Development Impact Fees & Planning Application Processing Fees

Development Impact Fees

Development Impact Fees are fees adopted by the City Council based on the provisions set forth in California Government Code Section 66000-66025 (Mitigation Fee Act as established by Assembly Bill 1600 in 1987). These fees are assessed upon new development projects to fully or partially offset the costs of public capital facilities and infrastructure that is needed to serve new demand created by development projects. The City prepared the required nexus studies to document the appropriate Development Impact Fees that can be charged by the City. Fees collected under the Mitigation Fee Act are to be collected for public facility improvements only, used to fund facility needs created by new development rather than existing deficiencies, and the fees are to be based on a rational nexus between new development and the costs of the public facilities and infrastructure needed to accommodate such development as documented in the nexus studies. These fees do not pay for operation and maintenance of public facilities, or city staffing costs. Development Impact Fees are segregated from the General Fund and from other City budget funds or accounts containing fees collected for other purposes in accordance with accounting standards. The State Mitigation Fee Act requires that the City provide an accounting of impact fees imposed on development projects on an annual basis. This Annual Report must be reviewed and accepted by the City Council at a regularly scheduled public meeting.  The Annual Reports can be found towards the bottom of the webpage under the “Background Materials” header.

City-Wide Development Impact Fees

On February 26, 2019, the City Council adopted San Bruno Municipal Code Chapter 12.260 Development Impact Fees that imposes fees upon development projects to fully or partially offset the costs of public facilities and infrastructure that is needed to serve new demand created by development projects. The related Resolution Number 2019-20 setting the fees and calculation methodology was approved by the City Council on February 12, 2019. The fees are imposed upon the developer of each development project in the city as requirement that must be met prior to building permit issuance. These fees were effective on May 1, 2019.

The City of San Bruno prepared the San Bruno Development Impact Fee Nexus Study that provides the City with the necessary technical documentation in order to adopt a comprehensive Development Impact Fee (DIF) program.  All fees and detailed calculation methodology is included in the current City Council Resolution Number 2019-20 setting the Fees. View the Resolution NO. 2019-20 (PDF).  Note these fees do not reflect inflation adjustments applied every July 1st. Please see the current Master Fee Schedule for current fees.

San Bruno Municipal Code Chapter 12.260 Development Impact Fees is available in the City's online Municipal Code. View the Municipal Code Chapter 12.260 Development Impact Fees.

Bayhill Area Development Impact Fees

On November 8, 2022, the City Council adopted an Ordinance adding Chapter 12.265 (Bayhill Specific Plan Area Development Impact Fees), which imposes fees upon development projects collected and used by the City to cover the cost of capital facilities and infrastructure needed to serve new development in the Bayhill Specific Plan Area.   The Ordinance also amended portions of Chapter 12.260 (Development Impact Fees) of the San Bruno Municipal Code.   

Additionally, the related Resolution setting the fees and calculation methodology was approved by the City Council on October 25, 2022.  The fees will be imposed upon the developer of each development project in the Bayhill Specific Plan area as a requirement that must be met prior to building permit issuance.  The fees are effective on December 24, 2022 and are provided below for reference.   The Bayhill Specific Plan Area Development Impact Fee Nexus Study can be found here. 

The Area Development Impact Fees above apply to Office, Retail, Hotel, and Multi-Family Residential projects located in the Bayhill Specific Plan Area.  Development Impact Fees are one-time charges on new development collected and used by the City to cover the cost of capital facilities and improvements required to serve real estate development.  The Bayhill Specific Plan Area DIF Program would be applicable to future development in the Plan Area only and will not replace or exempt development from paying other City fees, including the City-Wide Development Impact Fees.

Fee Payment Timing and Calculation

The development impact fees for a development project is calculated at the rates in effect as of the date the Fee is paid. A developer may pay all or a portion of the Fee owed at any time prior to issuance of the building permit, at the rate in effect at the time payment is made. For phased projects, the amount due shall be paid on a pro rata basis based on the ratio of the square footage, or housing units, of the phase being constructed to the entire square footage, or housing units, of the approved development, and each portion must be paid prior to the issuance of any building permit for each phase.

Annual Inflation Adjustment

Each July 1, the rate of the development impact fees will be automatically adjusted to reflect the change in the California Construction Cost Index for San Francisco, California published by the Engineer News Record (or any successor to such index) during the twelve months prior to the February proceeding that July 1. 

Other Fees and Public Works Impact Fees

Impact Fees are different from and apply in addition to, planning entitlement and building permit application fees, which are used to cover the cost of the City's review of a given proposal. Impact fees are calculated by the Planning Division and are collected by the Building Division upon permit issuance. The City also assesses Public Works connection fees for water and sewer connections and service. These fees are in the City’s Master Fee Schedule.

Master Fee Schedule

The Master Fee Schedule lists fees for City services including planning and building review of private development projects. This schedule is updated every year and submitted to the City Council with the annual budget for approval. If you are applying for a building or planning permit, you should consult with the Building Division or Planning Division to determine the required fees for your project.

1. Building Fees: 
   1. Building Fees Handout
   2. These include fees for building permits, electrical permits, mechanical permits, plumbing permits, other inspections and fees, miscellaneous fees related to building, electrical, mechanical, and plumbing regulations.
2. Planning Fees
   1. Master Fee Schedule (see page 5)
   2. These include fees related to the Zoning Ordinance, Subdivision Ordinance, and CEQA/Environmental Review of Development Projects. Planning fees are shown on the Planning Application Form.
   3. Payment Transfer Form
3. Other Development Fees: Private development projects may include fees required by other departments including Fire Department, Public Services Department, Wastewater Services, and Water Services.

A development project may also require payment of fees to outside agencies, such as school district fees.