HomeMy WebLinkAboutPW Traffic Mitigation Fee (TMF) Increase - 2040 General Plan____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: October 4, 2021
Disposition: Resolution 14983
Agenda Item No: 8.a
Meeting Date: October 4, 2021
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: Bill Guerin,
Director of Public Works
City Manager Approval: _______
TOPIC: TRAFFIC MITIGATION FEE (TMF) – 2040 GENERAL PLAN
SUBJECT: RESOLUTION TO UPDATE THE CITYWIDE TRAFFIC MITIGATION FEE AS
RECOMMENDED BY THE 2040 GENERAL PLAN REPORT TITLED “CITY OF
SAN RAFAEL TRANSPORTATION FEE NEXUS REPORT”
RECOMMENDED ACTION: Adopt a resolution to approve an increased traffic mitigation fee
with revised implementation policies.
BACKGROUND: The City of San Rafael established a traffic mitigation fee in the mid-1980’s.
The mitigation fees were started as a funding mechanism towards specific improvements within
the planning area.
In 2004, the City adopted the San Rafael General Plan (“GP”) 2020. The GP 2020 included a
complete update of the Land Use and the Circulation Elements. The identification of major
transportation improvements provided the necessary nexus to expand the traffic mitigation fee to
morning and afternoon trip generations and to include all developments in the City. In 2004, the
City Council adopted Resolution No. 11668 that established a $4,246 per trip fee. The resolution
excluded cultural and theatre facilities, childcare facilities and affordable housing projects from
the traffic mitigation fees. The resolution allowed for an annual adjustment of the fee based on
the “Lee Saylor Construction Cost Index”. Due to difficult economic times after the adoption
however, the rate was never adjusted after 2004.
In 2012, the City Council adopted Resolution No. 13364, which amended Resolution No. 11668.
The updated resolution added another project type (second dwelling units) to the list of projects
exempt from citywide traffic mitigation fees.
ANALYSIS: The Mitigation Fee Act (California Government Code §§66000 – 66025), the bulk of
which was adopted as 1987’s Assembly Bill (“AB”) 1600, establishes requirements for how cities
collect, maintain and spend mitigation fees. Those requirements are commonly referred to as
“AB 1600” requirements. The AB 1600 requirements mandate that mitigation fees must
demonstrate a reasonable connection between the fee charged and the cost of the improvements
for which they are collected, must be deposited in a separate account, segregated from the city’s
general fund, and used only for the identified improvements. Additionally, cities must spend or
commit the fees within five years of collection or return them to the developer unless a finding can
be made that a reasonable relationship continues to exist between the current need for the fee
and the purpose for which it was originally collected (Gov. Code §66001(d)).
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Per the requirements of AB 1600, each mitigation fee program must be supported by a “nexus”
analysis, which is a rational and documented set of procedures by which the agency establishes
that there is a reasonable relationship (or “nexus”) between anticipated future development in the
jurisdiction, the need for new infrastructure to support that development, and the fees that will be
charged to help fund that infrastructure. With the GP 2040 update, the City commissioned Fehr
and Peers Engineering consultants to establish the nexus analysis. The effort was documented
in the report attached as Attachment 6.
The report lists the projects envisioned as part of the General Plan 2040. Preliminary cost
estimates were prepared for each project. Assumptions were made to estimate the potential City
contribution for each project followed by an overall fair share analysis based on the transportation
model developed by the Transportation Authority of Marin (TAM). With a total cost estimate of
$114.7 million, the report suggests $85.66 million would be eligible for the traffic mitigation fee.
Based upon further considerations and assumption of the future funding opportunities, the nexus
analysis used only 28% of the $85.66 million eligible for Citywide traffic mitigation fees. The
assumptions accounted for federal, state, and regional funding opportunities.
The establishment of the fee is dependent on the anticipated morning and afternoon peak hour
trips. The TAM transportation model calculated a total of 3,513 morning and afternoon new trips
based on the anticipated growth. The total eligible cost of projects divided by the total number of
new trips would be the recommended fee of $6,909 per trip.
The report justifies the continuation of the collection of traffic mitigation fees and recommends an
increase of the base fee to $6,909 per trip to meet the increasing cost of delivering needed
transportation improvements. With the current traffic mitigation fee at $4,246 the recommended
fee increase would be 62.7% higher if implemented all at one time. The main reason for this
increase is the fee was not adjusted for inflation in 17 years. While the original resolution
recommended an annual adjustment, the adjustments were not made due to instability in
economic conditions. The challenge with this recommendation lies in the implementation of a
major fee increase.
The City met with the San Rafael Chamber of Commerce (“Chamber”) Board and the feedback
was mixed, with concerns regarding the potential for impact on the development community. The
Chamber executive director followed up in an email which stressed the need for additional
outreach with local developers, questioned the impact on development projects in the queue, and
requested flexibility with financing options.
The City then invited local developers to a meeting. The nexus report was presented by staff. We
received excellent feedback. After the meeting, staff received a letter from one of the developers
present which suggested providing concessions to incentivize housing flexibility in the timing of
collecting the fee, and flexibility in applying the fee increase. A suggestion to waive the fee entirely
for housing projects was discussed and dismissed as the majority of the 2040 growth is
anticipated in housing.
Realizing the need to establish an equitable, logical, and community-based balance to fit the
development community and the transportation infrastructure needs, the following explains the
logic behind staff considerations and the basis for staff recommendations.
1- Gradual increase of the fee: The report suggested an option to increase the fee over a
three-year period. This option was presented to the Chamber and to the developers’
group. The feedback was a request for a longer period. We discussed the possibility for
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
extension with Fehr and Peers and determined that a five-year option would be viable.
Staff recommends that during the gradual increase of the fee an adjustment for inflation
be maintained. If we do not adjust for inflation during the first five years, the City will be
facing another significant need for adjustment in five years. Staff recommends maintaining
the Lee Saylor Construction Cost Index as the basis for Construction Price Index annual
adjustment. It is also recommended to start the Construction Price Index adjustment, when
above 0% at the end of year one and starting with year two. Staff recommends that the
initial fee increase become effective on January 1, 2022. The fee amounts without the
index adjustments over five years would be as follows:
5 Year Option
Year 1 – January1, 2022 $4,779
Year 2 – January 1, 2023 $5,312*
Year 3 – January 1, 2024 $5,845*
Year 4 – January 1, 2025 $6,378*
Year 5 – January 1, 2026 $6,909*
*This amount does not include the Construction Price Index annual adjustment
The Lee Saylor Construction Price Index is published monthly. Staff recommends
adopting the Month of November to compare the index for one year to another. This will
give enough time to calculate the annual change and apply it accordingly.
