2e381b11-3.b-update-to-park-impact-fee-programs-and-nexus-study

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 3.b
Meeting Date: May 18, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Micah Hinkle,
Director of Community &
Economic Development
Catherine Quffa,
Director of Library and Recreation
Sullina D. Smith,
Senior Management Analyst II
City Manager Approval: ______________
TOPIC: UPDATE TO PARK IMPACT FEE PROGRAMS AND NEXUS STUDY SUBJECT:
 INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 3.24, ENTITLED “PARK AND RECREATION FACILITIES FEE,” AND CHAPTER 15.09, ENTITLED “PARK DEDICATION AND IN-LIEU FEES,” OF THE SAN RAFAEL MUNICIPAL CODE; CEQA DETERMINATION:

EXEMPT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21065 AND CEQA GUIDELINES SECTIONS 15378, 15262, 15273, AND 15061(b)(3), AND  RESOLUTION ADOPTING THE PARK NEXUS STUDY AND ASSOCIATED PARK AND

RECREATION FACILITIES PROJECT LIST, ADOPTING UPDATED CHARGES FOR THE

PARK AND RECREATION FACILITIES FEE, AND ADOPTING UPDATED PARK DEDICATION REQUIREMENTS AND PARK DEDICATION AND IN-LIEU FEES; CEQA DETERMINATION:

NOT A PROJECT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21065; CEQA GUIDELINES SECTION 15378 AND EXEMPT PURSUANT TO CEQA GUIDELINES SECTIONS 15262,15273, AND 15061(b)(3)
RECOMMENDATION:

Staff recommends that the City Council:

1. Introduce an Ordinance amending Chapter 3.24, entitled “Park and Recreation Facilities Fee,” and Chapter 15.09, entitled “Park Dedication and In-Lieu Fees,” of the San Rafael Municipal Code, waive further reading of the Ordinance and refer to it by title only; and

2. Adopt a Resolution Adopting the Park Nexus Study and Associated Park and Recreation Facilities Project List, Adopting Updated Charges for the Park and Recreation Facilities Fee, and Adopting Updated Park Dedication Requirements and Park Dedication and In-lieu Fees.

BACKGROUND:

Development impact fees are a vital and legally authorized funding mechanism that enables local governments to offset the cost of public infrastructure necessitated by new development. These fees SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
must be supported by a nexus study that establishes a clear, evidence-based connection between new development and its impacts. Such studies ensure that fees are proportional, equitable, and in compliance with the Mitigation Fee Act (Government Code Section 66000 et seq.), thereby making them legally defensible.

While this staff report focuses on updating the City of San Rafael’s (City) park-related development impact fees, the City is engaged in a broader, multi-year initiative to review and update all of its major development impact fee programs. These include the Traffic Mitigation Fee, the Affordable Housing Fee, and the Park and Recreation Facilities Fee, which encompasses the Parkland Dedication In-Lieu Fee.

The park fee programs are the first to be updated, and staff will return to the City Council in the future with additional nexus studies and recommendations for the other fee programs, including the consideration of a new Public Safety Facilities Impact Fee.

This effort reflects a broader statewide trend, as cities that historically experienced little development are now seeing increased growth due to state housing laws that accelerate residential construction. Many jurisdictions, including San Rafael, are revisiting long-standing impact fees to ensure they remain legally compliant and keep pace with growing demand, so new development contributes its fair share toward needed public facilities. This initiative was also identified as a priority in the Citywide Parks and Recreation Master Plan, adopted by the City Council in April 2023, which calls for strengthening the longterm sustainability of San Rafael’s park system through updated and cost-effective financing strategies.

The City of San Rafael has long required new residential development to contribute to its parks and recreation infrastructure. In 1971, the City Council adopted Ordinance No. 1029, which added Chapter

3.24 to Title 3 of the San Rafael Municipal Code, establishing the City’s Park and Recreation Facilities Fee. This ordinance authorized the City to impose fees in connection with the construction of dwelling units to fund the acquisition, improvement, and expansion of public parks, playgrounds, and recreation facilities. In 1989, the City Council adopted Ordinance No. 1558, which added Chapter 15.38 to the San Rafael Municipal Code (now codified as Chapter 15.09), establishing the City’s Park Dedication and InLieu Fees program pursuant to the Quimby Act (Government Code Section 66477). This ordinance authorized the City to require the dedication of land, payment of in-lieu fees, or a combination of both, as a condition of approval for residential subdivision projects to fund the acquisition, development, or rehabilitation of parkland or related improvements.

Today, residential growth continues to place an increasing demand on San Rafael’s existing park and recreation facilities. To address this, the City initiated a comprehensive update to both park fee programs to ensure that new development continues to contribute its fair share toward expanding and preserving the park system. This update addresses several key factors, including compliance with recent state law changes, such as Assembly Bill 602, the need to maintain equity and fiscal responsibility in fee application, substantial increases in land acquisition and construction costs, and the growing demand for parks and recreational amenities generated by new development. The overarching objective of the fee update is to establish a fair, transparent, and legally defensible fee structure that ensures growth pays for growth while supporting the community’s long-term quality of life.

In January 2025, the Community & Economic Development Department, in coordination with the Library & Recreation Department, engaged Keyser Marston Associates, Inc. (KMA) to prepare a new nexus study. The resulting Draft Parkland Dedication In-Lieu Fee and Parkland and Recreation Facility Development Impact Fee Nexus Study (Nexus Study), dated August 18, 2025 (Attachment 3), provides the necessary legal, technical, and policy foundation to support the proposed fee updates.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
At the April 14, 2026 City Council Finance Subcommittee meeting, staff presented the Nexus Study findings, including the full fee burden market comparison, and staff’s recommendation to adopt the maximum allowable fee levels.

ANALYSIS:

The Nexus Study establishes the maximum fee levels the City could adopt under the Mitigation Fee Act based on the projected impacts of new residential development. It also satisfies Assembly Bill 602 requirements by updating the analysis, incorporating a capital improvement plan, and calculating fees in proportion to unit square footage.

As required under Government Code Section 66324(c)(1), the Park and Recreation Facilities Fee, and the Park Dedication and In-Lieu Fees shall not apply to accessory dwelling units of less than 750 square feet.

Capital Improvement Planning
To meet the capital improvement plan requirement, staff reviewed projects identified in the City’s Parks and Recreation Master Plan as well as planned parks capital improvement projects to identify those eligible for funding through Parks and Recreation Facilities fees, such as park and community center renovations, new amenities, and land acquisition. Estimated costs for identified projects exceed $113 million based on current construction pricing, with approximately $110 million attributable to new development. This methodology, as applied in the Nexus Study, results in proposed per-square-foot fees that reflect the relationship between new development and its share of park and recreation system costs.

Park Dedication and In-Lieu Fee – pursuant to SRMC Chapter 15.09 and the Quimby Act The Nexus Study provides an updated methodology for calculating the Parkland Dedication In-Lieu Fee, which are applied to subdivision projects, ensuring that the fee reflects current land values, development patterns, and the level of parkland needed to serve new residential growth.

The Nexus Study demonstrates a clear and reasonable relationship between new residential development and the need for additional parkland, establishing the essential nexus required to support the Park Dedication In-Lieu Fee. The fee is structured to fund only those costs directly attributable to new development and is not imposed for general revenue purposes. Instead, it is levied to support the acquisition and dedication of parkland consistent with the types of improvements identified in the Nexus Study. The fee does not exceed the estimated reasonable cost of providing the required land and is proportionate to the impacts generated by new developments.

Recommended Parkland Dedication In-Lieu Fees for Residential Subdivision Units Percent of Maximum Single Family Detached
Fee per Unit
Multi-Family
Fee per Unit
100% $12,596 $11,282
(Recommended fees include a 2% administrative allowance.) In addition, staff recommends adopting updated parkland dedication requirements for residential subdivision projects, reflecting the City’s current service level of 1.824 acres per 1,000 residents and updated average household size assumptions, to ensure that new development contributes its proportionate share of land to support the City’s park system.

Recommended Parkland Dedication Requirements for Residential Subdivision Units SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
Avg. Household
Size
Quimby Standard
(Acres per 1,000 pop.)
Sq. Ft. of Park Land per
Dwelling Unit
Single Family
Detached Units 2.59 1.824 206 (205.78)
Multi-Family Units 2.32 1.824 184 (184.33)
Under the updated fee structure, Subdivision projects will be subject to both the Parkland Dedication InLieu Fee and the Recreation Facility Development Impact Fee, ensuring that new development contributes toward both parkland acquisition and recreation facility improvements. Because Subdivision projects already satisfy parkland acquisition requirements through the Parkland Dedication In-Lieu Fee established pursuant to the Quimby Act, they are not subject to the parkland acquisition component included in the Parkland and Recreation Facility Development Impact Fee applicable to Non-Subdivision projects. This approach avoids duplicative parkland acquisition charges while ensuring subdivision projects contribute their proportional share toward recreation facility improvements. Together, the updated dedication requirements and fee structure modernize the City’s park impact fee program by aligning it with current legal standards, improving transparency, and ensuring proportionality between development impacts and required contributions.

As an alternative to paying the full in-lieu fee, developers may dedicate land of equivalent value, based on the same calculation used for the fee, or choose a combination of partial land dedication and a reduced fee payment. This flexibility ensures that project applicants have multiple pathways to comply with the parkland requirement while maintaining proportionality to the impacts of their development.

Park and Recreation Facilities Fee – pursuant to SRMC Chapter 3.24 and the Mitigation Fee Act The Nexus Study confirms that current Park and Recreation Facilities Fees are well below the actual cost of serving new development and have not been comprehensively analyzed in many years. In compliance with State law, the updated fee schedule bases fees on square footage and reflects the full maximum fee levels supported by the Nexus Study. This update aligns the fee program with current conditions and ensures that new development contributes proportionately toward park and recreation facilities.

The Nexus Study demonstrates a clear and reasonable relationship between new residential development and the need for additional parkland and recreation facilities, establishing the essential nexus required to support the Park and Recreation Facilities Fee. Like the Parkland Dedication In-Lieu Fee, this fee is structured to fund only those costs directly attributable to new development and is not imposed for general revenue purposes. Instead, it is levied to support the acquisition, improvement, and expansion of park and recreation facilities consistent with the types identified in the Park Facilities Impact Fee Project List, included in the Nexus Study. The fees do not exceed the estimated reasonable cost of providing these facilities and are proportionate to the impacts generated by new developments.

The recommended fees for subdivision units are less than the recommended fees for non-subdivision units because the subdivision fees only include the park and recreation facilities costs and the nonsubdivision fees include both parkland and park and recreation facilities costs.

Recommended Recreation Facility Development Impact Fees for Residential Subdivision Units Percent of Maximum Single Family Detached
Fee per Sq. Ft.

Multi-Family
Fee per Sq. Ft.
100% $4.50 $8.35
(Recommended fees include a 2% administrative allowance.) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Recommended Parkland and Recreation Facility Development Impact Fees for Non-Subdivision Units
Percent of Maximum Single Family Detached
Fee per Sq. Ft.

Multi-Family
Fee per Sq. Ft.
100% $9.98 $18.50
(Recommended fees include a 2% administrative allowance.) Overall, the proposed fee updates establish a clear, consistent, and legally defensible framework that aligns development impacts with infrastructure funding, supports the City’s long-term service goals, and reduces reliance on existing residents to fund growth-related improvements.

The proposed fee updates are consistent with the goals of the City’s General Plan 2040, which emphasizes sustainable growth, expanded access to parks, and fiscal responsibility. By aligning fees with the cost of providing facilities needed to serve new development, the City can maintain service levels while accommodating future growth.

Full Fee Burden Market Comparison
To provide additional context for evaluating the proposed fee updates, staff conducted a comprehensive fee-burden market comparison that examines the total cost of development impact fees across multiple categories, including parks, traffic, utilities, schools, and other applicable fees. This analysis reflects how development projects experience fees in practice, rather than evaluating individual fee categories in isolation.

The comparison applies representative development prototypes, including a townhome (subdivision) project and a mid-rise apartment (non-subdivision) project, to evaluate San Rafael’s total fee burden relative to peer jurisdictions across Marin County and the broader Bay Area. Key findings from this analysis include:
• For non-subdivision projects, which represent the majority of development activity in San Rafael, adoption of the maximum allowable fees would place the City approximately at the regional average for total fee burden.
• For subdivision projects, adoption of the maximum allowable fees would place the City modestly (approximately 12%) above the current market average , while remaining comparable to or below nearby jurisdictions such as Novato.
• Even at maximum fee levels, San Rafael remains competitive within the regional context, particularly as many peer jurisdictions are actively updating their development impact fees.

These findings indicate that adoption of the maximum allowable fees is consistent with regional conditions while maintaining the City’s competitiveness. It is also important to note that, even when the maximum allowable park impact fee is considered, approximately 45-50% of the overall impact fee burden is levied by other local agencies (e.g., water, sewer, schools).

Additional detail, including assumptions and methodology, is provided in Attachment 4.

Recommended Fee Levels
In considering the adoption of updated fees, the City Council may adopt the maximum justifiable fee identified in the Nexus Study or adopt a lower amount. Based on an evaluation of other agency fees in the Bay Area, staff recommends adoption of the maximum allowable fee levels identified in the Nexus Study, effective 60 days after adoption. Adopting the maximum fee levels ensures that new development SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
pays its full, proportionate share toward parkland acquisition and recreation facility improvements, consistent with the Nexus Study and State law requirements.

As demonstrated in the market analysis, this approach places San Rafael at or near the regional average for total fee burden for non-subdivision projects and maintains competitiveness for subdivision projects, while ensuring that new development fully mitigates its impact on the City’s park and recreation system.

Adopting fees below the maximum would result in a funding gap between the cost of park infrastructure needed to serve new development and the revenue generated by the fee program, effectively requiring subsidy from existing residents or resulting in reduced service levels.

While staff recommends adoption of the maximum allowable fees at this time, the City Council retains the flexibility to revisit fee levels in the future as part of broader development impact fee updates or in response to changing market conditions.

To maintain alignment with rising land and construction costs, staff also recommends annual indexing of the fees using the Engineering News-Record (ENR) Construction Cost Index. This ensures the fees remain consistent with the actual cost of providing parkland and recreation facilities over time.

If adopted, the updated fee schedules will be incorporated into the City’s Master Fee Schedule and will take effect 60 days after adoption, consistent with legal requirements. Importantly, the proposed changes will not impact development projects that are already vested. Projects with vested rights, including those protected under Senate Bill 330, will remain subject to the fee schedules in effect at the time those rights were established.

COMMUNITY OUTREACH:

The City complied with all legal requirements by publishing public hearing notices in the Marin Independent Journal on April 17 and April 24, 2026. These notices informed the public of the upcoming San Rafael City Council public hearing scheduled for Monday, May 18, 2026, regarding the proposed park impact fee updates and the adoption of the Nexus Study. The notices included details such as the meeting time and location, contact information for City staff for those wishing to obtain additional information about the data supporting the fees, and instructions on how to submit public comments.

No formal requests for notice were filed. Nevertheless, the City provided direct notice to the Marin Builders Association and the San Rafael Chamber of Commerce to ensure stakeholders remained informed. The draft Nexus Study was also made available for public review on the City’s website more than 14 days before the hearing, providing an opportunity for public review and feedback.

Beyond formal noticing, staff conducted early and ongoing outreach to solicit policy-level input. An initial overview of the Nexus Study’s progress was presented to the City Council Finance Subcommittee during its regular meeting on May 13, 2025, with a follow-up update at the regular meeting on September 2, 2025. Additionally, staff conducted meetings with key local stakeholders, including the Marin Builders Association and the San Rafael Chamber of Commerce, to discuss and preview potential policy changes and gather input from these community groups.

Feedback from these stakeholders was mixed. While there was general acknowledgment that new development should contribute its fair share toward infrastructure, stakeholders also expressed concern about the cumulative cost burden on development. In particular, one developer noted that the proposed fee levels could impact the financial feasibility of housing projects. At the same time, there was a shared SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
understanding of the importance of establishing a fee structure that is fair, transparent, and supports continued investment in San Rafael’s growth.

