News Details

Council Approves Revisions to Development Impact Fees

PLEASANTON, Calif. — The Pleasanton City Council voted last night to approve revisions to its current development impact fees that are assessed on new developments to help mitigate city costs that result from the development. The fees have remained unchanged for the last 20 years and are between 67 and 85 percent of the average of Dublin and Livermore fees.

The California State Legislature enacted AB1600, the California Mitigation Fee Act, in 1987, authorizing local governments to assess fees on new developments but also requiring the assessments be justified. Cities must therefore identify a fee’s purpose and its use and must also determine a reasonable relationship between the fee, the development and the subsequent need for the public improvement.

The City’s development impact fees, which were established pursuant to AB1600 and last restructured in 1998, include a public facilities fee, transportation fee, park fee, and an affordable housing fee.
In FY 2017/18, the City of Pleasanton collected $4.3 million in development impact fees that significantly fund the City’s Capital Improvement Program (CIP). The recommended revisions to the development impact fees would result in approximately $7 million in annual revenues based on current development activity.

City staff began work in 2015 with Economics & Planning Systems (EPS), a consulting firm that specializes in economic and financial consulting for local governments. A development impact fee study, called a Nexus Study, was developed that identified the maximum allowable fee limits. While actual fees may be set below the maximum threshold, a Nexus Study is helpful in establishing a justifiable ceiling. Based on the assumption that new development increases demands on affordable housing, public facilities and parks, and transportation, the study examines fees for each of the following three categories: affordable housing, capital facility, and transportation fees.
For the full report, click on the following link, Pleasanton Development Impact Fee Nexus Study, but a summary of fee levels is below. Staff recommended fee levels be set by land use category (single family, multi-family, retail, office, industrial), at the maximum allowable limit per the Nexus Study, and that fees be adjusted accordingly to remain comparable with other nearby cities.