A question was raised by the stakeholders about the applicability of projects that are either
already entitled or in the queue for review. The proposed resolution provides that for
development projects where the planning application has been submitted to the
Community Development Department prior to January 1, 2022 the current fee of $4,246
would apply, but for projects applying on or after January 1, 2022, the amount of the fee
will start increasing, and the assessed amount will be determined based on the rate in
effect at the time the building permit is issued.
2- Comparison with other municipalities: Fehr and Peers compared the traffic mitigation fees
with similar and nearby municipalities along the Highway 101 corridor. The following table
compares the traffic impact fee collected for a single-family home in Novato, Petaluma
and Santa Rosa. The comparison shows we are now collecting less than the three
compared cities.
City Traffic Fee Per Home
Novato $9,151
Petaluma $16,034
Santa Rosa $9,009
Average of Three Cities $11,398
San Rafael $8,492
3- Overall equity of the fee: during conversations with stakeholders it was suggested to take
a more holistic look at the fees collected by San Rafael compared to other communities.
The suggestion was prompted due to the number of fees imposed for various reasons on
the development community. Staff sees this step as necessary to continue to assess the
City’s ability to maintain sustainable growth and it would need to be a part of a broader
issue discussion that goes far beyond the consideration of traffic mitigation fees.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
4- Incentives for housing: The suggestion was also made that the City should incentivize the
housing industry to meet State and regional mandates. The City has taken favorable
actions adjusting the minimum affordable housing ratios. In addition, the current resolution
already exempts affordable housing projects from the traffic mitigation fee. Staff
recommends continuing the exemption of affordable housing projects and to take it one
step further by exempting affordable units built in conjunction with market-based units,
thus further incentivizing building more affordable units.
5- Deferred collection of the fee: Currently the fee must be paid at the time of the issuance
of the building permit. Stakeholders asked for a grace period to pay the fee. Staff
recommends that the City give the option to pay the fee at either the issuance of the
building permit or before occupancy. This would give developers the full time of
construction (one to three years) as a grace period for paying the fee.
6- Annual review of accomplishments: AB 1600 mandates an annual review of the
expenditure of the Traffic Mitigation Fund by the City Council. The recommendation is to
continue this practice.
7- Credit for Existing Buildings and Fee Calculations: Owners who have an existing building
should be able to receive credit for the trips generated by existing structures. The credit is
calculated without any adjustment of the raw trip generation. Therefore, the calculations
for the trip generation number for the new trips should not have any adjustments for pass-
by nor multimodal discounts. If the structure has been removed for two years or more the
existing structure should not get any trip generation credits simply because the structure
or the building has not generated trips and new trips would be generated.
8- Building Reuse and Tenanting: As an incentive to reuse and renew developments, staff
recommends exempting from the traffic mitigation fee, any reuse of existing square
footage regardless of how many trips it may generate. Only additional square footage to
an existing structure would be assessed the traffic mitigation fee.
9- Inclusion of 2017 Policy and Practices: Staff recommends including the policy and
procedures in the 2017 staff memorandum in the revised traffic mitigation fee resolution.
FISCAL IMPACT: The increase of the fee will gradually increase the Traffic Mitigation Fund. The
status of the fund is discussed annually by the City Council. The allocations of the funds to projects
will also be discussed by the City Council as part of the Capital Improvement Program.
RECOMMENDED ACTION: Adopt a resolution to increase the City’s traffic mitigation fee with
revised implementation policies.
ATTACHMENTS:
1. Resolution No. 11668, adopted 2004
2. Resolution No. 13364, adopted 2012
3. City of San Rafael Transportation Fee Nexus Report
4. Proposed 2021 Draft Resolution
RESOLUTION NO. 11668
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL IMPOSING TRAFFIC MITIGATION FEE ON
DEVELOPMENT PROJECTS CITYWIDE IN SAN RAFAEL
PLANNING AREA.
($4,246 0 00 PER TRIP)
WHEREAS, the City Council of the City of San Rafael has adopted San
Rafael Municipal Code Section 3.32 creating and establishing the authority for imposing
and charging Public Facilities Fees; and
WHEREAS, pursuant to Section 3.32, the City Council of the City of San
Rafael adopted Resolution No. 7882 establishing a traffic mitigation fee for certain zones
of benefit within the City; and
WHEREAS, San Rafael General Plan 2020 identifies the potential impacts
of projected future development, the needed facilities and the estimated costs of those
improvements, including specifically for these purposes necessary and needed traffic
infrastructure improvements and the projected costs thereof; and
WHEREAS, the circulation element of the General Plan 2020, and the
effectiveness of the existing traffic mitigation fee were discussed at public hearings on
September 28, 2004; and
WHEREAS, it was determined that the existing traffic mitigation fee is
insufficient to fund the proposed traffic infrastructure improvements necessary to support
projected future development in the City; and
WHEREAS, it was further determined that the current traffic mitigation
fee, which said fee is currently only applied to development projects in three defined
traffic impacted areas of the City, does not adequately reflect the current traffic and
circulation concerns of the City because: (1) the City is experiencing City-wide traffic
congestion beyond the three previously defined zones of benefit; (2) the City has traffic
infrastructure needs outside of the three defined zones of benefit; and (3) development
projects in each area of the City impact traffic throughout the City bychanges in the
number of A.M. and P .M. peak hour trips; and
WHEREAS, various proposed alternatives and/or amendments to the
existing traffic mitigation fee were presented and discussed at the public hearings in order
to address these concerns, and the City Council preferred expanding the geographical
application of the existing traffic mitigation fee so that it would be assessed Citywide, and
further preferred combining all fees collected into one citywide traffic mitigation fee
account; and
WHEREAS, the City Council further determined that the traffic mitigation
