ECONOMIC & PLANNING SYSTEMS, INC.

Page 3 of 6 DISCUSSION On August 31, 2023, staff issued an RFP for a study and update of the City’s Development Impact Fees, Affordable Housing Fee, and Inclusionary Zoning Ordinance. The RFP was sent to 10 firms with experience in conducting these studies, as well as posted on the City’s website; proposals were due on September 28, 2023. Staff received one response to the RFP, from Economic & Planning Systems, Inc. EPS is the firm that completed the 2018 studies and update, as well as the City’s restructuring of the Affordable Housing Fee in 1998, and is therefore well qualified to perform the work related to the study and update. EPS has also provided professional services for the City in recent years, including economic studies to support the Stoneridge Mall Framework, Downtown Specific Plan, and Draft East Pleasanton Specific Plan. The firm has broad experience with preparing fee studies and/or inclusionary ordinances for communities across California, including for the Cities of Alameda, Newark, Union City, Dublin, San Bruno, Santa Rosa and Sunnyvale. Scope of Work and Schedule EPS’s proposed scope of work is outlined in Exhibit A to Attachment 1, and includes the following key tasks: Development Impact Fee Update Gathering baseline data to support the study, such as development forecasts and land use assumptions, baseline and future year traffic forecasts, and establishment of the appropriate land use categories by which to categorize fees Defining the comprehensive list of public facilities, transportation facilities, and their associated costs, to be wholly or partially addressed by the fee program. This will include review of the prior list of improvements developed in the 2018 study, and updates based on more recently adopted master plans and other programmatic documents Conducting the nexus analysis to determine the proportion of facilities costs attributable to new development (the “fair share” proportion), as the basis for a preliminary fee schedule. Affordable Housing Fee Update (Commercial Linkage Fee, and In-Lieu Fee for Residential Development (LIHF)) and IZO Update Update of inputs used in the 2018 study, including development costs, affordable housing rents/sales prices, and other metrics Evaluation of the existing inclusionary rates, and particularly the feasibility of modifying or increasing rates, by developing static pro forma financial modeling of up to four rental and ownership housing types Calculation of the in-lieu fee, and recommendations with respect to balancing such in- lieu fee costs with the costs to develop on-site Review and development of recommendations for updates to the IZO, including opportunities to include objective criteria and parameters for the evaluation of alternative proposals. This will include consideration of stronger provisions to encourage or require units to be built on-site, to the extent such requirements may be allowable under state law, or advantageous from a policy perspective (i.e., pursuant to AB 1505, Page 120 of 371 DocuSign Envelope ID: CB7E68CB-B5FA-40EC-AA35-142CA6B57242