On April 14, 2026, staff presented the Park Impact Fee update, including the Nexus Study findings and staff’s recommendation, to the City Council Finance Subcommittee. In April 2026, staff also launched a dedicated project webpage to provide centralized access to information related to the Park Impact Fee update, including the Nexus Study, staff reports, and supporting materials, as well as information on the City’s broader development impact fee updates. This webpage was distributed through targeted email outreach to stakeholders, including developers, project applicants, neighborhood groups, and community organizations, to increase transparency and provide an opportunity for ongoing engagement.

ENVIRONMENTAL DETERMINATION:

Environmental Review. Adoption of the Nexus Study and the Parks and Recreation Facilities Project List (“Project List”), which serves as the Capital Improvement Program required by Government Code section 66016.5, does not constitute a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378. While CEQA requires environmental review to occur at the earliest feasible stage, CEQA does not require review of actions that are speculative, conceptual, or preliminary in nature and that do not commit the City to a definite course of action that may result in a physical change in the environment.

The Nexus Study and Project List are planning-level fiscal and policy documents that identify conceptual public facility needs and provide general cost estimates for long-range capital planning, budgeting, and rate-setting purposes only. Adoption of the Nexus Study and Project List do not approve, fund, or authorize construction of any specific capital improvement project; do not establish final project descriptions, locations, designs, construction methods, phasing, or schedules; and do not commit the City to proceed with any particular project identified in the Project List. The City retains full discretion to modify, defer, redesign, relocate, or decline to pursue any project listed in the Project List. Accordingly, adoption of the Project List does not represent a commitment to a definite course of action within the meaning of CEQA and does not result in any direct or reasonably foreseeable indirect physical change to the environment.

Even if adoption of the Nexus Study, Project List, or fee amendments were considered a “project” for purposes of CEQA, then consistent with CEQA Guidelines section 15378(b)(4), adoption of the Project List and fee amendments constitutes the establishment of a government funding mechanism and longrange fiscal planning tool. Section 15378(b)(4) provides that a “project” does not include fiscal activities or administrative actions that do not involve any commitment to a specific project or physical development. The Project List functions solely to inform budgeting, financial planning, and infrastructure funding decisions and does not authorize or entitle any physical development.

The Nexus Study and Project List also qualify as a feasibility and planning study that is exempt from CEQA under CEQA Guidelines section 15262, as it evaluates potential public facility needs and funding strategies at a conceptual level, prior to the City’s approval, adoption, or funding of any specific capital improvement project. Environmental review at this stage would be premature and speculative, as the City lacks sufficient project-level detail to meaningfully analyze environmental impacts or alternatives.

In addition, because the Nexus Study and Project List are prepared in connection with the establishment and adjustment of fees and rates to finance public facilities, adoption of these documents and related fee amendments is exempt under CEQA Guidelines section 15273. Section 15273 recognizes that public agencies must be able to engage in fiscal planning and establish funding mechanisms to meet SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
infrastructure and capital financing needs without triggering CEQA review before any specific project has been approved or defined.

Adoption of the Nexus Study and Project List expressly reserves full discretion to the City Council and other decision-making bodies to approve, deny, modify, or pursue alternatives for any individual capital project identified in the Project List, including alternative designs, locations, phasing, or funding approaches. No construction, ground-disturbing activity, or irreversible commitment of resources will occur unless and until the City takes separate future discretionary actions to approve a specific project, following appropriate environmental review under CEQA. Adoption of the Project List does not limit the range of alternatives available to the City or predetermine the outcome of any future CEQA analysis.

Finally, the action is exempt under the common sense exemption set forth in CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that adoption of the Nexus Study, Project List, and related fee amendments, by themselves, have no possibility of resulting in a significant effect on the environment. Any future capital improvement projects would be subject to separate discretionary approvals and environmental review in accordance with CEQA and City practice.

FISCAL IMPACT:

Adopting the updated Park and Recreation Facilities Fees and Parkland Dedication In-Lieu Fees will provide a dedicated revenue source to fund park and recreation capital improvements directly related to new residential development.

Over the 15-year planning horizon identified in the Nexus Study, the proposed Park and Recreation Facilities Fees are estimated to generate approximately $63.3 million in revenue at the maximum allowable rate established by the Nexus Study. These funds will be used exclusively for the acquisition, development, and improvements of parkland and recreation facilities, consistent with the Park Impact Fee Project List and applicable state law. Additional revenues would be generated through the updated Parkland Dedication In-Lieu Fees, to the extent that applicants for Subdivision projects opt to pay a fee instead of providing parkland acreage as a component of their project.

The Nexus Study identifies approximately $113 million in eligible park capital improvement projects, with roughly $110 million attributable to new development. The Study establishes maximum legally defensible fee levels and staff recommends adopting these maximum rates to ensure new development funds its proportional share of growth-related improvements.

Setting fees below the maximum would result in a measurable amount of foregone revenue that would otherwise offset the cost of these improvements. This shortfall would effectively shift a portion of the cost burden from new development to the City, requiring either General Fund subsidy, reliance on other discretionary funding sources, or a reduction in the overall service level the City is able to provide to the community. In the absence of such funding, reduced fee levels could limit the scope, timing, or delivery of planned park and recreation improvements. No alternative funding has been identified in the current budget to address this potential gap.

OPTIONS:

The City Council has the following options to consider on this matter:

1. Conduct a public hearing, introduce the ordinance, waive further reading of the ordinance, and refer to it by title only.

2. Conduct a public hearing, introduce the ordinance with modifications, waive further reading of the ordinance, and refer to it by title only.

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9

3. Adopt resolution with modifications.

4. Direct staff to return with more information.

5. Take no action.

RECOMMENDED ACTION:

Staff recommends that the City Council:

ATTACHMENTS:

1. Ordinance amending SRMC Chapter 3.24 entitled “Park and Recreation Facilities Fee” and Chapter 15.09 entitled “Park Dedication and In-Lieu Fees”

2. Resolution

3. Draft Parkland Dedication In-Lieu Fee and Parkland and Recreation Facility Development Impact Fee Nexus Study

4. Market Comparison of Development Impact Fees for Residential Development 1 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 3.24, ENTITLED “PARK AND RECREATION FACILITIES FEE,” AND CHAPTER 15.09, ENTITLED “PARK DEDICATION AND IN-LIEU FEES,” OF THE SAN RAFAEL MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. FINDINGS.

WHEREAS, the City of San Rafael (“City”) desires to update the San Rafael Municipal Code (“SRMC”) provisions regarding the City’s Park and Recreation Facilities Fee and Park Dedication and In-Lieu Fees; and
WHEREAS, the Mitigation Fee Act, contained in Government Code section 66000 et seq., permits the City to impose development impact fees on new development for the purposes of funding the public facilities necessary to serve that new development; and WHEREAS, the City’s current Park and Recreation Facilities Fee requirements are contained in SRMC, Chapter 3.24, entitled “Park and Recreation Facilities Fee”; and WHEREAS, SRMC Section 3.24.040 sets forth a fee program to fund the costs associated with increased demand for community and neighborhood parks and recreational facilities created by new development. New development will increase the need for such park and recreation facilities within the City; and WHEREAS, the City desires to begin imposing a Park and Recreation Facilities Fee, consistent with the updated fee program set forth in SRMC Section 3.24.040, on new development to fund the costs associated with constructing and expanding park and recreation facilities and to update the fee to bring it in line with current City objectives; and
WHEREAS, California Government Code section 66477 (the “Quimby Act”) allows legislative bodies of cities to adopt an ordinance requiring the dedication of land or to impose fees in lieu thereof, or a combination of both, for park or recreation purposes, as a condition of approval of a tentative map or parcel map; and WHEREAS, the City’s current Park Dedication and In-Lieu Fees requirements are contained in SRMC, Chapter 15.09, entitled “Park Dedication and In-Lieu Fees”; and WHEREAS, the City Council desires to amend the City’s existing ordinance regarding the dedication of parkland and the payment of in-lieu fees to update the Parkland Dedication and In-Lieu Fees Ordinance consistent with state law. 2 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 2. AMENDMENT OF MUNICIPAL CODE. Chapter 3.24 of Title 3 of the Municipal Code of the City of San Rafael is hereby amended to repeal and replace the chapter with the following:

Chapter 3.24 – PARK AND RECREATION FACILITIES FEE
Section 3.24.010 – Findings and intent.

The City Council hereby finds and declares that:
(a) New development increases demand on existing park and recreation facilities and creates the need for expanded or new facilities to serve new development. The purpose of this chapter is to enable the collection of mitigation fees to be used for the purpose of developing new or expanding existing park and recreation facilities.
(b) It is the City’s intent and desire to require that new development contribute its fair share toward the purchase, development and/or improvement of park and recreation facilities.
(c) The imposition of impact fees is one of the customary methods of ensuring that development bears a proportionate share of the cost of capital facilities necessary to accommodate such development in order to promote and protect the public health, safety and welfare.
(d) The provisions of this chapter are consistent with the City of San Rafael general plan and enacted pursuant to Section 66000 et seq. of the California Government Code (the “Mitigation Fee Act”).
(e) This fee shall be known as the “Park and Recreation Facilities Fee for the City of San Rafael.”
Section 3.24.020 – Purpose.

The purpose of the Park and Recreation Facilities Fee is to fund the creation and improvement of park and recreation facilities, including, but not limited to, the planning, designing, developing, and improving of existing and newly acquired park and recreation facilities related to new development and ensure that new development pays for its fair share of park and recreational facilities.

Section 3.24.030 – Definitions.

For the purposes of this chapter, the following terms shall be defined as follows:
3 (a) “Building permit” includes full structural building permits as well as partial permits such as foundation-only permits or tenant improvements. (b) “Certificate of occupancy” as used in this chapter, has the same meaning as in California Government Code Section 66007(e).
(c) “New development” shall mean all new residential building construction that intensifies existing park facilities demands, creates additional impacts on park facilities, and creates one or more new residential units. (d) “Park and Recreation Facilities Fee” shall mean the mitigation fee imposed on new development for the purpose of funding park and recreational facilities related to new development, including funding projects on the Park and Recreation Facilities Fee Project List.
(e) “Project List” shall mean a list of the park facilities funded in part or in whole by the Park and Recreation Facilities Fee. The Project List shall be adopted by resolution of the City Council and may be amended from time to time pursuant to Government Code section 66002.
(f) “Park facilities” shall mean any public improvements deemed necessary by the City to develop, improve or expand land and facilities for park and recreational purposes. Such improvements may include, but are not limited to: grading; landscaped areas for active and passive recreational use, trails and sports fields; irrigation and drainage systems; lawn, shrubs and trees; facilities for recreational community gardening; walkways; bicycle facilities and park lighting; playground or other recreational equipment; picnic facilities; community center or other buildings, swimming pools; volleyball, basketball, tennis, racquetball and other courts; vehicle driveways and parking areas and any other facilities which may hereafter be authorized by state law or approved by the City.

Section 3.24.040 – Establishment of a park facilities and recreation impact fee.

Except as otherwise provided in this chapter, developers of new development shall pay a Park and Recreation Facilities Fee in an amount established by resolution of the City Council in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and demonstrates the reasonable relationship between the need for park facilities and the type of development projects on which the fee will be imposed.

Section 3.24.050 – Exemptions.

The following types of development shall not be required to pay a park facilities and recreation fee:
4 (a) Alterations, renovations or expansion of an existing building or structure that do not add new dwelling units.
(b) Replacement of building square footage or dwelling units on the same lot that does not add new dwelling units.
(c) The replacement of a destroyed or partially destroyed or damaged building or structure that does not add new dwelling units.

Section 3.24.060 – Determination of required fees.
(a) The community development director, or the director’s designee, shall be responsible for determining the fees required by this chapter. This determination shall be made at the time of application for the building permit, unless otherwise required by law.
(b) The park facilities and recreation fee may be modified automatically on an annual basis in accordance with the change in the Engineering News-Record (“ENR”) Construction Cost Index for the San Francisco area. This adjustment shall not require any action of the City Council.

Section 3.24.070 – Payment of fees.
(a) The fees required by this chapter from new development shall be paid at the time the City issues a building permit for each new development project.

Unless otherwise required by law, the amount of the fees to be paid under this chapter shall be in the amount of the fee in effect at the time the fee is paid. (b) Notwithstanding the foregoing, payment of the Park and Recreation Facilities Fee may be deferred to the date of approval of the first temporary certificate of occupancy, the final building inspection, or the issuance of a final certificate of occupancy, whichever occurs first, provided the owner, or lessee if the lessee’s interest appears of record, of the real property for which the fees are required enters into a recordable agreement with the City prior to issuance of the building permit for the development, which shall constitute a lien on the property from the date of recordation and shall be enforceable against successors in interest to the property owner or lessee. The agreement shall provide that approval of the first temporary certificate of occupancy, final building inspection, or final certificate of occupancy for each separate building (if there are multiple buildings) shall not be granted until the impact fees are paid for that building. The agreement shall also provide that, in any action to collect the impact fee or any portion thereof, the City shall be entitled to all of its costs of enforcement and collection, including reasonable attorney’s fees.

The City Manager may execute such agreements on behalf of the City in a form acceptable to the City Attorney.
5 (c) If new development adds additional square footage or dwelling units to a parcel with an existing building, which requires the payment of a new or additional Park and Recreation Facilities Fee, the fee amount associated with the existing use on the project site shall be credited against the new total fee due, as determined by the community development director; provided, however, that in no event shall the City refund the fees previously paid. (1) The fee credit only applies if the existing use on the project site has been active within 8 years prior to the application being filed.

Section 3.24.080 – Park and Recreation Facilities Fee Fund and Accounting. (a) Park and Recreation Facilities Fee Fund. Fees collected pursuant to this chapter shall be deposited in a newly established Park and Recreation Facilities Fee Fund, and shall be segregated and used and expended for the creation of park facilities related to new development, including the acquisition of land, and the improvement and expansion of park and recreation facilities.

Any interest accrued by the account shall be used solely for the purpose of funding park facilities.
(b) Park and Recreation Facilities Fee Accounting. The City shall maintain accounts and prepare reports in accordance with California Government Code Section 66001 et seq.

Section 3.24.090 – Fee adjustments.

Any person subject to a fee required by this chapter may apply to the City Manager, or the City Manager’s designee, for a reduction, adjustment or waiver of that fee based upon the applicant’s contention that (1) the amount of the fee is not reasonably related to the impacts of the applicant’s development project on park and recreation facilities; (2) the fee is not roughly proportionate to the development’s impact on the need for park and recreation facilities; or (3) the fee requires the developer to pay more than is necessary to address the impacts of the new development on park and recreation facilities. (a) Application. An applicant shall file a written request to adjust fees with the community development director, not later than ten days after the City notifies the developer of the amount of the fee to be charged. Additional time, as determined by the community development director, or the director’s designee, will be allowed when significant additional information is required of the developer. The application shall provide evidence illustrating that the payment of the fee authorized by this chapter and imposed by implementing resolution bears no reasonable relationship or nexus with the impact of the development on the need for park facilities within the City and state in detail the factual basis for the request for reduction, adjustment or waiver. If an 6 applicant desires to receive a building permit prior to the completion of the appeal process, applicant shall deposit the fee being appealed with the application. Such fee or portion thereof will be refunded if the appeal is successful.
(b) Decision of the Community Development Director. The community development director, or the director’s designee, shall issue a decision on the application within thirty days after the application is filed with the community development department. The community development director’s, or the director’s designee’s, decision shall state his or her determination regarding the amount of the Park and Recreation Facilities Fee that may reasonably be imposed on the new development and include a brief description of the basis for the director’s decision.
(c) Appeal of the Decision of the Community Development Director. Decisions of the community development director, or the director’s designee, may be appealed to the City manager. Appeals must be filed within ten days of the community development director’s, or the director’s designee’s decision. The City manager shall review the application and evidence presented to the community development director and issue a decision within fifteen days. The decision of the City manager is final and may be protested pursuant to Government Code Section 66020.

Section 3.24.100 – Fee refunds.

Upon application, fees collected by the City pursuant to this chapter shall be refunded under the following circumstances:
(a) Fees collected pursuant to this chapter are erroneously or illegally collected. (b) The building permit expires, and no extension has been granted, for the development project upon which fees were imposed pursuant to this chapter.

An application for refund pursuant to this subsection shall be filed with the community development director no later than ninety days after expiration of the building permit. The amount of refund shall be reduced by an amount to cover the cost to the City for processing the refund.

