CITY COUNCIL REGULAR MEETING AGENDA PACKET

Pleasanton Comprehensive Fee Update and Nexus Study November 2024 29 Metropolitan Division (MD) which includes Pleasanton.5 For example, EPS evaluated the occupation categories within the lodging industry to determine the proportional distribution of occupations for the land use category “Lodging.” Using JobsEQ, the NAICS sector 721000 (“Accommodation”) for Oakland-Fremont- Berkeley MD shows that 7.9 percent of the jobs in the Lodging industry nationwide are filled by managers, while 30.04 percent are in the category of buildings and grounds cleaning and maintenance (see Table E-3). The occupational distribution for all designated employment categories is provided in Appendix E. In addition to the distribution by occupation, JobsEQ provided the average wage for each occupation in each land use category. x The wages for each occupation were multiplied by 1.79, the average number of workers per working household in the city.6 While certainly there will be some variation in wages per employee within a household, in the absence of more specific data, this analysis assumes comparable levels of education and training and thus hourly earnings among all workers in a household.7 x Each occupation is placed into its income category and the distribution is calculated based on JobsEQ’s reported percent of each industry’s jobs that is in the income category. This sorting uses HCD’s income classifications for a 3-person household because there are 3.4 people per working household in the City of Pleasanton. For consistency, the affordability gap calculation averages the respective affordability gaps of a two-person household multifamily rental unit and a four-person household townhome. The unit values used in this calculation are consistent with the unit values calculated as part of the Affordable Housing In- Lieu Fee Study in Chapter 7. Household Formation After calculating the estimated number of new employees (see Table 5 for density assumptions) generated for each land use category, EPS estimated the number of households represented by these new employees (detailed in Appendix Table F-1). To calculate new households, EPS first adjusted the number of workers expected to form new households, accounting for those workers who are typically too young (aged 16 to 19) to form their own households.8 The resulting adjusted estimate of new workers was 5 The Oakland-Fremont-Berkeley Metropolitan Division (MD) is comprised of Alameda and Contra Costa Counties. 6 From the Census Bureau’s American Community Survey. 7 This assumption is consistent with “Assortative Mating” theory. See National Bureau of Economic Research, “Marry Your Like: Assortative Mating and Income Inequality.” 8 Data from the Bureau of Labor Statistics indicate this age cohort represents about 2.0 percent of the overall workforce. This proportion was applied to all industries except Commercial, which represents retail and food service industries, where the younger worker cohort represents 7.7 percent of the overall industry employment. Page 90 of 893