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Nonresidential Housing Linkage Fee Nexus Study Draft Report 02/26/18 the estimated household wage with the income thresholds for a 3-person household to identify the income category into which each occupation would fall. An example of this calculation is illustrated in Table 8. Key assumptions and their sources are summarized in Appendix A. Distribution of Workers by Land Use Type After identifying income ranges for each occupation and employment category, EPS summed the percentages of occupations by income bracket. These proportions of anticipated household income brackets by employment category are presented in Table 9. As shown, Retail and Hotels/Lodging are expected to generate significant numbers of households at the low- and very-low-income levels, while nearly all jobs in the Office/Light Industrial/R&D uses are expected to yield household incomes at or above Median income levels. Employment Densities Commercial operations have varying levels of employment requirements. Retail space, for example, does not require a significant number of employees but do require a significant amount of building square feet. Office space, on the other hand, may not require a significant amount of square footage, but often require a significant number of employees. The number of building square feet or acres of property anticipated for a certain number of employees is termed the "employment density" of each employment category. Based on its prior assumptions generated with input from City staff for the Pleasanton General Plan Update Fiscal Impact Analysis study, EPS estimated the employment density for each of the employment categories as shown in Table 10. Using those employment density assumptions, EPS estimated the number of employees that would be demanded for a 100,000-square foot building. Household Formation EPS then estimated the number of households those employees would represent. First, EPS adjusted for the fact that younger workers may not be at the age to form their own households. Data from the Bureau of Labor Statistics indicate that young workers age 16 to 19 represent only about 3.2 percent of the overall workforce. However, the majority of these young workers are in the retail/restaurant industries, where they represent 10.1 percent of the overall industry employment. EPS has assumed that these young workers age 16 to 19 would not form their own households. Second, EPS has assumed that, on average, new households formed in response to growing employment opportunities would have 1.67 wage-earning workers. This assumption is based on the Census Bureau's American Community Survey 2014 data regarding the number of Pleasanton residents who are "workers" in households that have workers. The combination of these adjustments results in the assumption that nearly six households are formed for every ten new employees. Economic& Planning Systems, Inc. 12 P\51OOO,\151111PkzsanlonFec\RepohWfforEaCl hasim\1s1111 CommNe,u St dy O22618 ate.