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CITY COUNCIL AGENDA REPORT <br />May 7, 2024 <br />Community Development <br />TITLE: WORKSHOP TO PRESENT INITIAL FINDINGS AND RECEIVE POLICY <br />DIRECTION ON DEVELOPMENT IMPACT FEES, INCLUSIONARY <br />HOUSING REQUIREMENTS AND LOWER-INCOME HOUSING FEES, AND <br />CITY WATER AND SEWER CONNECTION FEES <br />INTRODUCTION <br />Staff and a professional services team lead by Economic & Planning Systems (EPS) <br />are undertaking work to update the City’s Development Impact Fees and Lower-Income <br />Housing Fees, and to update the existing Inclusionary Zoning Ordinance, including <br />consideration of whether to modify the existing inclusionary rate, or percentage of <br />affordable housing units required to be included in new market-rate developments. As a <br />concurrent effort, the City has engaged Raftelis Associates (Raftelis) to complete a <br />study to update City water and sewer connection fees, based on the recently completed <br />Water and Sewer Hydraulic Capacity Plans. <br />Work on these various studies has been proceeding since early 2024. Attachment 1 is <br />a Background Memorandum that provides a more detailed analysis and supporting data <br />developed to date, including: <br />•Regulatory background and context for the impact fee updates <br />•A summary of existing fees and fee levels <br />•Outcomes of the prior fee study updates <br />•An overview of the existing Inclusionary Zoning Ordinance (IZO) and Affordable <br />Housing Fee <br />•An analysis and assessment of the feasibility of adjusting the inclusionary rate <br />and fee <br />The remainder of this agenda report summarizes the key findings of the Background <br />Memorandum and presents policy options and recommendations with respect to setting <br />the various fees based on those initial conclusions. Direction from this study session will <br />provide guidance to staff and the professional services team as the study proceeds. <br />STRATEGIC PLAN AND HOUSING ELEMENT ALIGNMENT <br />The recently adopted ONE Pleasanton Strategic Plan includes in Goal A: Funding our <br />Future – Fiscal Sustainability, Strategy 7 to “Conduct an analysis and update <br />development impact fees to keep pace with new development.”