CITY COUNCIL REGULAR MEETING AGENDA PACKET

Pleasanton Comprehensive Fee Update and Nexus Study November 2024 4 Introduction and Results Introduction This Fee Update and Nexus Study (Nexus Study) is designed to provide the City of Pleasanton with the necessary technical documentation to support the adoption of an update to the City’s Development Impact Fee (DIF), Commercial Linkage Fee (CLF), and Affordable Housing In-lieu Fee (AHF) programs. It has been prepared by Economic & Planning Systems, Inc. (EPS), with technical support from Fehr & Peers for transportation as well as input from City of Pleasanton staff. The DIF, CLF, and AHF Programs must be approved by the City Council and will be effective 60 days following the City’s adoption of the fees. Impact fees are one-time charges on new development collected and used by jurisdictions (e.g., a City or County) to cover the cost of capital facilities and infrastructure needed to serve new residential and commercial growth. Meanwhile, affordable housing in-lieu fees provide developers, in certain circumstances, an alternative to meeting the City’s inclusionary affordable housing requirements. This Nexus Study provides a legal basis for requiring payment of a development impact fee consistent with the Mitigation Fee Act (AB 1600/ Government Code Section 66000 et seq.) and subsequent related legislation. This Study is designed to support a comprehensive DIF program and update to the City’s Inclusionary Zoning Ordinance (IZO). It provides the nexus arguments and associated fee calculations for the maximum fees the City can charge for the facilities described herein. The calculated fees are proposed to be collected on a citywide basis given the broad scope of capital improvements included in this study. While the City may elect to charge lower fees for particular land uses, areas of the city, or across the board, it should consider the implications of doing so on funding for the identified improvements. Legal Context Development Impact Fees This Nexus Study is designed to provide the necessary technical analysis to support the Pleasanton DIF and CLF programs to be established by a City Ordinance and implemented by Resolution. The Mitigation Fee Act allows the City to adopt, by resolution, the citywide DIF and CLF programs consistent with the supporting technical analysis and findings provided in this Nexus Report, and consistent with the basic parameters of the fee that have been adopted by an enabling ordinance and codified in the Municipal Code. The Resolution approach to setting the fee allows periodic adjustments of the fee amount that may be necessary over time, without amending the enabling ordinance. Page 65 of 893