ZĞƋƵĞƐƚĨŽƌWŽůŝĐLJŶĂůLJƐŝƐ;ŽƵŶĐŝůZĞĨĞƌƌĂůƐͿ
Department Rules Date Item Department Rep. Name/Ext. Councilmember Sponsorship Policy/Ordinance Subject Staff Recommendation܆ GREEN Adopt based on tradeoffs
outlined on next page
܆ YELLOW
efer to ĂůĂƚĞƌĚĞƐŝŐŶĂƚĞĚ
ĚĂƚĞŽƌƚŚĞĂŶŶƵĂůƵĚŐĞƚWƌŽĐĞƐƐ
܆ RED Recommend Council not
adopt nominated idea
܆ NEEDS CLARIFICATION OR
MORE TIME TO EVALUATE
Staff Evaluation
Is this already underway in a department work plan?
܆ Yes
܆ No
Is this time critical or an emergency?
܆ Yes
܆ No
Will this require substantial resources, staffing, budget, strategic support͕ŽƌƌĞƉƌŝŽƌŝƚŝnjŝŶŐĞdžŝƐƚŝŶŐǁŽƌŬƉůĂŶ? ܆ Yes
܆ No
Criterion to Determine Scale of Project ComplexityProject complexity is determined by scoring the project in each of the 3 criterions below and then summing the score. a. Low Complexity is a sum of 6 or less.b. Medium Complexity is a sum of 7 – 9. c. High Complexity is a sum of 10 or greater.
Total Score =
Scoring Criterion
Low Complexity Medium Complexity High Complexity
Estimated Duration 6 – 9 months
܆ =1 9 - 18 months
܆ =2 More than 18 months
3 =܆
Organizational Complexity (Internal)
Can easily be absorbed into existing work plan
܆ =1 Planned work (future)
܆ =2 Work not currently proposed
3 =܆
Have staff with required skillset/knowledge
܆ =1 Have staff with required skillset/
requires moderate research
܆ =2 Do not have staff with required
skillset/requires significant research
3 =܆
Less than or equal 2 staff required
܆ =1 3 - 4 staff required
܆ =2 More than 5 staff required
3 =܆
(External) 1 Additional department; no
community outreach required
܆ =1 2 Other departments Involved;
some community outreach required
܆ =2 3 or more departments and/or external
partners involved; significant community outreach required 3 =܆
DEPT.
Required
܆ Airport
܆ Auditor
܆ CMO
܆ OEDCA
܆ ESD
܆ Fire
܆ HR
܆ IT
܆ PRNS
܆ Police
܆ Retirement
܆ Attorney
܆ Clerk
܆ CMO –
Budget
܆ Community
Energy
܆ Finance
܆ Housing
܆ IPA
܆ Library
܆ PBCE
܆ PW
܆ DOT
CMO Approval: Date
PBCE February 11, 2026 C.1Chris Burton Ortiz, Cohen, Mulcahy, CaseyScaled Development Fee Framework andDeferred Development Impact Fees 8 /s/ Lee Wilcox 2/4/2026
✔
✔
✔
✔
AnalysisExplain the rationale for staff recommendation, including any mitigating factors that need to be considered (recent legislative action, significant work plan changes, etc.). Please address the following as well. GREEN LIGHT: The Administration can implement this nominated idea under its current work plan. Item should be sent to Council to add to department work plan. (1) How will the idea be approached? (2) If adopted, what is its impact and/or tradeoff to the City Council Focus Area or to a department work plan, including strategic support? (3) What is the minimum viable scope to move the idea forward and reduce its complexity? YELLOW LIGHT: ĚŵŝŶŝƐƚƌĂƚŝŽŶƌĞĐŽŵŵĞŶĚƐŽƵŶĐŝůĚĞĨĞƌƚŚŝƐŶŽŵŝŶĂƚĞĚŝĚĞĂƚŽĂůĂƚĞƌĚĞƐŝŐŶĂƚĞĚĚĂƚĞŽƌƚŚĞĂŶŶƵĂůƵĚŐĞƚWƌŽĐĞƐƐĚƵĞƚŽ;ĚĞƐĐƌŝďĞĐŽƐƚŝŵƉůŝĐĂƚŝŽŶƐ͕ǁŽƌŬůŽĂĚŝŵƉĂĐƚƐ͕ŽƌŽƚŚĞƌĨĂĐƚŽƌƐͿRED LIGHT: The Administration recommends Council not to adopt this nominated idea due to (describe reason implementation would be difficult if not impossible – conflict with other laws, etc.).
Staff proposes to advance the proposal through three related workstreams: 1. Development Fee Framework Within the interdepartmental Housing Catalyst Workplan, staff is developing a standardized approach to City impact fees and construction tax estimates through the Development Fee Framework. The Framework is intended to establish a structured set of standards to better align current and future fee programs. It is also designed to improve transparency and provide a more straightforward method for projects to estimate City fees as they evaluate development opportunities. Continued...
Analysis (Continued)
Work to date has included forming an internal working group of departments with existing impact fee programs. The first phase is development of a City Council Policy that would define and memorialize the Development Fee Framework. The working group has prepared an initial draft of the Council Policy, which will require additional internal review and revisions. Staff intends to bring the policy to City Council for adoption by the end of this calendar year. 2. Fee payment timing and implementation checkpoints Through multiple incentive programs, including the North San José Traffic Impact Fee Incentive and the Downtown High-Rise Residential Incentive, staff has piloted allowing certain fees to be paid at Final Inspection or at issuance of the Certificate of Occupancy. In September 2024, the State enacted Senate Bill 937, which supports housing production by deferring payment of certain local development fees until issuance of the first Certificate of Occupancy or first Temporary Certificate of Occupancy. The law also prohibits local governments from charging interest on deferred fees. SB 937 applies only to specified project types and fee categories. In San José, it currently applies to certain Development Impact Fees, including Traffic Impact Fees in applicable areas and Parks Impact Fees. Staff will continue evaluating whether additional residential projects and additional local fees and taxes should be considered for similar treatment, based on operational feasibility and fiscal impact. Currently, most fees are due at issuance of building permits, which provides an appropriate checkpoint to confirm fee alignment with the approved project scope and to avoid downstream construction delays. To accommodate expanded fee deferral, staff is developing new process checkpoints to ensure projects are not delayed at later stages due to outstanding fees. Staff will return with the updated Development Fee Framework described above, including an implementation update on this program. 3. Aligning NOFA timing with State cycles In coordination with the Housing Department, staff is evaluating how best to align the City’s Notice of Funding Availability cycle with the State’s funding cycle. This includes, but is not limited to, issuing preliminary letters of commitment at the time of application that remain subject to final City Council approval.