Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: APPROVAL OF AN AGREEMENT TO UPDATE THE NEXUS
STUDY FOR AFFORDABLE HOUSING DEVELOPMENT
IMPACT FEES
Date: September 23, 2025
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council approve the attached resolution authorizing the City Manager to execute an agreement with Willdan to update the Nexus Study for Affordable Housing Development Impact Fees and appropriate funds as outlined.
Background
The City Council recently adopted a Nexus Study Update for various development impact fees, which are scheduled to take effect on October 13, 2025. Separately, the City Council took action to eliminate development impact fees for high-quality lodging, deed-restricted affordable housing in inclusionary multi-family housing projects. The City Council also clarified the threshold for the imposition of development impact fees when remodeling or expanding existing residential and commercial properties.
As stated during the adoption of these updated fees, the next step is to review the nexus study for the affordable housing fees – both the Affordable Housing Fee for residential developments and the Linkage Fee for non-residential developments.
Analysis/Discussion
Development impact fees ensure that new development pays for their fair share of infrastructure improvements required to accommodate the growth rather than putting the burden on existing residents. To encourage entitled multi-family housing projects to move into construction, the City Council adopted a policy eliminating development impact fees on the deed restricted affordable units and then backfilling the lost impact fee revenue with funds from the affordable housing fund.
With the new demands placed on the affordable housing funds, as well as it being timely to review the cost of these fees, the City solicited the attached proposal from Willdan, the same consultant who updated the other City development impact fees.
As stated during the adoption of the other development impact fees, in addition to updating the Nexus Study, if the attached fee study is approved by the City Council, staff also intend to explore options to supplement affordable housing funding. It is anticipated that staff will return with options for City Council consideration concurrently with an updated Nexus Study.
Financial Considerations
The Nexus Study Update proposal is for a not to exceed total of $35,500. Funding will come equally from the Affordable Housing and Linkage Fee Funds ($17,750 each) from the unappropriated fund balances as provided in the attached budget adjustment form.
Environmental Issues
Where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.
This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed resolution is exempt from CEQA pursuant to Section 14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment.