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The Pleasanton City Council is set Tuesday to talk about revamping the development impact fees the city charges for new housing and commercial projects in Pleasanton.
City staff recommends increases almost across the board for the fee schedule, which hasn’t been updated since 1998 and includes fees paid to the city for affordable housing, transportation and public facilities.
“Staff believes the proposed development impact fees will be commensurate with Dublin and Livermore and therefore unlikely to deter future development while providing funding to mitigate the impacts of development and provide funding for new city amenities,” city officials wrote in a staff report to the council.
City officials plan to present their proposal publicly and receive feedback from council members and citizens Tuesday night, and then bring back the new development fee schedule for final approval later in the month.
In addition to the proposed fee hikes, one key component of staff’s proposal would be to allow development projects with applications currently under city review to be grandfathered into the existing fee schedule rather than subject to the forthcoming increases.
City officials have been working since fall 2015 to update the developer fees, which aim to offset the financial and physical impact to the public of new development projects, specifically in the categories of capital facilities, transportation and affordable housing. The revenues support city projects in those areas — the city collected $4.3 million in development impact fees last fiscal year.
The city contracted with Economic & Planning Systems, Inc. (EPS) to conduct a nexus study to determine the maximum fee amounts the city could charge.
EPS and city officials have circulated the study results and held meetings with residents, the city’s Economic Vitality Committee, Pleasanton Chamber of Commerce and developer organizations, among other stakeholders, to gather feedback before bringing the final recommendation to the council.
The proposed fee schedule identifies increases in almost all categories, in most cases the maximum allowable fee but in some others based on the average of comparable fees charged by neighboring Dublin and Livermore.
City officials said they found Pleasanton’s current cumulative development impact fees are between 67% and 85% of the average of Dublin and Livermore fees.
The proposed affordable housing fee recommends increases to $29,435 per 3,000-square-foot unit for single-family residential (up $2,248) and to $22,453 per two-bedroom unit for multi-family residential (up $6,759).
There are no changes recommended for the affordable housing fee charged to new retail, hotel/motel, office building or industrial development ($3.15 per square foot/hotel unit).
The transportation fee would go up in all development categories, including increases of $3,931 per unit for single-family, $1,981 per unit for multi-family, $4.30 per square foot of retail and $7.32 per square foot for office.
The capital facility fee proposes increases in most categories, including up $1,116 per unit for single-family, $277 per unit for multi-family, $1.34 per square foot for retail and $1.26 per square feet for research and development (R&D) projects. The fee for industrial would drop 5 cents per square foot.
City staff then suggests reviewing the fee schedule every five years for possible adjustment, or after major General Plan or Regional Housing Needs Assessment (RHNA) changes. Staff plans to review water and sewer connection fees next year along with an update to water and sewer rates.
As for the current proposal, the council could endorse the staff recommendation or devise its own fee schedule based on the nexus study and public feedback. Staff will present two alternatives to the council Tuesday, including one with maximum fee increases across the board.
After receiving council input and direction Tuesday night, city staff expects to bring back the fee schedule for final consideration at the Sept. 18 council meeting.
Tuesday’s open-session meeting is set to start at 7 p.m. inside the council chambers at the Pleasanton Civic Center, 200 Old Bernal Ave.
As part of its separate consent agenda, the council will consider increasing the contract with EPS for the development impact fee study by $15,000 to $160,070 overall.
In other business
* The council will receive a presentation from the Tri-Valley/San Joaquin Valley Regional Rail Authority on its Valley Link concept for connecting the Dublin-Pleasanton BART station to ACE Train and San Joaquin County via a multiple-unit commuter rail system over the Altamont Pass.
Council members will then consider a resolution in support of the authority’s Valley Link concept.
* The council will also present a proclamation declaring Sept. 17-23 as Constitution Week.
* In closed session starting at 6 p.m., the council will discuss labor negotiations with non-union management and confidential employees, as well as property negotiations for 4363 and 4377 First Street, 17 acres near Pacific Pearl, 10.64 acres near Vineyard Avenue and 8.25 acres on Bernal Avenue known as the Pleasanton upper playfields.
