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Council adopts updated transportation mitigation fee program; staff recommends targeted discounts
Summary
The council introduced a new TMF ordinance and adopted the nexus study and project list. Staff moved the program to land-use-based rates, added transit-proximity adjustments, and recommended 25% fee levels for 100% affordable housing and larger ADUs, with the council approving the TMF program.
The Sanfell City Council on June 15 adopted an updated Transportation Mitigation Fee (TMF) program that switches the fee calculation from a per-trip model to a land-use-based rate aimed at simplifying fee administration and complying with new state requirements.
Public works engineer Sarah Tlitzky and consultant Bob Grandandy explained that the TMF update revises the fee schedule and project list to reflect completed and grant-funded work since 2021 and to apply transit-proximity adjustments. "We are changing from a per-trip basis to a land-use-based rate system, which will simplify calculations and provide greater fee transparency to our development community," Sarah Tlitzky told the council.
The nexus study identifies maximum allowable TMF rates by land use and provides required legal linkage to projects. Staff recommended adopting the maximum fees for most project types but applying a lower 25% fee for 100% affordable housing and larger ADUs, and continuing the existing ADU exemptions for small units under state law.
Public commenters and affordable-housing advocates urged caution and recommended either a phased approach or full waivers for certain affordable projects, arguing that high fees could make projects infeasible. Developers said fee increases should be studied against actual pipeline sensitivity; staff noted that some fee reductions are policy choices rather than cost-based adjustments.
Council members discussed the evidence basis and decided to adopt the ordinance and related resolution that set the new TMF program and project list; the new fees will go into effect consistent with statutory notice periods. Staff said it will return with programmatic waiver options and further outreach to affordable-housing developers.
What happens next: the city will publish the updated fee schedule, proceed with administrative updates and continue outreach on potential waiver and financing tools for affordable housing.
