ECONOMIC & PLANNING SYSTEMS, INC.

Page 5 of 6 EQUITY AND SUSTAINABILITY Completion of the update of the City’s Impact Fees, IZO, and Housing Linkage and In-Lieu Fees advances the City’s equity and sustainability goals by ensuring new development pays its fair share of costs toward new and expanded facilities and infrastructure to support the City’s growing needs, and the needs of the entire community. Such investments provide the opportunity for “greening” of the City’s aging buildings and infrastructure, a key strategy in CAP 2.0. Updating the IZO provides an invaluable opportunity to ensure that the needs of the City’s lower- and middle-income residents are met, by strengthening the inclusionary and in-lieu fee requirements that to date have delivered the vast majority of the City’s current affordable housing stock, and generated fees that support key housing programs. OUTREACH The Request for Proposals was broadly distributed to a variety of professional services firms, as required by City policy. As described above, the scope of work incorporates opportunity for public and stakeholder input, that will help to inform the final recommendations of the study. STRATEGIC PLAN ALIGNMENT Approval of this action advances the ONE Pleasanton strategic plan goal of Funding Our Future, Strategy 1, Sub-Strategy 7 – Conduct an analysis and update development impact fees to keep pace with new development costs. Approving the agreement with EPS will initiate work on the Development Impact Fee, Affordable Housing Fee, and Inclusionary Zoning Ordinance studies and updates; this work is in direct relation to the strategic plan item related to supporting the City’s financial health. In addition, this work will also aid in aligning fees and policies with the City’s affordable housing goals following the recent approval and initial implementation of the 6th Cycle Housing Element. This strategy and the work tied to it is prioritized within the Strategic Plan to occur in fiscal years 2023/24 and 20242/5. FISCAL IMPACT Funding is required for this work. Staff recommends utilizing funds available in the Lower Income Housing Fund (LIHF) for the portion of the work related to Task 5, Affordable Housing Fee Updates, along with a 20 percent contingency for that task. A total of $67,356 will be appropriated in the Professional Services budget (12212300-430101-24974) in LIHF. The remaining cost of the agreement - $136,572 - is recommended to be initially funded from the General Fund, and will be appropriated in the Community Development Department Administration Division's Professional Services budget (00130100-430101-24974). These General Fund costs may be eligible to be reimbursed from future Development Impact Fees collected (see discussion above). Ultimately, should updated fees be approved by the City Council following the completion of the studies, those updated fees would have financial implications for the City that are generally expected to be neutral or positive impacts (i.e., increased revenues if fees are increased or additional new fees are added). Page 122 of 371 DocuSign Envelope ID: CB7E68CB-B5FA-40EC-AA35-142CA6B57242