____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting:
Disposition:
Agenda Item No: 2.d
Meeting Date: February 2, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Sullina D. Smith,
Senior Management Analyst
City Manager Approval: ______________
TOPIC: AGREEMENTS FOR DEVELOPMENT OF IMPACT FEE NEXUS STUDIES SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO (1) AMEND THE EXISTING
PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON ASSOCIATES, INC. FOR ADDITIONAL WORK RELATED TO THE PARK IMPACT FEE NEXUS STUDY FOR A NEW NOT TO EXCEED AMOUNT OF $48,571, AND (2) ENTER INTO A
NEW PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON ASSOCIATES, INC. FOR ADDITIONAL DEVELOPMENT IMPACT FEE NEXUS STUDIES IN THE NOT TO EXCEED AMOUNT OF $76,560, FOR A COMBINED TOTAL NOT TO EXCEED AMOUNT OF $125,131
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to (1) amend the existing Professional Services Agreement with Keyser Marston Associates, Inc. for additional work related to the Park Impact Fee nexus study for a new not to exceed amount of $48,571, and (2) enter into a new Professional Services Agreement with Keyser Marston Associates, Inc. for additional Development Impact Fee nexus studies in the not to exceed amount of $76,560, for a combined total not to exceed amount of $125,131.
BACKGROUND:
Development Impact Fees are fees paid by new development to help fund public facilities and infrastructure needed to serve the growth created by the new development, such as parks, public safety facilities, and long-range planning efforts. State law requires that nexus studies support these fees by demonstrating a clear and legally defensible relationship between new development, the demand it creates for public facilities, and the proportionate cost assigned to that development. These requirements are set forth in the Mitigation Fee Act (Government Code Section 66000 et seq.).
The City of San Rafael periodically reviews and updates its Development Impact Fee programs to ensure compliance with state law, fairness in how fees are applied, and alignment with current construction costs and community needs. Recent increases in development activity, rising land and construction costs, and changes in state housing laws have highlighted the need to update several long-standing fee programs to ensure they remain accurate, equitable, and legally sound.
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In January 2025, the City entered into a Professional Services Agreement with Keyser Marston Associates, Inc. (KMA), to prepare a nexus study for the City’s Park Dedication In-Lieu Fee (Park Impact Fee). As work on that study progressed, staff identified additional Development Impact Fee programs that also require updated technical analysis and nexus documentation. Given KMA’s familiarity with the City’s existing fee programs, development data, and policy framework, staff determined that continuing work with KMA would provide continuity for these studies.
ANALYSIS:
This item authorizes two related contractual actions with KMA: an amendment to the existing Professional Services Agreement for additional work related to the Park Impact Fee nexus study, and a new Professional Services Agreement for additional Development Impact Fee nexus studies. Although these actions are structured as two separate contracts, the combined total cost exceeds the City Manager’s contract signing authority. For this reason, City Council approval is required to authorize both the amendment and the new agreement.
The amendment to the existing agreement formalizes additional analysis and refinement undertaken as part of drafting the Park Impact Fee nexus study. This work supports the City’s ability to update and administer park-related development impact fees in a manner that is legally defensible and aligned with current costs.
The new Professional Services Agreement will support a coordinated set of Development Impact Feerelated analyses and nexus studies that address other City fee programs. This work will help ensure that the City’s overall development impact fee structure remains legally compliant, equitable, and responsive to current development conditions and policy goals. The services to be completed under the new agreement include the following:
• Comparative Aggregate Fee Analysis
Evaluation of the City’s cumulative development impact fee burden in comparison to peer jurisdictions to assess overall competitiveness and cumulative fee impacts. • General Plan Cost Recovery Fee Nexus Study
Preparation of a nexus study to support a General Plan Cost Recovery Fee • Inflation Adjustment of the 1989 Fair Market Value Determination Update the City’s 1989 Fair Market Value determination to reflect inflationary changes and support current fee calculations.