fee should be increased to $4,246.00 per trip, and that the fee shall be assessed by
multiplying the per trip fee by the total number of new AM plus PM peak trips generated
by a project; and
WHEREAS, the estimated number of trips generated per development
project shall be approved by the City Traffic Engineer and traffic mitigation fee shall be
assessed and paid at the time of the issuance of the building permit for development; and
WHEREAS, the traffic mitigation fee will be adjusted annually based on
"Lee Saylor Construction Cost Index"; and
WHEREAS, the City Council has determined that: 1) cultural and theater
facilities, excluding night clubs in Downtown, 2) childcare facilities, and 3) affordable
housing projects shall be exempt from traffic mitigation fees; and
WHEREAS, the traffic mitigation fee adopted herein shall not be assessed on any
development project for which land-use entitlements have been granted and remain valid,
pursuant to Title 14 of the San Rafael Municipal Code (Zoning Ordinance), as of the effective
date of this resolution. For those projects, the traffic mitigation fee in place prior to the effective
date of this resolution shall be assessed and collected. A "valid" land-use entitlement shall be
one for which project approval has been granted by the decision-making authority, no appeals
have been filed within the appeal period specified within the Zoning Ordinance, and the approval
granted by the decision-making authority has not lapsed; and
WHEREAS, the traffic mitigation fee adopted hereby shall not be assessed on or
collected for any project subject to a Development Agreement approved prior to the effective
date of this resolution, except in those instances where the Development Agreement specifically
authorizes the City to collect fees and charges adopted by the City subsequent to the date of
approval of the Development Agreement.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of San Rafael hereby finds and detennines that the above Recitals are true and correct
and serve as the basis, in part, for the actions of the City Council set forth below; and
BE IT FURTHER RESOLVED that the City Council of the City of San
Rafael does hereby adopt this Resolution establishing a new Citywide traffic mitigation
fee pursuant to San Rafael Municipal Code Section 3.32;
I, JEANNE M. LEONCINI, 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 Council of
said City on the 15 th day of November, 2004, by the following vote, to wit:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS: Cohen, Heller, Miller and Mayor Boro
COUNCILMEMBERS: None
COUNCILMEMBERS: Phillips
RESOLUTION NO. 13364
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL
AMENDING RESOLUTION 11668 (REQUIRING THE IMPOSING OF TRAFFIC
MITIGATION FEES ON DEVELOPMENT PROJECTS CITYWIDE) EXEMPTING THE
CREATION OF NEW OR LEGALIZATION OF EXISTING
SECOND DWELLING UNITS FROM THE
CITYWIDE TRAFFIC MITIGATION FEE REQUIREMENT
P12-002)
The City Council of the City of San Rafael finds and determines that:
WHEREAS, San Rafael Municipal Code (SRMC) Section 3.32 provides enabling
legislation for the City Council to create and establish the authority to impose and charge Public
Facility Fees; and
WHEREAS, pursuant to SRMC Section 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. The adoption of these traffic mitigation fees was done
in conjunction with the adoption of and as implementation to the San Rafael General Plan 2000;
and
WHEREAS, in 2002, the City initiated an update of the San Rafael General Plan 2000,
which included revisions to the Land Use and Circulation Elements. On November 15, 2004, the
City Council adopted the San Rafael General Plan 2020. The General Plan 2020 includes policies
and programs intended to address and mitigate traffic and transportation impacts associated with
new land development within the City. Specifically, General Plan 2020 Circulation Element
Policy C-5 (Traffic Level of Service Standards) sets forth intersection and arterial segment level
of service standards that are to be maintained as new development is proposed, approved and
built. Further, the Circulation Element includes: a) Policy C-6 (Proposed Improvements) which
sets forth a list of planned transportation improvements that are deemed necessary to
accommodate planned growth under the General Plan 2020, along with the estimated cost of
needed improvements and timing; and b) Policy C-7 (Circulation Improvements Funding) which
outlines the funding sources for the needed circulation improvements, which include, among
others, traffic mitigation fees. Lastly, Circulation Element Program C -7a (Traffic Mitigation
Fees) directs that the City continue to implement and periodically update the traffic mitigation fee
program; and
WHEREAS, in conjunction and concurrent with the adoption of the San Rafael General
Plan 2020, on November 15, 2004, the City Council adopted Resolution No. 11668, which
updates the City's traffic mitigation fee program to: a) address and apply fees to both AM and
PM peak hour traffic conditions; and b) apply the fees citywide. This action updated the fee
amount to $4,246.00 per peak hour trip (a collective amount of both AM and PM peak hour trips
generated by new development). Resolution No. 11668 requires the application of traffic
mitigation fees to all new development except for cultural and theater facilities (excluding night
clubs in Downtown. childcare facilities and affordable housing projects, and
WHEREAS, in 2009 the City prepared and published the Second Dwelling Unit
Progress Report - 2009. The San Rafael General Plan 2020 Housing Element encourages second
dwelling units as they provide a good source of affordable housing for the community. The
purpose of the progress report, among others, was to assess second dwelling unit production since
the 2004 adoption of the San Rafael General Plan 2020 as the General Plan estimated that 34
second dwelling units per year would be built or legalized during this time frame. The report
disclosed that between 2004 and 2009, a total of 32 second dwelling units were built or legalized
citywide, far below the per year estimate cited in the General Plan. Further, the report disclosed
that one of the biggest obstacles to building a new or legalizing an existing second dwelling unit
is the requirement to pay traffic mitigation fees; and
WHEREAS, as a result of the findings of the Second Dwelling Unit Progress Report -
2009, in August 2011, the City Council adopted an amendment to the San Rafael General Plan
2020, which incorporated a new Housing Element Program H -25e (City Fees to Reduced Second
Dwelling Unit Costs), which directs that the Citywide Traffic Mitigation Fee to waive the amount
that is currently charged for second dwelling units; and
WHEREAS, the Department of Public Works, Transportation Division has reviewed and
supports the proposal to waive the Citywide Traffic Mitigation Fee for second dwelling units.
