Request for Proposals - 2026 Development-Related Fee Study

CITY OF SAN MATEO
REQUEST FOR PROPOSALS
FOR
A COMPREHENSIVE DEVELOPMENT AND
IMPACT FEE STUDY
Prepared by:
Community Development Department
330 W. 20th Avenue
San Mateo, CA 94403
RFP Issued: RFP Contents: P a g e No.
Thursday, September 10, 2026
Deadline for Submittals: Introduction and Background P a g e 1
Friday, October 9, 2026 at 4:00 pm Objectives P a g e 1
Scope of Work Page 5
Submit Proposals via email to: Submittal Requirements Page 7
Jennifer Rosas, Business Manager Selection Process Page 8
jrosas@cityofsanmateo.org RFP Timetable P a g e 9

The City of San Mateo is issuing this Request for Proposals (RFP) to select a qualified consulting firm to
conduct a comprehensive review and update of the City's development-related fees.
All questions regarding this Request for Proposals (RFP) shall be directed to Community Development
Business Manager Jen Rosas at (650) 522-7164 or jrosas@cityofsanmateo.org.
Statements of Qualifications and Responsive Proposals (SOQs/RPs) shall be submitted by firms that have a
capable and demonstrable background in any or all types of work described in Section III, "PROJECT
OBJECTIVES" and Section IV, "SCOPE OF WORK," of this notice. In addition, all interested firms shall have
sufficient, readily available resources in the form of trained personnel, support services, specialized
consultants, and financial resources to carry out the work without delay or shortcomings. SOQ/RPs shall be
submitted to the Community Development Department, City of San Mateo, 330 West 20th Ave, San Mateo,
California 94403, no later than 4:00 p.m. on Friday, October 9, 2026. Each proposer shall submit one (1)
digital PDF copy via email in accordance with Section V, "PROPOSAL FORMAT AND CONTENT," of this
notice.

CITY OF SAN MATEO REQUEST FOR PROPOSALS
COMPREHENSIVE DEVELOPMENT AND IMPACT FEE STUDY
Table of Contents
I. INTRODUCTION ................................................................................................................ 1
II. BACKGROUND .................................................................................................................. 1
III. PROJECT OBJECTIVES ........................................................................................................ 1
Cost Allocation Plan .................................................................................................... 2
Development Processing Fee Study ............................................................................. 2
Development Impact Fee Nexus Study ........................................................................ 3
General Plan and Housing Element Policy Framework ................................................. 4
IV. SCOPE OF WORK .............................................................................................................. 5
Comprehensive User Fee Study .................................................................................. 5
Development Impact and In-Lieu Fee Study ................................................................ 6
Fee Modification and Reduction Strategies ................................................................. 7
V. PROPOSAL FORMAT AND CONTENT .................................................................................. 7
VI. SELECTION CRITERIA AND PROCESS .................................................................................. 8
VII. ATTACHMENTS
Attachment 1 - Professional Services Agreement Template
Attachment 2 - FY 26/27 Comprehensive Fee Schedule
Attachment 3 - Development Fee Summary Handout
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I. INTRODUCTION
The City of San Mateo (City) is seeking a qualified consultant (or team of consultants) to assist staff
with a comprehensive review and update of the City's development-related fees, including
development impact fees, linkage fees, capacity charges, permitting, and in-lieu fees, as well as all
user fees associated with development. This should be informed by the City's Cost Allocation Plan
(update currently underway) and should include recommendations for updates, revisions,
elimination, and/or creation of development impact fees or development processing and
permitting fees, where appropriate.
II. BACKGROUND
The City of San Mateo is centrally located on "The Peninsula," between San Francisco to the north
and San Jose to the south. The City borders the communities of Belmont, Burlingame, Foster City,
and Hillsborough, as well as the unincorporated Highlands-Baywood Park area of San Mateo County.
As a charter city, San Mateo has a Council-Manager form of government. The City uses a by-district
election system, with five council member, one for each district, who serve for four-year terms. The
City Council selects a mayor from among its members each December for a one-year term. The City
Manager is appointed by the Council and serves as the chief executive officer responsible for the
day-to-day administration of City affairs. The Council also appoints a city attorney. There are twelve
advisory boards and commissions appointed by the Council.
