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to calculate fees for storage projects in other communities. Additionally, staff recommends no fee is charged for the square footage of the unit provided on-site. Letter from Holland & Knight, November 30, 2020 The City received a letter dated November 30, 2020 from Holland & Knight, on behalf of Public Storage (Attachment 11). The letter alleges that the City's Affordable Housing Fee is subject to the requirements of the state's Mitigation Fee Act (Government Code, section 66000 et seq.) and that several of staffs proposed options are inconsistent with the Act. Staff has reviewed the letter and continues to believe that the Mitigation Fee Act does not apply to the City's Affordable Housing Fee based on current case law. (See: California Building Industry Association v. City of San Jose (2015) 61 Cal.4th 435; and 616 Croft Ave., LLC v. City of West Hollywood(2016) 3 Cal.App.5th 621.) CONCLUSION AND RECOMMENDATION Staff does not recommend Option 1 (no reduction) since it would be significantly out of proportion with the project's actual employee generation, and would not correspond to past precedent, or common practice in calculating impact fees for these types of projects. Although the applicant's requested Option 3 is supportable based on its employee generation, staff finds there is also a supportable basis for Options 2, 4, or 5. Each of these options would provide an additional increment of benefit to the City in helping to meet its affordable housing needs. However, in consideration of the purpose and intent of Chapter 17.40 and the specific provisions regarding fee reductions, staff believes Option 5 reflects the most balanced approach. It provides benefit to the City's affordable housing fund, addresses housing need generated by the project, and staff recommends that this option be selected, if the Council does not support the applicant's request. Based on the above discussion, staff recommends the City Council adopt the draft Resolution, Attachment 2, approving a reduction to the Affordable Housing Fee for P19- 0128/P19-0129, reflecting staff recommended Option 5. ENVIRONMENTAL ASSESSMENT The assessment of fees is not a project as defined under CEQA. Therefore, no environmental review is required. PUBLIC NOTICE AND COMMENTS Notices of this application and hearing were sent to surrounding property owners and tenants within a 1,000-foot radius of the site. Staff has provided the location and noticing map as Exhibit H of Attachment 4 for reference. Page 17 of 18