The Public Works Director finds that: a) the amount of traffic generated by a second dwelling
unit during the AM and PM peak hour is minimal and is generally combined and/or absorbed
with the peak hour traffic generation of the primary single-family residence; and b) the amount of
second dwelling units that have been permitted citywide in combination with the number of such
units planned and projected in the General Plan are not enough to result in a noticeable difference
in traffic conditions. For these reasons, the fee is not warranted for second dwelling units; and
WHEREAS, no other amendments are proposed to Resolution 11668 that would change
the structure or purpose of the fee, or the fee amount.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Rafael hereby adopts an amendment to Resolution 11668 (Citywide Traffic Mitigation Fee)
exempting the creation of new or the legalization of existing second dwelling units from the
mitigation fee payment based on the following findings:
The exemption of second dwelling units from the Citywide Traffic Mitigation Fee would
be consistent with San Rafael General Plan 2020 Housing Element Policy H-25 (Second
Units) and Programs H -25b (Second Unit Assistance) in that the action would: a)
encourage new and the legalization of existing second dwelling units, which are a source
of affordable housing in the community; and b) provide a financial incentive and
assistance to property owners that are being encouraged to legalize existing second
dwelling units. Further, this action would implement Housing Element Program H -25e
City Fees to Reduce Second Dwelling Unit Costs), which directs that this traffic
mitigation fee be waived for second dwelling units.
The exemption of second dwelling units from the Citywide Traffic Mitigation Fee would
not be detrimental to the health, safety and welfare of the community in that the
Department of Public Works, Transportation Division has concluded that the amount of
traffic generated by second dwelling units is minimal and ancillary to the traffic
generated by the primary single-family residences. As such, the charging of a traffic
mitigation fee for a second dwelling unit is not warranted.
BE IT FURTHER RESOLVED that the City Council of the City of San Rafael does
hereby adopt this resolution amending Resolution 11668 (Cit}wide Traffic Mitigation Fee) to
2
expand list of projects and uses exempt from this fee to include the creation of new or legalization
of existing second dwelling units to read as follows:
The City Council has determined that: 1) cultural and theater facilities,
excluding nightclubs in Downtown, 2) childcare facilities, 3) affordable housing projects,
and 4) develooment of new or the legalization of existine_ second dwellinia units shall be
exempt from traffic mitigation fees."
I, ESTHER BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly introduced and read at a regular meeting of the San Rafael City Council held
on the 2nd day of July, 2012, by the following vote, to wit:
AYES COUNCILMEMBERS: Connolly, Levine, McCullough & Mayor Phillips
NOES COUNCILMEMBERS: None
ABSENT COUNCILMEMBERS: Heller
ESTHER C. BEIRNE, City Clerk
Attachment 2
CITY OF SAN RAFAEL, CALIFORNIA
DEPARTMENT OF PUBLIC WORKS
INTERDEPARTMENTAL MEMORANDUM
TO: PAUL JENSEN DATE: JUNE 21, 2012
COMMUNITY DEVELOPMENT DIRECTOR
FROM: NADER MANSOURIAN FILE NO: 13.02.17
PUBLIC WORKS DIRECTOR
SUBJECT: SECOND UNIT TRAFFIC MITIGATION FEE EXEMPTION
This memo confirms our discussions about potential elimination of the traffic mitigation fee for
second units. Since the General Plan 2020 update in 2004, we received a handful of planning
referrals to comment on second units; and based on our previous years analysis, we charged V2
AM and 'l2 PM peak traffic mitigation fee. The projected number of second units analyzed in the
General Plan build -out scenarios was much greater than ever occurred. Therefore, the actual
impact of the second units has been insignificant. In addition, we received complaints from each
of the applicants that the traffic mitigation fee is exorbitant compared to the tenant improvements
and the units will be used by family members that are elderly and do not drive.
Based on the historic records, we believe the traffic impact of the second units is negligible and
it would be a good policy to include this use to the landuse exempt from the City's Traffic
Mitigation fee.
Draft Report
City of San Rafael
Transportation Fee
Nexus Report
June 2021
Table of Contents
1. Introduction ............................................................................................................................. 1
Background and Purpose.......................................................................................................................................................... 1
Study Area ....................................................................................................................................................................................... 1
Organization of the Report ...................................................................................................................................................... 2
2. Project List ............................................................................................................................... 3
3. Growth Projections ................................................................................................................. 6
4. Nexus Analysis and Fee Calculations..................................................................................... 7
Analysis of Future Usage ........................................................................................................................................................... 7
Brief Description of Travel Demand Models ............................................................................................................. 7
Modeling in Marin County ............................................................................................................................................... 7
Procedure for Analyzing Future Usage ....................................................................................................................... 8
Results of Analyzing Future Usage ............................................................................................................................... 8
Fee Amounts .................................................................................................................................................................................. 9
Fee Update Implementation ..................................................................................................................................................10
5. Summary of Required Program Elements .......................................................................... 11
List of Tables
Table 1: City of San Rafael Citywide TMF Project List ........................................................................................................... 4
Table 2: Projected Growth in San Rafael .................................................................................................................................... 6
Table 3: Eligible TMF Costs: Future Trip Allocation for City of San Rafael and SOI Zones .................................... 9
Table 4: Calculation of San Rafael TMF Fees ............................................................................................................................ 9
Table 5: Options for Implementing Updated Transportation Fees .............................................................................. 10
City of San Rafael Transportation Fee Nexus Study
April 2021
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1. Introduction
Background and Purpose
The Traffic Mitigation Fee (TMF) on development projects in San Rafael was last updated by the Ci ty
Council on November 15, 2004. The fee was updated in conjunction with the San Rafael General Plan 2020
that was also adopted by the City Council in 2004, with the purpose of providing funds to support
implementation of improvements identified in the Circulation Element due to the potential impacts of
projected future development.
The purpose of this report is to serve as the necessary documentation to allow the City to update the
existing citywide TMF program in conjunction with the current update to the General Plan and
preparation of a Downtown Precise Plan. The City of San Rafael TMF is based on multiplying the number
of net new peak hour trips (AM plus PM peak hours) for a project by the fee of $4,246 per trip. The fee of
$4,246 per trip has not changed since 2004.
Impact fees are established under a state law known as Assembly Bill (AB) 1600, the Mitigation Fee Act.
Fees charged pursuant to this legislation are used to build capital facilities needed to offset the impacts
generated by new development. It is common practice throughout California for local jurisdictions to
establish impact fee programs to fund the construction of several types of public infrastructure and
facilities; one common type of fee program is a transportation impact or mitigation fee, which generates
funds that are used to construct infrastructure and provide facilities that support the transportation needs
of new residents and businesses.
Per the requirements of AB 1600, each impact fee program must be supported by a “nexus” analysis,
which is a rational and documented set of procedures by which the agency establishes that there is a
reasonable relationship (or “nexus”) between anticipated future development in the jurisdiction, the need
for new infrastructure to support that development, and the fees that will be charged to help fund that
infrastructure. Thus, the technical reports (such as this report) that are prepared to support a fee program
are commonly called nexus studies.
Study Area
This nexus study addresses anticipated future development in the incorporated City of San Rafael as well
as in the sphere of influence (SOI) area that immediately surrounds the incorporated city.
City of San Rafael Transportation Fee Nexus Study
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Organization of the Report
After this introductory section, the report contains four additional sections:
• Section 2 – Project List describes the list of capital improvement projects that would be included
in the program.
• Section 3 – Growth Projections documents the amount of growth anticipated over the next twenty
years in the geographic areas that would be covered by the Citywide TMF.
• Section 4 – Nexus Analysis and Fee Calculations describes the results of the nexus analysis and
calculates the fee amounts using the information presented in the report.
• Section 5 – Summary of Required Program Elements summarizes how the information in this
report satisfies the requirements of the Mitigation Fee Act (AB 1600).
City of San Rafael Transportation Fee Nexus Study
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2. Project List
The General Plan Update team comprised of City staff collaborated to develop a list of capital
improvement projects for inclusion as part of the Citywide TMF. The projects reflect the goals and
objectives in the General Plan Circulation Element, with particular emphasis on improving traffic flow and
reducing conflicts for vehicles, bicyclists and pedestrians through the application of intersection
improvements such as constructing roundabouts, additional turn and merge lanes, and other facilities that
would smooth traffic flow and reduce exposure of more vulnerable road users. Priority was given to
projects that are located on the City’s arterial and collector streets, defined as existing roadways that serve
as primary travel routes to and through the City.
Table 1 contains a description of each project along with its estimated cost. The projects in Table 1 are
broken down into the following six categories.
▪ Interchange Projects
▪ Downtown Area Improvements
▪ Active Transportation (Pedestrian/Bicycle) Improvements
▪ Complete Streets & Corridors
▪ Intersection Improvements
▪ Smart Infrastructure (Technology)
A total of 16 projects or programs are listed within the six categories listed above. As noted in Table 1, 12
of the 16 projects or programs are included in the current Citywide T MF.
The four projects that are added to the current Citywide TMF are as follows.
▪ Downtown San Rafael Remaining One-Way Street Conversions – as described in Downtown
Precise Plan, convert one-way segment of B Street to two-way operation
▪ US 101/Downtown San Rafael Interchange – improvements to local road segments and
intersections along Irwin Street, Hetherton Avenue, 2nd Street, and 3rd Street in the vicinity of the
Downtown northbound and southbound ramps to US 101
▪ Fourth Street (West End) Intersection Realignment – realignment of Fourth Street/Second
Street/Marquard Avenue intersection per alternatives developed for the 3rd Street
▪ Fourth Street Multimodal Improvements – as described in Downtown Precise Plan, improve
pedestrian and bicycle connections while maintaining high quality transit route along 4th Street
The above four improvements are identified to serve planned residential and employment growth in
Downtown San Rafael as identified in both the General Plan Update and Downtown Precise Plan. PM peak
hour volumes on the segments of 2nd Street, 3rd Street, 4th Street, Irwin Street, and Hetherton Avenue that
are part of the four new above projects are forecast to increase from 16 percent to 29 percent from
existing to 2040 conditions due to planned growth.
City of San Rafael Transportation Fee Nexus Study
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Table 1: City of San Rafael Citywide TMF Project List
# DESCRIPTION COST ($M)
1. INTERCHANGE PROJECTS
Includes modifications to interchanges for capacity, safety, access, and improved circulation
1A1
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.
$15
1B1
US 101/ Freitas Parkway Interchange East. Reconfigure the US-101 NB off-ramp/Civic
Center Drive intersection to address safety, circulation, and capacity issues. Improvements
would be coordinated with ongoing development plans and Northgate PDA, and future
planning process where appropriate.
$15
1C1
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.
$6
Category 1 Subtotal $36
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
Downtown roadway and intersection improvements (traffic signals, roundabouts,
pedestrian/bicycle, ADA, and/or turn lane modifications) and improvements to gateway
streets to Downtown, including:
▪ Downtown San Rafael Remaining One-Way Street Conversions, per Downtown
Precise Plan
▪ New traffic control devices1 (e.g., traffic signal, roundabout, or other devices) at
Fifth Ave/H St, First St/C St, First St/D St, Fourth St/Union St, and Mission
Ave/Court St
$4
2B US 101/ Downtown San Rafael Interchange. Improvements to Irwin St, Hetherton Ave,
2nd St, and 3rd St in the vicinity of the NB off-ramp and SB on-ramp. $10
2C Fourth Street (West End) Intersection Realignment. Re-align Fourth Street/Second
Street/Marquard Avenue intersection. $6
2D1
Second Street Multimodal Improvements. Improve Second Street corridor operations
while addressing pedestrian and bicycle safety at crossing locations, and widen sidewalks
and remove parking where feasible
$6
2E
Fourth Street Multimodal Improvements. 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.
$13
Category 2 Subtotal $43
3. ACTIVE TRANSPORTATION (PEDESTRIAN/BICYCLE) IMPROVEMENTS
Includes multimodal improvements and programs with a focus on pedestrian and bicycle improvements
identified in the Bicycle & Pedestrian Master Plan.
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Table 1: City of San Rafael Citywide TMF Project List
# DESCRIPTION COST ($M)
3A1 Includes various projects identified in the 2018 BPMP, consistent with the priorities
expressed in that Plan. $9.6
Category 3 Subtotal $9.6
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.
