CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 10 of 17 Peer Jurisdictions: Average Fee Burden $162,890 Staff recommends Alternative 2, which discounts the affordable housing in-lieu fee to a level that is within the feasible burden, and similar to the total fee burden charged by peer jurisdictions. While this may have the consequence of encouraging more projects to seek to “fee out” of their on-site affordable requirement, the City Council would have the discretion to approve such requests, and even if such requests were approved, it would not have a significant effect on affordable housing production. At the same time, this alternative would reduce burden on smaller residential projects that qualify to pay the fee per the IZO. These small projects, that usually involve one or a handful of single-family units on infill sites, are predominantly built by individuals and small investors, and comprise the largest share of remaining new single-family home construction in Pleasanton. Residential – Townhomes: Alternative It is recommended the City adopt CFF, TIF and Affordable Housing Fees at the maximum level supported by the study for townhome projects. No other alternatives are proposed for this fee category. See Table 9 The total fee burden is within the estimated capacity for this type of development, meaning it can support the increased fees as recommended and justified by the fee study. Note that the peer cities comparable average is not provided for townhomes, because staff found that different jurisdictions classify and/or group townhomes differently, with some putting them into the same category as detached SFR, and others grouping them with attached units such as apartments. Table 9: Residential Townhomes – Fee Recommendation Recommendation: Adopt Maximum Fees Fee (Per Sq. Ft.) Estimated Fee (Per Unit)1 Capital Facilities Fee $11.87 $23,742 Transportation Fee $8.23 $16,452 Affordable Housing Fee $42.10 $84,200 Total Fee Burden $62.20 $124,394 Estimated Fee Burden “Capacity” $118,096 1. Representative fee, for a typical 2,000 sq. ft. townhome unit Residential – Multi-family (Rental Apartments and Condominiums): Alternatives As previously noted, market conditions for the construction of multi-family projects are extremely challenging at present. Based on EPS’ analysis, under current conditions there is no capacity to increase fees, since development costs, in general, including fees under today’s rates, cannot produce financially feasible projects. With this in mind, two alternatives are proposed, with Alternative 2 having two sub-options: Page 216 of 893