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SEC. 410. COMPREHENSIVE FIVE-YEAR EVALUATION OF ALL DEVELOPMENT FEES AND DEVELOPMENT IMPACT REQUIREMENTS. Commencing on July 1, 2011, and every five fiscal years thereafter in conjunction with the Annual Citywide Development Fee and Development Impact Requirements Report described in Section 409, above, the Director and the Controller shall jointly prepare and publish a comprehensive report on the status of compliance with this Article, compliance of any development fees in this Article with the California Mitigation Fee Act, Government Code section 66001 et seq., including making specific findings regarding any unexpended funds, the efficacy of existing development fees and development impact requirements in mitigating the impacts of development projects, and the economic impacts of existing development fees and development impact requirements on the financial feasibility of projects and housing affordability in particular, taking into account, to the extent possible, the feasibility of the fees in different areas of the City. In such report, the Director and Controller may recommend any changes in the formulae or requirements or enforcement of any area-specific or Citywide development fee or development impact requirement in this Code, prepare additional economic impact studies on such changes or recommend that additional nexus studies or financial feasibility analyses be done, to improve the efficacy of such fees or requirements in mitigating development impacts or to reduce any unintended deleterious economic or social effects associated with such fees or requirements. In making their joint report and recommendations, the Director and the Controller shall consult with the Directors of OEWD, MOH, the MTA, or other agency whose fees are affected and shall coordinate the report required by this Section with any other development fee evaluations and reports that this Article requires to be performed. The Director and the Controller shall present the Report to the Commission at a public hearing and to the Land Use & Economic Development Committee of the Board of Supervisors at a separate public hearing.

(Added by Ord. 108-10, File No. 091275, App. 5/25/2010 ; amended by Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016) AMENDMENT HISTORY Section amended; Ord. 200-15 , Eff. 12/25/2015 and Ord. 222-15 , Eff. 1/17/2016. [TRANSIT IMPACT DEVELOPMENT FEE] SEC. 411. TRANSIT IMPACT DEVELOPMENT FEE. (a) Sections 411.1 through 411.9, hereafter referred to as Section 411.1 et seq., set forth the requirements and procedures for the TIDF. The effective date of these requirements shall be the date the requirements were originally effective or were subsequently modified, whichever applies. (b) Partial Suspension of Section 411 et seq. In accordance with Planning Code Section 411A.3(e), the provisions of Section 411A are intended, with certain exceptions, to supersede the provisions of Section 411 et seq., as to new development in the City as of the effective date of Section 411A. Accordingly, Section 411A.3(e) suspends, with certain exceptions, the operation of Section 411 et seq., and states the circumstances under which such suspension shall be lifted. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010 ; amended by Ord. 247-12 , File No. 120523, App. 12/18/2012, Eff. 1/17/2013; Ord. 200-15 , File No. 150790, App. 11/25/2015, Eff. 12/25/2015; Ord. 222-15 , File No. 155521, App. 12/18/2015, Eff. 1/17/2016) AMENDMENT HISTORY Section reference amended; Ord. 247-12 , Eff. 1/17/2013. Former section designated as division (a); division (b) added; Ord. 200-15 , Eff. 12/25/2015 and Ord. 222-15 , Eff. 1/17/2016. Editor's Note: Former Administrative Code Ch. 38 ("Transit Impact Development Fee") was substantially amended and redesignated as this Sec. 411 through Sec. 411.8 by Ord. 108-10, App. 5/25/2010. See Administrative Code Ch. 38, Secs. 38.1 through 38.45, for the legislative history of Code provisions pertaining to the TIDF prior to Ord. 108-10. SEC. 411.1. FINDINGS. (a) In 1981, the City enacted an ordinance imposing a Transit Impact Development Fee on new office development in the Downtown area of San Francisco. The TIDF was based on studies showing that the development of new office uses places a burden on the Municipal Railway, especially in the downtown area of San Francisco during commute hours, known as "peak periods." The TIDF was based on two cost analyses: one by the Finance Bureau of the City's former Public Utilities Commission, performed in 1981, and one by the accounting firm of Touche-Ross, performed in March 1983 to defend a legal challenge to the TIDF. (b) In 2000, the Planning Department, with assistance from the Municipal Transportation Agency, commissioned a study of the TIDF. In 2001, the Department selected Nelson/Nygaard Associates, a nationally recognized transportation consulting firm, to perform the study. Later in 2001, Nelson/Nygaard issued its final report ("TIDF Study"). Before issuing the TIDF Study, Nelson/Nygaard prepared several Technical Memoranda, which provided detailed analyses of the methodology and assumptions used in the TIDF Study. (c) The TIDF Study concluded that new non-residential uses in San Francisco will generate demand for a