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San Rafael staff recommend adopting maximum transportation mitigation fee, suspend construction vehicle fee

City of San Rafael Finance Subcommittee · May 13, 2026
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Summary

Public works staff presented a finalized TMF nexus study and recommended the City Council adopt maximum allowable TMF rates (with annual CPI indexing) and suspend the construction vehicle impact fee to keep San Rafael competitive while capturing growth-related transportation impacts.

Sarah Talitzky, an associate civil engineer with San Rafael Public Works, presented an update to the transportation mitigation fee (TMF) nexus study and the staff recommendation to the Finance Subcommittee on May 12.

Talitzky said the city is moving from project-specific trip-generation calculations to a land-use rate approach to make fees more objective and user-friendly for developers. She described the nexus study as the legal and technical basis for fee calculations and said staff expects to publish the final study on the city website soon.

On the policy recommendation, Talitzky told the committee staff is recommending implementing the maximum TMF amounts supported by the nexus study and suspending the construction vehicle impact fee (CVIF). She said the market-comparison analysis shows the full-fee burden would leave San Rafael near peer-city averages for example projects and that the TMF schedule can be adjusted by resolution if state or local conditions change.

Why it matters: the TMF captures a share of the transportation costs associated with new development (roads, intersections, transit, pedestrian and bike facilities). Staff said an annual adjustment using the ENR construction cost index will be part of the program and that the nexus study must be updated every eight years in line with state law.

Key points from the presentation:

- Fee method and transparency: moving to a land-use rate simplifies administration and reduces subjectivity that previously led to fee protests.

- Market comparison: example projects (a townhome subdivision and an eight-story downtown apartment) show the combined fee burden with maximum TMF and parks fees is close to regional peers; staff used that comparison to justify a recommendation at or near the maximum supported by the nexus study.

- Adjustments and triggers: staff noted the TMF reductions near transit (per state law) and said changes—such as the availability of transit funding—can be implemented by council resolution without a new nexus study; however, a full nexus update is required every eight years.

The subcommittee expressed broad support for staff’s recommendation and for moving the TMF to the City Council schedule (staff indicated a council hearing on June 15). No formal action was taken by the subcommittee at this meeting.