San Rafael City Council
June 15, 2026

____________________________________________________________________________________

FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 1.b
Meeting Date: June 15, 2026

SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller,
Director of Public Works
Sarah Teplitsky,
Associate Civil Engineer
City Manager Approval: ______________
TOPIC: UPDATE TO TRANSPORTATION MITIGATION FEE PROGRAM AND NEXUS STUDY SUBJECT: INTRODUCTION OF AN ORDINANCE ADDING CHAPTER 3.33, ENTITLED “TRANSPORTATION MITIGATION FEE PROGRAM,” TO THE SAN RAFAEL MUNICIPAL CODE; CEQA DETERMINATION: EXEMPT PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3)

RESOLUTION ADOPTING THE TRANSPORTATION MITIGATION FEE NEXUS

STUDY AND THE TRANSPORTATION MITIGATION FEE PROJECT LIST AND SETTING CHARGES FOR THE TRANSPORTATION MITIGATION FEE; CEQA DETERMINATION: NOT A PROJECT PURSUANT TO PUBLIC RESOURCES CODE SECTION 21065 AND CEQA GUIDELINES SECTION 15378; AND EXEMPT PURSUANT TO CEQA GUIDELINES SECTIONS 15262, 15273, AND 15061(B)(3) EXECUTIVE SUMMARY:

City staff is proposing an update to the City of San Rafael’s Transportation Mitigation Fee (TMF) Program to align with new state laws, improve fee transparency, and ensure new development contributes proportionately to transportation improvements needed to support future growth.

The update shifts the TMF from a “per trip” model to a land‑use and square‑footage–based structure, supported by a new Nexus Study identifying approximately $180 million in eligible transportation projects, with $53 million attributable to new development. Staff recommends adopting the maximum allowable fees—while providing reduced rates for 100% affordable housing, larger ADUs, and childcare facilities.

The proposed TMF would generate roughly $54 million over 14 years for critical transportation infrastructure. Environmental review is not required because the action constitutes fiscal and policy planning rather than approval of specific projects. Therefore, staff recommends that the City Council adopt the ordinance, Nexus Study, project list, and updated fee schedule.

RECOMMENDATION:

Staff recommends that the City Council:

1. Introduce an Ordinance adding Chapter 3.33, entitled “Transportation Mitigation Fee Program,” SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
to 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 Transportation Mitigation Fee Nexus Study and the Transportation Mitigation Fee Project List and Setting Charges for the Transportation Mitigation Fee.

BACKGROUND:

The Transportation Mitigation Fee (TMF) is a type of development impact fee created to address the increased demand of new residents and workers on transportation-related infrastructure, such as roads, intersections, and bridges, as well as facilities that serve transit, pedestrians, and/or non-motorized vehicles. The fee is established such that new development and redevelopment projects will pay their “fair share” towards new and expanded transportation infrastructure and facilities that mitigate the impacts caused by this growth. The fee must be supported by a nexus study that establishes a clear, evidence-based connection between new development and its impacts. Such studies ensure that the fee is proportional, equitable, and in compliance with the Mitigation Fee Act (Government Code Section 66000 et seq.), thereby making the fee legally defensible.

The City of San Rafael (“City”) first established a TMF in the mid-1980s by adopting Resolution No. 7882, which designated three specific zones within the planning area for the TMF. The TMF was subsequently updated in 2004 as part of the General Plan 2020 work when the City Council adopted Resolution No. 11668, which expanded the TMF to a citywide fee, excluded a list of project types from the TMF, and provided for an annual adjustment of the fee. The TMF had another minor update in 2012 when the City Council adopted Resolution No. 13364, which added second dwelling units as an exemption from the fee.

The TMF was most recently updated by the City Council in 2021 as part of the work done for the General Plan 2040. The 2021 update included preparation of a nexus study that included the list of projects envisioned as part of the General Plan 2040. The cost estimates for these projects were used in the analysis in the nexus study to provide the basis for a TMF increase from $4,246 per trip to $6,909 per trip. The main reason for this increase was that the annual adjustment authorized in 2004 under Resolution No. 11668 had never been made in the 17 years since its adoption due to unstable economic conditions. While legally defensible per the nexus study, the City recognized the challenge that implementing a major fee increase could pose to the development community. As a result, City staff met with the San Rafael Chamber of Commerce and local developers to receive feedback on the implementation of the fee increase. Based on this coordination, staff recommended a five-year gradual increase of the fee while maintaining an annual adjustment of the fee for inflation to avoid facing another significant fee increase in the future. This staff recommendation was implemented in Resolution No. 14983, which was adopted by the City Council in 2021.

The 2026 update to the TMF was initiated to address several needed changes to the TMF program. Since the 2021 update, new state laws, including Assembly Bill (AB) 602, AB 2553, and AB 3177, have been passed that impose new requirements on development impact fees, including requiring fees on residential development to be proportional to square footage and providing reductions in fees for projects located near major transit stops. The current TMF program structures the fee as a “per trip” fee, which makes compliance with aspects of the state laws difficult and requires preparation of burdensome projectspecific trip generation calculations. The 2026 update will convert the fee structure from a “per trip” basis to a land use-based rate structure, which will simplify implementation of the fee and provide greater fee transparency to the development community. The 2026 update will also provide revisions to the project list from the 2021 nexus study to remove projects that have been completed or fully funded, include additional projects, modify existing projects that serve future growth, and update cost estimates based on new information and inflation adjustments. Finally, the 2026 update will include changing the index SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
used for the annual inflation adjustment from the Lee Saylor Construction Cost Index to the Engineering News-Record (ENR) Construction Cost Index, as the Lee Saylor index is not published with sufficient frequency to allow for timely and accurate fee adjustments.

In April 2025, the Public Works Department, in coordination with the Community & Economic Development Department, engaged Fehr & Peers to prepare a new transportation mitigation fee nexus study. The resulting Draft Transportation Mitigation Fee Nexus Study (“Nexus Study”), dated May 12, 2026 (Attachment 2), provides the necessary legal, technical, and policy foundation to support the proposed fee update.

At the May 12, 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.

While this staff report focuses on updating the City’s TMF program, the City is engaged in a broader, multi-year initiative to review and update major development impact fee programs. These include the TMF, the Affordable Housing Fee, the Park and Recreation Facilities Fee, and consideration of a new Public Safety Facilities Impact Fee. Adoption of the updated Park and Recreation Facilities Fee will be considered at the June 15, 2026, City Council Meeting as a separate item on the meeting agenda.

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 development. To calculate these maximum fee levels, the Nexus Study analysis takes the costs associated with the transportation-related improvements needed to support the increased demand from future development and proportionally assigns these costs to new development.

The costs associated with the transportation-related improvements are calculated from the total cost of the transportation projects included in the TMF Project List, shown as Table 2 in the Nexus Study and as Attachment A: TMF Nexus Study Projects for the Capital Improvement Program (CIP) of the Nexus Study.

The TMF Project List is an update of the project list from the 2021 nexus study, which was based on the Mobility Element of the General Plan 2040. The TMF Project List revised the 2021 project list to remove projects that have been completed or fully funded, include additional projects that evolved from the prior, more general project list, modify existing projects that serve future growth, and update cost estimates based on new information and inflation adjustments. The total cost of the TMF Project List is $179.8 million. However, only $53.0 million is the actual project cost allocated to new development after accounting for the current TMF account balance, adjusting for existing deficiencies, and adjusting for grant funding. An administrative fee of 2.5% to support the management and implementation of the TMF program is applied to the $53.0 million of project cost allocated to new development, resulting in the TMF program total of $54.3 million.

To proportionally assign the TMF program cost of $54.3 million to new development, the Nexus Study first divides the costs between residential and employment (non-residential) uses based on the relative growth in residents and jobs forecast in the General Plan 2040. This step ensures that housing and employment development each pay a share of the transportation improvements needed to serve that growth. Within each category, costs are further distributed based on the number of vehicle trips generated by different land uses based on the trip generation rates in the Institute of Transportation Engineers 11th Edition Trip Generation Manual. These trips are converted into a common unit called an Equivalent Dwelling Unit (EDU), where one single-family home equals one EDU, and other land uses are assigned a proportional value based on the trips they generate relative to a single-family home. The total TMF SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
program cost is divided by the total number of EDUs expected from new development to determine the maximum TMF per EDU, which is then used to establish the fee for each land use category.

The following table, Table 1, presents the maximum TMF by land use category as calculated in the Nexus Study. In accordance with AB 2553, residential development within one-half mile of a major transit stop, the Downtown SMART Station or the Civic Center SMART Station, is assessed lower fees. Consistent with AB 602 and related state legislation, residential fees are assessed on a square-foot basis.

Table 1 – Maximum Transportation Mitigation Fee by Land Use Category Land Use Unit EDU Maximum Fee Per
Land Use Category
Single-family
residential
Dwelling Unit (DU) - 2,300 Sq. Ft. (100%) 1.00 $18,703
Sq. Ft. (to be used for fee collection) $8.13
Multi-family
residential
Dwelling Unit (DU) - 1,111 (100%) 0.48 $9,004
Sq. Ft. (to be used for fee collection) $8.10
Within ½ mile of Downtown SMART Station $6.32
Within ½ mile of Civic Center SMART Station $7.70
Affordable housing
Dwelling Unit (DU) - 1,111 (100%) 0.51 $9,540
Sq. Ft. (to be used for fee collection) $8.59
Within ½ mile of Downtown SMART Station $6.70
Within ½ mile of Civic Center SMART Station $8.16
Senior housing
Dwelling Unit (DU) - 1,111 (100%) 0.34 $6,426
Sq. Ft. (to be used for fee collection) $7.82
Within ½ mile of Downtown SMART Station $6.10
Within ½ mile of Civic Center SMART Station $7.43
Nursing care Dwelling Unit (DU) 0.23 $4,383
Commercial (40,000-
150,000 Sq. Ft.) 1,000 Sq. Ft. 5.01 $65,619
Commercial (Less
than 40,000 Sq. Ft.) 1,000 Sq. Ft. 4.04 $52,917
Biotechnology Employees 1.17 $21,975
Office/business park 1,000 Sq. Ft. 1.15 $21,499
Industrial 1,000 Sq. Ft. 0.52 $9,659
Warehouse 1,000 Sq. Ft. 0.18 $3,392
Hotel/motel Room 0.85 $15,847
Elementary school Students 0.24 $4,502
Day care Students 0.43 $8,112
Self-storage 1,000 Sq. Ft. 0.15 $2,876
Service station Pump 12.77 $167,166
Source: Fehr & Peers, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Full Fee Burden Market Comparison
To provide additional context for evaluating the proposed fee update, staff conducted a comprehensive fee burden market comparison that examines the total cost of development impact fees across multiple categories, including parks, transportation, 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 Downtown apartment (non-subdivision) project, to evaluate the City’s total fee burden relative to peer jurisdictions across Marin County and the broader Bay Area.

The comparison includes current City of San Rafael fees, as well as future City of San Rafael fees. The futures fees include the following assumptions:
• The park fees are adopted at the maximum allowable levels. The staff recommendation for adoption of the park fees at the maximum allowable levels will be brought to the June 15, 2026, City Council meeting as a separate item on the meeting agenda. • The TMF is adopted at the maximum allowable level.
• The public facilities/safety fees are zero dollars because this is a new fee category that is currently under development, and not enough information is known at this time to determine what this fee amount could be.
• The construction vehicle impact fee is zero dollars because staff recommends suspending this fee to provide more capacity for the new/updated development impact fees under consideration.

This fee is a separate fee from the TMF that was established by Resolution No. 11473 in 2004.

The staff recommendation for suspension of this fee will be brought to the June 15, 2026, City Council meeting as a separate item on the meeting agenda.

Key findings from the fee burden analysis include:
• For a mid-rise Downtown apartment project, which represents the majority of current residential development activity in San Rafael, adoption of the maximum allowable TMF would place the City at approximately 3% below the regional average for total fee burden. • For a townhome project, adoption of the maximum allowable TMF would place the City modestly (approximately 13%) 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 TMF fee is consistent with regional conditions while maintaining the City’s competitiveness. It is also important to note that, even when the maximum allowable TMF fee is considered, approximately 44-54% 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
While the Nexus Study calculates the maximum allowable TMF, the City Council retains the authority to adopt the maximum fee or to adopt a lower amount. Staff recommends adopting the maximum allowable fee with the exception of a few project categories, for which staff recommends adopting a reduced fee.

These project categories are:

SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
• 100% Affordable Housing. For 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 as defined by applicable state law, staff recommends adopting a reduced fee, set at 25% the maximum fee, to support the City’s housing policies of encouraging the development of additional affordable housing units in the City.

Additionally, staff is developing a fee waiver process for an additional fee waiver allowance up to 100% of applied development impact fees on a case-by-case basis, along with a residual receipts loan program. This will be brought forward for Council consideration in a future agenda, as staff is currently engaging the affordable housing development community and establishing waiver guidelines. The existing TMF policy adopted by Resolution No. 14983 excludes low-income and very low-income (affordable) housing units from the fee, so this would be a policy change, but would standardize the approach with that of the proposed Park Impact Fee programs. • Accessory Dwelling Units (ADUs). For ADUs greater than 750 square feet, staff recommends adopting a reduced fee, set at 25% the maximum fee, to support the City’s policies of encouraging the construction of ADUs. ADUs of less than 750 square feet are exempt from the TMF pursuant to Government Code Section 65852.2(f)(3). The existing TMF policy adopted by Resolution No. 14983 excludes all ADUs from the fee, so this would be a policy change to decrease the fee reduction for ADUs greater than 750 square feet from a 100% fee reduction to a 75% fee reduction.
• Childcare Facilities. Staff recommends adopting a 100% fee reduction for this project category in continuation of the existing TMF policy adopted by Resolution No. 14983.

The existing TMF policy adopted by Resolution No. 14983 excludes “cultural and theater facilities, excluding night clubs in Downtown” from payment of the TMF. Staff recommends removing this exclusion from the TMF program because “cultural facility” is not defined by the resolution and thus could lead to subjective decisions to exclude projects from the fee.

