RES 2024077 - Laserfiche WebLink

Pleasanton Comprehensive Fee Update and Nexus Study November 2024 chapters. While some of the infrastructure improvements included in the DIF Long Term CIP will also benefit existing land uses, the cost allocated to the DIF only reflect the proportion of the cost attributable to new development. New development will also generate demand for affordable housing. The Commercial Linkage Fee revenue will be used to support the development of affordable housing. Relationship between Need for Facility and Type of Project The specific infrastructure improvements identified in this study are designed to accommodate the needs of new development. In addition, the infrastructure is based on the level of service standards and goals that reflect what is currently provided and/or addresses future needs identified by City staff. To establish a proper nexus between the demand for affordable housing and the type of project, EPS has assessed the proportion of lower wage workers and the number of square feet per employee for each employment category. Relationship between Fee Amount and Cost Facilities Attributed to Development The fee levels calculated in this Nexus Study are based on a fair share cost allocation to new citywide development. Overall, about 22.7 percent of the facility improvement costs are allocated to future development, which corresponds with growth as a percentage of future population, with the remainder attributable to existing land uses in the city. EPS estimated the difference between the cost of developing new rental housing and the value of the new rental units based on rents affordable to workers at wages typical of businesses in different commercial land uses. The affordable rents yielded unit values below the cost of construction, indicating an "affordability gap."To estimate the fee for each non-residential land use, this gap was multiplied by the anticipated number of lower wage workers generated by the new development projects and the number of households of various income categories those workers are likely to form. Summary of Impact Fees Table 24 summarizes the Capital Facilities fees and Transportation fees for residential and nonresidential uses. The maximum fee estimates include a 2 percent fee program administration fee, consistent with other Mitigation Fee Act program administrative costs in many other California jurisdictions. This 2 percent administration cost is designed to cover expenses for preparation of the development impact fee and subsequent updates, as well as the required reporting, auditing, collection and other annual administrative costs involved in overseeing the program. Economic& Planning Systems, Inc. (EPS) 41