Chapter 27.13 — TRANSPORTATION IMPROVEMENT FEE

This chapter is enacted pursuant to Government Code  §§66000  -66009  and to the Charter City authority provided by the Constitution of the State of California.

This chapter applies to fees charged as a condition of development approval to defray the cost of certain transportation improvements required to serve new development within the City of San Mateo. This chapter does not replace normal subdivision map exactions or other measures required to mitigate site specific impacts of a development project including but not limited to, mitigations pursuant to the California Environmental Quality Act; regulatory and processing fees; fees required pursuant to a development agreement; funds collected pursuant to a

reimbursement agreement that exceed the developer's share of public improvement costs; or assessment district proceedings, benefit assessments, or taxes.

The City Council of the City of San Mateo declares that:

(a) Adequate transportation improvements are needed to protect the health, safety, and general welfare of the citizens to facilitate transportation, and to promote economic well-being within the City;

(b) The City of San Mateo provides transportation improvements and services for residents, businesses, and employees within the City;

(c) Individual transportation improvements are part of an integrated system serving and providing benefits to the entire City;

(d) The Level of Service "D" (Average Delay of 45 seconds) shall be the interim standard for all street and intersection improvements pending adoption of the revised General Plan.

(e) New development within the City will create an additional burden on the existing transportation system;

(f) Improvements to the existing transportation system in the City are needed to mitigate the cumulative impacts of new development and to accommodate future development by maintaining Level of Service "D" on all streets and intersections;

(g) All types of urban development require and use the transportation system;

(h) There are not adequate public funds available to maintain Level of Service "D" at all intersections in the City.

(i) In order to ensure that Level of Service "D" is maintained, and to promote the health, safety, and general welfare of the community, it is necessary that new development pay a fee representing its share of costs of the necessary improvements;

(j) The transportation improvement fee is based upon the evidence that new development generates additional residents, employees, and structures which in turn place an additional cumulative burden upon the local transportation system and should be expected to pay a share of the new facilities.

(k) The purpose of this fee is to help provide adequate transportation improvements to serve cumulative development within the City. However, the fee does not replace the need for all sitespecific transportation improvements that may be needed to mitigate the impact of specific projects upon the City's transportation system.

(l) The transportation improvements for which the fee will be used are identified in the City's Capital Improvements Program (CIP) and/or in the Transportation Improvement Fee Technical Report.

The following definitions apply to this chapter:

(a) "Transportation Improvements" includes all street and intersection improvements and related facilities and equipment.

(b) Level of Service "D" means an average delay for a given street segment or intersection of 0.45 seconds or better.

(c) Land use categories are defined as follows:

(1) Hotel, which includes facilities used for the overnight lodging of guests.

(2) Industrial, which includes but is not limited to, facilities used for the manufacturing, processing, or storage of goods.

(3) Institution, which includes but is not limited to, religious, governmental, educational, and cultural uses.

(4) Multi-family residential, which includes but is not limited to, a secondary unit, duplex, townhouse, apartment, condominium, mobile home, multiple family dwelling, and community care facility with more than six residents.

(5) Office, which includes but is not limited to, facilities primarily used for professional (legal, engineering, accounting), financial, insurance, real estate, and other office-related uses which do not provide primarily walk-in services to the public.

(6) Retail, which includes but is not limited to, facilities primarily used for the sale of retail goods or personal services, including all retail sales outlets, facilities for the on-site sale of food or beverages, and personal services such as laundries, cleaners, copy stores, and hairdressers.

(7) Single Family Residential, which includes but is not limited to, a single-family dwelling and a small community care facility with six or fewer residents.

(8) Other uses. The zoning administrator shall determine the appropriate land use category for any use not set forth above, based on similarity of use and peak hour trip characteristics of the use as indicated in the most current edition of the International Transportation Engineering Manual.

(Ord. No. 2021-24 § 6; Ord. No. 2009-7 § 11; Ord. No. 1990-21 § 1.)

Cross References Section 27.13.050(c)

(a) General. The amount of the proposed fee shall be established by resolution of the City Council and shall be based upon the following considerations:

(1) Development will pay only for improvements where there is a reasonable relationship between the road improvements and the traffic generated by the new development.

(2) Each type of development shall contribute to the needed improvements in proportion to the use of improvements by that type of development.

(b) Types of Development Subject to the Fee. The fee shall be applicable to new development projects which require a planning application pursuant to Section 27.08.010, expansion of floor area of existing uses which require a planning application pursuant to Section 27.08.010, new single family and duplex dwelling units, and changes of use requiring a special use permit as follows:

(1) Residential construction. Fees shall be charged for each new dwelling unit. No fee is applicable for remodeling or for an addition to an existing unit not resulting in a new unit.

(2) Non-residential construction. Fees shall be charged on a per square foot basis for all new gross floor area, including additions where floor area is increased. No fee is applicable for remodeling or restoration only, where the floor area is improved or replaced but not increased. Gross floor area is determined in accordance with Section 27.04.200 of this code, except for Subsection 27.04.200(b)(1), which shall not apply. Floor area measurement shall be to the exterior facade of building wall planes or from center line of party walls. Parking area and exterior walkways are not included in the fee calculation.

(3) Changes of use requiring a special use permit. Fees shall be charged upon the incremental difference between the fee calculated for the floor area of a prior legal use and the fee calculated for the floor area of the proposed new use.

(c) Land Use Categories Subject to the Fee. All land use categories which generate traffic are subject to the fee. Specific land use categories are defined in Section 27.13.040.

(d) Improvements Funded. The fee shall be based on the percentage of the cost of the new improvements attributable to new development as determined in the Transportation Impact Fee Technical Report, dated June 1990 prepared by Economic and Planning Systems Inc. (EPS), and future additions and amendments to said report, all of which are incorporated in this chapter by this reference.

(e) Formula. The amount of the fee shall be determined by the following formula:

Fee = Average Peak Hour Trips per Land Use Unit x Average Cost per Trip x Number of Land Use Units in Subject Application

Land Use Unit means dwelling units for residential uses, or square foot for non-residential uses.

Average Trips per Land Use Unit is the number of evening peak hour trips per Land Use unit for each category of land use as determined by the Transportation Improvement Fee Technical Report.

Average Cost per Trip is the estimated transportation improvement costs attributable to new development within the City divided by the number of new evening peak hour trips associated with new development as determined in the Transportation Improvement Fee Technical Report or subsequent amendments to the Technical Report.

Number of Land Use Units is the total number of residential dwellings or non-residential square feet involved in the project subject to the fee.

(f) The zoning administrator shall have authority to render final determinations regarding the appropriate classification of land use and the correct calculation of gross building floor area for a particular development project.

The Transportation Improvement Fee shall be paid in full to the City of San Mateo before the first building permit is issued, or if the building permits are phased, at issuance of the superstructure permit. If no building permit is required, the fee shall be paid before a conversion of use may take place. The fee shall not apply to any project submitted for a building permit as of the date of introduction of this ordinance.

Fees collected pursuant to this chapter are not intended to replace or limit requirements to provide mitigation of traffic impacts not mitigated by the Traffic Improvement Fee and created by a specific project, and imposed upon development projects as part of the development review process.

Public park facilities, City buildings, and those public facilities entitled to an exemption under law, are exempt from the Transportation Improvement Fee.

(a) The Community Development Director and Public Works Director may adjust the fee imposed pursuant to this chapter in consideration for certain on-site and off-site facilities or improvements constructed or paid for by the developer. A developer is entitled to credit for the value of improvements if the improvement is identified in the Transportation Improvement Fee Technical Report and the developer: (1) dedicates land for the improvement(s) identified in the Technical Report, (2) constructs the improvement(s), (3) finances the improvement(s) by cash, pays the assessments of an assessment district, or Mello-Roos Community Facilities District, or (4) a combination of the above.

The developer of a project subject to this chapter may appeal the imposition and/or calculation of the fee.

(a) The appeal shall be processed in accordance with Section 27.08.090 of this code. An appeal by a developer of a project not requiring a planning application, shall be to the zoning administrator.

(b) Notice of the appeal shall be provided in accordance with applicable provisions in Section 27.08.050 of this code.

(c) The appellant shall state in detail the factual basis for the appeal and shall bear the burden of proof in presenting substantial evidence to support the appeal.

(d) The appeal body shall uphold the fee and deny the appeal if it finds that there is a reasonable relationship between the development project's impact on transportation facilities and the amount of the fee. The appeal body shall consider the land use category determination, and the substance and nature of the evidence, including the fee calculation method, supporting technical documentation, and the appellant's technical data. Based on the evidence, the appeal body may also modify the fee.

(a) If a building permit or use permit expires, is canceled, or is voided and any fees paid pursuant to this chapter have not been expended, no construction has taken place, and the use has never occupied the site, the Director of Public Works may, upon the written request of the applicant, order return of the fee and interest earned on it, less administrative costs.

(b) During the annual review pursuant to Section 27.13.120, the City Council shall make a finding with respect to any fee revenue not expended or committed 5 years or more after it was paid. If the City Council finds that the fee revenue is not committed, it shall authorize a refund to the then owner of the property for which the fee was paid, pursuant to Government Code §66001  or successor legislation.

(a) Transportation Improvement Fee Fund. The City shall deposit the fees collected under this chapter in a special fund, the Transportation Improvement Fee Fund, designated solely for transportation improvements.

(b) Use of Funds. The fees and interest earned on accumulated funds shall be used only to:

(1) Complete the transportation improvement projects specified in the Transportation Improvement Fee Technical Report, or to reimburse the City for such construction if funds were advanced by the City from other sources; or

(2) Reimburse developers who have been required or permitted to install improvements identified in the Transportation Improvement Fee Technical Report which are oversized in width, length, or capacity, relative to demand generated by the subject project; or

(3) Pay costs required for the administration of this ordinance.

(Ord. No. 1990-21 § 1.)

Cross References

Section 27.13.110(b)

27.13.130 ANNUAL REVIEW.

The Transportation Improvement Fee authorized by this chapter, implementing Council Resolutions, and supporting documentation, including the Transportation Improvement Fee Technical Report, shall be reviewed annually by the City Council in order to make any findings required by State law.