Although staff does not recommend adopting a reduced fee for market-rate senior housing, a senior housing project that is 100% affordable would be eligible for the recommended reduced affordable housing fee rate, as described above.

Other than the project categories recommended for reduced fees, staff recommend adopting the maximum legally supportable fee levels identified in the Nexus Study. The recommended fee levels are included within Exhibit B of Attachment 2. The recommendation is based on the evaluation of other agency fees in the Bay Area, as presented in the market comparison, which shows that this approach places San Rafael at just below the regional average for total fee burden for mid-rise apartment buildings in downtown, which is the majority of new housing development currently under construction or proposed in San Rafael. Adopting the maximum fee levels ensures that new development pays its full, proportionate share toward transportation improvements, consistent with the Nexus Study and state law requirements.

Adopting fees below the maximum would reduce the proportion of transportation infrastructure costs funded by new development, potentially requiring alternative funding sources, reducing the scope or timing of transportation improvements, or resulting in lower service levels over time.

While staff recommends adopting the maximum allowable TMF at this time, the City Council retains the flexibility to revisit fee levels in the future as part of broader consideration of development impact fee updates or in response to changing market conditions. Staff does not recommend a phased approach to implementing the fee because, with the recommended suspension of the construction vehicle impact fee, the combined traffic-related fees (TMF and construction vehicle impact fee) will minimally increase for the representative development prototypes analyzed in the full fee burden market comparison. However, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
the City Council may choose to phase in the fee over a number of years. A three-year phased approach for fee implementation is included as Exhibit B1 (Attachment 3), where the fee would be adopted at 50% of the maximum allowable fee level for the first year, would increase to 75% of the maximum allowable fee for the second year, and would reach 100% of the maximum allowable fee in the third year. Exhibit B1 would replace Exhibit B in the resolution (Attachment 2) for this approach.

To maintain alignment with rising construction costs, staff also recommends maintaining the existing TMF policy per Resolution No. 14983, which provides an annual inflation adjustment of the TMF. Staff recommends changing the index used for the annual adjustment from the Lee Saylor Construction Cost Index to the Engineering News-Record (ENR) Construction Cost Index, as the Lee Saylor index is not published with sufficient frequency to allow for timely and accurate fee adjustments.

If adopted, the updated Transportation Mitigation Fee Schedule will be incorporated into the City’s Master Fee Schedule and will take effect 60 days after adoption in accordance with Government Code Section 66019. Importantly, the proposed changes will not impact development projects that are already vested.

Projects with vested rights, including projects subject to vesting protections under applicable state law, such as Senate Bill 330, will remain subject to the TMF rates applicable at the time those rights vested or protections attached.

Ordinance and Resolution
Since the establishment of the TMF in the mid-1980s by the adoption of Resolution No. 7882, TMF policy has been set and updated by resolution. The authority for imposing and charging the TMF was established by Ordinance No. 1556, which added Chapter 3.32 to the San Rafael Municipal Code.

To more clearly lay out the parameters of the TMF fee program, staff recommends adopting a new ordinance to add Chapter 3.33 to the San Rafael Municipal Code. This ordinance is included as Attachment 1. Chapter 3.33 will govern the administration of the transportation mitigation fee program but does not set the fee levels. Staff recommends adoption of the resolution (included as Attachment 2) to adopt the Nexus Study, TMF Project List, and fee rate tables.

COMMUNITY OUTREACH:

The City complied with all legal requirements by publishing public hearing notices in the Marin Independent Journal on May 15 and May 22, 2026. These notices informed the public of the upcoming San Rafael City Council public hearing scheduled for Monday, June 15, 2026, regarding the proposed transportation mitigation fee program updates and the adoption of the Transportation Mitigation Fee 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 via email to the Marin Builders Association, the San Rafael Chamber of Commerce, and other members of the development community 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.

On May 12, 2026, staff presented the Transportation Mitigation 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 City’s efforts on updating development impact fees, including the Transportation Mitigation Fee. The webpage included links to the materials presented to the Finance Subcommittee as SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
well as the draft Nexus Study. 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:

Adoption of the Transportation Mitigation Fee Nexus Study (“Nexus Study”) and the Transportation Mitigation Fee Project List (“Project List”), which serves as the Capital Improvement Program required by Government Code section 66016.5, and related amendments to the Transportation Mitigation Fee do 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 at the earliest feasible stage, it does not require review of actions that are speculative, conceptual, or preliminary 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 transportation infrastructure 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 does not approve, fund, or authorize construction of any specific capital improvement project; does not establish final project descriptions, locations, designs, construction methods, phasing, or schedules; and does not commit the City to proceed with any 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. It 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 they evaluate potential transportation infrastructure needs and funding strategies at a conceptual level, before 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 transportation infrastructure, 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.

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 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
occur unless and until the City takes separate future discretionary actions to approve a specific project, following appropriate CEQA environmental review. 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, has 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 Transportation Mitigation Fee will provide a dedicated revenue source to fund transportation capital improvements directly related to new residential and commercial development.

Over the 14-year planning horizon identified in the Nexus Study, the proposed Transportation Mitigation Fee is estimated to generate approximately $54 million in revenue at the maximum allowable rate established by the Nexus Study. These funds will be used exclusively for the development and construction of public transportation facilities consistent with the Transportation Mitigation Fee Project List and applicable state law.

The Nexus Study identifies approximately $180 million in eligible transportation improvement projects, with roughly $53 million attributable to new development. The Nexus Study establishes maximum legally defensible fee levels, and staff recommends adopting these maximum rates to ensure the 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 a General Fund subsidy, reliance on other discretionary funding sources, or a reduction in the overall service level the City can provide to the community. In the absence of such funding, reduced fee levels could limit the scope, timing, or delivery of planned transportation 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. Adopt the resolution with Exhibit B; or with Exhibit B1 (Attachment 3) instead of Exhibit B.

3. Direct staff to return with more information.

4. Take no action.

RECOMMENDED ACTION:

Staff recommends that the City Council:

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

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

3. Adopt the Resolution with Exhibit B (Attachment 2 [representing staff’s recommendation]) or with Exhibit B1 (Attachment 3)
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 10

4. Direct staff to return with more information.

5. Take no action.

ATTACHMENTS:

1. Draft Ordinance adding Chapter 3.33, entitled “Transportation Mitigation Fee Program” to the San Rafael Municipal Code

2. Resolution (Includes Exhibit A - Draft Transportation Mitigation Fee Nexus Study, and Exhibit B)

3. Alternative Exhibit B1 Phased Fee Table for Draft Resolution

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

AN ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL ADDING CHAPTER

3.33, TRANSPORTATION MITIGATION FEE PROGRAM, TO THE CITY OF SAN

RAFAEL MUNICIPAL CODE
WHEREAS, California Government Code Section 66000 et seq, known as the Mitigation Fee Act, authorizes local agencies to impose fees in connection with approval of development projects for the purpose of defraying all or a portion of the cost of public facilities related to the development project; and
WHEREAS, this Ordinance adds a Transportation Mitigation Fee Program to specifically govern the fees imposed to mitigate transportation impacts caused by new development, which were previously imposed under San Rafael Municipal Code Chapter 3.32 Article 2.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS:

DIVISION 1. AMENDMENT OF MUNICIPAL CODE
Chapter 3.33 of the San Rafael Municipal Code is hereby added to read as follows:

Sec. 3.33.010 – Title, Authority and Applicability
(a) This chapter shall be known and may be cited as the "Transportation Mitigation Fee Program Ordinance."
(b) The fees established pursuant to this chapter are development fees authorized under California Government Code Section 66000 et seq.
(c) This chapter shall apply to the extent permitted by the statutes and laws of the State of California.

Sec. 3.33.020 – Intent and Purpose:

New development projects bring new residents and employees to the City of San Rafael, generating an increased demand for transportation facilities. The intent of this chapter is to establish a transportation mitigation fee upon new development projects to ensure that new development contributes its fair share to transportation improvements in the City consistent with the City's standards.

Sec. 3.33.030 - Definitions:

For the purposes of this chapter:
(a) “Administrator” means the Director of Community and Economic Development or their designee, who shall administer the provisions of this chapter. (b) “Applicant” means the owner of real property proposed for development, or the applicant's authorized agent.
(c) “Development” means any new construction or use that requires the issuance of a building permit or other city use entitlement.
(d) "Development permits" means a building permit required by and issued pursuant to Title 12 of this code, or other city use entitlements including but not limited to conditional use permits, environmental design review permits, zone changes, variances or land subdivisions required by Titles 14 and 15 of this code. (e) “Dwelling unit” means one (1) or more rooms with internal access between all rooms, which provide complete independent living facilities for at least one (1) family, including provisions for living, sleeping, eating, cooking, bathing, and sanitary facilities.
(f) “Fee payer” means the person undertaking a development which generates new trips and which requires the issuance of a building permit, or any other entitlement. (g) “Transportation Mitigation Fee” or “transportation fee” means the fee or fees imposed on a development pursuant to this chapter, the revenues from which shall be used to fund a proportionate share of the cost of transportation improvement projects and transportation system improvements necessary to mitigate the transportation impacts of such development in San Rafael. (h) “Transportation mitigation fee project list” or “transportation fee project list” means the capital improvement plan that is adopted by the City Council and may be amended from time to time pursuant to Government Code Section 66002, which sets forth the transportation improvement projects and transportation system improvements that are intended to be funded in part or in whole by transportation mitigation fees. The transportation fee project list shall be maintained on file in the office of the Administrator.
(i) “Transportation mitigation fee schedule” or “transportation fee schedule” means the schedule of transportation mitigation fee rates per development unit for specific land uses or land use categories approved by ordinance or resolution of the Council and maintained on file in the office of the Administrator. (j) “Site-related improvement” means capital improvements and right-of-way dedications for direct access to, and/or for traffic circulation within, a development.

Direct access improvements include, but are not limited to, the following:
(1) Access roads leading to the development;
(2) Driveways and roads within the development;
(3) Acceleration and deceleration lanes and right-and left-turn lanes leading to such roads and driveways;
(4) Traffic-control measures for such roads and driveways; Curbs, gutters, sidewalks, bike facilities, and parking lanes adjacent to the development; and
(5) Non-vehicular (pedestrian and bicycle) access to the site. (k) “Square foot” means every square foot of floor area as defined in the "Trip Generation Manual," published by the Institute of Transportation Engineers (latest edition) for the purpose of calculating traffic generation. The Building Code, as adopted and amended from time to time by the City, shall be used for determining the square foot area of any development which cannot be calculated by using the definition in the Trip Generation Manual.

Sec. 3.33.040 - Calculation of Transportation Mitigation Fee (a) Calculation of Transportation Mitigation Fee:
(1) Transportation Mitigation fee shall be based upon the land use categories and rates specified in the transportation fee schedule. The Administrator shall determine the appropriate land use category for the development. If the Administrator determines that the development does not fit within one of the land use categories specified in the transportation fee schedule, then the Administrator may calculate the appropriate fee using the closest comparable land use category in the transportation fee schedule or the most recent edition of the Institute of Transportation engineers (ITE) Trip Generation Manual. For the instance where the Administrator calculates the fee using the ITE Trip Generation Manual, the fee shall be developed based on a correlation to the average daily trip rate for a single-family home that represents an equivalent dwelling unit (EDU) of 1.0.
(2) When more than one land use is proposed within the same development, the transportation mitigation fee for each land use shall be calculated separately and the total fee of the various uses shall be imposed. (b) Calculation of Fee Credit for Existing Uses: If new development changes or intensifies the existing use on the development site, thereby requiring the payment of a new or additional transportation mitigation 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 Administrator; 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 building permit application being filed.

Sec. 3.33.050 - Imposition and Payment of Transportation Mitigation Fee:
(a) Transportation mitigation fee shall be established as adopted by ordinance or resolution of the Council and maintained on file in the office of the Administrator. (b) Unless otherwise required by law, 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. 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.
(c) Notwithstanding the foregoing, a residential development project may defer payment of the Transportation Mitigation Fee 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 transportation fee is paid for that building.

The agreement shall also provide that, in any action to collect the transportation 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.
(d) The Administrator shall establish the transportation fee rate from the aforesaid transportation fee schedule. The applicant shall submit all information requested by the Administrator for the purpose of determining a transportation fee rate pursuant to section 3.33.040.
(e) For a change in use or redevelopment, demolition, or replacement of an existing building, or any part thereof, the transportation fee shall be the applicable transportation fee for the land use category of the new use, less the transportation fee for the land use category of the prior use. For any development that includes a change of use or redevelopment involving an alteration, expansion, replacement or new accessory building, the transportation fee shall be the mitigation fee for the new use using the metric that is listed in the schedule of fees (including the existing use plus the additional use) less the transportation fee for the land use category of the preexisting use, based upon the corresponding preexisting use floor area. (f) A development that involves the alteration, expansion or replacement of an existing single dwelling unit shall not be subject to the transportation fee unless it results in construction of an additional dwelling unit(s) for rent or sale. (g) For a development that involves alteration, expansion or replacement of an existing single dwelling unit resulting in additional dwelling units, the transportation fee shall be the applicable transportation fee for the land use category of the total dwelling units after development, less the applicable transportation fee for the existing single dwelling unit.

Sec. 3.33.060 - Use of Funds
(a) Revenues from transportation fees shall be used to fund a proportionate share of the cost of transportation improvement projects and transportation system improvements necessary to mitigate the transportation impacts of such Development in San Rafael. The transportation system improvements intended to be funded by the transportation fees shall be set forth in the transportation fee project list, which may be amended from time to time pursuant to Government Code Section 66002.
(b) All revenues collected from imposition of mitigation fees shall be accounted for separately from all other City funds and shall be used solely for the purposes specified in this chapter and for the projects or purposes described in the transportation fee project list.
(c) No such revenues shall be used for periodic or routine maintenance of roadways, intersections, or other transportation-related capital improvements. (d) In the event that bonds or similar debt instruments are issued for construction of capital improvements for which transportation fees may be expended, transportation fees may be used to pay debt service thereon to the extent that the improvements provided are of the type described in subsection (a) of this section and are located within the City.
(e) Transportation fee revenues may be used to provide refunds pursuant to Section

3.33.070.