4A1
Lincoln Avenue Peak Period Lanes/Parking Restrictions. Extend the existing PM peak
period parking restrictions, to allow for two lanes in each direction during both AM and
PM peak periods, from Hammondale Court/SB US 101 ramps to Mission Ave. Provide
additional parking in corridor. Include ADA upgrades, crossing improvements, and other
multimodal improvements/accommodations.
$4.6
4B1
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.
$2.3
4C1
Francisco Boulevard East Corridor Improvements. Increase capacity from Bellam to
Grand Avenue bridge and install signal, ADA, and pedestrian improvements at Harbor St.
Additional improvements to be identified through future PDA planning process.
$10.2
Category 4 Subtotal $17.1
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.
5A1 Fourth Street (Miracle Mile) Intersection Improvement. Improve performance of
Fourth Street signal at Ross Valley Dr and Santa Margarita Dr, including ADA upgrades. $0.5
5B1 Lincoln/DuBois/Irwin. New signal, roundabout, or other intersection improvement to
improve safety and traffic flow. $2.5
Category 5 Subtotal $3.0
6. SMART INFRASTRUCTURE (TECHNOLOGY)
Traffic signal and communication infrastructure upgrades, including monitoring equipment, fiber
optic/communication systems, and other technology enhancements to facilitate smart management of
transportation system.
6A1 Intersection Technology. Traffic signal equipment, cameras, modems, wireless, Bluetooth,
automated data collection, etc. $4.0
6B1 Corridor Communication System. Fiber optic cable and conduit along major arterials and
central City system upgrades. $2.0
Category 6 Subtotal $6.0
TOTAL $114.7
1 Project in current transportation mitigation fee program.
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3. Growth Projections
An important element of every fee calculation is the estimate of future growth in the fee area. The growth
forecasts that are used in this nexus study are based on the existing and 2040 forecasts from the preferred
land use alternative for San Rafael General Plan 2040, as shown in Table 2.
The land use data shown in Table 2 was incorporated into the Transportation Authority of Marin Travel
Demand Model (TAMDM) and forecasts of person trips and vehicle trips prepared for both the base year
and 2040 scenarios. The forecast growth in the number of net new AM and PM peak vehicle hour trips
was extracted from the model, as the current City of San Rafael TMF is based on multiplying the number
of net new peak hour vehicle trips (AM plus PM peak hours) for a project by the fee of $4,246 per vehicle
trip. As shown in Table 1, a total of 3,513 net new vehicle trips are forecast to be added to the street
network for a typical weekday based on growth in the City of San Rafael over the next 20 years. This
represents the total number of net new peak hour vehicle trips estimated to occur because of new
development in San Rafael and will be the basis for calculating the updated fee.
Table 2: Projected Growth in San Rafael
INCORPORATED CITY SOI AREA TOTAL CITY + SOI
POPULATION
Existing 61,230 14,521 75,751
2040 69,240 15.421 84,661
Growth 8,010 900 8,910
EMPLOYMENT
Existing 42,050 2,150 44,200
2040 46,100 2,215 48,315
Growth 4,050 65 4,115
SERVICE POPULATION (POPULATION + EMPLOYMENT)
Existing 103,280 16,671 119,951
2040 115,340 17,636 132,976
Growth 12,060 965 13,025
Projected Growth in New AM Peak Hour plus PM Peak Hour Trips for a Typical
Weekday (2020-2040) 3,513
Source: Trip growth from TAM Marin County Travel Demand Model (TAMDM) based on the San Rafael Plan 2040 population and
employment growth forecasts, Fehr & Peers.
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4. Nexus Analysis and Fee
Calculations
Analysis of Future Usage
A key part of the nexus study process is to conduct an analysis of the future usage of the T MF facilities to
establish a relationship between the travel needs generated by new development in San Rafael and the
facilities that are proposed to be improved through application of fee revenues. A common practice in
nexus studies is to use a travel demand model for this purpose. Below we present a brief introduction to
travel demand models, followed by a description of the process used to conduct this nexus analysis and
the results.
Brief Description of Travel Demand Models
Travel demand models are developed by transportation planners and engineers with specific training in
this field. The models are built using specialized software and a wide range of data about the existing
transportation system. This data includes Geographic Information Systems (GIS) data abou t the locations
and characteristics of all the streets and highways in the study area, data about the types of land uses
(e.g., single-family homes, retail shops, office buildings, etc.) located in the study area, data about the
socioeconomic characteristics (such as age, income, and employment status) of the people living in the
study area, and survey data about how people with varying characteristics tend to travel. Once the input
data is developed and checked, the model is calibrated to reflect existing travel patterns; that is, the
mathematical procedures applied within the model are adjusted until the model’s outputs (such as traffic
volumes and speeds on each road) match reasonably well with actual observations.
At that point, the model is considered ready for use in analyzing future scenarios. Model inputs can be
changed to reflect different possible futures, and then the outputs are examined to see how future travel
patterns might change in response to those different scenarios. For example, there may be a proposal to
build a group of new office and retail buildings on a site that is currently vacant; the model inputs can be
adjusted to reflect that proposed new development (size of the new buildings, types of uses, etc.), and
then the model will be applied to see how the traffic volumes in that vicinity might be expected
to change.
Modeling in Marin County
The travel model that is currently used for transportation planning purposes in Marin County is developed
and maintained by the Transportation Authority of Marin (TAM) and is referred to as the Transportation
Authority of Marin Travel Demand Model (TAMDM). TAM has maintained a travel model for many years
and applies industry-standard model development and calibration procedures. The TAMDM was most
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recently updated in 2019 and the most current available version of the model has been used for this
nexus analysis. The horizon year of the model is year 2040.
Procedure for Analyzing Future Usage
For the purposes of a nexus analysis, a model is used to determine the linkage between traffic coming
from the geographic areas subject to the TMF and the usage of the specific facilities that are going to be
funded with TMF revenues. In a travel demand model, roads and intersections are represented by a
network of “links” and “nodes”; in general, each link represents a road segment and each node (i.e., a
location where two links are joined) represents an intersection. For each of the projects included in the
Citywide TMF program, the links in the model network that represent that project location were identified.
