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The City's 2017/18 Work Plan includes updating the City's Development Impact fees as a priority under the Maintain Fiscal Responsibility category. City staff initiated the project in the fall of 2015 through the award of a contract to EPS to conduct a nexus study to update its capital facility, transportation and affordable housing impact fees based on development anticipated through build-out in the City's General Plan and other related planning documents. EPS completed its efforts in the fall of 2017 and finalized draft reports after incorporating City staff peer review and feedback in the spring of 2018. Staff presented the update to the City's Development Impact fees at the May 1, 2018 City Council meeting with the intent of launching the discussion with Council and the public about the methodology, project lists, projects costs and comparable fees of surrounding jurisdictions. Staff subsequently presented the update to the City's Development Impact fees to the EVC, Chamber of Commerce, Planning Commission, and at a public workshop. Staff also met with a small group from the business community for a more focused review of the draft nexus study report. Staff made several changes (discussed below in this report) to the study assumptions and methodology based on the feedback provided through those public meetings. The Development Impact Fees included below reflect those changes. In addition, as requested by City Council and members of the public, staff analyzed cumulative Development Impact Fees for Livermore and Dublin and compared them to Pleasanton's cumulative Development Impact Fees. Staff presented recommended fee levels to the EVC in August, the City Council at the September 4, 2018 meeting and the Chamber of Commerce on September 12, 2018. DISCUSSION Stakeholder and Public Feedback Attachment 6 identifies the feedback staff received from the various presentations in May 1st through September 12th of 2018 as well as staff responses to that feedback. The following identifies changes staff made to project cost estimates, allocation of costs to new development, and the fee setting methodology based on that feedback: 1. Office Density — reduced office density assumption from 260 square feet per employee to 320 square feet per employee to reflect lower office density experienced in Pleasanton. 2. Civic Center Project — reduced project cost estimate from $200 million to $150 million to reflect the fact that the voters haven't approved relocating Civic Center to the Bernal property but that eventually a major renovation to Civic Center would be required on the current site. 3. Park Acquisition Cost Estimates — reduced the per acre acquisition cost estimate from $1.5 million to $1 million to reflect probable lower value of property given its intended park use. Page 3 of 18