Sec. 3.33.070 - Refund of Fees Paid
If a building permit expires without commencement of construction, then the fee payer shall be entitled to a refund, without interest, of the transportation fee paid as a condition for its issuance, except that the City shall retain two percent (2%) of the fee to offset a portion of the costs of collection and refund. The fee payer shall apply in writing for such a refund within ninety (90) calendar days of the expiration of the permit; provided that the Administrator may extend such period for good cause, not to exceed six (6) months.

Sec. 3.33.080 – Requests for Adjustment
An applicant may apply to the Administrator for a reduction, adjustment or waiver of the mitigation fee imposed pursuant to this chapter 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 transportation improvements or facilities; (2) the fee is not roughly proportionate to the development’s impact on the need for transportation improvements or facilities; or (3) the fee requires the developer to pay more than is necessary to address the impacts of the new development on transportation improvements or facilities. (a) Application: An applicant shall file a written request to adjust fees with the Administrator not later than ten (10) days after the City notifies the developer of the amount of the fee to be imposed. The application shall provide evidence illustrating that the payment of the fee authorized by this chapter bears no reasonable relationship or essential nexus with the impact of the development on the need for transportation facilities within the City and shall state in detail the factual basis for the request for reduction, adjustment or waiver. If an applicant desires to receive a building permit prior to the completion of the adjustment application process, the applicant shall deposit the fee with the application. Such fee or portion thereof will be refunded if the application is successful. (b) Decision of the Administrator: The Administrator shall issue a decision on the application within thirty (30) days after the application is filed. The Administrator's decision shall state their determination regarding the amount of the transportation fee that may reasonably be imposed on the new development and include a brief description of the basis for the Administrator's decision. Should the Administrator determine that they need additional information in order to issue a decision, they shall notify the applicant, in writing, prior to the expiration of the thirty-day period, and provide a description of the additional requested information. The Administrator shall then have thirty (30) days from the date the applicant responds to the Administrator's request for additional information to issue their decision. (c) Appeal of the Decision of the Administrator: Decisions of the Administrator may be appealed to the City Manager or their designee. Appeals must be filed within ten (10) days of the Administrator's decision. The City Manager shall review the application and evidence presented to the Administrator and issue a decision within fifteen (15) days. The decision of the City Manager is final and may be appealed or protested pursuant to Government Code Section 66020.

Sec. 3.33.090 - Exemptions and Credits
(a) Any claim of exemption from the transportation mitigation fee shall be made no later than the time of payment of the transportation mitigation fee. Any claim not so made shall be deemed waived. The following shall be exempted from payment of the transportation mitigation fee:
(1) Alterations or expansion of an existing building where no additional dwelling units are created, no square footage is added, and the use is not changed; (2) The construction of accessory buildings or structures which will not generate additional vehicular trips over and above those generated by the principal building or use of the development and which will not be used other than for storage;
(3) The replacement of a destroyed or partially destroyed building or structure with a new building or structure of the same size and use; provided, that no additional trips will be generated over and above those generated by the original use of the land to which the new development pertains; (4) Development that does not result in any additional vehicular trips as determined by the Administrator;
(5) Publicly owned facilities;
(6) Pursuant to Government Code Section 65852.2(f)(3), accessory dwelling units of less than seven hundred fifty (750) square feet; and (b) Credits:
(1) Credit shall not be given for site-related improvements, right-of-way dedications providing paved access to the development or payments to special assessment or taxing districts.
(2) Credits for an applicant's construction of a capital improvement included in the transportation fee project list shall be given when the construction is completed and accepted by the appropriate governmental body. (3) Any claim for credit must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived. (4) Credit may be given for redevelopment of existing uses pursuant to subdivision (b) of section 3.33.050.

Sec. 3.33.100 - Adjustments to Fees
The transportation mitigation fee shall automatically increase starting on July 1, 2027, and each year thereafter, in accordance with changes in regional construction costs. The amount of the adjustment shall be based on May over May construction cost changes according to the "Construction Cost Index" for the San Francisco Bay Area, as reported monthly in the Engineering News-Record. This adjustment shall not require any action of the City Council.

Sec. 3.33.110 – Violation/Penalty
The fees imposed under this chapter shall be enforced, if payment is not made, as a lien against the property.

DIVISION 2. 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 portion 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 3. CEQA Determination.

The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to 14 CCR Section 15061(b)(3) of the State CEQA Guidelines, because it can be seen with certainty that there is no possibility that the adoption of this Ordinance or its implementation would have a significant effect on the environment.

DIVISION 4. Publication; Effective Date.

This Ordinance shall be published once, in full or in summary form, before its final passage, in a newspaper of general circulation, published and circulated in the City of San Rafael and shall be in full force and effect thirty (30) days after its final passage. If published in summary form, the summary shall also be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, 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 and against the Ordinance.

THE FOREGOING ORDINANCE was first read and introduced at a regular meeting of the San Rafael City Council on the 15th day of June 2026, and was passed and adopted at a regular meeting of the San Rafael City Council on the 20th day of July 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 CITY COUNCIL OF THE CITY OF SAN RAFAEL ADOPTING THE

TRANSPORTATION MITIGATION FEE NEXUS STUDY AND THE TRANSPORTATION MITIGATION

FEE PROJECT LIST, SETTING CHARGES FOR THE TRANSPORTATION MITIGATION FEE, AND

UPDATING THE MASTER FEE SCHEDULE
WHEREAS, California Government Code Section 66000 et seq, known as the Mitigation Fee Act, authorizes local agencies to impose fees in connection with approval of development projects for the purpose of defraying all or a portion of the cost of public facilities related to the development project; and WHEREAS, Chapter 3.32 of the San Rafael Municipal Code (“SRMC”) adopted pursuant to the Mitigation Fee Act imposes Public Facilities Development Fees; and WHEREAS, pursuant to SRMC Chapter 3.32, on December 19, 1988, the City Council adopted Resolution No. 7882 establishing Traffic Mitigation Fees required for new development for three zones of benefit within the City; and
WHEREAS, the City last updated the Traffic Mitigation Fees in 2021 by Resolution No. 14983; and
WHEREAS, the City Council is considering adopting an ordinance to add SMRC Chapter 3.33 to adopt the Transportation Mitigation Fee Program which will replace the current Traffic Mitigation Fees, and include the fee program as a separate chapter; and
WHEREAS, the Transportation Mitigation Fee will include multi-modal projects as well as the same projects and purposes as the prior Traffic Mitigation Fee, and as such, the revenues from the Transportation Mitigation Fee will be placed in the same fund as the revenues collected from the Traffic Mitigation Fee, and these revenues will be used for the purposes identified in SMRC Chapter 3.33.

WHEREAS, the Mitigation Fee Act requires a nexus study to be adopted prior to the establishment of an associated development fee; and
WHEREAS, the City contracted with Fehr and Peers to perform a study for the Transportation Mitigation Fee demonstrating the reasonable relationship between the need for the fee and the type of development on which the fee will be imposed, and determining the amount of the fee based on the reasonable relationship between the fee and the type of development project on which the fee will be imposed; and
WHEREAS, Fehr and Peers prepared and submitted a Transportation Mitigation Fee Nexus Study, dated May 12, 2026, attached hereto as Exhibit A and incorporated herein by reference (the “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 transportation impacts expected to be caused by that development project; and
WHEREAS, there is a reasonable relationship and an essential nexus between the Transportation Mitigation 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 Transportation Mitigation Fees will not exceed the estimated reasonable cost of providing the land and facilities for which the Fees are imposed; and WHEREAS, the Transportation Mitigation Fees will not be levied, collected or imposed for general revenue purposes, but are levied specifically to fund facilities of the types set forth in the Nexus Study; and
WHEREAS, the Nexus Study establishes that the Transportation Mitigation Fee has an “essential nexus” to the City’s legitimate land use interest of providing transportation facilities necessary to serve new growth and the amount of the Fee is roughly proportionate to the City’s costs of constructing transportation facilities to serve new development; and WHEREAS, the Nexus Study identifies the City’s existing level of service for transportation 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 reviewed the assumptions of the previous nexus study supporting the existing Transportation Mitigation Fees and evaluated the amount of revenues collected under the existing fee; and
WHEREAS, the Transportation Mitigation Fee and the associated Project List are consistent with the City’s General Plan 2040, whose Mobility Element establishes goals of efficiency and access to safe streets and affordable public transit, as well as reducing the Vehicle Miles Traveled (VMT), by ensuring that future development contributes to a measurable reduction in VMT and supports access to multimodal transportation citywide; and
WHEREAS, the Transportation Mitigation Fee and the associated Project List are consistent with the City’s Housing Element 2023-2031 because they are structured to equitably allocate the costs of growth‑related transportation improvements to new development, while supporting transit investments that promote higher density infill development and reduced vehicle miles traveled; and WHEREAS, the City’s 2023-2031 Housing Element analyzes governmental constraints on housing production, including development fees; and
WHEREAS, the Housing Element recognizes that development fees, including planning fees, building fees, and impact fees, can affect the financial feasibility of housing development throughout the Bay Area, while also explaining that development impact fees are used to cover the cost of capital improvements attributable to new projects and are necessary to equitably distribute the costs of growth to new development rather than to existing taxpayers (Housing Element, p. 5-44); and WHEREAS, the proposed Transportation Mitigation Fees would not constitute an unreasonable constraint on housing production because the Fees are supported by the Nexus Study and are calculated to recover only the proportionate costs of transportation facilities attributable to new development; and WHEREAS, the 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 and accessory dwelling units 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 Transportation Mitigation Fee for one hundred percent (100%) affordable housing projects and accessory dwelling units 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, the City Council previously adopted Resolution No. 14983 to not assess or collect transportation fees on childcare facilities; and
WHEREAS, the Nexus Study includes the Transportation Mitigation Fee Project List, which serves as the capital improvement plan required by Government Code section 66016.5, and the Study and the Project List were presented to the City Council; and WHEREAS, the Transportation Mitigation Fee rates, as shown in Exhibit B, comply with Government Code 66005.1; and
WHEREAS, pursuant to Government Code Sections 66016, 66016.5, 66018, 66019, and 6062a, the City must adopt the Transportation Mitigation Fee only after notice and public hearing; and WHEREAS, pursuant to Government Code Sections 66002, 66016.5, 66018, 66019, 6062a, a notice of a public hearing on the proposed fee schedule and the adoption of the Nexus Study, including the Transportation Mitigation Fee Project List, was published 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 ten (10) 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, the Transportation Mitigation Fee is an “exempt charge”, within the meaning of Section 1 of Article XIII C of the California Constitution because it is a charge imposed as a condition of property development; and
WHEREAS, on June 15, 2026, the City Council held a noticed public hearing to consider the City’s proposed new Transportation Mitigation Fee 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; and WHEREAS, the City intends to impose the existing Traffic Mitigation Fee until the updated Transportation Mitigation Fees, shown in Exhibit B, take effect. .

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES that:

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 Transportation Mitigation Fee proposed bears a reasonable relationship to the need for expanded transportation infrastructure created by new development.

2. Environmental Review. The City Council finds that adoption of the Nexus Study and the Transportation Mitigation Fee Project List (“Project List”), which serves as the Capital Improvement Program required by Government Code section 66016.5, and related amendments to the Transportation Mitigation Fee do 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 transportation infrastructure 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 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.

The Nexus Study and Project List also qualify as a feasibility and planning study that are exempt from CEQA under CEQA Guidelines section 15262, as they evaluate potential transportation infrastructure 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 transportation infrastructure, 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, grounddisturbing 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.

3. Adoption of Nexus Study. The City Council finds and determines that the Nexus Study, as set forth in Exhibit A complies with California Government Code section 66000 et seq., and is consistent with the General Plan, including the Housing Element and the Housing Element’s analysis of development fees because the fees are calculated to recover only the proportionate costs of transportation facilities attributable to new development, and hereby approves and adopts the Nexus Study.

4. Adoption of Project List: The City Council finds and determines that the Project List sets forth the transportation infrastructure that is necessary to serve the City’s total population through the end of the Nexus Study period, that the Project List is consistent with the General Plan, and that the Project List includes all the necessary information required by Government Code section 66002, and hereby adopts the Project List and its corresponding level of service.

5. Rates for Transportation Mitigation Fee. The City Council hereby adopts the rates for the Transportation Mitigation Fee as shown in Exhibit B – Transportation Mitigation Fee Schedule, attached hereto and incorporated by this reference. These rates will be incorporated into the Master Fee Schedule.

6. Effective Date. This Resolution shall take effect immediately. In accordance with Government Code Section 66017, the updated Transportation Mitigation Fee set forth in Exhibit B 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.