Then, “select link” model runs were conducted for each of the proposed T MF projects. The select link
analysis identifies the origins and destinations of each vehicle that is projected to use each selected l ink;
with this information, the fair share of cost associated with each project can be allocated to development
in San Rafael and included in the impact fee.
For the fair share calculations for the San Rafael TMF programs, there are four types of trips identified
through the select link process:
1. Trips that both start and end in San Rafael;
2. Trips that have an origin in San Rafael and a destination elsewhere;
3. Trips that have a destination in San Rafael and an origin elsewhere; and,
4. Trips that have neither an origin nor a destination in San Rafael but are using roads that pass-
through San Rafael (also referred to as “pass-through” trips).
Trips that fall into the final category, “pass-through” trips, should not be included in the fee program
because those trips are not related to San Rafael development that is subject to the fee. Trips from the
other three categories are attributable to development in San Rafael and thus can be included in the TMF
calculations.
Results of Analyzing Future Usage
The results are shown in Table 3. The column titled “Proportion of 2040 Trips from City and SOI Areas”
shows the percentage of traffic on each facility that falls within the first three categories described above
(i.e., the traffic that is linked to development in San Rafael). That percentage is then applied to the
estimated cost for each project to determine the dollar amount that is considered eligible for inclusion in
the TMF program.
It should be noted that the intent of this analysis is solely for the purposes of the TMF nexus analysis. The
primary result is the percentage of trips projected to use each facility that are linked to development in
San Rafael. It is not intended for these results to be used to determine the appropriate size or
configuration for any particular facility.
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Table 3: Eligible TMF Costs: Future Trip Allocation for City of San Rafael and SOI Zones
Number Category Total Cost
Estimate
(2020 $)
Proportion of
2040 Trips from
City and SOI
Zones
Cost Eligible for
Citywide TMF
1 Interchange Projects $36 M 89% $32.2 M
2 Downtown Area Improvements $43 M 64% $28.0 M
3 Active Transportation (Pedestrian/Bicycle) $9.6 M 60% $ 5.7 M
4 Complete Streets & Corridors $17.1 M 84% $14.3 M
5 Intersection Improvements $3.0 M 75% $ 2.2 M
6 SMART Infrastructure (Technology) $6.0 M 60% $ 3.6 M
TOTAL $114.7 M $85.66 M
Fee Amounts
Table 4 displays the calculated impact fees. These fees have been calculated based on the list of projects
as shown in Table 1, and the projected number of new daily trips as shown in Table 2. Based on
consultation with City staff, it was determined that $90 million in revenues (or about 78 percent of the
total program cost) would be acquired from other revenue sources such as federal, state, and regional
grant programs as well as public benefit contributions from large developments.
The result of the calculations is a fee per new peak hours trip that would be applied to applicants for new
building permits in San Rafael. The fee below represents a 63 percent increase in the current fee program
that has not been updated since November 2004. The 2004 TMF update included a provision for the
traffic mitigation fee to be adjusted annually to account for inflation based on a construction cost index.
The National Highway Construction Cost Index (NHCCI) maintained by the Federal Highway
Administration (FHWA) indicates that the cost for construction increased 72 percent from 2004 through
2020.
Table 4: Calculation of San Rafael TMF Fees
Calculation Value
Total Estimated TMF Project Costs $114,700,000
Total Funds from Other Revenue Sources $ 90,430,000
Total Cost of Projects Funded by TMF
(note: this represents about 28 percent of the $85.66 million eligible for
Citywide TMF per Table 3 above)
$ 24,270,000
Divided by Growth in AM and PM Peak Hour Trips (20 years) 3,513
Fee per Net New AM and PM peak Hour Trip $6,909
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Fee Update Implementation
Two alternatives for implementing the updated transportation fees are presented in Table 4 for
consideration. Option A would involve a one-time adjustment of the current fee of $4,246 per AM and PM
peak hour trip to $6,900 as shown in Table 4. This one-time adjustment would result in a fee that would
be slightly less than an updated amount adjusted for inflation since the fee was last updated in 2004,
which would be approximately $7,300 based on the National Highway Construction Cost Index (NHCCI)
maintained by the Federal Highway Administration (FHWA). Option B would involve pro-rating the one-
time adjustment in Option A over three years.
Table 5: Options for Implementing Updated Transportation Fees
YEAR
UPDATED FEES WITH IMPLEMENTATION OPTIONS
Option A:
One-Time Increase
Option B:
Increase Pro-rated Over 3 Years
2021 $6,909 $5,134
2022
Adjusted each year based on prior year
inflation
$6,021
2023 $6,909
2024
Adjusted each year based on prior year
inflation 2025
2026
1 The average annual inflation rate based on the National Highway Construction Cost Index (NHCCI) maintained by the Federal
Highway Administration (FHWA) from 2004 through 2020 was 4.5 percent.
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5. Summary of Required Program
Elements
This report has provided a detailed discussion of the elements of the San Rafael Transportation Mitigation
Fee program and explained the analytical techniques used to develop this nexus study. The report
addresses all of the fee program elements required by AB 1600, as summarized below.
1. Identifying the purpose of the fee
The City of San Rafael TMF program was established for the purpose of supporting public infrastructure
improvements and facilities needed to mitigate the traffic-related impacts of new development in the City
of San Rafael.
2. Identifying how the fee will be used and the facilities to be funded through the fee
The fee will be used to help fund capital improvement projects that will accommodate future
transportation needs throughout Sam Rafael. Table 1 identifies the projects to be funded through the fee.
3. Determining a reasonable relationship between the fee’s use and the type of development on which
the fee is imposed
As described in this report, different types of development generate traffic with different characteristics.
The calculations presented in Table 2 account for these characteristics by calculating the number of peak
trips generated by the different land use types that are assumed to occur over the next 20 years in the San
Rafael General Plan 2040. These considerations account for the differential impacts on the local
transportation system generated by different development types.
4. Determining a reasonable relationship between the need for the public facility and the type of
development on which the fee is imposed
The need for the facilities listed in Table 1 has been established through planning processes including the
San Rafael General Plan 2040 and Downtown Precise Plan prepared by the City of San Rafael. As described
in the report, the facilities included in the TMF currently operate acceptably so there are no existing
deficiencies on the facilities included in this program, indicating that the need for improvements is not
caused by existing development.