The City provides a wide range of municipal services including police, public works, parks and
recreation, library, planning and zoning, building inspection, affordable housing, sewer system,
street maintenance, economic development, and general administrative services. Fire services are
provided by the San Mateo Consolidated Fire Department, a regional fire agency that serves the
cities of San Mateo, Foster City, and Belmont.
III. PROJECT OBJECTIVES
The objective of this RFP is to receive proposals that achieve the following:
1. Review and update of the City of San Mateo's development processing fees and permitting
fees;
2. Review and update of the City's development impact and in-lieu fees; and
3. Receive recommendations on removal and/or addition of fees (if necessary).
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In addition, the City requests an analysis of the potential use of fee modifications/deferrals and/or
reductions to further certain City policy goals, as laid out in the City's General Plan 2040 and 2023-
2031 Housing Element.
Cost Allocation
The City's Finance Department is currently updating the City's Cost Allocation Plan, which will
be used to inform aspects of this project and deliverables noted later in this RFP. This Cost
Allocation Plan update is in the early stages and will have data available to inform this fee study
in early November.
Permit and Development Fee Study
The Permit and Development Fee Study will calculate the full cost of providing various City
services and provide a recommended fee to be charged for each applicable service. The
consultant will recommend cost recovery strategies and identify best practices for updating
permit and development related fees. These strategies should take into consideration the
complexities and demands of each department and program. The selected Consultant will
conduct a thorough analysis of existing services and fees, develop fee models and
recommendations, and identify options for how to cover gaps where services are provided but
where no fee for service is established. It is the goal of the City to have a well-documented and
defensible plan that will establish rates for recovering billable costs for services with
consideration for the compliance requirements under Proposition 26, Proposition 218, and
other applicable statutory requirements.
One of the primary goals of this review is to make the fee structure easier for all parties to
understand. As a result, in addition to reviewing existing fee amounts, the City would also like
the selected Consultant to review the structures of the services and fees themselves to ensure
developers, residents, and members of the public are able to clearly follow and understand
which fees apply to a given project.
While some departments are already revising their fees and cost of service models, the
selected Consultant would be asked at a minimum to conduct such studies for the Community
Development and for some Parks and Recreation Department and Public Works Department
fees to ensure the true costs of service are reflected in the fee amounts. The City is also
interested in assessing opportunities for application types that currently collect a deposit, such
as single-family planning applications, be converted to flat fee to improve user experience and
simplify processing and accounting requirements.
The City's FY 26-27 Adopted Fee Schedule is included as Attachment two (2).
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Development Impact Fee Nexus Study
Each year, the City of San Mateo adopts revisions to its comprehensive fee schedule. While this
process allows the City to account for variance in the Consumer Price Index (CPI), Construction
Cost Index, or the value of land, it does not (generally) include a revision of the underlying
formulas used to make the fee calculations. The City's last comprehensive fee study was
completed in 2020/2021.
The City currently levies the following development impact or in-lieu fees:
* Affordable Housing Commercial * Central Parking Improvement
Linkage Fee District Per Space In-Lieu Fee
* Art in Public Places Fee * Park In-Lieu Fee / Park Impact Fee
* Below Market Rate Housing * Transportation Improvement Fee
In-Lieu Fee * Protected Tree Replacement Fee and
* Child Care Development Fee Landscape Unit In-Lieu Fee
* Wastewater Capacity Charge
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These fees have been created over several years and most were last updated in 2020/2021.
While each of the development impact fees originated with a nexus study, some were done
independently of one other and may be based on underlying assumptions that are outdated.
An overview of the City's impact and in-lieu fees is included as Attachment three (3), and recent
development impact fee studies can be found on the following webpage:
https://www.cityofsanmateo.org/4162/Mitigation-Fee-Act-Reports
As such, in compliance with the Mitigation Fee Act (California Government Code Section 66000
et seq.), the City would like to reevaluate its development impact fees and make any necessary
changes to its in-lieu fees to align with or reflect the impact of development on City services
and local residents.