7. To the extent the provisions of this Resolution conflict with any prior resolutions, this Resolution will supersede those prior resolutions
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 said City on Monday, the 15th day of June 2026, by the following vote, to wit:

AYES:

NOES:

ABSENT:

Lindsay Lara, City Clerk

EXHIBIT A
TRANSPORTATION MITIGATION FEE NEXUS STUDY, DATED MAY 12, 2026 Draft
City of San Rafael
TransportationMitigation
Fee Nexus Study
May 12, 2026
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Transportation Mitigation Fee Nexus Study
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i
Table of Contents

1. Executive Summary................................................................................................................. 1 a. What is the Citywide Transportation Mitigation Fee (TMF)?......................................................................1 b. Who pays the TMF?....................................................................................................................................................1 c. How is the TMF calculated?.....................................................................................................................................1 d. How are fees assessed?.............................................................................................................................................1 e. 2026 Nexus Study Update .......................................................................................................................................2

2. Introduction............................................................................................................................. 3 a. Nexus Study Scope.....................................................................................................................................................3 b. Regulatory Context.....................................................................................................................................................3 i. California Government Code ..................................................................................................................................3 ii. California Assembly Bill 602............................................................................................................................4 iii. California Assembly Bill 2553 .........................................................................................................................4 iv. California Assembly Bill 3177 .........................................................................................................................4 c. Methodology ................................................................................................................................................................5 i. Cost Estimation ............................................................................................................................................................5 ii. Maximum Allowable Fee..................................................................................................................................5 iii. Other Considerations ........................................................................................................................................6

3. Fee Structure and Development............................................................................................ 7 a. Purpose of Impact Fee Program............................................................................................................................7 i. Existing Service Population and Transportation Facilities...........................................................................7 ii. Development Trends .........................................................................................................................................8 b. Use of Impact Fees......................................................................................................................................................9 c. Reasonable Relationship Between Fee Use and Development Types on Which the Fee is Imposed...........................................................................................................................................................................................9 d. Reasonable Relationship Between Need for Facilities and Development Types on Which the Fee is Imposed ..............................................................................................................................................................................9 e. Identification of Infrastructure Projects............................................................................................................10 i. Facility Standards.......................................................................................................................................................10 ii. Infrastructure Changes....................................................................................................................................10 iii. Transportation Project List and Estimated Costs..................................................................................11 iv. Existing Deficiencies.........................................................................................................................................14

4. Nexus Analysis....................................................................................................................... 17 a. Need...............................................................................................................................................................................17 Transportation Mitigation Fee Nexus Study
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ii
b. Cost Allocation ...........................................................................................................................................................18 c. Total Program Costs.................................................................................................................................................19 d. Fee Calculation ...........................................................................................................................................................21 e. Annual Fee Adjustment...........................................................................................................................................23 List of Tables
Table 1 – Development Trends .......................................................................................................................................................8 Table 2 – City of San Rafael Citywide Transportation Mitigation Fee Project List................................................... 11 Table 3 - Cost Adjustments for Deficient Facilities .............................................................................................................. 16 Table 4 – General Plan 2040 Land Use Growth ..................................................................................................................... 18 Table 5 – Equivalent Dwelling Unit (EDU)................................................................................................................................ 19 Table 6 – TMF Program Cost Total............................................................................................................................................. 20 Table 7 - Residential and Employment Related Growth.................................................................................................... 21 Table 8 – Single Family Units vs Multifamily Units............................................................................................................... 22 Table 9 – Maximum Transportation Mitigation Fee by Land Use Category .............................................................. 24 Transportation Mitigation Fee Nexus Study
May 12, 2026
1 1. Executive Summary
a. What is the Citywide Transportation Mitigation Fee (TMF)? The Transportation Mitigation Fee Program (“TMF”) is a type of development impact fee created to address the increased demand of new residents and workers on transportation-related infrastructure, such as roads, intersections, bridges, as well as facilities that serve transit, pedestrians and/or non-motorized vehicles (e.g., trails, bike lanes, sidewalks, etc.). The fee is established such that new development and redevelopment projects will pay their “fair share” towards new and expanded transportation infrastructure and facilities that mitigate the impacts caused by this growth. b. Who pays the TMF?
Development impact fees are paid for by applicants of land use development and redevelopment projects including residential, office, retail, and industrial uses. c. How is the TMF calculated?
The Citywide TMF is calculated based on this nexus study prepared per the requirements of the Mitigation Fee Act. Fees established herein follow the fundamental legal tenets of having an essential nexus (relationship), and being roughly proportional, to the impacts which the fee is designed to mitigate. The relationship is drawn between transportation related impacts of future development and the necessary transportation infrastructure improvements, such as road expansions and non-motorized transit facilities, identified to support the increased demand. The costs associated with the identified improvements are then proportionally assigned to future development quantified by the magnitude of anticipated impacts.

As the TMF is a type of development impact fee program, it is designed to account for the impacts of future developments and not to address existing deficiencies. Specifically, fee programs cannot charge new development to fix existing deficiencies and, as such, this study needs to identify whether there are existing deficiencies in the system and ensure that the cost to fix those deficiencies are not burdened onto new development. For roadway capacity projects, where a segment or intersection may not be operating at the city’s defined acceptable threshold, the full cost of the improvement cannot be assigned to new development (although new development can be burdened with their “fair share” of the cost of the improvement).
d. How are fees assessed?
The TMF fees are assessed based on the anticipated impact of new developments on the transportation infrastructure, calculated using the Equivalent Dwelling Unit (EDU) method. Assessed fees are proportional to the development's estimated increase to transportation demand, with different land use categories, such as residential, commercial, and industrial, assigned appropriate rates based on their impact. The fee assessment process involves identifying the project’s land use, calculating the number in units of a Transportation Mitigation Fee Nexus Study
May 12, 2026
2 particular land use category, and applying fees based on the calculated maximum allowable fee and adopted fee schedule.
e. 2026 Nexus Study Update
This study updates the City’s 2021 Nexus Report to reflect 2026 conditions, updated methodologies, and new legal requirements. The methodology for determining the updated fees is based on meeting the Nollan/Dolan doctrine to establish an essential nexus between the fees and the burden that new development places on infrastructure as well as to establish fees that are roughly proportional to the impacts that new development has on future transportation infrastructure needs. The need and level of the fees are determined based on future development levels identified in San Rafael General Plan 2040 that was adopted in 2021.

The project list from the 2021 Nexus Report, that is included in Table 10-1 of the Mobility Element of San Rafael General Plan 2040, was updated to delete projects that were completed or fully funded, include additional projects, and modify existing projects that serve future growth. Costs for previously identified projects were revised using updated estimates or inflation adjustments provided by City staff. The project list was reviewed to determine if any of the projects were necessary to correct existing deficiencies. The methodology for applying credits for existing uses was reviewed and refined, including clarification on how credits apply to vacant or underutilized sites and how prior uses are defined.

The fee structure was converted from a per trip basis to land use based rates, simplifying implementation and aligning fees with standard land use categories and trip generation rates. The fee calculation used land use forecasts based on growth from the General Plan 2040 to allocate costs between residential and nonresidential development and to establish updated fees across land use types, with adjustments made where applicable to account for existing deficiencies. In addition, the fee program was modified to comply with recent state laws as described in Section 2, including presenting residential fees on a square footage basis, applying reduced fees for qualifying developments in transit priority areas, and defining and mapping those areas using available data, with input from City staff throughout the process. The basis for annual escalation of the fees is modified from the Lee Saylor Construction Cost Index to the Engineering News Record (ENR) Construction Cost Index for transportation projects.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
3 2. Introduction
a. Nexus Study Scope
This Transportation Mitigation Fee Program Nexus Study (“nexus study” or “study”) provides the technical documentation to support the City of San Rafael’s (“City”) update of the Citywide Transportation Mitigation Fee (TMF) program by defining the relevant geographic boundaries, the types of development projects to which the fee is imposed, and the types of transportation infrastructure to be funded by the fee program. The TMF was last updated by the City Council in June 2021. The City’s TMF has worked continuously to fund infrastructure improvements throughout the City to support its growth. By updating the TMF with current growth estimates, changes to infrastructure needs, recent infrastructure costs, and the associated fee basis, this Study reevaluates the service standards of existing transportation facilities, the need for planned facilities to maintain a consistent standard of transportation service, and a justifiable cost per unit of demand by future developments.

The Nexus Study provides the basis for the City to collect fees consistent with the California Mitigation Fee Act (AB 1600/Government Code 66000 et seq.). The methodology for determining the updated fees is based on meeting the Nollan/Dolan doctrine to establish an essential nexus between the fees and the burden that new development places on infrastructure as well as to establish fees that are roughly proportional to the impacts that new development has on future transportation infrastructure needs. The need and level of the fees are determined based on future development levels identified in San Rafael General Plan 2040 that was adopted in 2021. This analysis also demonstrates that the fees established have a reasonable relationship based on the needs, benefits, and proportionality to the impacts which the fee is designed to mitigate.
b. Regulatory Context
i. California Government Code
The California Government Code §§66000-66025, often referred to as the Mitigation Fee Act, governs how local governments can impose development impact fees. This legislation ensures that such fees are both legally defensible and equitable. The Mitigation Fee Act allows the City to adopt an ordinance that enables the fee and defines the program structure. The fee may be updated periodically when supported by a technical analysis and approved by City Council.

In establishing, increasing, or imposing a fee as a condition for the approval of a development project1, Government Code §§ 66001(a) and (b) state that the local agency must:
1 Development includes any land use activity that involves construction of residential, commercial, industrial, office, or other non-residential improvements which require the issuance of a building permit. Such improvements are generally expected to create additional impacts to the City’s transportation infrastructure once completed through additional travel demand associated with the proposed use.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
4 • Identify the purpose of the fee.
• Identify how the fee is to be used.
• Determine how a reasonable relationship exists between the fee established and type of development project for which the fee is imposed.
• Determine how the need for the public facility relates to the type of development project for which the fee is imposed.
• Demonstrate the relationship between the fee and the cost of the public facility.

Once the TMF is adopted, this nexus study and the technical information it contains must be updated every eight years per state law. To the extent that transportation improvement requirements, costs, and development potential changes over time, the fee program will need to be updated. ii. California Assembly Bill 602
AB 602 requires that impact fees levied on residential development must be calculated such that they are proportional to the square footage of future units. A nexus study must evaluate how existing and future residential development can be estimated by residential square feet or document why the use of residential square feet is not relevant as it would not appropriately reflect the relationship between the fee, facility demand, and residential land use.

AB 602 also mandates that large jurisdictions2 adopting a nexus study shall also adopt a capital improvement plan (CIP) to implement the improvements identified in the nexus study. At the time of this Study’s development, the residential population within the County of Marin is approximately 255,0003 and thus, a Capital Improvement Plan (CIP) is required as a part of this Study. The City of San Rafael updates and publishes the CIP as part of the annual citywide budgeting procedure, and the latest documentation can be found on the City’s website.
iii. California Assembly Bill 2553
AB 2553 requires that fees imposed on housing developments to mitigate vehicular traffic impacts be reduced for projects located within a transit priority area (close to a major transit stop) to reflect a lower rate of auto trip generation. AB 2553 also expands the definition of “Major Transit Stops” to include intersections with two or more major bus routes with a frequency of 20 minutes or less during peak commute periods, which was increased from a frequency of 15 minutes. iv. California Assembly Bill 3177
AB 3177 modifies the requirements for transportation mitigation fees and land dedication for housing developments under the Mitigation Fee Act. AB 3177 requires that a fee on housing development 2 As defined in Section 53559.1 of the Health and Safety Code, “Large jurisdiction” means a county with a population of more than 250,000 or any city within that county.
3 United States Census Bureau, 2023 ACS 1-Year Estimate.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
5 imposed for the purpose of mitigating vehicular traffic impacts shall be set at a rate that reflects a lower rate of auto trip generation for projects that meet the following criteria:
• Located within a transit priority area, with the major transit stop programmed to be completed before or within one year of scheduled completion and occupancy of the housing development • Located within a half mile of convenience retail uses • The housing development provides either the minimum number of parking spaces required by local ordinance or no more than one onsite parking space for 0-2 bedroom units and two onsite spaces for 3 or more bedroom units, whichever is less.

Furthermore, AB 3177 prohibits local agencies from requiring housing developments meeting the above criteria to dedicate land for road widening if the purpose is to mitigate transportation impacts, meet level of service (LOS) standards, or achieve desired roadway width. This prohibition does not apply for housing developments outside transit priority areas with linear street frontage over 500 feet or for transportation safety improvements.
c. Methodology
This Nexus Study follows guidance related to facility cost methods provided in the Impact Fee Nexus Study Templates: Nexus Study and Residential Feasibility Calculation Templates in Fulfillment of AB 602 (December 2023) prepared for the California Department of Housing and Community Development by the Terner Center for Housing Innovation at UC Berkeley. Specifically, this study uses the “Planned Facility Method” described in the guidance document that estimates the costs for future facilities needed to serve new development based on a long range expenditure plan for these facility costs and allocates the cost of those new facilities based on the ratio of planned facility costs to demand from new development.

Data Collection
This study utilized data from various citywide planning documents, including the City of San Rafael General Plan 2040, City of San Rafael Citywide Bicycle & Pedestrian Plan, historic fee programs, Capital Improvement Program (CIP) cost estimates and records, and publicly available United States Census Data and American Community Survey (ACS) Estimates.
i. Cost Estimation
The cost estimates for transportation infrastructure improvement projects in San Rafael were provided by City of San Rafael Public Works staff.
ii. Maximum Allowable Fee
The maximum allowable fee is calculated by the following steps.

1. Identify total program costs (cost for improvements plus cost for implementation)

2. Account for known funding (current fund balance)

3. Account for grant funding awarded

4. Account for existing deficiencies, which must be funded from other sources City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
6 5. Account for administrative fees

6. Determine proportional allocation of cost to new development iii. Other Considerations
• Developmental growth fluctuates. This study applies reasonable methods to forecast growth in land use and population, but the actual rate of growth is subject to demographic and economic factors that cannot be forecast with certainty.
• By accounting for growth between 2026 and 2040, the updated fee program and maximum fee consider only the remaining growth through buildout of the General Plan with a planning horizon of 2040.
• While the Study establishes a justified fee based on proportional costs of infrastructure improvements for new development, the City Council retains the authority to adopt transportation impact fees lower than the maximum allowable amounts calculated in the nexus study. This flexibility allows the Council to balance the need for infrastructure funding with considerations such as encouraging development or addressing affordability concerns, while still maintaining compliance with the California Mitigation Fee Act. • The fee program is designed specifically to address transportation infrastructure needs generated by new development and does not cover the cost of remedying existing deficiencies in the system. Under the California Mitigation Fee Act, impact fees can only be used to fund improvements proportionate to the impacts of future development. As a result, any existing deficiencies, such as under-capacity roads or outdated infrastructure, must be addressed through alternative funding sources.

Summary of Findings
The findings of this study support the implementation of a transportation mitigation fee program through the following steps:
• Identify the purpose of the fee
• Account for existing population and projected growth
• Determine the appropriate facility standards
• Provide cost estimates of necessary improvements
• Demonstrate the need, benefit, and fair share responsibility of the public facilities Transportation-related development impact fees will be assessed per unit of land use proposed in the amount no more than the maximum fee calculations provided at the end of this study.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
7 3. Fee Structure and Development
a. Purpose of Impact Fee Program
Impact fee programs are used to ensure that new development contributes to the cost of public infrastructure in proportion to the additional demand it creates. As cities continue to grow, new residential, commercial, and industrial development increases pressure on the transportation network.

