attachments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, FINDS AND RESOLVES, that:
1. Acceptance of this report is an administrative activity that will not impact the environment and is therefore exempt from CEQA review in accordance with CEQA Guidelines section 15378(b)(5).
2. The City Council accepts the Development Impact Fees, In-Lieu Fees, Linkage Fees, and Wastewater Capacity Charges Annual Report (Report) for the Fiscal Year Ended June 30, 2024, with attachments, and a copy is on file in the City Clerk's Office.
3. Based on the Report and the schedule for expenditure of improvements attached as Exhibit A to this resolution, the City Council makes the following findings with regard to the development impact fees, in-lieu fees, and linkage fees collected but not expended in Fiscal Year 2023-2024 and listed below:
a. Transportation Improvement Fee
(1) This fee is used to build transportation infrastructure that is necessary to serve new development.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based on the anticipated amount of traffic that will be generated by new development.
(3) The sources and amounts of funding anticipated to complete the financing of the incomplete public improvements are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
b. Park Impact Fee
(1) This fee is used to develop parkland and parkland improvements that are necessary to serve new development.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based on the need for parkland and parkland improvements that will be generated by new development. (3) The sources and amounts of funding anticipated to complete the planned projects are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
c. Child Care Development Fee
(1) This fee will be used to support child care facilities that are necessary in order to serve new development.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated need for child care that will be generated by new commercial development.
(3) The sources and amounts of funding expected to complete the anticipated projects are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
d. Affordable Housing Commercial Linkage Fee
(1) This fee will be used to support affordable housing that are necessary in order to serve new development.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated need for affordable housing that will be generated by new commercial development.
(3) The sources and amounts of funding expected to complete the anticipated projects are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
e. Parking In-Lieu Fee
(1) This fee will be used to support for new development to fund for additional parking in downtown San Mateo.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated need for additional parking that will be generated by new development.
(3) The sources and amounts of funding expected to complete the anticipated projects are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
f. Art in Public Places Fee
(1) This fee will be used to support placing approved artwork at the development sites to balance the community's physical growth and revitalization with its cultural and artistic resources.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated cost of future artwork related to future development.
(3) The sources and amounts of funding expected to complete the anticipated projects are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
g. Tree Replacement Fee
(1) This fee will be used for plantings on public land where applicants remove existing trees on development sites.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the value of each tree that is to be removed relative to the tree that is to be replaced.
(3) The sources and amounts of funding expected to complete the anticipated projects (4) The approximate dates on which the necessary funding is expected to be deposited h. Below Market Rate Housing Fee
(1) This fee will be used to support affordable housing that is necessary in order to serve new development.
(2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated need for affordable housing that will be generated by new development.
(3) The Below Market Rate Housing Fee will continue to be collected to build its fund balance, and potential housing related projects will be identified as the fund balance reaches to an appropriate level.
i. Park In-Lieu Fee
(1) This fee will be used for park and recreation facilities to serve the subdivision. (2) There is a reasonable relationship between the fee and its purpose, because the amount of the fee is determined based upon the anticipated need for park and recreation facilities that will be generated by new subdivisions. (3) The sources and amounts of funding expected to complete the anticipated projects are shown in Exhibit A.
(4) The approximate dates on which the necessary funding is expected to be deposited are shown in Exhibit A.
