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City is in the process of reviewing its water and sewer connection fees and the findings will be presented to the City Council in spring of2007. Building & Safety User Fees Initially, the only fees that staff analyzed were the Building & Safety User Fees. In order to do this Staff calculated the fees based on the following scenarios: . New Residential Home - 3,000 square feet with an 800 square foot garage . New Commercial Office Building - 50,000 square feet (2 story building) . Residential Re-roofbased on a valuation of the new roofof$13,000 . Commercial Tenant Improvements for a 2-story office building based on a valuation of the improvements of $950,000. The results of the comparison are included in Appendix A and show that the City's Building & Safety user fees are fairly comparable to other Tri- Valley cities and the other cities along the 680 Corridor. However, during the study it came to Staff's attention that the fees charged in the Engineering -Private Development and Inspection programs, and the Planning Department were considerably lower than surrounding jurisdictions and was an area that needed further review. Engineering -Private Development and Inspection Fees and Planning Department Fees As a result of staff's findings it was decided to expand the study to include private development fees collected in the Engineering-Private Development and Inspection programs and the Planning Department. In order to do this Staff calculated the related fees for a single family residential subdivision with 12 lots. The results of this comparison are included in Appendix B and show that the fees collected in this area are considerably lower than surrounding jurisdictions. Finally, it came to Staff's attention that a similar study had been done for seven South Bay cities- Fremont, Gilroy, Milpitas, Morgan Hill, San Jose, Santa Clara, and Sunnyvale by the Home Builders Association for the 2004/05FY. The sample projects that they compared fees were as follows: . Residential addition/alteration . 50-unit single-family residential tract development . 96-unit multi-family (townhouse) residential project . Commercial tenant improvement project . An industrial research and development facility. Staff decided to develop the operating user fees for each of the five scenarios for the City and insert Pleasanton in the comparison. The results of this comparison are included in Appendix C. The results indicate that our fees overall are low in comparison to the other jurisdictions in the area of multifamily housing projects, commercial tenant improvements and industrial research and development projects. While we have not had an inordinate amount of multifamily housing projects and industrial research and development projects in the past several years, commercial tenant improvements are a large percentage of the permits issued annually in the City. 2