Without a mechanism to allocate these costs, the financial responsibility for accommodating growth would shift to existing residents, rather than being shared by new development.

Between 2000 and 2020, the City continued to grow, but at a slower pace as neighborhoods became more built out and developable land became increasingly limited. During this period, the number of households increased by 3.5 percent, compared to 19.3 percent growth in the two preceding decades. At the same time, commuting patterns shifted. As housing costs rose, more workers employed in San Rafael began living farther from the city, resulting in longer commutes and increased congestion.

Looking ahead, continued growth is anticipated, and the City’s General Plan outlines a vision supported by well-maintained and effective infrastructure. An impact fee program provides a funding mechanism to help deliver new and expanded transportation facilities needed to support this growth, while maintaining an appropriate level of service for residents and businesses.

Government Code section 66016.5(a)(4) requires a nexus study that supports an increase in an existing fee to review the assumptions of the nexus study supporting the original fee and evaluate the amount of fees collected under the original fee. Since the last nexus study, there have been an increase in the costs of transportation facilities needed to serve new growth and the proportional share of those costs allocated to future growth. The total project cost for the fee program increased from approximately $115 million to $202 million, with the share of costs funded by the transportation mitigation fee program increasing from $24 million to $53 million. These increased costs associated with new growth show that the revenues that have been collected under the existing fee are insufficient to cover the City’s future costs of public facilities that are necessary to serve new growth, and as such, a fee increase is needed.

Government Code section 66016.5(a)(2) requires that a nexus study must identify the existing level of service for each public facility, identify the proposed new level of service and explain why the new level of service is appropriate. For roadway and intersection improvements, this study applies the same LOS standards to existing and new development, extending the same threshold that exists now into the future.

Pedestrian and bicycle projects are focused in Downtown San Rafael and surrounding areas where most of the growth is forecast to occur, and costs are allocated based on the increase in population for that area to maintain the same LOS for pedestrians and cyclists that exists today. i. Existing Service Population and Transportation Facilities The City of San Rafael serves a population of approximately 59,807 residents, with a population density of around 3,625 residents per square mile. This diverse and growing population places demand on the City's City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
8 infrastructure, public services, and amenities. Besides roadways, trails, bike lanes, and sidewalks, there exists a wide range and variety of transportation facilities that serve the San Rafael population. Some aspects of such improvements are difficult to measure tangibly, such as safety, comfort, equity, and access to the system but are all crucial to the viability of an effective transportation system. Infrastructure such as the transportation management systems, access to regional transit systems, and overall transportation to support active and healthy mobility are all crucial elements of a system to foster sustainable development. ii. Development Trends
What types of existing and new development are occurring, and are there geographic differences that might affect the need for facilities and associated fees charged to certain types of development in an area?
Land use growth and new development require the support of transportation infrastructure. It is imperative to estimate the amount of new development expected to take place within the planning horizon, and the additional transportation facilities that would be required, to prevent overburdening the existing service population (residents and employees) with the cost of new improvements. The need and level of the fees are determined based on future development levels identified in San Rafael General Plan 2040 that was adopted in 2021.

According to the City’s General Plan, the number of residential units are anticipated to grow by 59 Single Family Residential (SFR) units, and 4,401 Multifamily (MFR) units, leading to an estimated increase of 8,910 residents by 2040. The number of employees is also expected to grow across various industries, at an estimated 4,115 employees by 2040. This study uses the General Plan population estimates, even though they include growth projections from the City’s Sphere of Influence and planning area. This is a conservative approach because using the projections for the larger area spreads the costs of transportation facilities for new growth across a larger population, thereby reducing the fees.

Table 1 – Development Trends
GP Existing Year
(2020)
GP Buildout Year
(2040) Change % Change
Residents 75,751 84,661 +8,910 10.52%
Employees 44,200 48,315 +4,115 8.52%
Total Service
Population 119,951 132,976 13,025 9.80%
Source: San Rafael General Plan 2040 and Fehr & Peers, 2026.

Although development projects will take place on specific parcels across the City, the City’s transportation network is designed to serve all areas, with benefits extending beyond the immediate vicinity of any development. The City’s General Plan and Complete Streets policies emphasize an integrated system where improvements support overall mobility, benefiting residents and businesses citywide. The fees to be assessed are calculated proportionally to ensure that each development pays its fair share based on City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
9 the additional demand it places on the entire transportation system, not just the local area. This approach prevents overburdening specific developments near major infrastructure improvements and ensures that all developments contribute equitably to citywide growth. By distributing costs according to a development’s overall impact on transportation, rather than immediate geographic proximity, the city maintains a balanced, fair funding model that supports necessary improvements across the entire network, benefiting residents and businesses uniformly. b. Use of Impact Fees
The impact fees will be used to finance the construction of public transportation facilities including roadway, intersection, bicycle, pedestrian, and transit infrastructure. The transportation mitigation fee revenues shall be used to fund facilities listed in the Transportation Mitigation Fee Project List, which may be updated from time to time in accordance with Government Code section 66002. c. Reasonable Relationship Between Fee Use and Development Types on Which the Fee is Imposed
This nexus study is structured to ensure that the fee revenues will be used to mitigate the specific impacts of developments paying the fee by calculating the proportionality between the type of development (i.e., residential, commercial) and the demand for the public facility funded by the fee. This is accomplished by first allocating the project costs between residential and employment uses based on the relative population increase for each category as forecast in the General Plan Update and then structuring the fees for each land use type based on the relative number of daily trips they will generate. The fees will be used to fund transportation facilities that will serve new development. d. Reasonable Relationship Between Need for Facilities and Development Types on Which the Fee is Imposed
This nexus study is structured to establish the relationship between facility need and development types through analysis conducted for the General Plan 2040 Update that include a level of service (LOS) threshold for transportation facilities and establish the need for facilities based on the forecast growth in travel demand through the General Plan horizon year of 2040. This nexus study shows that there is a reasonable relationship between the need for the facilities and the development upon which the fees are imposed because the fees will be used to fund facilities that are needed to serve new development and the fees are proportionately calculated not to exceed new development’s fair share of the costs of those facilities.

The specific capital projects are identified in Table 10-1 (Major Planned Mobility Improvements, 2020- 2040) in the Mobility Element of the General Plan. Those projects, except those that have been completed, are retained in this Nexus Study. Refinements to the project lists under Downtown Area Improvements and Active Transportation Improvements are made to reflect specific projects that have evolved since 2021. The Transportation Mitigation Fee Project List now contains the facilities that will be funded by the Transportation Mitigation Fee revenues. The project list may be updated from time to time by the City Council pursuant to Government Code section 66002.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
10 e. Identification of Infrastructure Projects
i. Facility Standards
Establishing an appropriate facility standard is crucial for ensuring that the future inventory of transportation infrastructure in San Rafael meets the demands of new development while aligning with the city's long-term goals. The following standards are derived from the City's adopted policies and standards.

Complete Streets – The General Plan supports the implementation of Complete Streets in accordance with State requirements, ensuring that roadway design and engineering standards account for the needs of all users, including pedestrians, bicyclists, motorists, and transit riders. This approach emphasizes balancing the needs of different travel modes while minimizing conflicts between them, resulting in a safer and more efficient transportation network. By maintaining these standards, the City promotes a multimodal system that improves accessibility and supports a range of travel choices for residents and visitors.

Roadway Capacity and Quality – The General Plan establishes Level of Service (LOS) standards to maintain efficient traffic flow and provide a consistent framework for evaluating transportation impacts of new development. LOS “D” is the general citywide standard for both intersections and arterial roadways, based primarily on peak hour performance. However, the Plan allows for flexibility in certain locations, including designated intersections and corridors where LOS “E” or “F” may be acceptable. Areas within the Downtown Precise Plan are not subject to LOS standards, reflecting their multimodal character and unique context, and instead rely on proactive congestion management strategies. Overall, these standards ensure that roadway performance is maintained while allowing the City to balance mobility objectives with broader planning priorities such as safety, sustainability, and community character. In addition to multimodal and roadway capacity considerations, the City’s General Plan also emphasizes the need to maintain an effective transit infrastructure, enhance safety and accessibility of the transportation system, and promote scalable and sustainable growth, all of which are supported by projects to transform the City according to the layered circulation network approach.
ii. Infrastructure Changes
By utilizing previously collected fees, the City has delivered various infrastructure projects. Completed or funded projects that have been removed from the previously adopted TMF program are shown below, totaling roughly $39,800,000 of infrastructure improvements in 2021 dollars by City staff estimates.

Infrastructure Projects Completed or Fully Funded Since 2021:
• US 101/ Freitas Parkway Interchange East; $15 million • Downtown Roadway and Intersection Improvements: $4 million • Fourth Street (West End) Intersection Realignment: $6 million • Lincoln Avenue Peak Period Lanes/Parking Restrictions: $ 4.6 million • Francisco Boulevard East Corridor Improvements; $10.2 million City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
11 Based on the change in service population between existing year and General Plan buildout year, a proportional increase of transportation infrastructure would be required to maintain a consistent standard of transportation services. The projected need for transportation facilities is calculated in proportion to the amount of growth in service population anticipated over the planning horizon of the General Plan. iii. Transportation Project List and Estimated Costs
All of the projects in the current fee program are included in Table 10-1 (Major Planned Mobility Improvements, 2020-2040) in the Mobility Element of the General Plan. Two projects from the list in Table 10-1 have been completed and are removed from the project list. Refinements to the project lists under Downtown Area Improvements and Active Transportation Improvements are made in the table below to reflect specific projects that have evolved from the prior more general project list. The updated list of TMF projects and associated cost estimates are provided in Table 2 below. The actual cost allocated to new development are $53 million of the $179.8 million as described in more detail in the following sections. A list of TMF Projects for the Capital Improvement Program (CIP) is included in Attachment A.

Table 2 – City of San Rafael Citywide Transportation Mitigation Fee Project List Transportation Mitigation Fee Project List
Project Cost
(in millions)

1. INTERCHANGE PROJECTS
Includes modifications to interchanges for capacity, safety, access, and improved circulation 1A
US 101/Freitas Parkway Interchange West. Reconfigure the US 101 off-ramp / Freitas Parkway (Del Presidio) and Northgate Rd/ Freitas Parkway intersection to address safety, circulation, and capacity issues. Improvements would be coordinated with ongoing development plans and anticipated Northgate Specific Plan/ Precise Plan process where appropriate. $50.0
1B
Smith Ranch Road/Lucas Valley Road Multimodal Improvements at US 101. Road widening and additional lane capacity from Los Gamos to Redwood Highway. Improve pedestrian and bicycle access across the US-101 underpass by reconstructing the bridge to provide dedicated bicycle facilities and wider pedestrian sidewalks.
$2.1
Category 1 Subtotal $52.1

2. DOWNTOWN AREA IMPROVEMENTS
Includes improvements in the downtown area as defined by the Downtown Precise Plan area. Projects and improvements may include projects from other adopted City plans but is intended to include improvements to meet the vision, goals, and objectives of the Downtown Precise Plan.
2A
US 101/ Downtown San Rafael Interchange Connections. Improvements to network of streets connecting to and from the US 101 / Downtown off- and on-ramps (at Second St and Mission Ave) in both the northbound and southbound directions, including but not limited to Irwin St, Hetherton Ave, Second St, and 3rd St.
$3.5
2B
Second and Fourth Street Intersection Improvements. Improve pedestrian, bicycle, and motor vehicles access through reconstruction/realignment of the Fourth Street/Second Street/Marquard Avenue intersection.
$4.3
2C
Second Street Multimodal Improvements - Shaver St to Grand Ave. Improve Second Street corridor operations while addressing pedestrian and bicycle safety at crossing locations, and widen sidewalks and remove parking where feasible
$10.0
City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
12 Transportation Mitigation Fee Project List
Project Cost
(in millions)
2D
Fourth Street Multimodal Improvements - E Street to Tamalpais. Improve pedestrian and bicycle connections while maintaining high quality transit route along 4th Street. Improvements include converting parking to loading, widening sidewalks, and improving the bus and bike experience. Also Includes 4th Street signal and ADA upgrades. $18.0
2E
Downtown Grade Separation. Conduct feasibility study, preliminary design and environmental assessment for grade separate of Sonoma-Marin Area Rail Transit train tracks through Downtown San Rafael.
$3.0
Category 2 Subtotal $38.8

3. ACTIVE TRANSPORTATION (PEDESTRIAN/BICYCLE) IMPROVEMENTS Includes multimodal improvements and programs with a focus on pedestrian and bicycle improvements identified in the Citywide Bicycle & Pedestrian Plan.
3A Includes various projects identified in the 2026 Citywide Bicycle and Pedestrian Plan update that are focused in the downtown area and around transit centers. $12.0 3B
Canal Active Transportation Experience Improvements Project. Pedestrian, bicycle, and transit enhancements in the Canal neighborhood, including but not limited to curb ramp upgrades, sidewalk gap closure, street lighting, pedestrian, crossing improvements, bus stop improvements, secured bicycle parking, and bicycle boulevard treatments. $5.0
3C
San Rafael Canal Crossing. Feasibility study, design and construction of non-motorized bicycle and pedestrian crossing bridge between the Canal Neighborhood and designations north of San Rafael Creek. The new crossing would provide connectivity within a highly developed active transportation network in central Marin County, including the Bay Trail and the North South Greenway, ensuring that residents of the Canal Neighborhood and the broader community are provided with safe access to regional destinations.
$28.0
3D
South Merrydale Road – Civic Center Connector Pathway. Provide a safer, more comfortable access route by filling a critical gap under the freeway at the Marin Civic Center SMART station. The creation of a multi-use path in this location would link Rafael Meadows and neighborhoods west of Highway 101 with existing multi-use paths on the east side, creating a route to school that is safe and comfortable for walkers and cyclists of all ages and abilities. $4.0
3E
San Rafael North-South Greenway Gap Closure & Multimodal Improvements The project spans Mission Ave. (Tamalpais Ave. to Hetherton St.), Tamalpais Ave (Mission Ave. to 4th St.), and 4th St. (Tamalpais Ave. to Grand Ave.) in downtown San Rafael, CA. Install two-way bicycle facility, enhanced pedestrian crossings, wider sidewalk, and signage. $5.5
Category 3 Subtotal $54.5
City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
13 Transportation Mitigation Fee Project List
Project Cost
(in millions)

4. COMPLETE STREETS & CORRIDORS
Corridor level improvements including reconstruction of sidewalks, streets, pavement, signing, striping, and crossing improvements, with the objective of improving peak hour traffic flows and multimodal travel. 4A
Lincoln Avenue from Second to Paloma Safety Improvements. Improvements on Lincoln Ave between Second St and Paloma Ave. Includes protected left turn lane striping, signal phases at multiple signalized intersections, intersection safety improvements including curb extensions, traffic signal upgrades, intersection lighting, rectangular rapid flash beacons, and pedestrian crossing upgrades.
$3.0
4B
Northgate Area Intersection and Complete Streets Improvements. Includes Las Gallinas/Northgate and Las Gallinas/Del Presidio intersections. Also includes improvements to Las Gallinas Avenue and Los Ranchitos Road, Northgate Drive, and Del Presidio Blvd, and continued development of North San Rafael Promenade. Additional improvements to be identified through future PDA planning process.
$4.0
4C
Lincoln Avenue From Paloma to Los Ranchitos Multi-modal Rehabilitation. Improve pedestrian and bicycle connections while maintaining high quality transit route along Lincoln Avenue.