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5. Determining a reasonable relationship between the amount of the fee and the cost of the public
facility (or portion of facility) attributable to new development
Section 4 of this report describes the calculations applied to determine the cost of the public facility that
is attributable to new development in San Rafael; this process accounts for the effects of existing
deficiencies (of which there are none in this program) and the effects of traffic generated from outside the
area that will be subject to the fee. Thus, a reasonable effort has been made to quantitatively establish
the relationship between the fees charged in the San Rafael TMF program and the costs of public
improvements attributable to new development within the TMF area.
1
RESOLUTION NO. 14983
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL TO UPDATE THE CITYWIDE
TRAFFIC MITIGATION FEE AS RECOMMENDED BY THE 2040 GENERAL PLAN REPORT
TITLED “CITY OF SAN RAFAEL TRANSPORTATION FEE NEXUS REPORT”
WHEREAS, San Rafael Municipal Code (SRMC) Chapter 3.32 provides enabling
legislation for the City Council to create and establish the authority to impose and charge 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. The adoption of the traffic mitigation fees was done in
conjunction with the adoption of and as implementation to the San Rafael General Plan 2000; and
WHEREAS, in 2004, in connection with the adoption of the updated San Rafael General
Plan 2020, the City Council adopted Resolution No. 11668 expanding the requirement for
payment of the traffic mitigation fees to development projects citywide and establishing the fee
amount of $4,246 per total new morning and afternoon peak hour trips generated by the new
development; and
WHEREAS, in 2012, the City Council adopted Resolution No. 13364 exempting second
units from the citywide traffic mitigation fee; and
WHEREAS, in 2021, in connection with the General Plan 2040 update, the City
commissioned the preparation of a nexus study for the citywide traffic mitigation fee to comply
with AB 1600. The study was completed by Fehr and Peers Consultants and was accepted by
the City; and
WHEREAS, the Fehr and Peers nexus study supports and recommends raising the
amount of the traffic mitigation fee from $4,246 per new morning and afternoon peak hour trips to
$6,909 per new morning and afternoon peak hour trips; and
WHEREAS, Staff reached out to the San Rafael Chamber of Commerce and the local
builders and received valuable feedback and requests to phase in the raising of the traffic
mitigation fee; and
WHEREAS, in consultation with Fehr and Peers about the appropriate period of time over
which to phase in the increased fee, staff has recommended implementation of the fee increase
over a five-year period to accommodate requests made by local builders; and
WHEREAS, the community comments requested that the City minimize the impact on
housing projects and delay the collection of the fees as much as possible; and
WHEREAS, numerous amendments to Resolution No. 11668 and Resolution No. 13364
are needed to comprehensively update the citywide traffic mitigation fee;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San Rafael that
the traffic mitigation fee requirements and policies established by Resolution No. 11668 and
amended by Resolution No. 13364 are hereby updated and restated in full as follows:
2
1. Following adoption of this Resolution, the current traffic mitigation fee of $4,246 per
trip shall apply to any development application submitted to the City’s Community
Development Department prior to January 1, 2022.
2. Except as provided in Paragraph 1 above, as of January 1, 2022, the amount of the
traffic mitigation fee will be determined based on the rate in effect on the date of
building permit issuance.
3. As of January 1, 2022, the traffic mitigation fee shall be increased to $4,779 per trip
and shall be increased until January 1, 2027 as follows:
Effective date Traffic mitigation fee (per trip)
January 1, 2022 $4,779
January 1, 2023 Base Amount * +
gradual increase ($533) and adjusted
by the percentage change in the Lee
Saylor Construction Cost Index if
greater than zero percent for the
November to November twelve-month
period immediately preceding the date
of the fee increase
January 1, 2024 Base Amount +
gradual increase ($533) and adjusted
by the percentage change in the Lee
Saylor Construction Cost Index if
greater than zero percent for the
November to November twelve-month
period immediately preceding the date
of the fee increase
January 1, 2025 Base Amount +
gradual increase ($533) and adjusted
by the percentage change in the Lee
Saylor Construction Cost Index if
greater than zero percent for the
November to November twelve-month
period immediately preceding the date
of the fee increase
January 1, 2026 Base Amount +
gradual increase ($533) and adjusted
by the percentage change in the Lee
Saylor Construction Cost Index if
greater than zero percent for the
November to November twelve-month
period immediately preceding the date
of the fee increase
* “Base Amount” is defined for this Resolution as the prior year’s fee amount
4. After 2026, each January 1, starting on January 1, 2027, the traffic mitigation fee will
be equal to the Base Amount adjusted by the percentage change in the Lee Saylor
Construction Cost Index if greater than zero percent for the November to November
twelve-month period immediately preceding the date of the fee increase.
3
5. The fee shall be paid at either the issuance of the building permit for development or
prior to occupancy of any portion of the development.
6. The fee will be based on the unadjusted (no pass by or multimodal adjustments) trip
generation calculations approved by the City Traffic Engineer.
7. The fee shall not be assessed on or collected from the following: Low income and very
low income (affordable) housing units, second dwelling units, also known as Auxiliary
Dwelling Units or “ADUs”, cultural and theater facilities, excluding night clubs in
Downtown, or childcare facilities.
8. The fee may be negotiated for projects subject to a Development Agreement. This
resolution does not affect the conditions of Development Agreements approved prior
to the effective date of this resolution.
9. The fee shall not be assessed on or collected for tenant improvements not adding
building area.
10. The fee shall be assessed on and collected for tenant improvements adding building
area only on the net increase of square footage converted to new trips for morning and
afternoon.
11. The fee shall be assessed on and collected for rezoned properties.
12. Where the manner of assessing the traffic mitigation fee on a particular project is not
clearly provided for in this Resolution or in adopted City policy, the City’s Traffic
Engineer shall determine the appropriate method of determining the fee to be
assessed. Such decision by the City Traffic Engineer may be appealed to the City’s
Community Development Director, whose decision shall be final.
13. Nothing in this Resolution shall be deemed to apply in a manner that would conflict
with applicable state law, including but not limited to the provisions of Senate Bill 330-
the Housing Crisis Act of 2019.
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 San Rafael City
Council meeting held on October 4, 2021 by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None