Section 3.24.110 - Credit for dedication of land.

At the option of the parks and recreation commission and the City Council, land or parks and recreation facilities may be dedicated to the City for park purposes in lieu of the fees designated in this chapter. The amount of land to be dedicated and the amount of credit to be given, if any, shall be at the discretion of the parks and recreation commission and the City Council.
7 DIVISION 2. AMENDMENT OF MUNICIPAL CODE. Chapter 15.09 of Title 15 of the Municipal Code of the City of San Rafael is hereby amended to repeal and replace the chapter with the following:

Chapter 15.09 - PARK DEDICATION AND IN-LIEU FEES
Section 15.09.010 – Purpose.

This chapter is enacted pursuant to Section 66477 of the Subdivision Map Act (“Quimby Act”) and the general police power of the City of San Rafael. The park and recreational facilities for which dedication of land and/or payment of a fee is required by this chapter are consistent with the San Rafael general plan.

Section 15.09.020 – Dedication Requirements.
(a) Dedication of Park Land. As a condition of approval of a tentative or final subdivision map or parcel map, the subdivider shall dedicate land for park or recreational purposes, pay a fee for such purposes, or both, according to the standards and formulas contained in this chapter and as set by resolution. (b) Purpose of Land Dedication. Land dedicated to the City for park or recreational purposes shall advance the goals and objectives of the recreation element of the San Rafael General Plan and be improved to all applicable local, state, and federal standards.
(c) Standard for Parkland Dedication. The amount of land dedicated or fees paid shall be based upon the residential density, which shall be determined on the basis of the approved or conditionally approved tentative map or parcel map and the average number of persons per household. There shall be a rebuttable presumption that the average number of persons per household by units in a structure is the same as that disclosed by the most recent available federal census or a census taken pursuant to Chapter 17 (commencing with Section 40200) of Part 2 of Division 3 of Title 4. However, the standard for the dedication of land, or the payment of fees, or both, shall not exceed the amount of existing neighborhood and community park area per 1,000 persons currently residing in the City or the City’s adopted park land standards. (1) The park area per 1,000 members of the population of the city, county, or local public agency shall be derived from the ratio that the amount of neighborhood and community park acreage bears to the total population of the city, county, or local public agency as shown in the most recent available federal census. The amount of neighborhood and community park acreage shall be the actual acreage of existing 8 neighborhood and community parks of the city, county, or local public agency as shown on its records, plans, recreational element, maps, or reports as of the date of the most recent available federal census. (2) The City Council shall, by resolution, establish the requirement for parkland dedication in accordance with the foregoing and the requirements of the Quimby Act.
(d) Amount of Fee Required. Where a fee is required or proposed to be paid in lieu of land dedication, the amount of the fee shall be established by City Council resolution and shall be based upon the fair market value of the amount of land which would otherwise be required to be dedicated.

Section 15.09.030 – Determination of Dedication of Land or Payment of Fee. (a) Procedure. The procedure for determining whether the subdivider is to dedicate land, pay a fee, or both, shall be as follows:
(1) Subdivider.
(A) At the time of filing a tentative map for approval, the owner of the property shall, as a part of the filing, indicate whether the owner desires to dedicate property for park and recreational purposes or desires to pay a fee in lieu of dedication. (B) If the owner desires to dedicate land for this purpose, the owner, with the concurrence of the director, shall designate the area on the tentative map as filed.
(2) Action of City. If dedication of land is proposed, the tentative map will be referred to the City Council for approval, conditional approval or denial. The City Council shall consider the land dedication as part of the public hearing on the tentative map and shall determine whether to require a dedication of land within the subdivision, payment of a fee in lieu of dedication, or a combination of both.
(3) Prerequisites for Approval of Final Map.
(A) Where dedication is required, it shall be accomplished in compliance with Government Code Section 66477.
(B) Where fees are required, the same shall be deposited with the City before building permit issuance, unless otherwise required by law.
(C)Open space covenants for private park or recreational facilities shall be submitted to the City before approval of the final map and shall be recorded concurrently with the final map.
(b) Determination.
9 (1) Whether the City Council accepts the land dedication or elects to require the payment of a fee in lieu of dedication, or a combination of both, shall be determined by consideration of all of the following:
(A) The compatibility of the land dedication with the San Rafael general plan;
(B) The natural features, access, and location of land in the subdivision available for dedication;
(C)The size and shape of the subdivision and land available for dedication;
(D)The feasibility of dedication; and
(E) The location of and proximity to existing and proposed park sites and trailways.
(2) The determination of the City Council as to whether land shall be dedicated or whether a fee shall be charged, or a combination thereof, shall be final and conclusive.
(3) On subdivisions involving 50 parcels or fewer, only the payment of fees shall be required; however, land may be accepted upon agreement of the subdivider and the City Council.
(A) This limitation does not apply to condominium projects, stock cooperative, or community apartment projects, as those terms are defined in Sections 4105, 4125, and 4190 of the Civil Code, when such projects exceed 50 dwelling units even though the number of parcels may be less than 50.
(c) Requirements for Dedicated Land. The subdivider shall, without credit:
(1) Provide full street improvements and utility connections including, but not limited to, curbs, gutters, street paving, traffic control devices, street trees, and sidewalks to land which is dedicated pursuant to this section; (2) Provide for fencing along the property line of that portion of the subdivision contiguous to the dedicated land;
(3) Provide improved drainage through the dedicated land; and (4) Provide other minimal improvements including, but not limited to removal of debris, clearing of the site and temporary hydro-seeding, which the library and recreation director determines to be essential to the acceptance of the land for recreational purposes.
(5) The location, size and configuration of the land to be dedicated and the improvements to be made pursuant to this section shall be reviewed by the city’s park and recreation commission and approved by the library and recreation director.
(d) Limitations on the Use of Land and Fees. Unless otherwise authorized by Government Code Section 66477, the land and fees received in compliance 10 with this section shall be used only for the purpose of providing park and recreational facilities to serve the subdivision for which received, and the location of the land and amount of fees shall bear a reasonable relationship to the use of the park and recreational facilities by the future inhabitants of the subdivision.

Section 15.09.040 – Credit for private recreation facility.

Credit may be given for private recreation facilities or common, open area in the subdivision only as hereinafter provided. When private recreation facilities and common open areas designed to be usable for active recreational purposes are provided in a proposed planned development, real estate development, stock cooperative, or community apartment project, as defined in Sections 11003, 11003.1, 11003.2, 11003.4 and 11004, respectively, of the Business and Professions Code, or condominiums, as defined in Section 783 of the Civil Code, partial credit, not to exceed fifty percent (50%), may be given against the requirement of land dedication or payment of fees in lieu thereof if the City finds that it is in the public interest to do so and that the following standards are met:
(a) Yards adjacent to each residential unit, setbacks, and other open areas required by the zoning and building ordinances and regulations shall not be included in the computation of such private recreation area; and (b) Private park and recreation facilities shall be owned by a homeowners’ association composed of all property owners in the subdivision and being an incorporated nonprofit organization capable of dissolution only by a one hundred percent affirmative vote of the membership, operated under recorded land agreements through which each lot owner in the neighborhood is automatically a member, and each lot is subject to a charge for a proportionate share of expenses for maintaining the facilities, or subject to a covenant running with the land requiring continued operation by the developer or owner; and
(c) Use of the private park and recreation facilities are restricted for park and recreation purposes by recorded covenant which runs with the land in favor of the future owners of the property and which cannot be defeated or eliminated without the consent of the City or its successors; and (d) The proposed private park and recreational facilities are designed for active use, and are reasonably adaptable for use for park and recreation purposes, including recreational community gardening, children’s play apparatus areas, picnic areas, hiking, jogging, and bicycle trails and paths, or landscaped exercise areas, taking into consideration such factors as size, shape, topography, geology, access, and location; and
11 (e) The facilities that are proposed are in substantial accordance with the provisions of the recreation element of the San Rafael general plan; and (f) Open space land intended for the protection of environmentally sensitive areas or to protect views and ridgetops or hillside areas not suitable for active recreation use shall not be credited, regardless if passive recreation use (trails, pedestrian access) is allowed in these areas; and (g) The private facilities for which credit may be given must be a minimum of one acre and with at least three (3) of the local park basic elements listed below, or a combination of such and other recreation improvements that will meet the specific recreation needs of future residents of the area:

Elements Acres

1. Children’s play apparatus
area
.50 to .75

2. Landscape park-like with
quiet areas
.50 to 1.00

3. Family picnic area .25 to .75

4. Game court area (tennis,
badminton, basketball, etc.)
.25 to .50

5. Turf playfield (< 5% slope) 1.00 to 3.00

6. Swimming pool (with
adjacent deck and lawn
areas)
.25 to .50

7. Recreation center building .15 to .25
Before credit is given, the City shall make written findings that the above standards are met. (h) The determination of the City as to whether credit shall be given and the amount of credit shall be final and conclusive.

Section 15.09.050 – Disposition of fees.
(a) Fees determined pursuant to Section 15.09.030 and by City Council resolution shall be paid to the City and shall be deposited into the Parkland Dedication Fund, or its successor. Money in the fund, including accrued 12 interest, shall be expended solely for acquisition, development, or rehabilitation of park land, or improvements related thereto. (b) The City shall develop and maintain a schedule specifying where, when and how it will use the dedicated land, in-lieu fees or both to develop park and recreational facilities to serve the residents of the subdivision. (c) Collected fees shall be committed within five (5) years of receipt of payments or within five (5) years after the issuance of building permits on one half of the lots created by the subdivision, whichever occurs later. If such fees are not committed, these fees, less an administrative charge, shall be distributed and paid to the then record owners of the subdivision in the same proportion that the size of their lot bears to the total area of all lots in the subdivision.

Section 15.09.060 – Exemptions.

The following are exempted from the provisions of this chapter:
(a) Subdivisions containing four (4) or fewer parcels or lots that are not used for residential purposes; provided, however, that a condition shall be placed on the approval of such tentative map that if a building permit is requested for construction of a residential structure or dwelling units on one or more of the parcels or lots, the in-lieu fee shall be required to be paid by the property owner of each such parcel or lot, as a condition to the issuance of such permit; (b) Commercial or industrial subdivisions;
(c) Condominium projects or stock cooperatives which consist of the subdivision of airspace in an existing apartment building which is more than five (5) years old and no new dwelling units are added.

Section 15.09.070 – Subdivider provided park and recreation improvements.

The value of any park and recreational improvements to the dedicated land shall be credited against the fees and/or dedication of land required by this chapter provided that:
(a) The subdivider shall apply to the community services director for permission to construct such improvements;
(b) If permission is granted, the community services director, in consultation with the department of public works, shall determine the dollar value of the improvements.

Section 15.09.080 – Access.

All land offered for dedication for public park or recreational purposes, shall have access to at least one existing or proposed public street. This requirement may be waived by the City 13 Council if the City Council determines that public street access is unnecessary for the maintenance of the park area or use thereof by residents.

Section 15.09.090 – Development agreement.

Except as expressly prohibited by Section 66477 of the Subdivision Map Act, the terms and procedures contained in this chapter may be waived or modified by a development agreement adopted pursuant to Section 65864 et seq. of the California Government Code.

DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

The City Council finds that adoption of this Ordinance does not constitute a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21065 and CEQA Guidelines Sections 15378 and is exempt pursuant to CEQA Guidelines Sections 15262, 15273, and 15061(b)(3), because the Ordinance establishes and updates funding mechanisms and policy provisions related to park impact fees and park dedication requirements and does not approve or authorize any specific physical development project.

DIVISION 4. SEVERABILITY.

If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of San Rafael hereby declares that it would have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases shall be declared invalid.

DIVISION 5. EFFECTIVE DATE; PUBLICATION.

A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted.

This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in the Marin Independent Journal, a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California.

Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk a certified copy of the full text of this Ordinance, along with the names of those Councilmembers voting for or against the Ordinance. 14 THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the day 18th day of May 2026, and was passed and adopted at a regular meeting of the San Rafael City Council on the 1st day of June 2026 by the following vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_______________
KATE COLIN, Mayor
Attest:
______________________
LINDSAY LARA, City Clerk
RESOLUTION NO.

RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING THE PARK

NEXUS STUDY AND ASSOCIATED PARK AND RECREATION FACILITIES

PROJECT LIST, ADOPTING UPDATED CHARGES FOR THE PARK AND

RECREATION FACILITIES FEE, AND ADOPTING UPDATED PARK DEDICATION

REQUIREMENTS AND PARK DEDICATION AND IN-LIEU FEES
WHEREAS, the San Rafael Municipal Code (“SRMC”) Chapter 3.24, entitled “Park and Recreation Facilities Fee,” imposes upon new development a requirement to pay a Park and Recreation Facilities Fee; and
WHEREAS, SRMC Section 3.24.040 empowers the City Council to establish the amount of the Park and Recreation Facilities Fee by resolution in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and demonstrates the reasonable relationship between the need for park facilities and the type of development projects on which the fee will be imposed; and
WHEREAS, the SRMC Chapter 15.09, entitled “Park Dedication and In-Lieu Fees,” imposes a park land dedication or in-lieu fee requirement as a condition of approval of a tentative map for a residential subdivision, pursuant to the Subdivision Map Act; and WHEREAS, SRMC Section 15.09.040(e) empowers the City Council to establish the dedication requirements and the amount of the In-Lieu Fee by resolution in accordance with a nexus study that complies with the Quimby Act; and WHEREAS, new development projects attract new residents to the City, generating an increased demand for park, parkland, and parks and recreation facilities and impacting existing park and recreation facilities; and
WHEREAS, the City has determined that the City requires a cost-effective and efficient way of serving future residents while maintaining existing levels of service; and WHEREAS, the City contracted with Keyser Marston Associates, Inc. (“KMA”) to perform a nexus study for a proposed Park and Recreation Facilities Fee update and Park Dedication and In-Lieu Fees update; and
WHEREAS, KMA prepared and submitted a Parkland Dedication In-Lieu Fee and Parkland and Recreation Facility Development Impact Fee Nexus Study, dated August 18, 2025, attached hereto as Exhibit A and incorporated by reference (“Nexus Study”); and
WHEREAS, the Nexus Study substantiates a methodology that will charge each new development project only for the costs necessary to mitigate the impacts expected to be caused by that development project; and
WHEREAS, there is a reasonable relationship and an essential nexus between the Park and Recreation Facilities Fee and the development projects on which the Fees will be imposed because the Fees will only fund costs necessitated by each new development; and
WHEREAS, there is a reasonable relationship and an essential nexus between the Park Dedication and In-Lieu Fees and the development projects on which the Fees will be imposed because the Fees will only fund costs necessitated by each new development; and
WHEREAS, the Park and Recreation Facilities Fee does not exceed the estimated reasonable cost of providing the land and facilities for which the Fee is imposed; and WHEREAS, the Park Dedication and In-Lieu Fees do not exceed the estimated reasonable cost of providing the land and facilities for which the Fees are imposed; and WHEREAS, the Park and Recreation Facilities Fee is not levied, collected, or imposed for general revenue purposes, but is levied specifically to fund facilities of the types set forth in the Nexus Study; and
WHEREAS, the Park Dedication and In-Lieu Fees are not levied, collected, or imposed for general revenue purposes, but is levied specifically to fund facilities of the types set forth in the Nexus Study; and
WHEREAS, the Nexus Study establishes that the Park and Recreation Facilities Fee has an “essential nexus” to the City’s legitimate land use interest of providing park and recreation facilities necessary to serve new growth, and the amount of the Fee is roughly proportionate to the City’s costs of constructing park and recreation facilities to serve new development; and
WHEREAS, the Nexus Study establishes that the Park Dedication and In-Lieu Fees have an “essential nexus” to the City’s legitimate land use interest of providing parkland and park and recreation facilities necessary to serve new growth, and the amount of the Fee is roughly proportionate to the City’s costs of acquiring new parkland and constructing park and recreation facilities to serve new development; and WHEREAS, the Nexus Study identifies the City’s existing level of service for parkland and park and recreation facilities, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate; and WHEREAS, the Nexus Study includes information that supports the City’s actions, as required by subdivision (a) of Section 66001 of the Government Code; and WHEREAS, the Nexus Study includes a Parks Development Impact Fee Project List (“Project List”), a list of park and recreation facilities funded in part or in whole by the Park and Recreation Facilities Fee, which serves as its capital improvement plan pursuant to subdivision (a)(6) of Section 66016.5 of the Government Code for the Park and Recreation Facilities Fee; and
WHEREAS, the Nexus Study was presented to the City Council; and WHEREAS, the proposed Park and Recreation Facilities Fee program and fee amounts and the Park Dedication and In-Lieu Fees requirements are consistent with the City’s General Plan; and
WHEREAS, the 2023-2031 Housing Element identifies the preservation and production of affordable housing as a critical policy priority and includes goals, policies, and programs intended to encourage the development of housing affordable to lower-income households; and
WHEREAS, the City Council finds that adopting reduced development impact fees for one hundred percent (100%) affordable housing projects supports the City’s housing policies by reducing development costs for deed-restricted affordable housing and encouraging the construction of additional affordable housing units within the City; and WHEREAS, the City Council further finds that adopting a reduced Park and Recreation Facilities Fee and reduced Park Dedication and In-Lieu Fees for one hundred percent (100%) affordable housing projects serves an important public purpose by advancing housing affordability, promoting socioeconomic diversity, and supporting implementation of the City’s adopted Housing Element goals and programs; and WHEREAS, pursuant to Government Code Sections 66016, 66016.5, 66018, 66019, and 6062a, the City must adopt the Park and Recreation Facilities Fee and the Park Dedication and In-Lieu Fees only after notice and public hearing; and WHEREAS, pursuant to Government Code Sections 66002, 66016.5, 66018, 66019, and 6062a, notice of a public hearing on the proposed fee schedule and the adoption of the Nexus Study was published on April 17 and April 24, 2026, in the Marin Independent Journal, a newspaper of general circulation; and
WHEREAS, pursuant to Government Code Sections 66019 and 66016.5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was mailed at least thirty (30) days prior to the meeting to those members of the public who filed a written request with the City; and
WHEREAS, at least fourteen (14) days prior to the public hearing referenced above, the City made available for public inspection information required under Government Code Section 66000, et seq.; and
WHEREAS, on May 18, 2026, the City Council held a noticed public hearing to consider the City’s proposed new Park and Recreation Facilities Fee and Park Dedication and InLieu Fees, at which time all interested persons were given an opportunity to comment; and
WHEREAS, the City Council has considered all information related to this matter, including any supporting reports by City Staff and any information provided by the public, prior to the close of the public hearing, pursuant to Government Code section 66019.

NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes as follows:

1. Findings. The City Council finds and determines as follows:
a. The above recitals are correct and are material to this Resolution and are incorporated into this Resolution as findings of the City Council. b. The fees proposed bear a reasonable relationship to the need for park and recreation facilities by the future inhabitants of new development and are roughly proportionate to the impacts of new development.

2. Environmental Review. The City Council finds that adoption of the Nexus Study and the Parks and Recreation Facilities Project List (“Project List”), which serves as the Capital Improvement Program required by Government Code section 66016.5, does not constitute a “project” under the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code section 21065 and CEQA Guidelines section 15378. While CEQA requires environmental review to occur at the earliest feasible stage, CEQA does not require review of actions that are speculative, conceptual, or preliminary in nature and that do not commit the City to a definite course of action that may result in a physical change in the environment.

Even if adoption of the Nexus Study, Project List, or fee amendments were considered a “project” for purposes of CEQA, then consistent with CEQA Guidelines section 15378(b)(4), adoption of the Project List and fee amendments constitutes the establishment of a government funding mechanism and long-range fiscal planning tool. Section 15378(b)(4) provides that a “project” does not include fiscal activities or administrative actions that do not involve any commitment to a specific project or physical development.

The Project List functions solely to inform budgeting, financial planning, and infrastructure funding decisions and does not authorize or entitle any physical development.

In addition, because the Nexus Study and Project List are prepared in connection with the establishment and adjustment of fees and rates to finance public facilities, adoption of these documents and related fee amendments is exempt under CEQA Guidelines section 15273. Section 15273 recognizes that public agencies must be able to engage in fiscal planning and establish funding mechanisms to meet infrastructure and capital financing needs without triggering CEQA review before any specific project has been approved or defined.

The City further finds that adoption of the Nexus Study and Project List expressly reserves full discretion to the City Council and other decision-making bodies to approve, deny, modify, or pursue alternatives for any individual capital project identified in the Project List, including alternative designs, locations, phasing, or funding approaches. No construction, ground-disturbing activity, or irreversible commitment of resources will occur unless and until the City takes separate future discretionary actions to approve a specific project, following appropriate environmental review under CEQA. Adoption of the Project List does not limit the range of alternatives available to the City or predetermine the outcome of any future CEQA analysis.

Finally, the City Council finds that the action is exempt under the common sense exemption set forth in CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that adoption of the Nexus Study, Project List, and related fee amendments, by themselves, have no possibility of resulting in a significant effect on the environment. Any future capital improvement projects would be subject to separate discretionary approvals and environmental review in accordance with CEQA and City practice. CEQA Determination: Exempt Pursuant to CEQA Guideline 15061(b)(3).

3. Adoption of Nexus Study. The City Council finds and determines that the Nexus Study complies with California Government Code section 66000 et seq. and the Quimby Act and is consistent with the General Plan, and hereby approves and adopts the Nexus Study as shown in Exhibit A, attached hereto and incorporated by this reference.

4. Adoption of the Project List. The City Council hereby finds that the Project List is consistent with the General Plan and approves and adopts the Project List, funded in part or in whole by the Park and Recreation Facilities Fee, as shown in Table 12 of the Nexus Study.

5. Rates for Park and Recreation Facilities Fee. The City Council hereby sets rates for the Park and Recreation Facilities Fee as shown in Exhibit B, attached hereto and incorporated by this reference. These rates will be incorporated into the Master Fee Schedule.

6. Requirements and Rates for Park Dedication and In-Lieu Fees. The City Council hereby sets dedication requirements and in-lieu fee amounts for the Park Dedication and In-Lieu Fees as shown in Exhibit C, attached hereto and incorporated by this reference. These requirements and fees will be incorporated into the Master Fee Schedule.

7. Exemption. Pursuant to Government Code Section 66324(c)(1), the Park and Recreation Facilities Fee and the Park Dedication and In-Lieu Fees shall not apply to accessory dwelling units of less than 750 square feet.

8. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Resolution be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have passed this and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared unconstitutional on their face or as applied.

9. Effective Date. The Resolution shall take effect immediately. In accordance with Government Code Section 66017, the updated Park and Recreation Facilities Fee, set forth in Exhibit B, and the updated Park Dedication and InLieu Fees, set forth in Exhibit C, shall be in full force and effect 60 days after the adoption of this Resolution and shall be published or posted as required by law.

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 18th day of May 2026, by the following vote, to wit:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
_________________
Lindsay Lara, City Clerk

EXHIBIT A

PARKLAND DEDICATION IN-LIEU FEE AND PARKLAND AND RECREATION FACILITY DEVELOPMENT IMPACT FEE NEXUS STUDY, DATED AUGUST 18, 2025

EXHIBIT B

PARK AND RECREATION FACILITIES FEE
Recreation Facility Development Impact Fees for Residential Subdivision Units Single Family Detached
Fee per Sq. Ft.

Multi-Family
Fee per Sq. Ft.
$4.50 $8.35
Parkland and Recreation Facility Development Impact Fees for Non-Subdivision Units
Single Family Detached
Fee per Sq. Ft.

Multi-Family
Fee per Sq. Ft.
$9.98 $18.50
Parkland and Recreation Facility Development Impact Fees for Accessory Dwelling Units
The below fee shall apply only to Accessory Dwelling Units (ADUs) and is based upon the square footage shown in the adopted fee schedules.

Exemption. Pursuant to Government Code Section 66324(c)(1), the Park and Recreation Facilities Fee and the Park Dedication and In-Lieu Fees shall not apply to accessory dwelling units of less than 750 square feet.

Parkland and Recreation Facility Development Impact Fees for Accessory Dwelling Units
Single Family Detached
Fee per Sq. Ft.
$2.50
Parkland and Recreation Facility Development Impact Fees for One Hundred Percent (100%) Affordable Housing Projects
The below fees shall apply only to residential developments in which all dwelling units, excluding any manager’s units, are subject to recorded affordability restrictions approved by the City and restricted to occupancy by lower-income households in accordance with applicable state law.

Recreation Facility Development Impact Fees for Residential Subdivision Units for One Hundred Percent (100%) Affordable Housing Projects Single Family Detached
Fee per Sq. Ft.

Multi-Family
Fee per Sq. Ft.
$1.13 $2.09
Parkland and Recreation Facility Development Impact Fees for NonSubdivision Units for One Hundred Percent (100%) Affordable Housing Projects
Single Family Detached
Fee per Sq. Ft.

Multi-Family
Fee per Sq. Ft.
$2.50 $4.63
Annual Adjustment
Beginning January 1, 2027, and on January 1 of each year thereafter, the Park and Recreation Facilities Fee shall be adjusted to equal the base amounts set forth in the adopted fee schedules, as modified by the percentage change, if greater than zero, in the Engineering News-Record (ENR) Construction Cost Index for the twelve-month period from November to November immediately preceding the date of the adjustment.

EXHIBIT C

PARK DEDICATION AND IN-LIEU FEES
Parkland Dedication In-Lieu Fees for Residential Subdivision Units Single Family Detached
Fee per Unit
Multi-Family
Fee per Unit
$12,596 $11,282
Parkland Dedication Requirements for Residential Subdivision Units Avg. Household
Size
Quimby Standard
(Acres per 1,000 pop.)
Sq. Ft. of Park Land
per Dwelling Unit
Single Family
Detached Units 2.59 1.824 206 (205.78)
Multi-Family
Units 2.32 1.824 184 (184.33)
Parkland Dedication In-Lieu Fees for One Hundred Percent (100%) Affordable Housing Projects
The below fee shall apply only to residential developments in which all dwelling units, excluding any manager’s units, are subject to recorded affordability restrictions approved by the City and restricted to occupancy by lower-income households in accordance with applicable state law.

Single Family Detached
Fee per Unit
Multi-Family
Fee per Unit
$3,149 $2,820.50
Annual Adjustment
Beginning January 1, 2027, and on January 1 of each year thereafter, the Park Dedication and In-Lieu Fees shall be adjusted to equal the base amounts set forth in the adopted fee schedules, as modified by the percentage change, if greater than zero, in the Engineering News-Record (ENR) Construction Cost Index for the twelve-month period from November to November immediately preceding the date of the adjustment.

DRAFT PARKLAND DEDICATION IN-LIEU FEE AND

PARKLAND AND RECREATION FACILITY

DEVELOPMENT IMPACT FEE NEXUS STUDY
Prepared for:

City of San Rafael
Prepared by:

Keyser Marston Associates, Inc.

DRAFT
August 18, 2025

KEYSER MARSTON ASSOCIATES

TABLE OF CONTENTS
I. INTRODUCTION, SUMMARY OF CURRENT PROGRAM AND FINDINGS OF STUDY...... 1 A. Summary of Current Program ........................................................................................... 1 B. City’s Objectives for Updating its Parks Dedication and Fee Program ............................. 1 C. Report Background and Legal Context ............................................................................. 2 D. Findings And Conclusions................................................................................................. 7 II. DETERMINATION OF QUIMBY PARKLAND DEDICATION REQUIREMENT AND IN-LIEU FEES ....................................................................................................................................... 9 III. MITIGATION FEE ACT NEXUS FINDINGS.........................................................................11 A. Purpose...........................................................................................................................11 B. Use of Fee.......................................................................................................................11 C. Relationship ....................................................................................................................11 D. Need................................................................................................................................11 E. Proportionality .................................................................................................................12 IV. DEMAND FOR NEW PARK AND RECREATION FACILITIES AND SUPPORTED IMPACT FEE AMOUNTS....................................................................................................................13 A. Population and Residential Demand for Park and Recreation Facilities .........................13 B. New Residential Development ........................................................................................13 C. Parks and Recreation Facility Inventory and Standards .................................................14 D. Existing Facilities Inventory Replacement Cost Method for Establishing Fee Amounts . 15 E. Replacement Cost of Existing San Rafael Parks and Recreation Facilities....................15 F. Maximum Supported Parkland Dedication In-Lieu Fees for Subdivision Projects that Do Not Dedicate Park Land ............................................................................................17 G. Maximum Supported Recreation Facility Development Impact Fees for Subdivision Units ................................................................................................................................18 H. Maximum Supported Parkland and Recreation Facility Development Impact Fees for All Non-Subdivision Units.....................................................................................................19 V. Estimated Range and Maximum Amount of Parkland and Recreation Facility Development Impact Fee Revenue through 2040 ............................................................21 VI. USE OF FEE REVENUE ......................................................................................................23 VII.IMPACT FEES IN NEIGHBORING CITIES, MAXIMUM SUPPORTED FEES, AND RECOMMENDED FEES.......................................................................................................25 A. Park and Recreation Fees in Neighboring Jurisdictions..................................................25 Appendix A: Inventory of Parks from Citywide Parks and Recreation Master Plan, Recent Residential Land Sales in San Rafael, and Parkland and Recreational Facility Construction Cost Estimates.............................................................................................28 Appendix A Table 1. City Operated Parks by Type and Recreation Provided………… 29 Appendix A Table 2. Residential Land Sales - Marin County…………………………….. 30 DRAFT
Appendix A Table 3. Recreation Facility Construction Cost Estimates Prepared for Other Bay Area Park Development Impact Fee Nexus Studies………………………….. 31 Appendix A Table 4. American Community Survey, 2023: City of San Rafael Population, Household, Vacancy and Household Size Data……………………………… 32 List of Tables
Table 1. Parkland Dedication Requirements for Residential Subdivision Units................... 7 Table 2. Maximum Parkland Dedication In-Lieu Fee for Residential Subdivision Units ...... 7 Table 3. Maximum Recreation Facility Development Impact Fees for Residential Subdivision Units........................................................................................................................ 8 Table 4. Maximum Parkland and Recreation Facility Development Impact Fees for Non Subdivision Projects .................................................................................................................. 8 Table 5. Quimby Land Dedication Requirement ...................................................................... 9 Table 6. Maximum Parkland Dedication In-lieu Fee for Residential Subdivisions Units ...10 Table 7. Current and Projected San Rafael Population.........................................................13 Table 8. Existing Park and Recreation Facilities Operated by the City of San Rafael........14 Table 9. Replacement Cost of Existing San Rafael Parks and Recreation Facilities - Existing Inventory Method.......................................................................................................16 Table 10A. Calculation of Maximum Parkland Dedication In-Lieu Fees for Subdivision Units that Do Not Dedicate Land, to be Paid at Entitlements or Building Permit...............18 Table 10B. Calculation of Maximum Recreation Facility Development Impact Fees for All Subdivision Units, to be Paid at Building Permit……………………………………………….. 19 Table 10C. Calculation of Maximum Parkland and Recreation Facility Development Impact Fees for All Non-Subdivision Units, to be Paid at Building Permit………………… 20 Table 11. Estimated Range of Parkland and Recreation Facility Development Impact Fee Revenue through Yr. 2040…………………………………………………………………………… 22 Table 12. Parks Development Impact Fee Project List..........................................................24 Table 13. Parkland Dedication and In-lieu Fee Requirements for Residential Subdivisions and Park Facility Impact Fees
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I. INTRODUCTION, SUMMARY OF CURRENT PROGRAM AND FINDINGS OF STUDY This Parkland Dedication In-lieu Fee and Parks and Recreation Facility Development Impact Fee Nexus Study (Report) provides the City of San Rafael (City) with the necessary technical documentation to support updating its current Park Dedication and In-Lieu Fee program for residential subdivision projects and to establish a Parkland and Recreation Facility Development Impact Fee to fund parks and recreation capital facilities, including land acquisition, park improvements and recreation facilities. The study has been prepared by Keyser Marston Associates, Inc. (KMA).