Improvements include high visibility crosswalks, signal and ADA upgrades, and improving the bus and bike experience.
$4.0
4D
Canal Neighborhood Bellam Gateway Local Access Improvements. Implement a fully separated shared-use path for pedestrians and bicyclists along Bellam Boulevard from Playa Del Rey to Kerner Drive, and along Bellam Boulevard from the I-580 SB offramp to Andersen Drive, continuing south on Andersen to Jacoby Street, and connecting to the North-South Greenway, providing access to the Larkspur Ferry Terminal, Downtown San Rafael, and destinations further beyond. $8.6
Category 4 Subtotal $19.6

5. INTERSECTION IMPROVEMENTS
Intersection improvements including new traffic signals, intersection realignments/reconfigurations, and other major changes to spot locations that are outside the Downtown Precise Plan area. 5A Fourth Street (Miracle Mile) Intersection Improvement. Improve performance of Fourth Street signal at Ross Valley Dr and Santa Margarita Dr. $0.9
5B Lincoln/DuBois/Irwin. New traffic control to improve safety and traffic flow. $4.0 5C Fourth St and West Crescent Dr Intersection Improvements. New signal and other intersection improvements to improve safety and traffic flow. $0.9
Category 5 Subtotal $5.8

6. INTELLIGENT TRANSPORTATION SYSTEM (ITS)
Traffic signal and communication infrastructure upgrades, including monitoring equipment, fiber optic/communication systems, and other technology enhancements to facilitate smart management of transportation system. 6A
Intersection Technology and Corridor Analytics. Traffic signal equipment, cameras, modems, wireless, Bluetooth, automated data collection, etc. Study and enhance performance of roadway network and ITS through use of artificial intelligence (AI) and big data analytics, Connected Vehicle technology, etc.
$6.0
6B Corridor Communication System. Fiber optic cable and conduit along major arterials and central City system upgrades. Evaluate corridor performance. $3.0 Category 6 Subtotal $9.0
TOTAL $179.8
Source: City of San Rafael Public Works Department, 2026.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
14 Cost for Program Administration
The TMF includes an administrative fee equal to 2.5% of the total program cost. Administrative costs may include management of fee collection, fund allocation, monitoring and adjustments, and nexus study updates.
iv. Existing Deficiencies
Existing deficiencies refer to the gaps or inadequacies in current infrastructure or facilities that prevent them from meeting the desired service levels or standards. In the context of capacity-based projects, such as roadway widening, identifying and accounting for existing deficiencies is critical because these projects are often intended to enhance the ability of the infrastructure to accommodate current and future traffic volumes; or, in more simplistic terms, new development cannot pay to fix existing deficiencies.

While future development should not be burdened with addressing existing deficiencies in infrastructure, it is important to recognize that new growth proportionally contributes to the increased demand for expanded or improved facilities. When a new development is proposed, it will increase the existing levels of demand for transportation facilities. Therefore, it is reasonable and equitable to require new development to contribute its fair share towards the costs of infrastructure improvements that are necessitated by this growth.

In the case of roadway widening or other capacity-based projects, while existing deficiencies may have been present before new development, the additional traffic generated by future growth exacerbates these deficiencies and creates a direct need for expansion. Thus, applying impact fees proportional to the new development is justified because the fees are not addressing pre-existing deficiencies, but rather the incremental impact that the new development imposes on the infrastructure system.

Without new development, the need for such infrastructure improvements would not arise, or would arise at a much later time. Impact fees serve as a mechanism to ensure that new growth is financially responsible for the additional demands it places on public facilities, aligning with the principles and policies of the City of San Rafael General Plan, which emphasizes the importance of a fair and proportionate allocation of infrastructure costs.

In simpler terms, this fee program applies two simple tests as it relates to roadway infrastructure needs:
“But For” Argument – But for new development, the improvement would not be required? This typically applies to facilities that operate acceptably today but need widening in the future to serve future development. Alternatively, this could be applied to new roadway connections that are required to access new development. In these types of cases, since new development drives 100% of the need for the infrastructure, 100% of the cost of that infrastructure is included in the fee estimate.
“Fair Share” Argument – For facilities that are currently deficient, is new development only responsible for paying their “fair share” toward the improvement? City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
15 In which case, the increased demand by new development is divided by the total future demand on the roadway to identify what that fair share would be.

The expansion of roadways is typically justified by the need to reduce congestion and improve traffic flow, thereby directly responding to the deficiencies in capacity that limit the effectiveness of the existing road network. However, this approach is less applicable to other types of projects, such as multimodal improvements, which focus on enhancing infrastructure for various modes of transportation – like pedestrian pathways, bicycle lanes, and public transit facilities – rather than increasing capacity for a single mode. Multimodal improvements are designed to create a more integrated and balanced transportation network, often emphasizing safety, accessibility, and sustainability rather than solely addressing capacity deficiencies. Therefore, while existing deficiencies might drive roadway widening projects, they do not similarly justify multi-modal improvements, which are generally aimed at improving the overall quality and functionality of the transportation system (including reducing VMT and GHG) rather than expanding its capacity.

The assessment of existing deficiencies is based on peak hour road segment Level of Service (LOS) analysis prepared for the 2040 General Plan. There have been very few new development projects completed since the General Plan analysis was conducted, so the evaluation of existing and 2040 conditions remains appropriate for use. The LOS analysis shows that all roadways outside the Downtown Area, with the exception of short segments of Lincoln Avenue just north of the Downtown Area and Francisco Boulevard East just east of the Downtown Area, operate at LOS D or better conditions. The short segments of Lincoln Avenue and Francisco Boulevard East operate at LOS E that is considered acceptable according to the Policy M-2.5 (Traffic Level of Service) in the Mobility Element of the General Plan. Policy M-2.5 states that intersections and arterials within the boundaries of the Downtown San Rafael Precise Plan are not subject to LOS standards, recognizing their unique context, operation, and physical constraints, as well as their multi-modal character.

Table 3 details infrastructure projects within the TMF where a credit of 80 percent is applied based on a comparison of existing volumes and forecast traffic volumes for 41 road segments located throughout the City of San Rafael that were studied in the General Plan. The comparison shows that existing counts represent 80 percent of the future year 2040 forecasts. This differs slightly from population data that shows existing population represents 90 percent of the estimated year 2040 population. The volume comparison was selected as a basis for the existing deficiency credit because it better represents the effect of growth on transportation needs. The difference is from a combination of factors including the future land use types that are forecast to be associated with the population growth, the number of trips generated by the future land uses, and how those trips are assigned to the road segments analyzed for the General Plan Update.

The five projects are identified as they provide transit, bicycle, pedestrian, communication, and technology improvements as well as congestion relief in the Downtown San Rafael Precise Plan Area that will serve both existing and future residents, employees and visitors. The Downtown Grade Separation Feasibility Study (2E) was identified in the Downtown Precise Plan that called for undertaking feasibility studies for elevating the SMART tracks as a long-term strategy to further improve circulation on Downtown Streets.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
16 Citywide Bicycle and Pedestrian Plan Projects in the Downtown Area (3A) includes projects located downtown that are identified in the 2018 Bicycle and Pedestrian Master Plan that is included in the current fee program. The Canal Bicycle and Pedestrian Crossing is a project identified in the 2018 Bicycle & Pedestrian Master Plan that is included in the current fee program. Intersection Technology and Corridor Analytics (6A) and Corridor Communication System (6B) are projects that optimize traffic operations along congested commute corridors and are included in the current fee program.

Table 3 - Cost Adjustments for Deficient Facilities
Project ID Description
Existing
Deficiency Total Cost Deficiency Credit
2E
Downtown Grade Separation
Feasibility Study, Preliminary
Design, and Environmental
Assessment
80% $3 million $2.4 million
3A
Citywide Bicycle and
Pedestrian Plan Projects in
Downtown Area
80% $12 million $9.6 million
3C Canal Bicycle and Pedestrian
Crossing 80% $28 million $22.4 million
6A Intersection Technology and
Corridor Analytics 80% $6 million $4.8 million
6B Corridor Communication
System 80% $3 million $2.4 million
City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
17 4. Nexus Analysis
a. Need
The nexus analysis, in alignment with the California Mitigation Fee Act and amended by AB 602 (2021), must establish a clear and proportional relationship between new development and the demand for public infrastructure. This section focuses on demonstrating the direct link between anticipated growth within the City of San Rafael and the necessity for transportation infrastructure improvements. By doing so, it ensures that the City’s Transportation Mitigation Fees (TMF) comply with the essential nexus and rough proportionality standards mandated by relevant legal precedents such as Nollan v. California Coastal Commission and Dolan v. City of Tigard. Through evaluation of land use forecasts based on growth in the 2040 General Plan, this analysis demonstrates the causal relationship between new development and resulting transportation impacts.

San Rafael’s General Plan projects growth by 2040 that anticipates an increase of approximately 8,910 residents and 4,115 jobs. Such growth is expected to elevate the demand for transportation infrastructure and necessitate enhancements to maintain current service levels. The 2040 buildout projections are shown in Table 3-6 of the San Rafael General Plan 2040 & Downtown Precise Plan Draft EIR. The projections represent the City’s estimation of “reasonably foreseeable” development that could occur over the next 20 years under the General Plan. The projections recognize regional demographic and economic forecasts, and the probable share of regional growth that would be captured by San Rafael given its policies and land use regulations. It includes growth within the existing city limits, the sphere of influence, and plan area. Application of these growth forecasts is a conservative approach and leads to a lower fee than if only growth within the existing city limits is considered.

The General Plan envisions a comprehensive circulation system that supports multiple modes of travel, including automobiles, bicycles, pedestrians, and transit. Achieving this vision will require targeted infrastructure improvements to manage congestion and maintain safe and efficient movement throughout the city.

Given the projected growth, the City must expand its transportation network proportionally. The General Plan highlights the need for maintaining LOS D or better across its roadways except in the Downtown Area, where LOS F is acceptable. Failure to expand infrastructure to meet the demands of increased service population could degrade these service levels, leading to congestion, safety concerns, and a diminished quality of life for residents and employees.

As outlined in the General Plan and supported by transportation planning principles, developments generate varying impacts on transportation networks. Therefore, the TMF must differentiate this relationship by aligning fees assessed with the projected impacts of each type of future development.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
18 Table 4 – General Plan 2040 Land Use Growth
GP Base Year (2020) GP Buildout Year (2040) Net Change
(2020-2040)
Residents 75,751 84,661 8,910
Employment 44,200 48,315 4,115
Total Service Population 119,951 132,976 13,025
Source: San Rafael 2040 General Plan; Fehr & Peers, 2026. b. Cost Allocation
AB 602 mandates that development impact fees for residential units be calculated based on square footage rather than the traditional per-unit metric unless a local agency makes the finding that includes an explanation of why such a metric is not appropriate, that an alternative basis of calculation is reasonably related, and that other policies in the fee structure supports smaller developments.

The principle of proportionality underlies the requirement that fees imposed on new developments must be proportionate to the impact those developments have on public facilities. A correlation exists between the size of the dwelling and its impact on transportation and other infrastructure. Larger homes typically house more residents, generate more vehicle trips, and thus have a greater impact on local infrastructure.

To account for this, Fehr & Peers normalized the proposed land use and the impact fee into a term known as Equivalent Dwelling Unit (EDU). Correlating an EDU to the average single-family home, then converting trips into EDU helps establish the impact fee schedule based on units of measurement for estimating trip generation in the Institute of Transportation Engineers’ (ITE) 11th Edition Trip Generation Manual. This is especially important as it helps with converting General Plan growth into trips that can be used in the fee calculation.

According to building permit records provided by the city, the average size of single-family residential (SFR) development projects is roughly 2,300 square feet. For SFR units, a ratio of the proposed development against the average size identified (2,300 square feet for SFR units and 1,111 square feet for Multifamily, Affordable, and Senior Housing units) should be applied in calculation of fees to be assessed.

To be consistent with AB 602 requirements, we have utilized the average size for each unit identified above and correlated it to the fee per dwelling unit; we have proportionally developed a per sq. ft. cost using the average size of the household to develop the associated fee to be charged for new development based on sq. ft. of the development.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
19 Table 5 – Equivalent Dwelling Unit (EDU)
Land Use Unit ITE
Code
Daily Trip
Rate
Pass-By
Reduction
Equivalent Dwelling
Unit (EDU)
Average Size of
Dwelling Units1 (SF)
Single family residential DU 210 9.43 - 1 2,300
Multi-family residential DU 221 4.54 - 0.48 1,111
Affordable housing DU 223 4.81 - 0.51 1,111
Senior housing DU 252 3.24 - 0.34 1,111
Nursing/congregate
care
DU 253 2.21 - 0.23 -
Commercial/retail -
shopping plaza (40-
150k)
KSF 821 67.52 -30% 5.01 -
Commercial/retail - strip
retail plaza (<40k) KSF 822 54.45 -30% 4.04 -
Biotechnology Employees 760 11.08 - 1.17 -
Office/business park KSF 710 10.84 - 1.15 -
Industrial KSF 110 4.87 - 0.52 -
Warehouse KSF 150 1.71 - 0.18 -
Hotel/motel Room 310 7.99 - 0.85 -
Elementary school Students 520 2.27 - 0.24 -
Day care Students 565 4.09 - 0.43 -
Self-storage KSF 151 1.45 - 0.15 -
Service station Pump 944 172.01 -30% 12.77 -
Source: Fehr & Peers, 2026.

