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In addition, staff removed projects from the Transportation Impact Fee projects list that are in the Johnson Drive Economic Development Zone (JDEDZ) that will be funded through the newly established JDEDZ Transportation Fee. All of these changes are reflected in the attached Nexus Studies and recommended fee levels discussed later in the report. Nexus Study Results The Development Impact Fee nexus study ("Nexus Study") is divided into three categories as described in more detail below: 1 . Affordable Housing Impact Fees — New development in Pleasanton will generate the need for services and therefore jobs that require housing for lower income households. The City addresses this need through its Inclusionary Zoning Ordinance (IZO) and Lower Income Housing Fees. The IZO requires new residential development to provide 15 to 20 percent of the units at affordable levels. It also provides for the payment of in-lieu fees (payment of a Lower Income Housing Fee) at the City's discretion to meet this obligation. The Lower Income Housing Fee is also charged to residential projects not subject to the IZO and non-residential projects. The maximum amount that the City can justify for these fees by each type and size of development have been determined by the Nexus Study and are illustrated in Table 4 in this report, although as with all the fees addressed in this report, the City can choose to charge a lesser amount. It should be noted that based on the California Supreme Court opinion in California Building Industry v City of San Jose, the City is not required to complete a Nexus Study to charge such fees, but rather has the right to do so under the City's "...general broad discretion to regulate the use of real property to serve the legitimate interests of the general public and the community at large." However, the Nexus Study is helpful in establishing a justifiable ceiling for any such fees the City wishes to implement. 2. Capital Facility Impact Fees — New development in Pleasanton will create demand for public facilities and parks. The Nexus Study identified parks, recreational facilities and public facilities that the City plans to undertake through build-out of the General Plan that serve new development. The Nexus Study includes project cost estimates and allocates a portion of those costs to development depending on the extent to which the facility or improvement is required to serve new development. For the Capital Facility Impact Fees, EPS estimated that approximately 17% of the majority of the project costs is attributed to new development. As described in the summary table (Table 1) below, the total cost of Capital Facility projects identified is $405.4 million, of which new development's share is $69.1 million. Page 4 of 16