A. Summary of Current Program
The City’s existing “Park Dedication and In-Lieu Fee” program is provided in Chapter 15.09 of the City’s municipal code. The program’s basic standard is that subdivision projects shall provide three (3) acres of land for each one thousand (1,000) residents, which translates into a dedication requirement of 300 square feet1 of parkland per each new residential unit that is built within a subdivision. At the City’s discretion, the code also provides provisions for the payment of a fee in lieu of dedicating land. The amount of the fee is determined by an appraisal of the property and the application of the appraised per square foot value to 300 square feet per residential unit.

The in-lieu fees are used to acquire land and construct park and trail improvements to meet the City’s per capita parks service standards, which are contained in the City’s General Plan 2040.

The General Plan 2040 establishes a standard of four (4) acres of parkland per 1,000 residents.

The amount of available vacant property suitable for subdivision in San Rafael is very limited, with most new developments being built on in-fill lots. The City’s current program does not apply to new residential construction that is not part of a subdivision, but the new non-subdivision units do increase the demand for park and recreation facilities.

B. City’s Objectives for Updating its Parks Dedication and Fee Program The City’s primary objectives for updating its Park Dedication and In-Lieu Fee program and adopting Parkland and Recreation Facility Development Impact Fees are as follows:
 Require new non-subdivision residential development in the City to mitigate the demand that it generates for parkland and recreational facilities.  Ensure that residential development within subdivision projects pay an impact fee to construct facilities in addition to an in-lieu payment for land dedication. 1 Chapter 15.09 of the City of San Rafael Municipal Code.

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 Ensure that the impact fee requirements on non-subdivision projects are consistent with the provisions of the California Mitigation Fee Act (AB 1600 et.seq.).  Ensure that the parkland dedication and in-lieu fee requirements for subdivision developments are consistent with the provisions of the Quimby Act (Section 66477 of the California Government Code).
 Revise the City’s current parkland dedication requirement and in-lieu fee option for new subdivision residential units to be based on maintaining the City’s current level of service of 1.824 acres of City-operated parks per 1,000 residents. The parkland dedication requirement and in-lieu fee option will be expressed in terms of number of square feet of land per new residential unit and in-lieu fee dollar amount per new residential unit, respectively.
 Establish a recreation facility development impact fee to apply to all new subdivision residential units. The amount of the impact fee will be based on the estimated cost to maintain the City’s current per capita service level of park facilities, recreation community center facilities, and cultural facilities. The fee amount will be expressed as a dollar per square foot of livable area of new residential units.  Establish a parkland and recreation facility development impact fee to apply to all new non-subdivision residential units. The amount of the impact fee will be based on the estimated cost to maintain the City’s current service levels of parkland, park facilities, recreation community center facilities and cultural facilities. • Establish a bifurcated parkland dedication, in-lieu fee, and development impact fee structure that differentiates between single family detached residential units and multifamily residential units (i.e., units in buildings with two or more units).  Establish fee levels that align with current land acquisition, park facility, and recreation community center development costs.

C. Report Background and Legal Context

1. Quimby Act (Section 66477 of the California Government Code) The City’s current program is based on the provisions of the Quimby Act. In summary, the Act requires residential projects that require approval of a tentative map or parcel map to either dedicate land, pay a fee in lieu of dedication, or both. The fees may be used to develop new or rehabilitate existing neighborhood or community parks or recreational facilities within the neighborhood that serves the project. The dedication of land, or the DRAFT
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payment of fees, or a combination of both, cannot exceed the proportionate amount necessary to provide three (3) acres of neighborhood and community park area per 1,000 persons to reside within the subdivision, unless the amount of existing neighborhood and community park area within the jurisdiction exceeds the limit, in which case the jurisdiction may adopt a higher standard not to exceed five (5) acres per 1,000 per thousand residents expected to reside within the subdivision. Given that the City of San Rafael currently provides approximately 1.824 acres of parks per 1,000 residents, the City of San Rafael intends to modify parkland dedication requirements for subdivision projects to be equivalent to the current level of service of 1.824 acres per 1,000 residents.

2. The California Mitigation Fee Act (AB 1600)
The Mitigation Fee Act (Section 66000 – 66008 of the California Government Code) permits local jurisdictions to adopt parks and recreation development impact fees on new development to fund the associated, additional costs of providing parks and recreation capital facilities.

This Report provides the necessary technical analysis to support a schedule of fees to be established by an Impact Fee Ordinance and/or Resolution. The Mitigation Fee Act allows the City to adopt by Resolution a fee schedule consistent with the supporting technical analysis and findings provided in this Report. The Resolution’s approach to setting the fee allows periodic adjustments of the fee amount as may be necessary over time, without amending the enabling Ordinance.

The technical analysis in this Report estimates the parks and recreation facility fee schedule that will fund new development’s “fair share” contribution to future City investments in parks.

The key requirements of the Mitigation Fee Act that determine the structure, scope, and amount of the proposed fee program are as follows:
 Collected for Capital Facility and Infrastructure Improvements. Development impact fee revenue can be collected and used to cover the cost of capital facilities and infrastructure required to serve new development and growth in the City.

However, impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure.  Cannot Fund Existing Needs. Impact fee revenue cannot be collected or used to cover deficiencies in existing City capital equipment and facilities. The portion of capital costs required to meet the needs of the City’s existing population must be funded through other sources.
 Must be Based on a Rational Nexus. An impact fee must be based on a reasonable nexus, or connection, between new growth and development and the need for a new facility or improvement. As such, an impact fee must be supported by DRAFT
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specific findings that explain or demonstrate this nexus. In addition, the impact fee amount must be structured such that the revenue generated does not exceed the cost of providing the facility or improvement for which the fee is imposed. The Mitigation Fee Act requires that the following requirements be satisfied when a public agency establishes, increases, or imposes a fee as a condition of approval of a development project:
a. Identify the purpose of the fee.
b. Identify the use to which the fee is to be put. If the use is financing public facilities, the facilities shall be identified.
c. Determine how there is a reasonable relationship between the fees use and the type of development project on which the fee is imposed. d. Determine how there is a reasonable relationship between the need for the public facility and the type of development project on which the fee is imposed. e. Determine how there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.

The City can choose to charge parks and recreation development impact fees below the maximum, supportable fee schedule. Such downward adjustments in the fee schedule, if selected, are typically based on policy considerations related to considerations of development feasibility and fee levels in peer cities.

The purpose of this report is to demonstrate that the Parkland and Recreation Facility Development Impact Fees comply with the Mitigation Fee Act.

3. Assembly Bill (AB) 602
Assembly Bill (AB) 602, enacted by the State of California in 2021, amended Sections 65940.1 and 66019 of, and added Section 66016.5 to the Government Code. AB 602 requires that if a local agency conducts and adopts an impact fee nexus study after January 1, 2022, the local agency shall follow all of the following standards and practices:
a. Before the adoption of a development fee, an impact fee nexus study shall be adopted.

The nexus study contained in this report meets this requirement. b. When applicable, the nexus study shall identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is appropriate. This nexus study identifies the City’s current level of park and recreation service at approximately 1.824 developed park acres per 1,000 residents, and three recreation community DRAFT
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centers, and one cultural center per 58,331 residents. The City of San Rafael will maintain this standard and apply it to future residential development. c. A nexus study shall include information that supports the local agency’s actions, as required by subdivision (a) of Section 66001 of the Government Code, which are listed above under the rational nexus requirement. This nexus study meets these requirements.
d. If a nexus study supports the increase of an existing fee, the local agency shall review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. The City of San Rafael does not currently levy development impact fees for park and recreation improvements. The balance of collected parkland dedication in-lieu fees is insufficient to provide the parkland and facilities necessary to serve new development.
e. A nexus study adopted after July 1, 2022, shall calculate a fee imposed on a housing development project proportionately to the square footage of proposed units of the development. A local agency that imposes a fee proportionately to the square footage of the proposed units of the development shall be deemed to have used a valid method to establish a reasonable relationship between the fee charged and the burden posed by the development. A nexus study is not required to comply with the requirements to calculate a fee imposed on a housing development project proportionally to the square footage of the proposed units if the local agency makes the following findings:
 An explanation as to why square footage is not an appropriate metric to calculate fees imposed on a housing development project.  An explanation that an alternative basis of calculating the fee bears a reasonable relationship between the fee charged and the burden posed by the development.
 That other policies in the fee structure support smaller developments, or otherwise ensure that smaller developments are not charged disproportionate fees.
 The maximum fee amounts supported by this nexus study are calculated proportionally to the square footage of the proposed residential units.
f. Large jurisdictions (i.e., Counties with a minimum population of 250,000 residents and any jurisdictions within such a county) shall adopt a capital improvement plan as a part of the nexus study. This study includes a Parks Development Impact Fee Project List attached as Table 12.

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g. All studies shall be adopted at a public hearing with at least 30 days’ notice, and the local agency shall notify any member of the public that requests notice of intent to begin an impact fee nexus study of the date of the hearing. h. Studies shall be updated at least every eight years, beginning on January 1, 2022. i. The local agency may use the impact fee nexus study template developed by the California Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code. This nexus study uses the template developed by the Terner Center for the Department of Housing and Community Development pursuant to Section 50466.5 of the Health and Safety Code.

This report demonstrates that all fee components comply with AB 602.

4. Existing Facilities Inventory Replacement Cost Method for Establishing Fee Amounts In accordance with the provisions of AB 602, this nexus study uses the “Existing Inventory Method” described in the “Impact Fee Nexus Study Templates” document that was prepared in 2023 by the Terner Center for Housing Innovation at UC Berkeley for the California Department of Housing and Community Development. Under this approach, the cost of facilities to serve new development is calculated based on the cost to replace the City’s existing inventory of park facilities and the City’s existing population. Dividing the replacement cost of existing inventory by the City’s population yields a park facility replacement per capita cost factor that can then be applied to the average household size of new development to generate a cost per unit. Per the requirements of the Mitigation Fee Act, the per unit cost estimate is converted into a fee per square foot of livable residential area by dividing the per unit cost by the average square footage of new residences.

The City’s inventory of parkland and recreational facilities is currently comprised of:
 106.41 acres of community, neighborhood, and special use parks2  Three recreation community centers; and
 One cultural center.

Per the US Census – American Community Survey published in 2023, the City of San Rafael’s population is 58,331. The City’s 106.41 acres of parks is equivalent to approximately 1.824 acres per 1,000 residents, which is significantly less than the General Plan 2040 service standard of 4 acres per 1,000 residents. The replacement cost of the City’s existing inventory of parkland and recreational facilities has been estimated based on cost estimates prepared by City staff, as well as generic community and neighborhood park improvement cost estimates prepared by architects for other cities.
2 The list of parks, park acreage, and facilities offered at each park is provided in Appendix A, Table 1.

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Under this methodology, new development will be required to fund park improvements at the same rate and service level (i.e., 1.824 acres per 1,000 residents) that existing development has provided to date. Thus, new development will not be funding any existing deficiency.

The City has identified the planned park improvements to potentially be funded by future park impact fee revenues (and other sources, as necessary) through the year 2040, which coincides with the time horizon of the City’s General Plan. The Parks Development Impact Fee Project List is provided as Table 12.

D. Findings And Conclusions

1. Quimby Parkland Dedication Requirements for Residential Subdivision Units Table 1 provides the parkland dedication requirements that will apply to all new residential units within subdivisions. As shown, developers will be required to dedicate 206 square feet of parkland per single family detached residential unit and 184 square feet of parkland per multifamily residential unit.

Table 1. Parkland Dedication Requirements for Residential Subdivision Units Sq. Ft. of Park Land per Dwelling Unit
Single Family Detached Units 206 (205.78)
Multi-family Units 184 (184.33)
See Table 5 for detailed calculations.

2. Maximum Parkland Dedication In-Lieu Fee for Residential Subdivision Units Table 2 shows the maximum supported parkland dedication in-lieu fee to apply to residential subdivision projects that do not dedicate improved parkland. The in-lieu fees will be collected at the time that a building permit is issued for the new units.

Table 2. Maximum Parkland Dedication In-Lieu Fee for Residential Subdivision Units Maximum Supported In-Lieu Fee, Per Unit
Single Family Detached Units $12,596
Multi-Family Units $11,282
See Table 10A for detailed calculations.

3. Maximum Recreation Facility Development Impact Fees for Residential Subdivision Units Table 3 shows the maximum supported recreation facility development impact fees to be levied on all residential units built within subdivisions. The maximum fee schedule is based on the cost to replace the City’s existing inventory of park improvements and facilities as quantified in this DRAFT
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Report. The impact fees will be collected at the time that building permits are issued for new development.

Table 3. Maximum Recreation Facility Development Impact Fees for Residential Subdivision Units

Maximum Supported Development Impact Fee,
Per Square Foot of Livable Area
Single Family Detached Units $4.50
Multi-Family Units (units in buildings with 2 or
more units) $8.35
See Table 10B for detailed calculations.

4. Maximum Parkland and Recreation Facility Development Impact Fees for All NonSubdivision Projects Table 4 shows the maximum supported parkland and recreation facility development impact fees to be levied on all non-subdivision residential developments. The maximum fee schedule is based on the nexus findings and technical analysis contained in this Report. The parkland and recreation facility development impact fees will apply to new residential development to fund a share of future parkland and recreation capital facilities investments throughout the City. The impact fees will be collected at the time that building permits are issued for new development.

The calculation of the fee is presented in Section IV of this report.

Table 4. Maximum Parkland and Recreation Facility Development Impact Fees for Non Subdivision Projects

Maximum Supported
Development Impact Fee Per
Square Foot of Livable Area
Single Family Detached Units $9.98
Multi-Family Units (units in buildings with 2 or more units) $18.50 See Table 10C for detailed calculations.

5. Fee Indexing
Since land and construction costs continue to rise, it is important that the fees be indexed to inflation. The fee schedule should be adjusted annually by a construction cost index, such as the Engineering News Record. Per AB 602, the nexus analysis and fee calculations are required to be updated every eight years.

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II. DETERMINATION OF QUIMBY PARKLAND DEDICATION REQUIREMENT AND IN-LIEU FEES
Under the Quimby Act, the dedication of land for parks, or the payment of fees, or a combination of both, cannot exceed the proportionate amount necessary to provide three (3) acres of neighborhood/community park area per 1,000 future residents of persons of the subdivision, unless the amount of existing neighborhood/community park area within the jurisdiction exceeds the limit, in which case the jurisdiction may adopt a higher standard not to exceed five (5) acres per 1,000 per thousand residents expected to reside within the subdivision. The dedication and fee amounts are to reflect the residential density of the subdivision and the average number of persons per household.

As detailed in Section IV, the City currently provides a service level of 1.824 acres of community, neighborhood, pocket, and special use parks per 1,000 residents. The average household size of single family detached occupied and total single family detached units in the City is 2.62 and

2.59, respectively. The average household size of multi-family occupied units and total multifamily units is 2.36 and 2.32, respectively. While the City currently requires subdivision projects to dedicate 3 acres of parkland per 1,000 residents or pay an in-lieu fee equivalent to the cost of dedication, the City has decided to modify the dedication requirement to mirror the level of park acreage that the City is currently providing to the residents of San Rafael, which is 1.824 acres.

The formula for calculating the required dedication of parkland square footage per residential unit is as follows:

Average household size times Quimby standard (acres per 1,000 residents) / 1,000 times 43,560 square feet
As shown in Table 5, under the City’s new policy, the land dedication requirement will be 206 square feet per single family detached unit and 184 square feet per multi-family unit.

Table 5. Quimby Land Dedication Requirement
Avg. Household
Size
Quimby Standard
(Acres per 1,000 pop.)
Sq. Ft. of Park Land
per Dwelling Unit
Calculation A B C= (A*B/1000)*43560
Single Family Detached Units 2.59 1.824 206 (205.78)
Multi-family Units 2.32 1.824 184 (184.33)
Note: Formulas may appear to yield slightly different figures than shown due to rounding.

As detailed in Section IV, the estimated cost of acquiring parkland is approximately $2.61 million per acre, or $60 per square foot of parkland. Given a dedication requirement of 206 square feet of parkland per single detached dwelling unit, the calculated maximum fee amount is $12,349 per single family detached unit. It is standard for adopted impact fees to include an allowance for administering impact fees. A typical allowance is 2%, which has been assumed in this DRAFT
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analysis. Including a 2% administrative fee allowance, the maximum in-lieu fee per single family detached residential unit is $12,596 per unit and the maximum in-lieu fee for multi-family units is $11,282 per unit.

Table 6. Maximum Parkland Dedication In-lieu Fee for Residential Subdivisions Units Sq. Ft. of Park
Land per
Dwelling Unit
Cost to acquire parkland per
square foot of parkland based
on existing level of service
Land Dedication InLieu Fee per
Dwelling Unit
Calculation C D E= (C * D)*1.02
Single Family
Detached Units 205.78 $60.00 $12,596
Multi-Family
Units 184.33 $60.00 $11,282
Note: Formulas may appear to yield slightly different figures than shown due to rounding. See Table 10A for detailed calculations.

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III. MITIGATION FEE ACT NEXUS FINDINGS
This chapter describes the necessary “nexus” between new development in the City of San Rafael and the proposed capital facilities investments, as required under the Mitigation Fee Act – Government Code Section 66000. The park and recreation development impact fees will fund investments in parks and recreation facilities, improvements, and land acquisitions required to maintain existing levels of park facilities in the City – the “fair share” contribution of new development.

Nexus findings address: (1) the purpose of the fee and a related description of the facility for which fee revenue will be used, (2) the specific use of fee revenue, 3) the relationship between the facility and the type of development, (4) the relationship between the need for the facility and the type of development, and (5) the relationship between the amount of the fee and the proportionality of cost specifically attributable to new development. The subsections below describe the nexus findings for the parks and recreation development impact fee.

A. Purpose
The fee will be used to expand the provision of parks and recreational facilities to maintain the current level of service and meet the future sport, health, and recreational needs of residents.

The fee will also ensure that parks and recreation capital facilities in San Rafael keep pace with new growth, while supporting significant accessibility improvements and rehabilitation to existing facilities.

B. Use of Fee
Fee revenue will be used to acquire land for parks and to construct/renovate improvements, such as playing fields, trails, basketball courts, restrooms, community centers, etc.

C. Relationship
New residential development in the City of San Rafael will increase the demand for and use of parks and recreation facilities. To address the impacts of new residential development, parks and recreation development impact fees will be levied on the square footage of additional residential development. Fee revenue will be used to help fund new parks and recreation facilities in response to the increased demand, as well as significant renovations to existing facilities to modernize and enhance accessibility.

D. Need
Each new development will bring new residents to the City and will generate incremental, new demand and use of the City’s parks and recreation facilities. New revenues to fund investments DRAFT
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in additional parks and recreation capital improvements are necessary to maintain the City’s parks and recreation capital facilities service standards and the current level of service.

Additionally, significant reinvestment is needed to existing facilities to enhance accessibility.

E. Proportionality
The maximum, supportable parks and recreation fee schedule has been based on the cost to maintain the current per capita inventory of parkland and recreation facilities. As a result, the fee program cost estimates are directly proportional to the relative increase in new development.

The fees comply with the essential nexus and rough proportionality requirements articulated in the U.S. Supreme Court case Sheetz because they are imposed for the legitimate government land use interest of providing park land and facilities to serve new development and the fees do not exceed the estimated costs of providing the land and facilities for that purpose.

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IV. DEMAND FOR NEW PARK AND RECREATION FACILITIES AND SUPPORTED IMPACT

FEE AMOUNTS
A. Population and Residential Demand for Park and Recreation Facilities Based on the most recent available Census data as reported in the American Community Survey of 2023, approximately 58,331 people reside in San Rafael. Based on projections prepared by the Association of Bay Area Governments (ABAG), the City anticipates that the City’s population will reach 66,880 by 2040, which reflects a population growth of 8,549 residents through 2040.

The City’s General Plan 2040 establishes a standard of four (4) acres of parkland per 1,000 residents, which reflects the current service level provided by a combination of regional parks, community and neighborhood parks located within the greater San Rafael Planning Area. The application of this service standard to a projected growth of 8,549 residents would indicate that an additional 34.2 acres of parkland would be needed by 2040 to serve the growth in population.

The City has elected to base the adoption of parkland and recreation facility development impact fees on a lower standard of 1.824 acres per 1,000 residents, which reflects the current inventory of parks that are operated by the City of San Rafael. Applying the reduced standard of 1.824 acres of parkland to a projected population growth of 8,549 residents would indicate that an additional 15.6 acres of parkland will be needed by 2040 to meet the needs of new residents.

In addition to parks, new residents also create more demand for recreation facilities that are provided by the City’s three community centers and a historic building that serves as a cultural center.

Table 7. Current and Projected San Rafael Population
2025 2040 Increase
Total Population 58,331 66,880 8,549
Additional Park Acres Needed based on Existing City
Level of Service of 1.824 Acres Per 1,000 Residents 15.6 acres Note: Formulas may appear to yield slightly different figures than shown due to rounding.

B. New Residential Development
Given the limited availability of undeveloped land, the majority of new residential development is occurring on infill sites. Ownership projects are generally comprised of townhomes and small scale condominiums, with a limited number of single family detached units. Unit sizes of new townhomes and condos range from 1,300 to 1,800 square feet per unit, with prices in the $1.1 million to $1.3 million range. Densities range from 10 units to 30 units per acre. There has been considerable activity in the rental market in San Rafael, with a number of applications by projects that are seeking density bonuses and stream-line processing through the provisions of DRAFT
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SB 330. Project heights range from 2 to 13 stories, with two projects at 7 to 8 stories. The average size of rental units is 800 to 900 square feet. The largest pipeline project is the redevelopment of the Northgate shopping center, which is slated to include over 1,400 rental apartments and townhomes. Other significant pending projects include a 210-unit apartment project and a 187-unit apartment project.

Based on the distribution of the City’s residential inventory between single family detached homes and multi-family homes, new development trends, and the sizes of new residential units, the calculation of park impact fees reflects the assumptions that new singe family detached units will average 2,300 square feet and that new multi-family units will average 1,111 square feet.

C. Parks and Recreation Facility Inventory and Standards In 2023, the City adopted a Citywide Parks and Recreation Master Plan. The Master Plan provides a comprehensive assessment of the City’s park system, a needs assessment, goals, plans, and an action plan for undertaking priority projects. As summarized below in Table 8 and detailed in Appendix A, Table 1, the City has a total inventory of 106.41 acres of existing Cityoperated parks. Of the existing acreage, approximately 39% are neighborhood parks, 32% are community parks, and 26% are special use parks. Additionally, the City provides three community centers, including a recreational swim center, and one cultural center.

Table 8. Existing Park and Recreation Facilities Operated by the City of San Rafael Total Acres
Community Parks 33.81
Neighborhood Parks 41.33
Pocket Parks 3.27
Special Use Parks 28.0
All Parks 106.41
Albert J. Boro Community Center 1
San Rafael / Albert Park Community Center 1
Terra Linda Community Center 1
Falkirk Cultural Center 1
Detailed in Appendix A, Table 1 of this report and Tables 6 and 8 of the Citywide Parks and Recreation Master Plan.

Per the City’s General Plan 2040, descriptions of these types of parks are as follows:
 Community Parks are typically 10 acres or larger and include a variety of facilities, such as recreation centers, swimming pools, tennis courts, and multi-use athletic fields. San Rafael’s community parks serve residents throughout the City and beyond.

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 Neighborhood Parks are typically between one and ten acres in size and include a range of facilities, such as softball fields, playgrounds, lawn areas, basketball courts, and picnic areas. They are within walking distance of many users.  Pocket Parks are less than an acre in size and draw from a small area, such as a one quarter mile radius. Facilities are limited to children’s play structures and lawn areas.  Special Use Parks include parks that serve a unique purpose or activity. Examples include Starkweather Park along the Bay, and community gardens.

The City’s inventory of 106.41 acres and population of 58,331 yields a level of service equal to

1.824 acres of parkland per 1,000 residents. The Park and Recreation Facility Development Impact Fee will be based on maintaining this current level of service. For consistency purposes, the parkland dedication requirement and in-lieu fee provisions for subdivision projects will be revised downward from the existing 3 acres per 1,000 residents to 1.824 acres per 1,000 residents.

D. Existing Facilities Inventory Replacement Cost Method for Establishing Fee Amounts In accordance with the provisions of AB 602, this nexus study uses the “Existing Inventory Method” described in the “Impact Fee Nexus Study Templates” document that was prepared in 2023 by the Terner Center for Housing Innovation at UC Berkeley for the California Department of Housing and Community Development. Under this approach, the cost of facilities to serve new development is calculated based on the cost to replace the City’s existing inventory of park facilities and the City’s existing population. Dividing the replacement cost of existing inventory by the City’s population yields a park facility replacement per capita cost factor that can then be applied to the average household size of new development to generate a cost per unit. Per the requirements of the Mitigation Fee Act, the per unit cost estimate is converted into a fee per square foot of livable residential area by dividing the per unit cost by the average square footage of new residences.

E. Replacement Cost of Existing San Rafael Parks and Recreation Facilities Table 9 provides an estimate of the value of the City’s current parks and facilities as measured by the estimated cost to replace the parks and facilities. Replacement costs include the cost to acquire the 106.4 acres of parkland, improve the land with park facilities, and rebuild the community centers. As shown on Table 9, the replacement cost of the City’s parkland and recreational facilities is estimated to total $506.82 million. The total replacement cost translates into a per capita value of $8,689, or $8,862 after inclusion of a 2% administration cost allowance.

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Table 9. Replacement Cost of Existing San Rafael Parks and Recreation Facilities - Existing Inventory Method
Community Center and Cultural Facilities
Estimated Replacement Cost Source
SF $/SF
San Rafael Community Center 17,500 $1,943 $34,002,500 City estimate Terra Linda Park and Community Center 5,552 $1,943 $10,787,536 City estimate Albert J. Boro Community Center 14,487 $1,943 $28,148,241 City estimate Falkirk Cultural Facility 5,500 $2,5261 $13,892,450 City estimate Total Replacement Cost of Three Community Centers and One Cultural Facility $86,830,700 Parks
Acres
Land Cost
Per Acre1
Imp. Cost
Per Acre2 Land Cost
Improvement
Costs3
Total Park
Replacement Cost
Community Parks 33.81 $2,613,600 $1,400,000 $88,365,816 $47,334,000 $135,699,800 Neighborhood Parks 42.33 $2,613,600 $1,320,000 $110,633,688 $55,875,600 $166,509,300 Pocket Parks 2.27 $2,613,600 $750,000 $5,932,872 $1,702,500 $7,635,400 Special Parks 28.00 $2,613,600 $1,320,000 $73,180,800 $36,960,000 $110,140,800 Total Replacement
Cost of Parks 106.41 $278,113,200 $141,872,100 $419,985,300 Replacement Cost of Total Inventory of Community Centers and Parks $506,816,000 Per Capita $8,689
Per Capita Replacement Cost With 2% Admin. Cost $8,862
1 Estimate reflects the base replacement cost estimate of $1,943 per square foot of building area plus a 30% premium to account for the additional cost associated with replacing an historical structure. 2 Based on recent land sales in Marin County for residential development with a downward adjustment to $60 per square foot to reflect discount for the variety of entitlement conditions, densities, and market conditions that impact the value of different properties given a range of circumstances. See Appendix A, Table 2. 3 Based on cost analyses prepared by architects for standard park facilities. See Appendix A, Table 3.

Parkland Acquisition Costs – The cost to acquire parkland has been estimated based on recent land sales for residential development in San Rafael and nearby communities. These sales are provided in Appendix A, Table 2. Ten of the thirteen sales were for sites of less than one acre. The remaining three sales included sales of 3.7 acres, 9.5 acres, and 23 acres. Most of the sales are for properties in Downtown San Rafael. The properties vary with respect to the quality of location, entitlements, usability, and other factors. As noted, the average price in 2024 dollars was $125 per square foot of land area, with prices ranging from a low of $15 per square foot to $191 per square foot. Given that the City’s parks are located throughout the City, for purposes of this analysis, a conservative average value of $60 per square foot has been selected for purposes of estimating the average value of city parkland. Applying $60 per square foot to the inventory of 106.41 acres yields an estimated value of $278.11 million for the City’s parkland.

Park Facilities Replacement Costs – The cost of developing park facilities varies significantly, depending on the nature of the facilities. Appendix A, Table 3 provides cost estimates for generic park improvements by type of park that were prepared by architects and engineers for DRAFT
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impact fee studies in other jurisdictions. Based on this information, an average improvement cost of $1.40 million per acre has been assumed for community parks, $1.32 million for neighborhood and special parks, and $750,000 per acre for pocket parks. Applying these replacement cost estimates to the City’s inventory of parks yields a value for city-wide park improvements of $141.87 million.

Community Center and Cultural Center Replacement Cost – The City of San Rafael intends to significantly renovate the San Rafael Community Center and the Terra Linda Park and Community Center over the next five to ten years and has prepared cost estimates for the renovations. Based on the renovation estimates and general construction cost information, the City has estimated replacement costs for each of the three community recreation centers and the Falkirk Cultural Facility, which is a historic complex. As shown on Table 9, the aggregate replacement cost of these facilities is estimated at $86.83 million.

F. Maximum Supported Parkland Dedication In-Lieu Fees for Subdivision Projects that Do Not Dedicate Park Land
Table 10A provides the calculation of the Maximum Parkland Dedication In-Lieu Fee for subdivision projects that do not dedicate parkland based on the replacement cost data provided in Table 9. This fee may be paid at either the time that a final map is approved or when building permits are issued. Because the size of units may not be known at the final map stage, a fee paid at that time would be paid on a per unit basis. If the in-lieu fee is paid at the time of building permit, then it could be levied based on the number of livable square feet. The maximum supported parkland dedication in-lieu fee for subdivision units that do not dedicate parkland is $12,596 per single family detached unit and $11,282 per multi-family unit. The maximum fee includes an allowance for a 2% administration fee.

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Table 10A. Calculation of Maximum Parkland Dedication In-Lieu Fees for Subdivision Units that Do Not Dedicate Land, to be Paid at Entitlements or Building Permit Land
Total Value of City Inventory of Parks and Park Facilities $278,113,200 Population of City of San Rafael (ACS 2023) 58,331
Per Capita Parks and Facilities Replacement cost $4,767.85 Avg. Unit Population, accounting for vacancy (ACS 2023) Single Family Detached Units 2.59
Multi-Family Units (bldgs. with 2+ units) 2.32
Per Dwelling SF Parks and Facilities Replacement Cost
Avg. Unit Livable
SF
Single Family Detached Units 2,300
Multi Family Units 1,111
Maximum Land Dedication In-Lieu Fee for Subdivision Units that Do Not Dedicate Land, Paid at Building Permit Single Family Units in Multi Family
Detached Units Bldgs. 2+DU
Total Value of City Inventory of Parkland $278,113,200 $278,113,200 Population of City of San Rafael (ACS 2023) 58,331 58,331 Per Capita Parkland Replacement Cost $4,767.85 $4,767.85 Avg. hhld size 2.59 2.32
In-Lieu Fee Per Unit $12,348.72 $11,061.40
Max. Land Dedication In-Lieu Fee $12,349 $11,061
Max. Land Dedication In-Lieu Fee with 2% Admin. Allowance $12,596 $11,282 G. Maximum Supported Recreation Facility Development Impact Fees for Subdivision Units
Table 10B provides the calculation of the Maximum Recreation Facility Development Impact Fee for subdivision projects. This fee covers only the cost of park improvements and recreation facilities. This fee will be collected at the time that the units pay building permit fees. The maximum supported recreation facility development impact fee for subdivision projects is $4.50 per square foot of livable area for single family detached units and $8.35 per square foot for multi-family units.