1. Average size of dwelling unit provided by the City of San Rafael (2026). c. Total Program Costs
Total costs of the TMF program are calculated by the following steps, each ensuring that the fees collected are appropriately aligned with the costs incurred by new development impacts.

1. Identify Total Costs of Transportation Improvements. The total cost of expansion and improvement projects is $179,830,000.

2. Account for Known Funding (Balance) and Fee Credits (Obligations). The balance remaining in the current TMF program is $107,0744
. This balance is subtracted from the
estimated costs to complete improvement projects and to account for unspent dollars towards future projects. Improvement reimbursement programs allow developers to recover 4 TMF Fund Balance as of February 2026
City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
20 costs for constructing public infrastructure that exceeds the immediate needs of their project and benefits the broader community. Such reimbursement programs typically involve formal reimbursement agreements which the City would be obligated to fulfill, outstanding obligations should be accounted for and subtracted from the remaining balance. At the time of this Study, there are no known reimbursement obligations.

3. Account for Grant Funding. Fee program revenues provide a critical source of matching funds required to compete successfully for state and federal grants. The City has been awarded approximately $26.3 million grant funding for the TMF projects5 over the past five years. The secured grant funding is identified in the Transportation Mitigation Fee Project List.

As the City secures additional grant funding, it will amend the Project List to account for additional funding. An additional $58.8 million in new grant funding is forecast from similar grant programs over the next fourteen years. Deductions to account for grant funding are in the amount of $85,110,000.

4. Account for Existing Deficiencies. All facilities where capacity-related improvement projects are identified are first evaluated to determine if they adequately serve the City’s current service population. Where the level of service is below acceptable standards (LOS D per the City’s General Plan), only a proportional amount of the total project costs is to be funded by future development. Deductions to account for existing deficiencies is in the amount of $41,600,000.

5. Account for Programming and Administrative Fees. Since the inception of the Citywide Transportation Mitigation Fee (TMF) Program in 1988, the city has included an administrative fee. The city reviewed administration costs to support the management and implementation of the fee program. Based on information provided by the city, the administrative fee associated with the fee program is 2.5%.

Table 6 below describes the total program cost and project costs allocated to new development.

Table 6 – TMF Program Cost Total
Program Element Total Cost
TMF Project Costs $179,830,000
TMF Account Balance (February 2026) -$107,074
Adjustments for Existing Deficiencies -$41,600,000
Adjustment for Grant Funding $85,110,000
Project Costs Allocated to New Development $53,012,926
Administrative Fee (2.5%) $1,326,000
Program Total $54,338,926
Source: Fehr & Peers, 2026.
5 Existing grant sources include the regional One Bay Area Grant (OBAG Cycle 3) program, state Active Transportation Plan (ATP) program, state Highway Safety Improvement Program (HSIP) program, Regional Measure 3 (toll revenue) program, and Transportation Authority of Marin (TAM) grant programs. Existing grants are for projects 2B, 3B, 3C, 3D, 3E, 4A, 4C, and 4D.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
21 d. Fee Calculation
What is the justified fee6 by land use type based on the prior steps that can be charged to new development, with the fee on residential land use levied per building square foot unless an alternative method is justified?
Per the evaluation of travel demand forecasts during the development of the City’s General Plan, growth in residential development leads to 68.4% of total growth in service population, thus should reasonably contribute the same proportion in costs for infrastructure improvements.

Table 7 - Residential and Employment Related Growth
Residential Service
Population
Employment Service
Population
Total Service
Population
General Plan Growth (2020-
2040) 8,910 4,115 13,025
Percent of Total Growth 68.4% 31.6% 100%
Proportional Contribution to
Program Cost $37,171,580 $17,167,346 $54,338,926
Source: Fehr & Peers, 2026.

Table 8 presents a breakdown of single family and multifamily residential units. General Plan growth estimates are consistent with the General Plan 2040. Estimated growth from 2020 to 2025 aligns with the 390 permits issued during this period, as reported in the 2025 General Plan and Housing Element Annual Progress Report. Per City direction, no credit adjustment for existing uses has been applied. In addition, the City has directed that no reduction for affordable housing be applied to net growth at this time. The City may make a future policy decision to waive or reduce fees. 6 Government Code §§ 66005.1 (a) – If housing development satisfies all of the following characteristics, then a transportation fee, or the portion of the fee relating to vehicular traffic impacts, must be set at a rate that reflects a lower rate of automobile trip generation associated with such housing developments in comparison to housing developments without these characteristics, unless the local agency adopts specific findings:
• The housing development is located within one-half mile of a transit station and there is direct access between the housing development and the transit station along a barrier-free walkable pathway not exceeding one-half mile in length.
• Convenience retail uses, including a store that sells food, are located within one-half mile of the housing development.
• The housing development provides either the minimum number of parking spaces required by the local ordinance, or no more than one onsite parking space for zero-to-two-bedroom units, and two onsite parking spaces for three or more-bedroom units, whichever is less.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
22 Table 8 – Single Family Units vs Multifamily Units
Single Family Multifamily Total
General Plan Growth 2020-2040 59 4,401 4,460
Estimated Growth 2020-2025 5 385 390
Net Growth 2026-2040 54 4,016 4,070
Net Growth for Fee Program 54 4,016 4,070
Calculated Equivalent Dwelling Unit (EDU) 1 0.48 -
Estimated Total EDU 54 1,933 1,987
Cost per EDU - - $18,703
Source: Fehr & Peers, 2026.

Applying the estimated cost per EDU to each land use category, a maximum fee per unit of land use is calculated. Per AB 602 requirements and assessments within this study, impact fees for proposed singlefamily residential projects should be assessed by size (square feet), adjusted by their relationship to the average size of single-family residential units.

Developments near quality transit generally produce fewer vehicle trips due to the availability of transit options, which encourages a shift away from car usage. As such, AB 2533 was passed which requires lower impact fees to be assessed in areas where development is close to high quality transit. This bill was codified in Government Code section 66005.1. Lower impact fees apply to projects located within a transit priority area or within one-half mile of a major transit stop. Major transit stops are defined as rail stations, ferry stations, major transit stops included in the regional transportation plan, or the intersection of two or more major bus routes with a frequency of 20 minutes or less during peak hours. Guidance from the California Department of Housing and Community Development (HCD)7 indicates that the one-half mile distance is measured in a straight line from the nearest edge of the parcel containing the proposed project to any point on the parcel or parcels that make up the property upon which a major transit stop is located. For the City of San Rafael, the major transit stops are the San Rafael SMART Station/San Rafael Transit Center (SRTC) in Downtown San Rafael and the Civic Center SMART station.

Consistent with this requirement, development rates for multifamily, affordable housing, and senior housing are revised. Census tract data were reviewed for the tracts surrounding the San Rafael SMART Station/San Rafael Transit Center (SRTC) and the Civic Center SMART station to identify the share of commute trips made by transit for residents living within ½ mile of the transit station. Using the Census Reporter “Means of Transportation to Work” metric, it was found that 22 percent of residents living in the census tract surrounding the San Rafael SMART Station/San Rafael Transit Center make their work commute trip via public transit, and 5 of residents living within the census tract surrounding the Civic Center SMART Station make their work commute trip via public transit. Accordingly, fee reductions of 22 7 www.hcd.ca.gov/sites/default/files/docs/policy-and-research/ab-2097-ta.pdf City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
23 percent and 5 percent are applied to these land uses for development located within one half mile of these transit stations.
e. Annual Fee Adjustment
The current transportation mitigation fee program includes an annual escalation of the fee rates based on the Lee Saylor Construction Cost Index.

The Lee Saylor Construction Cost Index is a proprietary index that is not published with sufficient frequency to support the annual fee adjustment calculation. To facilitate more timely and accurate annual fee adjustments, it is recommended that the Engineering News Record Construction Cost Index for transportation projects be used as the basis for future annual fee adjustments.

City of San Rafael Transportation Mitigation Fee Nexus Study May 12, 2026
24 Table 9 – Maximum Transportation Mitigation Fee by Land Use Category Land Use Unit EDU1 Maximum Fee Per
Land Use Category
Single family residential Dwelling Unit (DU) - 2,300 Sq. Ft. (100%) 1.00 $18,703 Sq. Ft. (to be used for fee collection) $8.13
Multi-family residential
Dwelling Unit (DU) - 1,111 (100%) 0.48 $9,004
Sq. Ft. (to be used for fee collection) $8.10
Within ½ mile of Downtown SMART Station2 $6.32
Within ½ mile of Civic Center SMART Station2 $7.70
Affordable housing
Dwelling Unit (DU) - 1,111 (100%) 0.51 $9,540
Sq. Ft. (to be used for fee collection) $8.59
Within ½ mile of Downtown SMART Station2 $6.70
Within ½ mile of Civic Center SMART Station2 $8.16
Senior housing
Dwelling Unit (DU) - 1,111 (100%) 0.34 $6,426
Sq. Ft. (to be used for fee collection) $7.82
Within ½ mile of Downtown SMART Station2 $6.10
Within ½ mile of Civic Center SMART Station2 $7.43
Nursing care Dwelling Unit (DU) 0.23 $4,383
Commercial (40,000-
150,000 Sq. Ft.) 1,000 Sq. Ft. 5.01 $65,619
Commercial (Less than
40,000 Sq.Ft.) 1,000 Sq. Ft. 4.04 $52,917
Biotechnology Employees 1.17 $21,975
Office/business park 1,000 Sq. Ft. 1.15 $21,499
Industrial 1,000 Sq. Ft. 0.52 $9,659
Warehouse 1,000 Sq. Ft. 0.18 $3,392
Hotel/motel Room 0.85 $15,847
Elementary school Students 0.24 $4,502
Day care Students 0.43 $8,112
Self-storage 1,000 Sq. Ft. 0.15 $2,876
Service station Pump 12.77 $167,166
Source: Fehr & Peers, 2026.

Notes:

1. EDU = Equivalent Dwelling Unit, used to normalize the proposed land uses and the impact fee by correlating relative trip rates to that for an average single-family home. Converting trips into EDU helps establish the impact fee schedule based on relative trip rates by land use in the Institute of Transportation Engineers’ (ITE) 11th Edition Trip Generation Manual.

2. See text description related to 22% and 5% reductions for land use in a high-quality transit area that was derived using Census tract data.

ATTACHMENT A

TRANSPORTATION MITIGATION FEE

NEXUS STUDY PROJECTS FOR THE

CAPITAL IMPROVEMENT PROGRAM
(CIP)
City of San Rafael Transportation Mitigation Fee (TMF) Project List - 2026 Update May 12, 2026 version
# DESCRIPTION
Total Project COST
(2026 $M)
Existing
Deficiency?
Existing Deficiency
Share Existing Grant Source
Approx Date of
Completion (Yr)
Project Status/Timeline for
Near-Term
1A
US 101/ Freitas Parkway Interchange West. Reconfigure the US 101 off- ramp / Freitas Parkway (Del Presidio) and Northgate Rd/ Freitas Parkway intersection to address safety, circulation, and capacity issues. Improvements would be coordinated with ongoing development plans and anticipated Northgate Specific Plan/ Precise Plan process where appropriate. $50.0 NO 2040 Conceptual design
1B
Smith Ranch Road/ Lucas Valley Road Multimodal Improvements at US 101. Road widening and additional lane capacity from Los Gamos to Redwood Highway. Improve pedestrian and bicycle access across the US-101 underpass by reconstructing the bridge to provide dedicated bicycle facilities and wider pedestrian sidewalks. $2.1 NO 2040 Conceptual design 2A
US 101/ Downtown San Rafael Interchange Connections. Improvements to network of streets connecting to and from the US 101 / Downtown off- and on-ramps (at Second St and Mission Ave) in both the northbound and southbound directions, including but not limited to Irwin St, Hetherton Ave, Second St, and 3rd St. $3.5 NO 2036 Not started 2B Second and Fourth Street Intersection Improvements. Improve pedestrian, bicycle, and motor vehicles access through reconstruction/realignment of the Fourth Street/Second Street/Marquard Avenue intersection. $4.3 NO OBAG 3 - $3.051M 2028 In design 2C Second Street Multimodal Improvements - Shaver St to Grand Ave. Improve Second Street corridor operations while addressing pedestrian and bicycle safety at crossing locations, and widen sidewalks and remove parking where feasible. $10.0 NO 2032 Not started 2D Fourth Street Multimodal Improvements - E Street to Tamalpais. Improve pedestrian and bicycle connections while maintaining high quality transit route along 4th Street. Improvements include converting parking to loading, widening sidewalks, and improving the bus and bike experience. Also Includes 4th Street signal and ADA upgrades. $18.0 NO 2032 Not started 2E Downtown Grade Separation. Conduct feasibility study, preliminary design and environmental assessment for grade separate of Sonoma-Marin Area Rail Transit train tracks through Downtown San Rafael. $3.0 YES 80% 2035 Not started 3A Includes various projects identified in the 2026 Citywide Bicycle and Pedestrian Plan update that are focused in the downtown area and around transit centers. $12.0 YES 80% 2040 Ongoing 3B Canal Active Transportation Experience Improvements Project. Pedestrian, bicycle, and transit enhancements in the Canal neighborhood, including but not limited to curb ramp upgrades, sidewalk gap closure, street lighting, pedestrian, crossing improvements, bus stop improvements, secured bicycle parking, and bicycle boulevard treatments. $5.0 NO State ATP (Cycle 6) -
$4.123M 2030 In design
3C
San Rafael Canal Crossing. Feasibility study, design and construction of non-motorized bicycle and pedestrian crossing bridge between the Canal Neighborhood and designations north of San Rafael Creek.The new crossing would provide connectivity within a highly developed active transportation network in central Marin County, including the Bay Trail and the NorthSouth Greenway, ensuring that residents of the Canal Neighborhood and the broader community are provided with safe access to regional destinations. $28.0 YES 80%
State ATP (Cycle 6) -
$3.925M 2036 Feasibility study award
3D
South Merrydale Road – Civic Center Connector Pathway. Provide a safer, more comfortable access route by filling a critical gap under the freeway at the Marin Civic Center SMART station. The creation of a multi-use path in this location would link Rafael Meadows and neighborhoods west of Highway 101 with existing multi-use paths on the east side, creating a route to school that is safe and comfortable for walkers and cyclists of all ages and abilities. $4.0 NO TAM Safe Pathways -
$.45M; TAM Measure B -
$.742M 2032 in design
3E San Rafael North-South Greenway Gap Closure & Multi- modal Improvements. The project spans Mission Ave. (Tamalpais Ave. to Hetherton St.), Tamalpais Ave (Mission Ave. to 4th St.), and 4th St. (Tamalpais Ave. to Grand Ave.) in downtown San Rafael, CA. Install two-way bicycle facility, enhanced pedestrian crossings, wider sidewalk, and signage. $5.5 NO State ATP (Cycle 7) -
$4.35M 2030 Not started

1. INTERCHANGE PROJECTS
Includes modifications to interchanges for capacity, safety, access, and improved circulation.

2. DOWNTOWN AREA IMPROVEMENTS
Includes improvements in the downtown area as defined by the Downtown Precise Plan area. Projects and improvements may include projects from other adopted City plans but is intended to include improvements to meet the vision, goals, and objectives of the Downtown Precise Plan.