Some of these fees are already being studied, as outlined below, so the selected consultant (or
group of consultants) will be asked to coordinate with other contracted entities to ensure the
creation of an accurate comprehensive fee schedule.
General Plan and Housing Element Policy Framework
The following General Plan 2040 policies/actions and Housing Element 2023-2031 policies/
programs provide direction and guidance on preparation of the fee study:
* General Plan Action LU 11.13: Living Wage Incentives - Maintain provisions in the
Affordable Housing Commercial Linkage Fee that offer fee reductions to developers
who voluntarily enter into Area Standard Wage Participation Agreements with the City.
* General Plan Policy LU 12.2: Commercial Linkage Fee - Maintain the City's Affordable
Housing Commercial Linkage Fee assessed to new nonresidential construction that
recognizes the connection between increased workers in San Mateo and increased
demand for housing at all levels. Use the fees collected to support the creation or
preservation of affordable housing to assist the workers who will make lower or
moderate wages and cannot afford the current housing market prices.
* General Plan Policy LU 13.3: Fee Information - Maintain an updated schedule of fees
and housing development affordability requirements, all zoning ordinances and
development standards, and annual fee or finance reports on the City's website. In
addition, maintain archives of impact fee nexus studies, cost of service studies, or
equivalent reports for ease of information sharing with the public.
* General Plan Action PSF 8.6: Community Healthcare Facilities - Evaluate options to
support existing and potential community healthcare facilities in equity priority
communities through a variety of mechanisms, such as reduced permit fees and
reduced impact fees.
* Housing Element Policy H 1.4: Support Increased Accessory Dwelling Unit Development
Action (e) - Continue to offer flat fees for ADU building permits, and review ADU permit
fees every 2-3 years. If fees are found to be a barrier to ADU production, the City will
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make reductions as necessary to reduce cost barriers.
* Housing Element Policy H 1.17: Permitting and Development Fee Review
Action (a) - Study cumulative permit fee costs for new housing development of various
sizes and use information to identify opportunities to reduce per unit permitting costs;
with fee reductions for small multi-family projects being prioritized. Present findings to
the City Council with recommendations for adoption.
Action (b) - Conduct a comprehensive review and update of the fee schedule every 5-6
years, with a focus on evaluating and adjusting fees with potential barriers to housing
production. Next review will be conducted in 2027.
As outlined in these policies, the City would like to explore ways to further these specified
outcomes through modifications, reductions and/or other mechanisms to certain development-
related fees. This could include an aggregation and evaluation of best practices in other
jurisdictions, as well as an assessment of potential new strategies. The full scope of desired
practices will be discussed and determined in initial meetings with the selected Consultant.
IV. SCOPE OF WORK
Consultants shall submit a proposal that addresses the full scope of services outlined in this
section. Consultants may propose using sub-consultants for part of the work. Subject to further
discussion and refinement with the selected Consultant, the City anticipates that the scope of
work will include the following services:
Comprehensive User Fee Study
Key elements required for the scope of work
1. Collaborate with selected City staff to refine the project scope, purpose, and goals to
ensure that the study will be both accurate and appropriate to San Mateo's needs.
2. Identify the total cost of providing appropriate development-related City service in a
manner consistent with all applicable laws, statutes, best practices, rules and regulations
governing the collection of fees, rates and charges by public entities.
3. Compare service costs with existing policy-based cost recovery levels. This includes service
areas where the City is currently charging, as well as recommended areas where the City
should charge, in light of the City's practices, or the practices of similar or neighboring
jurisdictions.
4. Present fee recommendations to be included in the City's Master User Fee Schedule using
FY 2026-2027 budget for calculating the full costs of providing each City service.
5. Recommend potential new fees and charges for any services that the City currently
provides but does not have fee and/or charges established. Recommendations should be
based on practices that surrounding cities may charge for similar services, industry best
practices, and the consultant's professional opinion.
