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<br />Fee, and Water and Wastewater Connection Fees; and 2) introduce an ordinance amending
<br />the Pleasanton Municipal Code, Chapter 3.22 – Capital Facilities Fee, Chapter 3.26 –
<br />Transportation Development Fee, and Chapter 14.04 – Regulation of Water System and Water
<br />Service Fee to align with the Nexus Studies and make other technical updates and corrections.
<br />
<br />BACKGROUND
<br />Since early 2024, City staff and a professional services team led by Economic & Planning
<br />Systems (EPS) have been undertaking work to update the City’s Development Impact Fees
<br />and Affordable Housing Fees, and to update the existing Inclusionary Zoning Ordinance (IZO).
<br />As a concurrent effort, the City, working with Raftelis, is also completing a study to update the
<br />local water and wastewater (sewer) connection fees.
<br />
<br />The City Council held three workshops on May 7, August 20, and November 19, 2024, to
<br />discuss the fee updates and IZO. At these workshops, the City Council received information on
<br />the preliminary findings of the nexus studies, and analysis of the relationship between total fee
<br />burdens, inclusive of local impact fees, and development feasibility. Following an additional
<br />study session on October 15, 2024, on November 19, 2024 the City Council adopted
<br />amendments to the IZO, which included modifications to the inclusionary rate; this rate affects
<br />the calculation and consideration of the Affordable Housing In-Lieu fee, which is among the
<br />updated fees under review.
<br />
<br />At the November 19, 2024, meeting, staff presented the Draft Nexus Studies and a series of
<br />alternatives and recommendations with respect to the level or amount of the various impact
<br />fees and affordable housing fees across different land use categories. The majority of fees,
<br />with the exception of the water and sewer connection fees, and fees for townhome
<br />developments, were recommended to be set below the maximum level supported by the
<br />Nexus Studies. The City Council, by a 4-1 vote, supported the staff-recommended alternatives.
<br />The resultant fee levels, following the City Council's direction, are reflected in the draft fee
<br />master fee schedule amendments for adoption (Attachment 1, Exhibit C) and outlined below.
<br />Also presented for City Council adoption is an ordinance amending several chapters of the
<br />Pleasanton Municipal Code related to fees: the amendments to Chapter 3.22, Chapter 3.26
<br />and Chapter 14.04, to make the certain provisions more consistent across Chapters 3.22 and
<br />3.26; align the PMC to the nexus studies; and make other minor technical updates.
<br />
<br />The November 19, 2024, Agenda Report (Attachment 3) provides additional background on
<br />the Nexus Studies, the regulatory requirements of State law governing the preparation of those
<br />studies, the methodology and results of the Nexus Studies, and each of the alternatives
<br />presented for City Council consideration and direction.
<br />
<br />DISCUSSION
<br />Development Impact Fees and Affordable Housing Fee Study
<br />EPS prepared the Draft Fee Update and Nexus Study – City of Pleasanton Development
<br />Impact, Commercial Linkage and Housing In-Lieu Fee (Draft Fee Update and Nexus
<br />Study), which includes the necessary background, analysis, and documentation to support the
<br />adoption of updated fees (Attachment 1, Exhibit A). The study was prepared in accordance
<br />with all applicable requirements of State law, including AB1600 and AB 602, as documented in
<br />detail in the attachment.
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