3. ACTIVE TRANSPORTATION (PEDESTRIAN/ BICYCLE) IMPROVEMENTS Includes multimodal improvements and programs with a focus on pedestrian and bicycle improvements identified in the Bicycle & Pedestrian Master Plan.
# DESCRIPTION
Total Project COST
(2026 $M)
Existing
Deficiency?
Existing Deficiency
Share Existing Grant Source
Approx Date of
Completion (Yr)
Project Status/Timeline for
Near-Term
4A
Lincoln Avenue From Second to Paloma Safety Improvements. Improvements on Lincoln Ave between Second St and Paloma Ave. Includes protected left turn lane striping, signal phases at multiple signalized intersections, intersection safety improvements including curb extensions, traffic signal upgrades, intersection lighting, rectangular rapid flash beacons, and pedestrian crossing upgrades. $3.0 NO
HSIP (Cycle 12) -
$2.556M 2030 Design award
4B
Northgate Area Intersection and Complete Streets Improvements. Includes Las Gallinas/Northgate and Las Gallinas/Del Presidio intersections. Also includes improvements to Las Gallinas Avenue and Los Ranchitos Road, Northgate Drive, and Del Presidio Blvd, and continued development of North San Rafael Promenade. Additional improvements to be identified through future PDA planning process. $4.0 NO 2038 Not started 4C
Lincoln Avenue From Paloma to Los Ranchitos Multi-modal Rehabilitation. Improve pedestrian and bicycle connections while maintaining high quality transit route along Lincoln Avenue. Improvements include high visibility crosswalks, signal and ADA upgrades, and improving the bus and bike experience. $4.0 NO 2034 Not started 4D
Canal Neighborhood Bellam Gateway Local Access Improvements. Implement a fully separated shared-use path for pedestrians and bicyclists along Bellam Boulevard from Playa Del Rey to Kerner Drive, and along Bellam Boulevard from the I580 SB offramp to Andersen Drive, continuing south on Andersen to Jacoby Street, and connecting to the North-South Greenway, providing access to the Larkspur Ferry Terminal, Downtown San Rafael, and destinations further beyond. $8.6 NO RM3 SR2TBT - $6.84M 2030 Not started 5A Fourth Street (Miracle Mile) Intersection Improvement. Improve performance of Fourth Street signal at Ross Valley Dr and Santa Margarita Dr, including ADA upgrades. $0.9 NO 2029 Not started 5B
Lincoln / DuBois / Irwin. New signal, roundabout, or other intersection improvement to improve safety and traffic flow. $4.0 NO 2040 Not started 5C Fourth St and West Crescent Dr Intersection Improvements: New signal and other intersection improvements, such as high visibility crosswalks and ADA upgrades, to improve safety and traffic flow. $0.9 NO 2030 In design 6A
Intersection Technology and Corridor Analytics. Traffic signal equipment, cameras, modems, wireless, Bluetooth, automated data collection, etc. Study and enhance performance of roadway network and ITS through use of artificial intelligence (AI) and big data analytics, Connected Vehicle technology, etc. $6.0 YES 80% 2040 Ongoing 6B Corridor Communication System. Fiber optic cable and conduit along major arterials and central City system upgrades.

Evaluate corridor performance $3.0 YES 80% 2040 Ongoing TOTAL $179.8

6. INTELLIGENT TRANSPORTATION SYSTEM (ITS)
Traffic signal and communication infrastructure upgrades, including monitoring equipment, fiber optic/communication systems, and other technology enhancements to improve safety, effeciency, and resillience and to facilitate smart management of transportation system.

4. COMPLETE STREETS & CORRIDORS
Corridor level improvements including reconstruction of sidewalks, streets, pavement, signing, striping, and crossing improvements, with the objective of improving peak hour traffic flows and accommodate modes other than just motorized vehicles.

5. INTERSECTION IMPROVEMENTS
Intersection improvements including new traffic signals, intersection realignments/ reconfigurations, and other major changes to spot locations that are outside the Downtown Precise Plan area.

EXHIBIT B

TRANSPORTATION MITIGATION FEE SCHEDULE
Land Use Unit Transportation Mitigation Fee
per Unit
Single Family Residential Sq. Ft. $8.13
Accessory Dwelling Units* Sq. Ft. $2.03
Multi-family Residential Sq. Ft. $8.10
Multi-family Residential
within ½ mile of Downtown SMART Station Sq. Ft. $6.32
Multi-Family Residential
within ½ mile of Civic Center SMART Station Sq. Ft. $7.70 100% Affordable Housing* Sq. Ft. $2.15
Senior Housing Sq. Ft. $7.82
Senior Housing
within ½ mile of Downtown SMART Station Sq. Ft. $6.10
Senior Housing
within ½ mile of Civic Center SMART Station Sq. Ft. $7.43 Nursing Care Dwelling Unit $4,383
Commercial (40,000-150,000 Sq. Ft.) Sq. Ft. $65,619
Commercial (Less than 40,000 Sq. Ft.) Sq. Ft. $52,917
Biotechnology Employees $21,975
Office/Business Park 1,000 Sq. Ft. $21,499
Industrial 1,000 Sq. Ft. $9,659
Warehouse 1,000 Sq. Ft. $3,392
Hotel/Motel Room $15,847
Elementary School Students $4,502
Childcare Facility Students $0
Self-Storage 1,000 Sq. Ft. $2,876
Service Station Pump $167,166
*Applies only to Accessory Dwelling Units (ADUs) greater than 750 square feet. ADUs of less than 750 square feet are exempt from the Transportation Mitigation Fee pursuant to Government Code Section 65852.2(f)(3).
** Applies 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.

Annual Adjustment
Beginning July 1, 2027, and each year thereafter, the Transportation Mitigation Fees shall be adjusted to equal the base amounts set forth in the adopted fee schedule, 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 May to May immediately preceding the date of the adjustment.

EXHIBIT B1

TRANSPORTATION MITIGATION FEE SCHEDULE
Effective Date 60 days after
adoption July 1, 2027 July 1, 2028
Land Use Unit
Transportation
Mitigation Fee
per Unit
Transportation
Mitigation Fee
per Unit
Transportation
Mitigation Fee
per Unit
Single Family Residential Sq. Ft. $4.07 $6.10 $8.13
Accessory Dwelling Units* Sq. Ft. $1.02 $1.52 $2.03
Multi-family Residential Sq. Ft. $4.05 $6.08 $8.10
Multi-family Residential
within ½ mile of Downtown
SMART Station
Sq. Ft. $3.16 $4.74 $6.32
Multi-Family Residential
within ½ mile of Civic
Center SMART Station
Sq. Ft. $3.85 $5.78 $7.70
100% Affordable Housing* Sq. Ft. $1.08 $1.61 $2.15
Senior Housing Sq. Ft. $3.91 $5.87 $7.82
Senior Housing
within ½ mile of Downtown
SMART Station
Sq. Ft. $3.05 $4.58 $6.10
Senior Housing
within ½ mile of Civic
Center SMART Station
Sq. Ft. $3.72 $5.57 $7.43
Nursing Care Dwelling
Unit $2,191.50 $3,287.25 $4,383
Commercial (40,000-
150,000 Sq. Ft.) Sq. Ft. $32,809.50 $49,214.25 $65,619
Commercial (Less than
40,000 Sq. Ft.) Sq. Ft. $26,458.50 $39,687.75 $52,917
Biotechnology Employees $10,987.50 $16,481.25 $21,975
Office/Business Park 1,000 Sq. Ft. $10,749.50 $16,124.25 $21,499 Industrial 1,000 Sq. Ft. $4,829.50 $7,244.25 $9,659
Warehouse 1,000 Sq. Ft. $1,696.00 $2,544.00 $3,392
Hotel/Motel Room $7,923.50 $11,885.25 $15,847
Elementary School Students $2,251.00 $3,376.50 $4,502
Childcare Facility Students $0 $0 $0
Self-Storage 1,000 Sq. Ft. $1,438.00 $2,157.00 $2,876
Service Station Pump $83,583.00 $125,374.50 $167,166
Attachment 3
*Applies only to Accessory Dwelling Units (ADUs) greater than 750 square feet. ADUs of less than 750 square feet are exempt from the Transportation Mitigation Fee pursuant to Government Code Section 65852.2(f)(3).
** Applies 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.

Annual Adjustment
Beginning July 1, 2027, and each year thereafter, the Transportation Mitigation Fees shall be adjusted to equal the base amounts set forth in the adopted fee schedule, 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 May to May immediately preceding the date of the adjustment Attachment 4
Market Comparison of Development Impact Fees for Residential DevelopmentCity of San Rafael, CA Does not include planning and permitting fees.

Townhome 8-story Downtown Source
Tenure Ownership RentalDensity 20 235Average Unit Size 1,250 813Estimate Average Number of BRs 2.50 1.75Number of Units in Project 45 200Estimated Building Permit Value $277,778 $310,223Appraised Value of Land Per Acre $2,613,600 $2,613,600Bldg. Permit Fee, San Rafael (Estimated) $12,997 $7,177Peak Hour Trips Generated/Unit 0.93 0.61Percent of Site Impervious Surface 70% 90%Meter Size (Unless specified) 5/8" 5/8"FEE TYPE Per Unit San Rafael (current) San Rafael (future w/ max TMF and park fees) Concord Novato Petaluma San Ramon Santa Rosa 1a. Transportation Mitigation Fee $6,941 $10,125 $2,624 $5,537 $12,222 $11,257 $6,821 1b. Construction Vehicle Impact Fee** $2,678 $0 $0 $0 $0 $0 $02. Parks, Open Space and Recreation Fees** $7,050 $21,720 $9,820 $16,928 $7,250 $31,172 $14,0533. Sewer and Water Connection Fees $23,216 $23,216 $36,548 $32,672 $11,979 $28,786 $9,8424. Public Facilities/Safety Fees $0 $0 $3,719 $1,925 $5,285 $0 $05. School Fees $6,463 $6,463 $6,463 $6,463 $6,463 $6,463 $6,4636. Other Impact Fees $0 $0 $0 $1,614 $0 $3,295 $07. Technology Fees $650 $650 $1,365 $1,300 $0 $876 $568. General Plan/Zoning/Other Cost Recovery Fees $4,549 $4,549 $1,389 $1,300 $0 $1,917 $111 Total, Per Unit $51,545 $66,722 $61,927 $67,738 $43,199 $83,765 $37,345Average, Per Unit (excluding San Rafael) $58,795 Strategic Economics (SE)Strategic Economics (SE)
TOWNHOMES (OWNERSHIP/SUBDIVISION*)
City of San RafaelKMA, Parks Nexus Study, City of San RafaelCity of San RafaelCity of San RafaelUser's Guide for the CaliforniaImpervious Surface CoefficientsStrategic Economics (SE)KMA estimate based on SE sample projectsKMA estimate based on SE sample projects Prepared by Keyser Marston Associates, Inc.

FEE TYPE
Per Unit San Rafael (current) San Rafael (future w/ max TMF and park fees) Concord Novato Petaluma San Ramon Santa Rosa 1a. Transportation Mitigation Fee $4,552 $5,138 $2,624 $5,537 $12,222 $11,257 $6,821 1b. Construction Vehicle Impact Fee** $3,002 $0 $0 $0 $0 $0 $02. Parks, Open Space and Recreation Fees** $131 $15,041 $6,269 $17,175 $7,250 $31,172 $11,9443. Sewer and Water Connection Fees $23,216 $23,216 $35,302 $26,672 $11,773 $21,896 $8,5274. Public Facilities/Safety Fees $0 $0 $3,719 $1,896 $5,285 $0 $05. School Fees $4,203 $4,203 $4,203 $4,203 $4,203 $4,203 $4,2036. Other Impact Fees $0 $0 $0 $1,469 $0 $3,619 $07. Technology Fees $359 $359 $754 $718 $0 $640 $138. General Plan/Zoning/Other Cost Recovery Fees $2,512 $2,512 $1,551 $718 $0 $2,141 $25 Total, Per Unit $37,976 $50,469 $54,421 $58,387 $40,733 $74,928 $31,532Average, 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 subdivision. For agencies that do not have subdivision specific fees, their other park impact fees were applied. **The San Rafael future fees column assumes that the parks fee is adopted at the maximum level and the construction vehicle impact fee is suspended as recommended by staff at the June 15, 2026 City Council meeting. 8-STORY DOWNTOWN (RENTAL/NON-SUBDIVISION)
Fees in RED are charged by other agencies
Prepared by Keyser Marston Associates, Inc.