substantial number of auto and transit trips by the year 2020. The TIDF Study confirmed that while new office construction will have a substantial impact on MUNI services, new development in a number of other land uses will also require MUNI to increase the number of revenue service hours. The TIDF Study recommended that the TIDF be extended to apply to most non-residential land uses. The TIDF Study found that certain types of new development generate very few daily trips and therefore may not appropriately be charged a new TIDF. (d) The TIDF Study further recommended that the City enact an ordinance to impose transit impact fees that would allow MUNI to maintain its base service standard as new development occurs throughout the City. The proposed ordinance would require sponsors of new development in the City to pay a fee that is reasonably related to the financial burden imposed on MUNI by the new development. This financial burden is measured by the cost that will be incurred by MUNI to provide increased service to maintain the applicable base service standard over the life of such new development. (e) Subsequently, the City selected Cambridge Systematics, Inc. to prepare a TIDF Update Report, including an updated nexus study for the TIDF. This Report was completed in 2011, and in accordance with the applicable provisions of this Code, used updated data to calculate base service standard fee rates for the Economic Activity Categories subject to the TIDF. The Report also analyzed trip generation rates for these Economic Activity Categories using updated data, and divided the Retail/Entertainment and Cultural/Institution/Education categories into subcategories in order to reflect the comparative diversity of trip generation rates among these land uses. (f) Based on projected new development over the next 20 years, the TIDF will provide revenue to MUNI that is significantly below the costs that MUNI will incur to mitigate the transit impacts resulting from the new development. (g) The TIDF is the most practical and equitable method of meeting a portion of the demand for additional Municipal Railway service and capital improvements for the City caused by new non-residential development. (h) Based on the above findings and the nexus studies performed, the City determines that the TIDF satisfies the requirements of the Mitigation Fee Act, California Government Code Section 66001, as follows: (1) The purpose of the fee is to meet a portion of the demand for additional Municipal Railway service and capital improvements for the City caused by new nonresidential development. (2) Funds from collection of the TIDF will be used to increase revenue service hours reasonably necessary to mitigate the impacts of new non-residential development on public transit and maintain the applicable base service standard. (3) There is a reasonable relationship between the proposed uses of the TIDF and the impact on transit of the new developments on which the TIDF will be imposed. (4) There is a reasonable relationship between the types of new development on which the TIDF will be imposed and the need to fund public transit for the uses specified in Section 411.6 of this Code. (5) There is a reasonable relationship between the amount of the TIDF to be imposed on new developments and the impact on public transit from the new developments. (Added by Ord. 108-10, File No. 091275, App. 5/25/2010 ; amended by Ord. 247-12 , File No. 120523, App. 12/18/2012, Eff. 1/17/2013) AMENDMENT HISTORY New division (e) added and former divisions (e) through (g) redesignated as current divisions (f) through (h) accordingly; division (h)(4) amended; Ord. 247-12 , Eff. 1/17/2013. SEC. 411.2. DEFINITIONS. (a) "Final TIDF Determination." The written notice sent by the MTA to a project sponsor in cases where the MTA is responsible for calculation of the TIDF under Section 411.9 of this Article informing the project sponsor of MTA's final calculation of the TIDF. (b) "New development." Any new construction, or addition to or conversion of an existing structure under one or more building or site permits (1) issued on or after September 4, 2004 but on or before January 31, 2013 that cumulatively results in 3,000 gross square feet or more of a use covered by the TIDF or (2) issued on or after February 1, 2013 that cumulatively result in 800 gross square feet or more of a use covered by the TIDF. In the case of mixed use development that includes residential development, the term "new development" shall refer to only the non-residential portion of such development. For purposes of this definition. "existing structure" shall include a structure for which a sponsor already paid a fee under the prior TIDF ordinance, as well as a structure for which no TIDF was paid. (c) "Preliminary TIDF Notice." The written notice sent by the MTA to a project sponsor in cases where the MTA is responsible for imposition and collection of the TIDF under Section 411.9 of this Article informing the project sponsor of MTA's initial calculation of the TIDF due and requesting that the project sponsor provide MTA with information about the new development, including but not limited to, the gross square feet of use of the new development. (d) For additional definitions, see Section 401 of this Article.