____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting:
Disposition:
Agenda Item No: SM 1.d
Meeting Date: June 15, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Micah Hinkle,
Director of Community &
Economic Development
Sullina D. Smith,
Senior Management Analyst II
City Manager Approval: ______________
TOPIC: CONSTRUCTION VEHICLE IMPACT FEE REPEAL
SUBJECT: RESOLUTION REPEALING THE CONSTRUCTION VEHICLE IMPACT FEE AND
AUTHORIZING THE COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR TO
SETTLE ANY TIMELY-FILED FEE PROTESTS RELATED TO CONSTRUCTION
VEHICLE IMPACT FEES FOR PROJECTS THAT HAVE NOT PAID THE FEE RECOMMENDATION:
Staff recommends that the City Council adopt a resolution repealing the Construction Vehicle Impact Fee and authorizing the Community & Economic Development Director to settle any timely-filed fee protests related to construction vehicle impact fees for projects that have not paid the fee.
BACKGROUND:
The City of San Rafael (City) is currently engaged in a broader, multi-year effort to review and update its development impact fee program to ensure that fees are legally compliant, proportional to development impacts, and aligned with current infrastructure funding needs.
As part of this effort, the City is evaluating updates to the Transportation Mitigation Fee (TMF) and parkrelated development impact fees. Staff also evaluated the continued applicability of the Construction Vehicle Impact Fee, which was established by Resolution No. 11473 in 2004.
The Construction Vehicle Impact Fee was originally intended to offset roadway wear and related impacts caused by heavy construction vehicles associated with development activity. Since the fee was adopted more than two decades ago, the City’s overall development impact fee structure has evolved substantially, and the City is now evaluating updates to the Transportation Mitigation Fee as part of the broader impact fee update initiative.
Staff recommends repealing the Construction Vehicle Impact Fee to provide additional fee capacity as the City considers updates to the Transportation Mitigation Fee. Staff also recommends authorizing the Community & Economic Development Director to settle any timely filed fee protests related to construction vehicle impact fees for projects that have not paid the fee.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
Staff believes that repealing the Construction Vehicle Impact Fee at this time is appropriate for several reasons.
First, the fee was established in 2004 and has not been comprehensively evaluated in conjunction with the City’s current nexus study and development impact fee modernization efforts. As the City evaluates updated transportation-related development impact fees, staff believes it is important to consider the cumulative impact of fees on housing and development feasibility.
Second, suspending the Construction Vehicle Impact Fee creates additional capacity within the City’s overall development fee structure while still allowing the City to consider an updated Transportation Mitigation Fee supported by a current nexus analysis. Staff believes this approach better aligns the City’s fee programs with current legal and policy considerations, including the City’s housing production goals and broader economic development objectives.
Staff also recommends authorizing the Community & Economic Development Director to settle any timely filed fee protests related to the Construction Vehicle Impact Fee, as staff anticipates that there are projects that will seek this relief upon Council’s adoption of this fee.
COMMUNITY OUTREACH:
The proposed fee updates and related development impact fee discussions have been publicly discussed as part of the City’s broader development impact fee update initiative, including at City Council and Subcommittee meetings. Relevant nexus studies and supporting materials have been made available on the City’s development impact fee project webpage.
FISCAL IMPACT:
Repeal of the Construction Vehicle Impact Fee would reduce revenue that would otherwise be collected under Resolution No. 11473. However, staff anticipates that the updated Transportation Mitigation Fee will continue to provide funding toward transportation improvements associated with new development.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt the resolution as presented.
2. Adopt the resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution repealing the Construction Vehicle Impact Fee and authorizing the Community & Economic Development Director to settle any timely-filed fee protests related to construction vehicle impact fees for projects that have not paid the fee.
ATTACHMENTS:
1. Resolution
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL REPEALING
THE CONSTRUCTION VEHICLE IMPACT FEE AND AUTHORIZING THE COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR TO SETTLE ANY TIMELYFILED FEE PROTESTS RELATED TO CONSTRUCTION VEHICLE IMPACT FEES
FOR PROJECTS THAT HAVE NOT PAID THE FEE
WHEREAS, the City of San Rafael (“City”) is engaged in a broader, multi-year effort to review and update its development impact fee programs to ensure that fees remain legally compliant, proportional to development impacts, and aligned with current infrastructure funding needs; and
WHEREAS, as part of this effort, the City is evaluating updates to the Transportation Mitigation Fee (“TMF”) and park-related development impact fees; and WHEREAS, the City Council previously established the Construction Vehicle Impact Fee pursuant to Resolution No. 11473 in 2004 to offset roadway wear and related impacts caused by heavy construction vehicles associated with development activity; and WHEREAS, since the adoption of the Construction Vehicle Impact Fee more than two decades ago, the City’s overall development impact fee structure has evolved substantially; and
WHEREAS, the City Council finds that repeal of the Construction Vehicle Impact Fee is appropriate as the City updates other development impact fee programs; and WHEREAS, the City Council further finds that repealing the Construction Vehicle Impact Fee would provide additional fee capacity within the City’s overall development impact fee structure.
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes as follows:
1. The Construction Vehicle Impact Fee established pursuant to Resolution No. 11473 is hereby repealed effective immediately upon adoption of this Resolution.
2. The Community & Economic Development Director is hereby authorized to settle any timely filed fee protests related to the Construction Vehicle Impact Fee for projects that have not paid the fee.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of the City of San Rafael, held on Monday, the 15th day of June 2026, by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________
Lindsay Lara, City Clerk