CITY COUNCIL REGULAR MEETING AGENDA PACKET

Pleasanton Comprehensive Fee Update and Nexus Study November 2024 5 Impact fee revenues are used to cover the cost of constructing capital and infrastructure improvements required to serve new development and growth in the area in which they apply. As such, impact fees must be based on a reasonable nexus, or connection, between new development and the need for specific capital facilities and improvements. Impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure. In addition, impact fee revenue cannot be collected or used to cover the cost of preexisting infrastructure needs or deficiencies. In establishing, increasing, or imposing a fee as a condition for the approval of a development project, Government Code 66001(a) and (b) require a local agency to: 1.Identify the purpose of the fee; 2.Identify how the fee is to be used; 3.Determine how a reasonable relationship exists between the fee use and type of development project for which the fee is being used; 4.Determine how the need for the public facility relates to the type of development project for which the fee is imposed; and 5.Show the relationship between the amount of the fee and the cost of the public facility. In September 2021, the State of California adopted Assembly Bill (AB) 602, which includes several new requirements related to the development and implementation of impact fee programs. The key provisions related to the calculations documented in this Nexus Report are summarized below. x Capital Improvement Plan: AB 602 requires that jurisdictions adopt a capital improvement plan as part of the nexus study process. This adoption can occur at the same time as the fee ordinance adoption. Accordingly, this Nexus Study relies on a Pleasanton DIF Long-Term Capital Improvement Plan (Pleasanton DIF CIP) to be approved by the City Council in conjunction with the DIF Program. 1The Pleasanton DIF CIP presented in this Nexus Study is derived from the capital improvements identified as part of the Nexus Study and is attached as Appendix Table A-1. x Explanation of Level of Service and Fee Increase: AB 602 requires that when applicable, the nexus study identifies the existing level of service for each public facility, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate. This Nexus Study relies on service standards developed in consultation with City staff, based on City planning documents, and with reference to the existing capital facilities and improvements in 1 The Pleasanton DIF CIP is different from and does not replace the City's 5 year CIP budget (balanced) and 10 year CIP. These separate CIP documents serve a shorter-term frame and generally rely on more specific project parameters than the DIF CIP. That said, the DIF CIP may provide funding to support some projects included in the 5-year and 10-year CIPs. Page 66 of 893