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Table 10B. Calculation of Maximum Recreation Facility Development Impact Fees for All Subdivision Units, to be Paid at Building Permit
Facilities
Total Value of City Inventory of Parks and Park Facilities $228,702,800 Population of City of San Rafael (ACS 2023) 58,331
Per Capita Facilities Replacement cost $3,920.78
Avg. Unit Population, accounting for vacancy (ACS 2023) Single Family Detached Units 2.59
Multi-Family Units (bldgs. with 2+ units) 2.32
Per Dwelling SF Parks and Facilities Replacement Cost Avg. Unit Livable SF Single Family Detached Units 2,300
Multi Family Units 1,111
Maximum Recreation Facility Impact Fee for All Subdivision Units, to be Paid at Building Permit Single Family Units in Multi Family
Detached Units Bldgs. 2+DU
Total Value of City Inventory of Park Facilities $228,702,800 $228,702,800 Population of City of San Rafael (ACS 2023) 58,331 58,331 Per Capita Facilities Replacement cost $3,920.78 $3,920.78 Avg. hhld size 2.59 2.32
Fee Per Unit $10,154.81 $9,096.20
Avg. Unit Livable SF 2,300 1,111
Max. Facility Impact Fee, per Livable SF before Admin. $4.42 $8.19 Max. Facility Impact Fee, per Livable SF with 2% Admin. Allowance $4.50 $8.35 H. Maximum Supported Parkland and Recreation Facility Development Impact Fees for All Non-Subdivision Units
Table 10C provides the calculation of the Maximum Parkland and Recreation Facility Development Impact Fee for all non-subdivision projects. The maximum fee covers the demand for both parkland and recreation facility improvements that are generated by new development.

This fee will be collected at the time that building permit fees are paid, unless later payment is required by law. The maximum supported parkland and recreation facility development impact fee for all non-subdivision units is $9.98 per square foot of livable area for single family detached units and $18.50 per square foot for multi-family units.

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Table 10C. Calculation of Maximum Parkland and Recreation Facility Development Impact Fees for All Non-Subdivision Units, to be Paid at Building Permit Land Facilities
Land and
Facilities
Total Value of City Inventory
of Parks and Park Facilities $278,113,200 $228,702,800 $506,816,000 Population of City of San
Rafael (ACS 2023) 58,331 58,331 58,331
Per Capita Parks and
Facilities Replacement cost $4,767.85 $3,920.78 $8,688.62 Avg. Unit Population, accounting for vacancy (ACS 2023) Single Family Detached Units 2.59
Multi-Family Units (bldgs. with 2+ units) 2.32
Per Dwelling SF Parks and Facilities Replacement Cost Avg. Unit Livable SF Single Family Detached Units 2,300
Multi Family Units 1,111
Maximum Parkland and Recreation Facility Impact Fee for All Non-Subdivision Units - to be Paid at Building Permit Single Family Detached Units Multi Family (Bldgs. 2+ units) Land Facilities Total Land Facilities Total
Total Value of City Inventory of
Parkland and Facilities $278,113,200 $228,702,800 $506,816,000 $278,113,200 $228,702,800 $506,816,000 Population of City of San
Rafael (ACS 2023) 58,331 58,331 58,331 58,331 58,331 58,331 Per Capita Total Inventory
Replacement Cost $4,767.85 $3,920.78 $8,688.62 $4,767.85 $3,920.78 $8,688.62 Avg. hhld size (ACS 2023) 2.59 2.59 2.59 2.32 2.32 2.32 Fee Per Unit $12,348.72 $10,154.81 $22,503.53 $11,061.40 $9,096.20 $20,157.60 Avg. Unit Livable SF (New
Units) 2,300 2,300 2,300 1,111 1,111 1,111
Max. Parkland and Facility
Impact Fee, per Livable SF,
before Admin. $5.37 $4.42 $9.78 $9.95 $8.19 $18.14
Max. Facility Impact Fee, per
Livable SF, with 2% Admin.

Allowance
DRAFT
$5.48 $4.50 $9.98 $10.15 $8.35 $18.50
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V. Estimated Range and Maximum Amount of Parkland and Recreation Facility Development Impact Fee Revenue through 2040
The maximum amount of revenue that would be generated by the adoption of the maximum parkland and recreation facility development impact fees through year 2040 has been estimated. The estimates have been calculated under the assumption that the City’s population increases by 8,549 over the period and that household sizes remain at 2.59 for single family detached units and 2.32 for multi-family units. The maximum revenue scenario reflects the assumption that 100% of new residential units are not located within subdivisions and they pay full fees for both acquiring parkland and building park facilities (including community centers).

The minimum revenue scenario reflects the assumption that 100% of new residential units are located within subdivisions and that the units pay only park facility impact fees. Both scenarios reflect the assumption that all residential units will be subject to recreation facility development impact fees. However, the City may elect to exempt individual homeowner projects or small projects with fewer units than a threshold to be selected, which would reduce the estimated maximum amount of achievable revenue.

As shown in Table 11, under the maximum revenue scenario, it is estimated that approximately $75.8 million of parkland and recreation facility impact fee revenue would be generated by new development through the year 2040. The minimum amount of impact fee revenue is estimated to be $34.2 million. Based on development trends, it is expected that fee revenue will be in the range of $59.1 million to $67.5 million, which yields an average projection of $63.3 million, or $7,403 per new resident, which is less than the per capita cost to replace the existing inventory of parkland and facilities and maintain the existing level of service.

As discussed in Section VI, the City has prepared a “Parks Development Impact Fee Project List (Table 12). It is estimated that the cost of undertaking the improvements eligible to be funded with development impact fees is $110.2 million, which exceeds the estimated maximum amount of impact fee revenue that could be generated by the adoption of the maximum fee amounts supported by this nexus study.

Therefore, the maximum fee levels established by this nexus analysis are consistent with the requirements of the AB 602 and the California Mitigation Fee Act.

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Table 11. Estimated Range of Parkland and Recreation Facility Development Impact Fee Revenue through Yr. 2040
100% Non-Subdivision - Land and Facility Fee
100% Subdivision - Land Dedication; Facility Fee
Only
SF,
Detached Multifamily
SF,
Detached Multifamily
SF,
Detached Multifamily
SF,
Detached Multifamily
Population
Growth – 2040 8,549 0 0 8,549 8,549 0 0 8,549
Household Size 2.59 2.32 2.59 2.32 2.59 2.32 2.59 2.32
Units 3,301 0 0 3,685 3,301 0 0 3,685
s.f./ unit 2,300 1,111 2,300 1,111 2,300 1,111 2,300 1,111 Total s.f. 7,591,776 0 0 4,095,052 7,591,776 0 0 4,095,052 Per SF Fee $9.98 $18.50 $9.98 $18.50 $4.50 $8.35 $4.50 $8.35 Implied Revenue
(100%) $75,764,609 $0 $0 $75,764,609 $34,189,091 $0 $0 $34,189,091 Subdivision/ Non Subdivision Scenarios
Max Fee Scenario Min. Fee Scenario
% Of Units that Are Not
Within Subdivision and
Pay Full Impact Fees
% of Total Units That are
within Subdivisions with
Land Dedication
Total
Revenue
Expected
Range
Per New
Resident
100% 0% $75,765,000 $8,862
90% 10% $71,607,000 $8,376
80% 20% $67,450,000
$63,292,000
$7,890
70% 30% $63,292,000 $7,403
60% 40% $59,134,000 $6,917
50% 50% $54,977,000 $6,431
40% 60% $50,819,000 $5,944
30% 70% $46,662,000 $5,458
20% 80% $42,504,000 $4,972
10% 90% $38,347,000 $4,486
0%
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100% $34,189,000 $3,999
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VI. USE OF FEE REVENUE
The City plans to use parkland and recreation facility development impact fee revenue to 1) acquire parkland and construct new facilities to maintain the current level of service; and 2) undertake significant reinvestment in existing facilities to expand and modernize facilities to best meet the needs of the community. The Parks Development Impact Fee Project List, which identifies planned capital investment to be undertaken during the next 15 years, is provided in Table 12. As shown, the list includes:
 Park and Community Center Renovation Projects;
 New Amenity Projects;
 Improvements to existing Amenities; and
 Land Acquisition and Development of New Parks
The Parks Development Impact Fee Project List identifies the location of planned improvements, the anticipated schedule, the estimated total cost of each improvement, and the portion of each improvement’s total cost that is eligible to be funded by parkland and park facility development impact fee revenues. As shown, the projects that are eligible to be funded by park impact fees is estimated to total $110.16 million, which exceeds the total revenues projected to be collected from the park impact fees and parkland dedication in-lieu fees. As such, the City’s Parks Development Impact Fee Project List demonstrates that the City has eligible projects on which to spend the fee revenues. The City will annually review and update the Parks Development Impact Fee Project List, in accordance with Government Code section 66002, to ensure that it continues to reflect the City’s parkland and facilities needs.

DRAFT
Table 12
Land or
Development
Size (acres of
new park land) Total Cost
New Development
Share of Cost Timing Location
Park & Community Center Renovation Projects
Terra Linda Park Renovation Development existing $5,000,000 $5,000,000 5 years Terra Linda Park Terra Linda Community Center Renovation Development existing $21,000,000 $21,000,000 5 years Terra Linda Community Center Terra Linda Community Garden Renovation Development existing $1,600,000 $1,600,000 5 years Terra Linda Community
Garden
Albert Park Field & Stadium Renovation Development existing $4,500,000 $2,250,000 10 years Albert Park Falkirk Cultural Center Accessibility Improvements Development existing $5,500,000 $5,500,000 10 years Falkirk Cultural Center Sub-total $37,600,000 $35,350,000
New Amenity
Freitas Park North Parcel Development existing $644,500 $644,500 5 years Freitas Park Bernard Hoffman Play Area and Pathway Improvement Development existing $500,000 $500,000 10 years Bernard Hoffman Park Starkweather Park Boat ramp Development existing $1,275,000 $1,275,000 15 years Jean & John Starkweather
Park
Sub-total $2,419,500 $2,419,500
Amenity Improvements
Freitas Park tennis courts and pathway development Development existing $250,000 $187,500 5 years Freitas Park Gerstle Park lower play area improvement project Development existing $1,600,000 $1,600,000 5 years Gerstle Park Oleander Park playground and pathway improvements Development existing $300,000 $300,000 5 years Oleander Park Gerstle Park Pathway Improvements Development existing $700,000 $350,000 5 years Gerstle Park Santa Margarita tennis court, basketball court, play area and pathway improvements Development existing $1,600,000 $1,600,000 5 years Santa Margarita Park Riviera Park Play Area and Pathway Improvement Development existing $400,000 $400,000 10 years Riviera Park Oliver Hartzell Park Play Area and Pathway Improvement Development existing $300,000 $300,000 10 years Oliver Hartzell Park Gerstle Park Tennis Court Improvements Development existing $500,000 $500,000 10 years Gerstle Park Boyd Park Tennis Court Improvements Development existing $700,000 $700,000 10 years Boyd Park Starkweather Park Trail Improvements Development existing $750,000 $375,000 15 years Jean & John Starkweather
Park
Bret Harte Sports Court and Pathway Improvement Development existing $200,000 $100,000 15 years Bret Harte Park Bret Harte Park Play Area Improvement Development existing $500,000 $500,000 15 years Bret Harte Park Victor Jones Sports Court Improvement Development existing $600,000 $600,000 15 years Victor Jones Park Sub-total $8,400,000 $7,512,500
Land Acquisition and Development
Canal Boatyard Development 1.65 $4,126,850 $4,126,850 5 years 620 Canal Street Montecito/Dominican Neighborhood Land 1 $2,613,600 $2,613,600 5 years Montecito/Dominican Development $1,289,000 $1,289,000 5 years
Winward Way Development 6.22 $10,017,580 $10,017,580 10 years Winward Way West End/Fairhills Neighborhood Land 2 $5,227,200 $5,227,200 10 years West End/Fairhills Development $2,578,000 $2,578,000 10 years
Lincoln/San Rafael Hill Neighborhood Land 2 $5,227,200 $5,227,200 10 years Lincoln/San Rafael Hill Development $2,578,000 $2,578,000 10 years
Contempo/Deer Park Neighborhood Land 4 $10,454,400 $10,454,400 15 years Contempo/Deer Park Development $5,156,000 $5,156,000 15 years
Northbridge/Marin Lagoon Neighborhood Land 4 $10,454,400 $10,454,400 15 years Northbridge/Marin Lagoon Development $5,156,000 $5,156,000 15 years
Sub-total $64,878,230 $64,878,230

SUMMARY
$37,600,000 $35,350,000
New Amenity Projects $2,419,500 $2,419,500
Amenity Improvement Projects $8,400,000 $7,512,500
Land Acquisition and Development $64,878,230 $64,878,230 TOTAL $113,297,730 $110,160,230
TOTAL NEW ACREAGE 20.87
y
Renovation Projects
Parks Development Impact Fee Project List

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VII.IMPACT FEES IN NEIGHBORING CITIES, MAXIMUM SUPPORTED FEES, AND

RECOMMENDED FEES
A. Park and Recreation Fees in Neighboring Jurisdictions KMA surveyed the park impact fees levied by the cities within Marin County and other Bay Area jurisdictions. The park and recreation development impact fees of peer jurisdictions are summarized in Table 13. The requirement that can most appropriately be compared across jurisdictions is the “Park Development Impact Fee Amount,” which applies to all nonsubdivision units and funds both parkland acquisition and park facilities. As shown on Table 13, the park impact fee amounts of the selected peer jurisdictions are as follows:

Single Family Detached Multi-Family
Novato $10,354 per DU $10,354 Per DU
Santa Rosa $14,890 to $17,314 per DU $11,169 to $14,415 per DU Vallejo $14,315 per DU $9,808 to $12,907 per DU
San Ramon $23,951 per DU $14,371 per DU
Concord $11,910 to $16,691 per DU $7,055 to $11,470 per DU DRAFT
Table 13. Parkland Dedication and In-lieu Fee Requirements for Residential Subdivisions and Park Facility Impact Fees Select Peer Jurisdictions
Novato Petaluma Santa Rosa 1 Napa Vallejo San Ramon Concord General Plan Parkland
Dedication Standard,
Residential Subdivisions

4.5 acres per 1,000 residents 3.4 acres per 1,000
residents

3.0 acres per 1,000 residents;
Land dedication is required if
GP designates a park within the
proposed subdivision.

2.5 acres per 1,000 residents 4.25 acres per 1,000 residents 4.91 acres per 1,000 residents 5 acres per 1,000 residents Acreage Dedication
Requirements per
Residential Unit,
Subdivision units
SF detached = .0124
SF attached = .0102
Duplex = .0113
Apts. 3 to 4 Du= .0107
Apts. 5+ DU = .0101
SF = .0099
MF = .0067
ADUs = .0034
SF detached = .00825
SF attached = .00813
Duplex = .00798
MF = .00657
Moblie Homes = .00492
SF detached = .007175
SF attached = .00515
Duplex = .005325
MF = .004575
Moblie Homes = .003775
ADU = .0025
SF detached = .01296
SF attached = .01169
Duplex = .01058
MF = .00889
Moblie Homes = .00778
SF = .01577
MF = .01035
VL Density = 0.016000
Low Density = 0.13933
Med. Density = 0.01010
High Density = 0.00950
Downtown, seniors, special needs
= 0.00700
Land Improvements
Required with Land
Dedication (Subdivisions)
Full street imps. , utiliity
connections. drainage, and
fencing.

Required to construct all
public improvements
slated for park and to be
reimbursed for costs
from in-lieu fees.

Full street imps. , utiliity
connections. drainage, and
fencing.

Not specified.

Shall have access to
streets.

In-Lieu Fee Conditions
(Subdivisions)
If no park facility designated in
GP for the property; or if
subdivision has 50 or less
parcels
Payment of fee is at
election of applicant if
subdivision contains
less than 50 lots.

All development must pay park
impact fee. If land is dedicated,
a credit is received equal to the
value of the land (as
established by a City
ordinance).

It is at the City's discretion if
land dedication, an in-lieu
fee, or a combination are
required
It is at the City's discretion if land
dedication, an in-lieu fee, or a
combination are required
If no park facility designated in
GP for the property; or if
subdivision has 50 or less
parcelsor if city determines
dedication is not appropriate.

It is at the City's discretion if land
dedication, an in-lieu fee, or a
combination are required
In-Lieu Fee Amount
(Subdivision units)
Required dedicated acreage
per unit times the fair market
value of buildable land.

Equal to park land
acquisition fees
adopted for non-Quimby
Act developments.

All development must pay park
impact fee. If land is dedicated,
a credit is received equal to the
value of the land (as
established by a City
ordinance).

Value of land to be dedicated
+ 20% towards the costs of
all off-site improvements,
whch would have been
dedicated.

In 2009, the in-lieu fee amount reflected
a land value cost of $526,918 per acre.

The 2009 in-lieu fees were as follows:

SF detached = $6,829 per du
SF attached = $6,157 per du
Duplex = $5,575 per du;
MF = $4,680 per du
Mobile home = $4,097 per du. Per
municipal code, in-lieu fees scheduld to
increase annually based on the
engineering News Record Construction
Cost index.