Exhibit A
City of San Mateo
Public Improvement Project Expenditures Related to the Mitigation Fee Act and Quimby Act Five-Year Plan
Anticipated Expenditure Timeline
Carryforward
Budget
Projects* Funding Source Remaining 2024-25 2025-26 2026-27 2027-28 2028-29 Total 310330 Art In Public Places Art in Public Places 1,281,589 1,281,589 310600 Child Care Facilities Childcare Development Fee 3,387,840 3,387,840 310416 Housing Land Purchase New Below Market Rate Housing Fee 2,560,924 2,560,924 310416 Housing Land Purchase New Commercial Linkage Fee 4,000,000 4,000,000 610027 Central Park Park Impact / Park In-Lieu Fees 9,245,989 3,700,000 2,900,000 15,845,989 610017 Citywide Park Play Area Upgrade - Historic Park Impact / Park In-Lieu Fees 5,512,976 (3,700,000) 1,812,976 610035 Citywide Park Special Facilities Upgrade Park Impact / Park In-Lieu Fees 8,189 8,189 618278 Golf Course - Well Drilling Park Impact / Park In-Lieu Fees 450,919 53,000 250,000 753,919 618280 Golf Course Upgrades 2018-19 Park Impact / Park In-Lieu Fees 85,000 85,000 TBD Japanese Garden Repairs Park Impact / Park In-Lieu Fees 250,000 250,000 46F037 Joinville Pool Assessment & Improvements Park Impact / Park In-Lieu Fees 54,189 54,189 46F036 King Pool Assessment & Improvements Park Impact / Park In-Lieu Fees 33,153 3,000,000 3,000,000 6,033,153 TBD Lakeshore Childcare Park Impact / Park In-Lieu Fees 2,500,000 2,500,000 TBD Laurelwood Park Park Impact / Park In-Lieu Fees 775,000 775,000 TBD Laurelwood Park Playground Park Impact / Park In-Lieu Fees 1,610,000 1,610,000 610012 Laurelwood/Sugarloaf Open Space Park Impact / Park In-Lieu Fees 57,685 57,685 612917 Park Ren Shoreview Park Mp & Imp Park Impact / Park In-Lieu Fees 42,845 42,845 610060 Parks Irrigation Controller Upgrade Park Impact / Park In-Lieu Fees 55,495 100,000 100,000 255,495 TBD Parkside Aquatic Play Area Park Impact / Park In-Lieu Fees 400,000 400,000 610036 Recreation Facilities Strategic Plan Park Impact / Park In-Lieu Fees 74,173 74,173 46F019 Shoreview Pickleball Courts Park Impact / Park In-Lieu Fees 300,000 300,000 610038 Skate Plaza Updates Park Impact / Park In-Lieu Fees 355,767 85,000 440,767 610023 Sports Fields Conversion: Synthetic Turf Park Impact / Park In-Lieu Fees 356,793 500,000 1,000,000 500,000 2,356,793 461007 New Downtown Parking Garage Parking In-Lieu Fee 200,000 200,000 46F025 Parking Facility Structural Repairs Parking In-Lieu Fee 1,358,892 1,358,892 Sewer Fund / Public Financing /
465003 Basins 2 and 3 Collection System Improvements
Wastewater Capacity Charge 50,891,535 855,000 51,746,535 467005 20th Ave/El Camino Real Southbound Right Turn Lane Transportation Impact Fee 280,872 280,872 460049 Poplar Avenue / Humboldt Street Signal Modify - Left Turn Transportation Impact Fee 753,588 753,588 466600 Citywide Traffic Calming Transportation Impact Fee 150,000 150,000 150,000 150,000 150,000 750,000 460037 El Camino At Highway 92 Landscape Improv Transportation Impact Fee 650,014 1,650,000 2,300,014 465157 Hillsdale/US 101 Bridge Overcrossing Transportation Impact Fee 90,000 90,000 46R008 Railroad Ave Wall Enhancement Transportation Impact Fee 1,527,341 1,527,341 466601 Traffic Model Update Transportation Impact Fee 202,210 202,210 46R024 Bike San Mateo Program Transportation Impact Fee 700,000 700,000 700,000 2,100,000 610008 Tree Planting - Parks Division Tree Replacement Fee 255,803 350,000 175,000 175,000 175,000 175,000 1,305,803 • Specific details on each of these projects can be found in the five-year capital improvement program section in the City's 2024-25 Budget, which was adopted by City Council on June 17, 2024.