CITY COUNCIL STAFF REPORT
Meeting Date: June 1, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT ORDINANCE NO.__ AMENDING CHAPTER 5.55, TRAFFIC
MITIGATION FEE, OF THE CITY OF PLEASANT HILL MUNICIPAL
CODE WITH AN UPDATED TRAFFIC IMPACT FEE NEXUS STUDY
SYNOPSIS
The Traffic Impact Fee (TIF) is a development impact fee authorized under the Mitigation Fee Act (AB 1600) to fund transportation improvements required to accommodate growth from new development. The Traffic Impact Fee Nexus Study and Fee Calculation Guidelines, prepared by Fehr and Peers and dated April 16th, 2026, calculates the recommended fees and provides a legally defensible framework to ensure that new development contributes proportionately to the cost of transportation improvements necessitated by growth. The Nexus Study suggests that the City increases their fee from the current rate, which was previously established from a study performed in 2003.
The ordinance (See Attachment “A”), amending Chapter 5.55 of the Pleasant Hill Municipal Code (“PHMC”) was introduced at the City Council Meeting on May 18, 2026. It is now ready for the second reading, also known as the adoption.
Should the ordinance be adopted, it will become effective 30 days later on July 1, 2026.
FISCAL IMPACT
The new methodology will provide a legally defensible framework behind imposing traffic impact fees on new development. If the ordinance does not change and the TIF remains the same, the City will have insufficient funding to address traffic issues resulting from future development and population increase.
PUBLIC CONTACT
Public Contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page. The TIF Study and Fee Calculation Guidelines were posted on the City’s website on April 17th, 2026.
Additionally, the proposed TIF ordinance update was posted in the newspaper on May 11th and May 20th.
RECOMMENDED CITY COUNCIL ACTION
Adopt Ordinance No.__ Amending Chapter 5.55, Traffic Mitigation Fee, of the City of Pleasant Hill Municipal Code Adopting an Updated Traffic Impact Fee Nexus Study.
ALTERNATIVES TO RECOMMENDED ACTION
None recommended.
Should the Council not authorize the ordinance update, the City will not be able to collect a TIF.
In that case, the Council could elect to subsidize future projects using General Fund resources; otherwise, future Capital Improvement Projects may face insufficient funding.
ATTACHMENT(S)
Proposed Ordinance
Prepared by: Laetitia Porta, Senior Civil Engineer
Reviewed by: Ann James, Public Works Director
Approved by: Ethan Bindernagel, City Manager