• Public Safety Impact Fee Nexus Study
Preparation of a nexus study to support public safety impact fees.
Together, these analyses provide the technical foundation needed to inform future Development Impact Fee updates and City Council policy decisions. The detailed scopes of work for both the amended agreement and the new Professional Services Agreement are included in the draft agreements attached to this staff report.
FISCAL IMPACT:
The proposed contract amendment and new Professional Services Agreement total a combined $125,131. Funding to support these agreements is provided through existing FY 2025-26 budget appropriations within the General Plan Special Revenue Fund (102).
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt the resolution as presented.
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2. Adopt the resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to (1) amend the existing Professional Services Agreement with Keyser Marston Associates, Inc. for additional work related to the Park Impact Fee nexus study for a new not to exceed amount of $48,571, and (2) enter into a new Professional Services Agreement with Keyser Marston Associates, Inc. for additional Development Impact Fee nexus studies in the not to exceed amount of $76,560, for a combined total not to exceed amount of $125,131.
ATTACHMENTS:
1. Resolution
2. Amendment to Professional Services Agreement
3. New Professional Services Agreement
RESOLUTION NO.
RESOLUTION AUTHORIZING THE CITY MANAGER TO (1) AMEND THE EXISTING
PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON
ASSOCIATES, INC. FOR ADDITIONAL WORK RELATED TO THE PARK IMPACT FEE NEXUS STUDY FOR A NEW NOT TO EXCEED AMOUNT OF $48,571, AND (2)
ENTER INTO A NEW PROFESSIONAL SERVICES AGREEMENT WITH KEYSER MARSTON ASSOCIATES, INC. FOR ADDITIONAL DEVELOPMENT IMPACT FEE NEXUS STUDIES IN THE NOT TO EXCEED AMOUNT OF $76,560, FOR A COMBINED TOTAL NOT TO EXCEED AMOUNT OF $125,131.
WHEREAS, the Mitigation Fee Act (Government Code Section 66000 et seq.) authorizes the City of San Rafael (City) to impose development impact fees supported by studies establishing a legal nexus between the fees and the impact of the development; and WHEREAS, in January 2025 the City entered into a Professional Services Agreement with Keyser Marston Associates, Inc. in the amount of $25,300 to prepare a nexus study for the City’s Park Dedication In-Lieu Fee (Park Impact Fee); and WHEREAS, additional analysis related to the Park Impact Fee nexus study and additional Development Impact Fee nexus studies are needed to support the City’s fee programs; and
WHEREAS, the City seeks to amend the existing Professional Services Agreement and enter into a new Professional Services Agreement with Keyser Marston Associates, Inc. to complete this work; and
WHEREAS, funding to cover the cost of the proposed contract amendment as well as the new Professional Services Agreement is provided for in the approved FY2025-26 budget through appropriations within the General Plan Special Revenue Fund (102); and WHEREAS, although the amendment and the new agreement are structured as separate contracts, the combined total contract amount exceeds the City Manager’s contract signing authority and requires City Council approval.
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes as follows:
1. That all the above findings are true and correct; and
2. The City Council hereby authorizes the City Manager to amend the existing Professional Services Agreement with Keyser Marston Associates, Inc., which was originally approved in the amount of $25,300, for additional work related to the Park Impact Fee nexus study, increasing the total agreement amount by $23,271 to $48,571; and
3. The City Council hereby authorizes the City Manager to enter into a new Professional Services Agreement with Keyser Marston Associates, Inc. for additional Development Impact Fee nexus studies, in an amount not to exceed $76,560; and
4. The City Council hereby authorizes a combined total contract amounts for the amendment and the new agreement in a combined amount not to exceed $125,131, subject to availability of funds and in substantially the form of the agreements on file with the City Clerk.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 2nd day of February 2026, by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers: ________________
Lindsay Lara, City Clerk