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<br />Item #3
<br /> CITY COUNCIL AGENDA REPORT
<br />
<br />December 17, 2024
<br />Community Development
<br />
<br />TITLE: ADOPT 1) A RESOLUTION APPROVING AND ADOPTING THE NEXUS STUDIES
<br />PREPARED BY ECONOMIC & PLANNING SYSTEMS, INC., DATED NOVEMBER
<br />25, 2024, AND BY RAFTELIS, DATED OCTOBER 17, 2024, TO UPDATE THE
<br />CITY’S DEVELOPMENT IMPACT FEES; AND AMENDING THE CITY’S MASTER
<br />FEE SCHEDULE TO INCREASE THE CITY’S CAPITAL FACILITIES FEE,
<br />TRANSPORTATION DEVELOPMENT FEE (ALSO REFERRED TO AS THE
<br />TRANSPORTATION DEVELOPMENT FEE), COMMERCIAL LINKAGE FEE,
<br />AFFORDABLE HOUSING IN-LIEU FEE, AND WATER AND WASTEWATER
<br />CONNECTION FEES; AND 2) INTRODUCE AN ORDINANCE AMENDING THE
<br />PLEASANTON MUNICIPAL CODE, CHAPTER 3.22 – CAPITAL FACILITIES FEE,
<br />CHAPTER 3.26 – TRANSPORTATION DEVELOPMENT FEE, AND CHAPTER
<br />14.04 – REGULATION OF WATER SYSTEM AND WATER SERVICE FEE TO
<br />ALIGN WITH THE NEXUS STUDIES AND MAKE OTHER TECHNICAL UPDATES
<br />AND CORRECTIONS
<br />
<br />SUMMARY
<br />City staff and a professional services team have completed the necessary nexus studies to
<br />update the CIty's various impact and other fees that mitigate the impact of new development
<br />on public facilities, infrastructure, and affordable housing. The updated studies, conducted in
<br />accordance with all applicable legal requirements, support increases to the Capital Facilities
<br />Fee, Transportation Impact Fee (also known as the Transportation Development Fee),
<br />Commercial Linkage Fee, Affordable Housing Fee, and Water and Sewer Connection Fees.
<br /> At three public study sessions in May, August and November, 2024, the City Council
<br />considered and provided direction on the results of the nexus studies, including consideration
<br />of the maximum fee levels supported by the study, and the appropriate rates at which fees
<br />should be set, whether at or below the maximum. At the most recent meeting on November
<br />19, 2024, based on analysis that considered development feasibility and comparability of
<br />potential new fees with those charged by neighboring jurisdictions, the City Council provided
<br />direction to staff on preferred fee levels, in most cases to set fees below the maximums
<br />justified by the nexus studies. This item presents, for City Council adoption, the Nexus Fee
<br />studies, a resolution to establish fees, consistent with the City Council's November 19
<br />direction, and an Ordinance to make related amendments and other technical updates to the
<br />Pleasanton Municipal Code, related to the Capital Facilities Fee, Transportation Demand Fee,
<br />and Water Connection Fee.
<br />
<br />RECOMMENDATION
<br />Adopt 1) a resolution approving and adopting the Nexus Studies prepared by Economic &
<br />Planning Systems, Inc., dated November 25, 2024, and by Raftelis, dated October 17, 2024, to
<br />update the City’s Development Impact Fees; and amending the City’s Master Fee Schedule to
<br />increase the City’s Capital Facilities Fee, Transportation Development Fee (also referred to as
<br />the Transportation Development Fee), Commercial Linkage Fee, Affordable Housing In-Lieu
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