RESOLUTION NO. -26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL AUTHORIZING UPDATED TRAFFIC IMPACT FEES AND IMPLEMENTING A THREEYEAR PHASED INCREASE WHEREAS, in 1989, the Traffic Impact Fee is authorized under the Traffic Mitigation Fee Act (Assembly Bill 1600) and is intended to fund street and transportation improvement projects necessary to accommodate growth resulting from new development; and WHEREAS, the City’s current citywide Traffic Impact Fee (TIF) program was established in 2003. The current program is based on a “system equity” approach, in which the TIF is based on a cost per trip using the citywide built infrastructure as the cost basis. As required by state law, City staff includes the TIF program in the City’s annual financial reports, and, per Municipal Code
5.55.050, the traffic mitigation fee is increased annually based on the construction cost index; and WHEREAS, the Mitigation Fee Act requires that development impact fees be supported by a nexus analysis demonstrating a reasonable relationship between the impacts of new development, the need for public facilities, and the amount of the fee charged; and WHEREAS, the new Traffic Impact Fee Nexus Study and Fee Calculation Guidelines recommends an increased fee, consistent with the new methodology, to ensure that new development contributes its fair share toward mitigating transportation impacts; and WHEREAS, the new fee calculation is based on the total costs eligible for inclusion in the TIF program ($33,960,300 total) divided by the projected amount of growth in Adjusted Daily Trips anticipated to occur between 2025 and 2035 (4,589); and, WHEREAS, on November 5, 2025, the Budget Committee recommended a phased approach with a gradual increase over three years and Construction Cost Index adjustments capped at four percent each year; and,
WHEREAS, on May 18, 2026, the City Council adopted a new Traffic Impact Fee Nexus Study and Fee Calculation Guidelines; and,
WHEREAS, the City Council now desires to establish the charges proposed by the Traffic Impact Fee Nexus Study.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that,
SECTION 1. The City Council hereby authorizes the FY 26/27 Master Fee Schedule to update the Traffic Impact Fee to the following with an adoption date of June 15, 2026, and effective date of September 1, 2026:
Single-Family Residential: $5,102 per unit
Multi-Family Residential: $3,872 per unit
Commercial: $12.70 per square foot
Office: $9.81 per square foot
Industrial: $3.97 per square foot
Other Uses: $529 per trip
SECTION 2. The fee will be implemented using a phased approach of a three-step increase over the course of three years with approval of the Master Fee Schedule in June and will take effect on September 1 for FY 26/27. FY 27/28 and FY28/29.
SECTION 3. The fee will be automatically adjusted on an annual basis upon adoption of the Master Fee Schedule in June and will take effect on September 1st, using the Engineering News Record (ENR) 20-City Construction Cost Index, with an annual adjustment cap of four percent (4%).
ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 1st day of June, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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ZAC SHESS, Mayor
ATTEST:
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LYONE P. CONNER, City Clerk