Appraised value of land
dedication requirement
times a factor of 1.02
Set by resolution, varies by
zipcode.

VL /Low Density = $11,910 to
$16,691 per du
Med. Density = $8,170 to $11,470
per du
High Density = $7,055 to $9,914
per du
Dwntn, Senior, SN + $5,233/du to
$7,304 per du
ADU = $4,508 to $8,345 per du
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Table 13. Parkland Dedication and In-lieu Fee Requirements for Residential Subdivisions and Park Facility Impact Fees Select Peer Jurisdictions
Novato Petaluma Santa Rosa 1 Napa Vallejo San Ramon Concord Park Development Impact
Fee Amount
Novato levies a fee for
Recreation and Cultural
Facilites.

SF unit = $10,354.03 per du;
MF unit = $10, 354.68 per du
ADU = $5,17.34 per du.

Need to clarify fee obligation
for Subdivision projects.

Fee Amount varies by location
SF detached = $14,890 to
$17,314
SF attached = $13,011 to
$14,415
Duplex = $12,843 to $14,230
MF = $11,169 to $12,375
ADUs > 750 sf / MHs = $8,877 to
$9,939
SF detached = $14,315
SF attached = $12,907
Duplex = $11,686
MF = $9,808
Mobile Homes = $8,588
Developers who dedicate land or pay an
in-lieu fee receive a credit against the
park impact fees
Facility Fees:

Subdiv. SF = $5,300 per du
Subdiv. MF = $3,421.63 per
du
Non Subdiv. SF =
$23,951.43 per du
Non Subdiv. MF =
$14,370.86 per du
Set by resolution, varies by
zipcode.

VL /Low Density = $11,910 to
$16,691 per du
Med. Density = $8,170 to $11,470
per du
High Density = $7,055 to $9,914
per du
Dwntn, Senior, SN + $5,233/du to
$7,304 per du
Park Land Acqusition Fee
SF unit = $2,293 per du;
MF unit = $1,551 per du
ADU = $787per du.

Part of Park Develoment Impact
Fee Amount.

All projects:

SF detached = $6,581
SF attached = $4,723
Duplex = $4,884
MF = $4,196
Mobile Homes = $3,462
ADU = $2,293
Land Dedication In-lieu Fee
for Subdivision projects:

SF = Appraised value of 687
sf of land X 1.02
MF = appraised value of 451
sf of land X 1.02
Park Land development
Impact Fee (Applied to All
Residential Development)
SF unit = $7,585 per du;
MF unit = $5,107 per du
ADU = $2,601 per du.

See Park Development Impact
Fee
All projects:

SF detached = $1,003
SF attached = $720
Duplex = $744
MF = $639
Mobile Homes = $528
Commercial Park Land
Acquisition and
Development Impact Fee,
Per 1,000 SF of Gross
Building Area
Commercial = $1,872
Office = $1,789
Industrial = $1,140
1) All residential developments are required to pay the Park Development Impact Fee. If a project dedicates land, the developer receives a partial credit equal to the value of the dedicated land. The per acre land value credit is established by City Ordinance.
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Appendix A:

Inventory of Parks from Citywide Parks and Recreation Master Plan, Recent Residential Land Sales in San Rafael, and
Parkland and Recreational Facility Construction Cost Estimates DRAFT
Appendix A Table 1: City Operated Parks by Type and Recreation Provided Park Name
SizeBallfieldBasketball CourtBocce FacilitiesHandball CourtMulti-Use Turf Field (soccer/foot-ball)Par CoursePlaygroundPoolReservablePicnic AreaRestroomTennis CourtWater Feature Community Park
Albert Park 13.34 x x x x
Pickleweed Park 17.60 x x x x x
Terra Linda Park 2.87 x x x x x
Neighborhood Park
Bernard Hoffman Field 3.80 x
Bret Harte Park 0.46 x x x
Freitas Park 2.69 x x x x x
Gerstle Park 6.00 x x x x x
Loch Lomond 3.00 x x
Los Ranchitos Park 3.00 x x x x
Oleander Park 2.28 x
Peacock Gap Park 4.14 x x x x
Santa Margarita Park 5.00 x x x x x
Sun Valley Park 5.00 x x x x
Victor Jones Park 5.96 x x x x x
Pocket Park
Arbor Park 0.30
Beach Park 0.44 x
Hillview Park 0.26
Munson Park 1.46
Oliver Hartzell Park 0.54 x
Riviera Park 0.27 x
Special Use Park
Boyd Memorial Park 1.75 x x
Falkirk Cultural Center Grounds 3.60
Jean and John Starkweather Shoreline Park 21.30 x
Special Use Park - Community Garden
Canal Community Garden 0.35
Terra Linda Community Garden 1.00
Total 106.41 4 7 2 1 1 1 16 1 7 12 6 1
Source: Citywide Parks and Recreation Master Plan, Tables 6 and 8

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DRAFT
Appendix A Table 2
Residential Land Sales - Marin County
April 2020 - April 2025; Source: CoStar
Property Address Property City Sale Price Sale Date
Est. 2024 price @3
% per year
Land SF
Gross
2024
Price per
SF Transaction Notes
1515 4th Street San Rafael $4,244,799 11/23/2020 $4,638,406 38,981 $119 Project has been approved for 183 independent living, assisted living and memory care units. 930 Irwin / 543 4th St. San Rafael $2,254,073 4/1/2022 $2,391,346 21,963 $109 Proposed 8-story project with 210 units. SB 330 application. Bankruptcy sale. Site is currently improved with a 11,000 sf office building.
815 B Street San Rafael $4,057,560 23,623 $172 41 unit project completed in 2021. 2024 Assessed land value. Avg. unit size is 856 sf. 1230 5th Avenue San Rafael $6,100,000 7/28/2020 $4,350,920 28,358 $153 SB 330 application for 187 residential units. 12 stories. Property is currently improved with a 11,000 sf building. Value reflects 2024 assessed land value.
555 Northgate Drive San Rafael $8,100,000 3/7/2024 $8,100,000 96,703 $84 Property improved with 23,100 sf office building. Max. permitted density is 43.6 du/acre. Application for 250 units due to density bonus
1580 Lincoln Avenue San Rafael $1,150,000 11/3/2020 $1,256,636 18,391 $68 use at time of sale was a retail garden center. Permitted density of 43.6 units per acre.

Loch Lomond Dr San Rafael $24,950,000 4/15/2021 $27,263,539 159,865 $171 The parties involved in this deal could not be reached for comment.

Per public record, this is the sale of 37 residential lots for $24.95 million or about $674k per lot. Part of the Village at Loch Lomond Marina, News reports that 18 detached homes, 14 townhouses and five condominiums will be built. All will be offered for sale at full market value, not low-income. Permit ready.
1010 Grand Ave (Part of
a 2 Property Sale) San Rafael $1,925,000 10/16/2020 $2,166,604 28,314 $77 The 0.65 Acre land was sold for $1,925,000. The property highlights 3 unique property offering represents several opportunities for either owner
users, value add investors or a possible total redevelopment. Very conveniently located just 3 blocks from the San Rafael Transit (Smart Station) and Highway 101 with just a short walk to all amenities and transportation.
508 3rd Street San Rafael $1,850,000 1//2020 $2,082,191 11,974 $174 Purchased for use as a parking lot. 21 G Street San Rafael $1,425,000 4/1/2018 $1,701,525 10,454 $163 Purchased for development of eight townhomes. 1203 Lincoln Avenue San Rafael $5,000,000 3/1/2017 $6,149,369 32,234 $191 Purchased for developmen tof 36 townhomes. Resold in 2018 for $9.375 million for development of senior care home.

Lucas Valley Rd San Rafael $5,600,000 6/30/2021 $6,119,271 417,305 $15 This land in San Rafael, CA was sold on 6/30/2021 by Bacciocco Enterprises LLC for $5.6M, which is $584,551.15 per acre, to The Oak Senior Living LLC. This land had been designated for an assisted living facility with 126 units for senior living and 5 affordable housing units on the almost 9.6 acres along Highway 101. The Oaks Senior Living Community had been approved by the Marin County Board of Supervisors in 2018. All information for this report was provided by public record at the time of this recording.
14 Skylark Dr Larkspur $126,000,000 2/9/2022 $133,673,400 1,022,095 $131 Confirmed by the seller, this is the sale of the leased fee interest in the property.

The seller retains the lease hold interest.

Average $125
Average, weighted by acreage $107
Median $131
Value Used for Calculating Maximum Fee $60
Keyser Marston Associates, Inc.
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Appendix A Table 3
Recreation Facility Construction Cost Estimates Prepared for Other Bay Area Park Development Impact Fee Nexus Studies Year of Study Hhld size Regional Reg. Rec Community Neigh Sources Sonoma County Parks Fee 2020 2.3 15 5 2.5 2.5
Regional Rec. Area improvements $93,700
Community Parks $283,000
Neighborhood parks NA
Regional Rec. Area improvements $137,000
Community Parks $413,000
City of Tracy 2024
15-acre Community Park $1,324,887 3.5 - SF 1 3
5-acre Neighborhood Park $1,251,114 2.8 - 2 to 4
15-acre Community Park $1,400,000
5-acre Neighborhood Park $1,320,000
City of South San Francisco 2015
$981,250
$1,650,000 3.45 - SF

2.98 - 2 to 4

2.53 - 5 to 19

2.04 - 20 to 49
50+ - 1.78
mH - 2.65
Inflated to 2025$
Inflated to 2025$
Inflated to 2025$
3 Improvement
Cost per Acre
Improvements based on recommendations
from Group 4 Architect.

Estimates based on recent park construction
and anticipated costs.

Park Acres Standard Per 1,000 Residents
WRT + 10% design and planning, 10%
construction mgmt. and 15% contingency.

Improvement costs are based on cost of 5
parks (26 acres).

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Appendix A Table 4
American Community Survey, 2023: City of San Rafael Population, Household, Vacancy and Household Size Data San Rafael
Housing Units Population
Avg. hhld size,
Occupied Units
Total Unit
Suppy
Vacant
Units
Vacancy
Rate
Check
Occ
Avg. hhld size
with vacancy
Total 23,250 58,331 2.51 24,212 2.41
Owner Occ 12,042 28,551 2.37 12,151 109.36 0.90% 12042.00 2.35 1 unit 10,464 25,366 2.42 10,559 95.03 0.90% 10464.00 2.40 2 units to 4 282 656 2.33 285 2.56 0.90% 282.00 2.31
5 or more 920 1,599 1.74 928 8.36 0.90% 920.00 1.72
mobile home 326 829 2.54 329 2.96 0.90% 326.00 2.52
Boat/RV, Van, etc. 50 101 2.02 50 0.45 0.90% 50.00 2.00 Ex. Boat, MH 11,666 27,621 2.37 11,772 105.95 0.90% 11666.00 2.35 Renter Occ. 11,208 29,780 2.66 11,460 252.12 2.20% 11208.00 2.60 1 unit 2,425 8,371 3.45 2,480 54.55 2.20% 2425.00 3.38
2 to 4 units 2,452 5,599 2.28 2,507 55.16 2.20% 2452.00 2.23 5 or more 6,274 15,618 2.49 6,415 141.13 2.20% 6274.00 2.43 mobile home 37 79 2.14 38 0.83 2.20% 37.00 2.09
Boat/RV, Van, etc. 20 113 5.65 20 0.45 2.20% 20.00 5.53 Ex, Boat, MH 11,151 29,588 2.65 11,402 250.84 2.20% 11151.00 2.60 Ttl, Ex. B & MH 22,817 57,209 2.51 23,174 357 22,817 2.47 Occupied Owner and Renter Units Owner and Renter With Vacant Units Supply Pop. hhld size Supply Pop. hhld size
23,250 58,331 2.51 23,611 58,331 2.47
1 unit 12,889 33,737 2.62 13,039 33,737 2.59
2 to 4 units 2,734 6,255 2.29 2,792 6,255 2.24
5 or more 7,194 17,217 2.39 7,343 17,217 2.34
mobile 363 908 2.50 367 908 2.48
Boat 70 214 3.06 71 214 3.02
Total, Ex. B & MH 22,817 57,209 2.51 23,174 57,209 2.47 2+ units 9,928 23,472 2.36 10,135 23,472 2.32

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DRAFT
Attachment 4
Market Comparison of Development Impact Fees for Residential Development City of San Rafael, CA
Does not include planning and permitting fees.

Townhome 8-story Downtown Source
Tenure Ownership Rental
Density 20 235
Average Unit Size 1,250 813
Estimate Average Number of BRs 2.50 1.75
Number of Units in Project 45 200
Estimated Building Permit Value $277,778 $310,223
Appraised Value of Land Per Acre $2,613,600 $2,613,600
Bldg. Permit Fee, San Rafael
(Estimated)
$12,997 $7,177
Peak Hour Trips Generated/Unit 0.93 0.61
Percent of Site Impervious Surface 70% 90%
Meter Size (Unless specified) 5/8" 5/8"

FEE TYPE
Per Unit San Rafael
(current)
San Rafael
(w/ max park fees) Concord Novato Petaluma San Ramon Santa Rosa

1. Traffic Fees $9,618 $9,618 $2,624 $5,537 $12,222 $11,257 $6,821

2. Parks, Open Space and Recreation Fees $7,050 $21,720 $9,820 $16,928 $7,250 $31,172 $14,053

3. Sewer and Water Connection Fees $23,216 $23,216 $36,548 $32,672 $11,979 $28,786 $9,842

4. Public Facilities/Safety Fees $0 $0 $3,719 $1,925 $5,285 $0 $0

5. School Fees $6,463 $6,463 $6,463 $6,463 $6,463 $6,463 $6,463

6. Other Impact Fees $0 $0 $0 $1,614 $0 $3,295 $0

7. Technology Fees $650 $650 $1,365 $1,300 $0 $876 $56

8. General Plan/Zoning/Other Cost
Recovery Fees $4,549 $4,549 $1,389 $1,300 $0 $1,917 $111 Total, Per Unit $51,545 $66,215 $61,927 $67,738 $43,199 $83,765 $37,345 Average, Per Unit
(excluding San Rafael) $58,795
Strategic Economics (SE)
Strategic Economics (SE)
TOWNHOMES (OWNERSHIP/SUBDIVISION*)
City of San Rafael
KMA, Parks Nexus Study, City of San Rafael
City of San Rafael
City of San Rafael
User's Guide for the California
Impervious Surface Coefficients
Strategic Economics (SE)
KMA estimate based on SE sample projects
KMA estimate based on SE sample projects
Prepared by Keyser Marston Associates, Inc.

FEE TYPE
Per Unit San Rafael
(current)
San Rafael
(w/ max park fees) Concord Novato Petaluma San Ramon Santa Rosa

1. Traffic Fees $7,555 $7,555 $2,624 $5,537 $12,222 $11,257 $6,821

2. Parks, Open Space and Recreation Fees $131 $15,041 $6,269 $17,175 $7,250 $31,172 $11,944

3. Sewer and Water Connection Fees $23,216 $23,216 $35,302 $26,672 $11,773 $21,896 $8,527

4. Public Facilities/Safety Fees $0 $0 $3,719 $1,896 $5,285 $0 $0

5. School Fees $4,203 $4,203 $4,203 $4,203 $4,203 $4,203 $4,203

6. Other Impact Fees $0 $0 $0 $1,469 $0 $3,619 $0

7. Technology Fees $359 $359 $754 $718 $0 $640 $13

8. General Plan/Zoning/Other Cost
Recovery Fees $2,512 $2,512 $1,551 $718 $0 $2,141 $25
Total, Per Unit $37,976 $52,885 $54,421 $58,387 $40,733 $74,928 $31,532 Average, Per Unit
(excluding San Rafael) $52,001
Fees in BLUE are charged by the City of San Rafael
*For the San Rafael rates, the townhome project assumes a sub-division. For agencies that do not have sub-division specific fees, their other park impact fees were applied. 8-STORY DOWNTOWN (RENTAL/NON-SUBDIVISION)
Fees in RED are charged by other agencies
Prepared by Keyser Marston Associates, Inc.

San Rafael City CouncilMay 18, 2026

San Rafael City Council
May 18, 2026