CITY COUNCIL REGULAR MEETING AGENDA PACKET

Pleasanton Comprehensive Fee Update and Nexus Study November 2024 9 Development Impact Fee Methodology This section provides a brief overview of the nexus methodology and key assumptions used in this Study. It also summarizes the demographic and land use projections underlying the fee. Subsequent chapters provide more detailed calculations for each DIF category. While the commercial linkage fee is considered a development impact fee, the methodology for determining the maximum justifiable fee level differs slightly and will be described in Chapter 5. Summary of Methodology While the nexus methodology employed in this study varies by fee category as appropriate given the range of capital facilities and improvements covered, there are basic steps common to all. Specifically, for each fee category, EPS has applied the following general steps to calculate the nexus-supported fee amounts: 1. EPS estimated existing and future population and employment in Pleasanton through buildout of the current General Plan using a variety of City and third- party sources, as described in the subsequent section. 2. The EPS consultant team identified the universe of new infrastructure and capital facility improvements needed to serve both existing and future residents and employees. These needs were based on interviews with City staff and analysis of existing City facility capacity and service standards. Capital facilities exclude water, sewer and storm drain facilities since these are part of a separate fee program. 3. The EPS consultant team developed cost estimates for the capital facility improvements described in step 2 above. These cost estimates were developed based on information provided by City departmental staff as well as additional research and in-house resources. 4. EPS allocated the capital facility costs identified in step 3 above between existing and new development to determine the share included in the DIF program. These allocation shares were determined in a variety of ways depending on improvement, available data, and City guidance. In cases where the improvement is expected to service both the existing population and the future population equally, the share of costs attributable to new development is based on the City’s current versus future service population. 5. Once costs have been allocated between new and existing development, they are further distributed among residential and commercial uses to arrive at a cost per resident and a cost per employee. This distribution was based on the proportion of total forecasted service population composed of residents and employees, respectively. 6. Once costs were allocated to a “cost per resident” and “cost per employee” basis, they are multiplied by the people per household for each residential fee category Page 70 of 893