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4. METHODOLOGY AND FEE CALCULATION Employment Categories Employment categories utilized in this analysis are displayed in Table 6 along with a description of the types of businesses that are included in each category. In general, each employment category is intended to be associated with a particular type of building or land use, to which the fees can be applied. EPS recommends consolidation of office, light industrial and R&D into one category, resulting in three employment categories. Consolidation of these land uses reflects the notion that their tenant types are generally interchangeable and might occupy the same general type of building space. For example, an R&D business may occupy office space or light industrial space, and a single "flex" commercial building may house businesses of each of these three types. Other employment categories are more discretely associated with a particular type of building, and thus the appropriate fees for such buildings are easier to determine when a building is proposed and constructed. Occupational Category and Wage Distribution EPS used U.S. Bureau of Labor Statistics (BLS) National Industry-Specific Occupational Employment and Wage Estimates for 2014 to estimate the wages earned by employees in industry sectors related to the employment categories. This BLS data set includes wage data at both the national and Metropolitan Division (MD). The Oakland-Fremont-Hayward MD is the geography of the East Bay. Wage data for the MD are provided for occupations for all industries in aggregate, while national-level wage data are provided by industry sector. To account for regional wage disparities, EPS calculated wage adjustment factors as displayed in Table 7. EPS applied these adjustment factors to the nationwide income level data by industry sector to estimate the wages for the East Bay. EPS used BLS nationwide data regarding industries and occupation categories to estimate the proportion of occupations likely to be represented under each employment category. For example, EPS evaluated the occupation categories for the lodging industry to determine the proportional distribution of occupations for the employment category "Hotels/Lodging." North American Industry Classification System (NAICS) sector 721000 ("Accommodation") shows that nationwide 4.2 percent of the jobs in the lodging industry are taken by managers while 28.6 percent are in the category of buildings and grounds cleaning and maintenance (see Table 8 and B-1). The occupational distribution for all designated employment categories are provided in Appendix B. The wages of each occupation were multiplied by 1.67, the average number of workers per working household in the City according to Census Bureau's American Community Survey data. The resulting figure is assumed to represent the annual household wage. Also according to the American Community Survey, the average household size in Pleasanton is 2.89 and the average family size is 3.25 people. Rounding these average household and family sizes, EPS compared Economic& Planning Systems, Inc. 9P,1s1000,i.iivPa.samonFeeMeportwrro.nank Has;ng\FSF11 canmHe.usstudy ozz.i..do.<