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6. Prepare a report that identifies each fee service, its full cost, and recommend target cost
recovery levels. The report should also identify the direct cost, the indirect cost, and the
overhead cost for each service.
7. Prepare a report that identifies the present fees, recommended fees, percentage change,
and revenue impact and fee comparison with other California cities that are comparable to
the City of San Mateo. A survey comparison of rates and fees with similar cities is required.
8. Evaluate the existing process and provide recommendations for improvement for services
that are billed a deposit to be charged against "actual costs" incurred. This analysis should
consider what is the appropriate deposit amount the City should collect and when should
additional deposit be requested, etc.
9. Provide the City with an electronic copy of the final study, including related schedules and
cost documentation in a format that can be edited and updated by City staff to
accommodate changes in the organization, changes in costs, and other edits/revisions.
Development Impact and In-Lieu Fee Study
Review and update the City's development impact fees and in-lieu fees:
* Park In-Lieu / Park Impact Fee
* Protected Tree Replacement Fee and Landscape Unit In-Lieu Fee
* Child Care Development Impact Fee
* Art in Public Places In-lieu Fee
* Central Parking Improvement District Per-Space In-Lieu Fee
* Transportation Improvement Fee
* Wastewater Capacity Fee
The selected Consultant will conduct a comprehensive update of the nexus analysis for these
fees. The following two fees are being updated outside of this scope of work. The information
to support update of these two fees will be presented to the decision makers at the same
time as the findings from this fee study and adopted concurrently.
* Affordable Housing Commercial Linkage Fee
* Below Market Rate Housing In-Lieu Fee
The City's impact fees must comply with the Mitigation Fee Act (California Government Code
Section 66000 et seq.) and all other applicable laws and regulations, as well as court decisions
interpreting them.
The selected Consultant will be responsible for preparing background reports as well as
technical reports documenting the study results for each fee. The selected Consultant will also
be responsible for providing an overview of development impact fees and in-lieu fees of up to
ten (10) neighboring and/or similar-sized cities as a means of comparison. The final list of
comparable jurisdictions to be assessed will be established in initial meetings with selected
Consultant.
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Fee Modification and Reduction Strategies
Review fee waiver and cost recovery policies and make recommendations based on industry
standards, policies of surrounding/comparable jurisdictions, and/or the consultant's
professional opinion.
Present options for fee revisions and changes that could incentivize the production of
affordable housing, spur the adoption of sustainable environmental practices, provide
equitable access to development opportunity, and/or other policy goals set by the City. Exact
focus areas and desired policy outcomes will be established in initial meetings with selected
Consultant.
V. PROPOSAL FORMAT AND CONTENT
In developing a response to this RFP, proposers should be concise, limiting their response to the
specific questions and requirements set forth herein. The proposal shall be limited to no more
than 20 pages using a minimum 11-point font size (excluding the cover letter (two-page max),
requested reports). The proposal should respond to each question or requirement below in
consecutive order, as follows:
1. Cover Letter
A cover letter should explain the applicant's experience providing similar services for
government entities, as well as the name of the proposing Consultant and its principal
business address where the relationship will be managed.
2. Table of Contents
3. Description of Organization, Management, and Team Members
A description of the team/consultant organization and a work plan that identifies the
personnel to be assigned to each task. The organization description should clearly identify who
will be the project manager and the day-to-day contact person for the job.
4. Proposed Budget
Indicate the costs and hours for the total project, on a task-by-task basis and on a sub
consultant basis, inclusive of reimbursables Provide a table with the estimated labor hours by
personnel proposed for the project for each task identified in the Scope of Services. The table
shall include subtotals by both column and row along with a total estimated hours to perform
the Scope of Services. All pertinent and relevant assumptions that may affect the proposed
hours shall be clearly listed in this section of the proposal, and prices quoted must be binding
for a minimum of the life of the project.
5. Organization Qualifications
Provide an outline of the organization qualifications indicating relevant background experience
and capabilities for this work. A list of major projects, both ongoing and planned, to which the
organization is committed during the time frame of this project should also be provided.
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