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THE CITY OF 13 � -- CITY COUNCIL AGENDA REPORT pL£ASANTON® April 17, 2018 Finance Community Development TITLE: INTRODUCE AN ORDINANCE AMENDING TITLE 3 OF THE PLEASANTON MUNICIPAL CODE TO ADD A NEW CHAPTER 3.44 ESTABLISHING A JOHNSON DRIVE ECONOMIC DEVELOPMENT TRANSPORTATION FEE AND ADOPT A RESOLUTION AMENDING THE MASTER FEE SCHEDULE TO SET THE FEE SUMMARY During the presentations of the Johnson Drive Economic Development Zone ("JDEDZ") transportation projects financing plan in August and September of 2017, City Council directed staff to develop a methodology for a JDEDZ Transportation Fee that the City would asses on new development within the JDEDZ (excluding Costco) to recoup the transportation infrastructure costs borne by the City. City staff have developed a JDEDZ Transportation Fee methodology for Council's consideration. RECOMMENDATION Introduce an ordinance amending Title 3 of the Pleasanton Municipal Code to add a new Chapter 3.44 establishing a Johnson Drive Economic Development Zone Transportation Fee and adopt a resolution amending the Master Fee Schedule to set the Fee. FINANCIAL STATEMENT Approximately $6.8 million of the cost of the necessary JDEDZ transportation improvements' will be funded through a 25-year sales tax sharing agreement with Costco at a 1.5% interest rate. The proposed JDEDZ Fee, if assessed on all future (non- Costco) development, would result in $8.4 million2 in revenues that would reduce the amount the City would be required to reimburse Costco through the sales tax sharing agreement. If the JDEDZ fee revenues are received after the City fully reimbursed Costco through the sales tax sharing agreement, then those amounts will be used to reimburse the City's General Fund. ' Excluding right of way acquisition costs the amount of which will be determined during the design phase of which 50%would be funded directly by the City and 50%would be covered by Costco and added to the amount to be reimbursed through the sales tax sharing agreement. 2 Including 56%of ROW costs estimated at$1.5 million.As noted above,ROW costs will be determined during the design phase.