CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 8 of 9 would still be required to pay a pro-rata share of the Affordable Housing In-Lieu Fee for the units not constructed on-site. The intent of this provision is to stimulate near-term multi-family housing production, by providing some relief as to the typical on-site inclusionary requirement. Because the multi-family in-lieu housing fee was also reduced below the maximum that could be charged, overall development costs should be reduced as a result of this action. Applicability of Updated Fees to Projects in Process With respect to projects in process and with active applications, the draft resolution of adoption of the fees incorporates a policy regarding the applicability of the new fees to such projects. The City Council supported staff’s recommended policy language, as reflected in Attachment 1. See the November 17, 2024 Agenda Report for additional discussion of this item. As noted, these provisions would not supersede or replace vesting conferred by provisions of State law or an existing Development Agreement, and would still apply any annual cost adjustments as reflected in the Pleasanton Municipal Code. Furthermore, they would not preclude the City and a developer from negotiating fees as part of a development agreement or similar mechanism. Note that the proposed fees, if adopted on December 17, would become effective 60 days after adoption, on February 15, 2025. Municipal Code Amendments Amendments are proposed to several chapters of the PMC that relate to impact fees: specifically Chapters 3.22 - Capital Facilities Fees; 3.26 - Transportation Development Fee; and 14.04- Regulation of Water System and Water Service Fee. A redlined/strikeout version of the proposed text amendments is included as Exhibit A to Attachment 2. In Chapters 3.22 and 3.26, the majority of the changes are to align and make more consistent definitions and procedural requirements for calculation and application of fees between the chapters, and to clarify administrative provisions around fee credits. The changes also include minor changes to align with the nexus fee studies, such as referencing the refined list of land use categories, and including reference to a per-square-foot basis for applying fees. With respect to Chapter 14.04, minor revisions have been made to reference provisions for sub-metering of attached single-family projects, to clarify that the City Engineer may authorize this in situations where it is deemed appropriate to do so, and to update the definition for "water system" to delete an antiquated reference. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The adoption of this Resolution is not a project within the meaning of Section 15378 of the California Environmental Quality Act (CEQA) Guidelines because there is no potential for it to result in a physical change in the environment, either directly or indirectly, in that the resolution provides only for the adoption of amendments to existing fees imposed on new development. Additionally, it is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility of a significant effect on the environment and contains no provisions that will directly or indirectly result in a physical change in the environment. EQUITY AND SUSTAINABILITY Adopting the updated fees helps to advance equity and sustainability goals by ensuring that new development contributes to the necessary facilities and infrastructure, including upgrading Page 56 of 893