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Councilmember Pentin mentioned a report that if affordable housing is desired in a community, then the cost of permitting needs to remain low. But, in reviewing this report, Pleasanton is below where it needs to be in terms of fees. He stated it will be important to understand how the changes will affect affordable housing, expressed concern regarding retail establishments, and suggested considering what it will take to build a retail site based on existing and proposed fees. City Manager Fialho stated staff will bring back those comparisons at the next presentation of the item. Councilmember Olson referenced Attachment 4 and reported the data used was from 2015. He expressed concern with the use of old data and inquired how 2017 data would affect the levels of fees. City Manager Fialho reported the fees would be higher. Staff began this process over 2 1/2 years ago and used the relevant data at the time. Consideration was given to paying additional consulting fees to recycle data. Councilmember Olson did not believe the item should be labeled as a 2018 study, if it is based on 2015 data. Additionally, he felt this is two-sided and if fees are kept below where they could be, the City would reduce the risk that the State would argue the City is not doing enough with affordable housing. City Manager Fialho stated the tradeoff for the City Council, when the item returns, will be economic consideration of companies doing work to develop residential and commercial sites and balancing that with the need to mitigate impacts of development. Councilmember Brown noted with lower fees for affordable housing, the City would have less money to spend for lower-income housing projects. Mayor Thorne opened the public hearing and public comments. Seeing and hearing no one wishing to address Council, Mayor Thorne closed the public hearing and public comments. Mayor Thorne commented on the importance of the City Council taking public comments before stating their own opinions. Mayor Thorne inquired regarding the $474 million for capital projects and Director of Finance Olson reported it is the total cost of capital projects identified that would be necessary to mitigate development. Of that amount, $90 million (19%) is allocated for new developments. City Manager Fialho added it is based on estimated growth, population size, and employment growth. Mayor Thorne expressed concerns regarding the large gap between current fees and what the study suggests as maximum fees. He reported he has a list of suggestions but will hold off on presenting them until after the workshop with the public and stakeholders is held. Councilmember Brown quoted from the report relative to the results being based on a "fair share allocation" and stated all the City is asking is that new developments pay their fair share. Pleasanton has been "under-collecting" because fees have not covered developers' fair share. She questioned labelling the fees "maximum" when it is really a fair share of new development. Assistant City Manager Dolan reported it is a maximum because the City cannot charge more than it can justify pursuant to law. City Manager Fialho said if the City adopted the maximum fees, it would be compliant with State law. The City Council will have a policy opportunity to set the fees at a lower threshold if they feel other factors outweigh the maximum allowed by State law. He added there are implications with moving the money around. Councilmember Brown reiterated the maximum fees are the "fair share" fees for new developments and noted the importance of carefully considering the impacts of softening the maximum allowable fees. City Council Minutes Page 5 of 8 May 1, 2018