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Mr. van Gelder suggested a follow-up study focused on that issue would be necessary. Policy decisions would have to be made regarding whether money would be from the general fund or be bonded indebtedness. He explained the MTC point system for competition among projects and that MTC is inquiring about whether points should be allocated for projects with local match funds. This staff report is in favor of that concept. Mr. Pico indicated his belief that the $6/sq.ft. non-residential fee is too high and adding such a fee would make many projects financially infeasible. He referred to Hacienda Business Park which already has severe assessments. The commercial fee issue is complicated by a couple of major issues. Bishop Ranch has a development agreement with San Ramon which precludes assessment of a commercial fee and the City of San Ramon is not willing to pay those fees out of its general fund. In addition, the properties in the North Pleasanton Improvement District have already made a major contribution to the regional transportation system and the owners feel there should be a credit for that. Dublin property owners will most likely believe that if Hacienda gets credits and Bishop Ranch doesn't have to pay, then they will have to foot the bill. Danville considers the fee disproportional to it, because it is almost built out from a residential standpoint. Mr. Pico believed that the non-residential fee would kill further commercial development. There is also the desire of some to have equity between residential and commercial fees. This is a difficult issue and he believed the ultimate answer was to reduce the number of projects or the cost of some of the projects. A review of the proposed projects shows that there is a total of $1 billion in high priority regional projects requested. Of that, $311 million are unfunded and have no potential revenue sources. Mr. Pico believed there need to be cuts to that list and a more aggressive position to reduce the Highway 84 improvements. He felt there were too many freeway lanes proposed. He also felt Council needed to take a stronger position on the extension of Jack London Parkway and North Canyon Parkway. These are routes of regional significance that create parallel arterials on both sides of 1-580. He believed there was a real need for a viable alternative to i-580 other than Stanley Boulevard. He believed that if theme were a regional fee, it should be used for these routes rather than the addition of an HOV lane. Mr. Pico indicated that was no way of funding these improvementa without imposing a regional transportation fee. Mr. Pico thought if there was a way to establish a subregional impact fee for new residential development, minus some of the commercial, that would be the best option available. He believed any regional impact fee must be tied to a Tri-Valley growth management program. He believed there must be a functional, proactive, growth management program which insures that positive impacts of regional impact fees are not overwhelmed by unmanaged growth. He felt that the last four years of working on the plan is flawed because it does not make a connection between transportation and a transportation solution in land use planning and 10/04/94 - 16-