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Tri-Valley Transportation Council │ 2020 Nexus Fee Update Study August 2021 │ Final 22 4 NEXUS FINDINGS This chapter presents the relationship of between the increase travel demand from new development, the cost of improvements needed to accommodate that growth, and the impact fee to fund those investments. 4.1 OVERALL METHODOLOGY Impact fees may be calculated using a purely technical method that would fund the cost of facilities required to accommodate growth. The four steps followed in any development impact fee study include the following: 1. Prepare growth projections; 2. Identify facility standards; 3. Determine the amount and cost of facilities required to accommodate new development based on facility standards and growth projections; and 4. Calculate the public facilities fee by allocating the total cost of facilities per unit of development. This nexus study results in a calculation of the maximum fee based on the list of projects identified in Chapter 3 (and described in Appendices A and B) to the greatest extent technically defensible under the Mitigation Fee Act. Consistent with the TVTC’s directions, the full cost of funding these improvements is used to calculate the maximum fee rates the TVTC could apply to all new residential and non-residential development in the Tri-Valley between 2020 and 2040. 4.2 MITIGATION FEE AC T FINDINGS Development impact fees are one-time fees typically paid when a building permit is issued and imposed on development projects by local agencies responsible for regulating land use (cities and counties). To guide the widespread imposition of public facilities fees, the State Legislature adopted the Mitigation Fee Act (Act) with Assembly Bill 1600 in 1987 and subsequent amendments. The Act, contained in California Government Code Sections 66000 through 66025, establishes requirements on local agencies for the imposition and administration of fee programs. The Act requires local agencies to document five findings when adopting a fee. The five statutory findings required for adoption of the TVTC updated impact fee were adopted when the first TVTC fee was adopted in 1995 and subsequently again when the Nexus Study was updated in 2008 and 2017. They are presented here and supported by the Nexus Analysis section (Chapter 2) of this report. All statutory references below are to the Act. This sample framework for the Mitigation Fee Act findings is only to provide local agencies with guidance and is not a substitute for legal advice. Local agencies will customize the findings for their jurisdiction and consult with their legal counsel prior to adoption of the updated TVTDF. 4.2.1 PURPOSE OF FEE For the first finding, the local agency must identify the purpose of the fee (Section 66001(a)(1)). The TVTC policy, as expressed through the TVTC Action Plan, is that new development shall contribute for mitigation of their impacts on the Routes of Regional Significance, and that the cost sharing of recommended improvements will be implemented through the TVTDF regional impact fee program. This is administered by the seven jurisdictions of Alameda County, Contra Costa County, Dublin, Pleasanton, Livermore, Danville, and San Ramon, which all signed a joint powers authority (JPA). The fee advances a legitimate