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2. SUMMARY OF METHODOLOGY AND KEY ASSUMPTIONS This section provides a brief overview of the nexus methodology, the key assumptions, and approach for allocating future capital facility needs between new and existing development and by land use category. It also summarizes the demographic and land use projections underlying the fee. The following chapters provide additional detail on how future facility needs and associated costs were determined. Summary of Methodology The nexus methodology for parks and recreational facilities, downtown beautification improvements, and public facilities was determined according to the steps listed below: 1. The improvements required to serve new development in the City of Pleasanton through buildout of the General Plan were identified based on the General Plan growth forecast adjusted by City staff. 2. Cost estimates related to new improvements identified by City Departments with additional cost estimates completed by BKF and Fehr & Peers. Other cost estimates are provided by City staff based on previous experience and professional judgment. 3. In cases where the facility or improvement is required just to serve new development, the costs are allocated 100 percent to new development. However, in cases where the facility or improvement is expected to serve both the existing population and future population, the costs attributable to new development are based on the City's current versus future service population. Population and employment estimates were derived based on an inventory of designated land uses in Pleasanton and resident and employee density assumptions for each land use. The service population is calculated as population plus 67 percent of employees based on a relative weighting of the resident versus employee demand for services (as well as 50 percent of hotel-driven visitors). 4. The costs attributable to residential versus commercial development are allocated based on the City's future residential versus employment population growth forecast. 5. Once costs are allocated to residential and commercial uses, each cost category is divided by the total residential or employment population to arrive at a "cost per resident"or"cost per employee". The cost per user is multiplied by the people per household factor for each residential fee category or by the employment density factor for each commercial fee category. 6. A 3 percent charge is added to the fee for administration of the fee program. 7. The fee plus the administration charge for administering the fee program determines the fee total by land use. The nexus methodology for transportation facilities was determined by Fehr & Peers, and detailed in Appendices A and B. The transportation fees are calculated based on the costs associated with new transportation infrastructure allocated by trip rates. Economic&Planning Systems, Inc. 4 P:1151000s1151111P/easantonFee\Report1151111_FeeNexus_071218.docx