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7. IMPLEMENTATION AND ADMINISTRATION OF DIF The proposed updated DIF and corresponding fee schedule will need to be adopted by City Resolution as enabled by the City DIF Ordinance. The existing City DIF Ordinance allows the City Council to adopt, by Resolution, a fee schedule consistent with supporting technical analysis and findings provided in this Report. The Resolution approach to setting the fee allows periodic adjustments of the fee amount that may be necessary over time, without amending the enabling Ordinance. The Ordinance addresses the primary implementation and administrative issues and procedures associated with the DIF. A brief summary of the key implementation and administrative elements is provided below. Fee Collection and Amount Applicable Land Uses All new development that occurs within the City of Pleasanton, except as specifically exempted by the DIF Ordinance, shall pay the DIF based on the zone of benefit in which the new development is located. While the maximum fee amount will be determined by the AB 1600 Nexus Study, the City may elect to charge less for a variety of reasons and under certain circumstances, as described in the Ordinance. In any case, the applicable fees will be published in a Fee Schedule made available by the City and updated periodically. The amount will vary by land use, as shown in Table 1. It is possible that certain projects may not fit neatly into the defined categories. In cases were such ambiguity exists, the City Engineer will need to make a determination as to the applicable fees. The Fee Ordinance should articulate guidelines for resolving discrepancies and/or disputes. Fee Escalation The DIF Ordinance allows for an automatic adjustment of fee levels to keep pace with inflation adjusted increases in construction cost. This allows the fee level to keep pace with inflation without requiring an annual approval process. This adjustment is based on cost indices published by the Engineering News Record (ENR), a source widely used in the construction industry, and by many jurisdictions as a basis for making annual inflation adjustments to their development impact fees. ENR's CCI has been published consistently every month since 1913 for 20 U.S. cities and a national average of the 20 cities. As such it is one of the most reliable and consistent indices that track trends in construction costs. Timing and Manner of Payment The City DIF Ordinance addresses issues related to the timing and manner of payment for the DIF including the potential for fee deferrals, payment plans, credits and reimbursements, exemptions, and related adjustments. Economic& Planning Systems, Inc. 26 Pr\151000s\151111PleasantonFee\Report\151111_FeeNexus_071218.docx