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File Number: 25-347 development projects. If so directed, staff would prepare an Ordinance for future consideration by Council. BACKGROUND Pursuant to the Mitigation Fee Act (Government Code Sections 66000-66025), the City of San Leandro collects a range of development impact fees to mitigate impacts on public facilities from new development. The City’s development impact fees include Park Development Impact Fees, which are charged to single-family, multi-family, and ADU developments at a cost per unit to fund parkland acquisition and park improvements. The City’s current Park Development Impact Fee was adopted in 2000 and has not been comprehensively updated since 2005. Since that time, the State legislature has enacted significant changes to the legal framework governing development impact fees. The Mitigation Fee Act establishes the process and findings required for imposing, collecting, and using development impact fees in California. Key requirements include: ·Demonstrating a reasonable relationship (“nexus”) between the fee’s use and the type of development project. ·Showing a reasonable relationship between the need for the public facility and the type of development. ·Ensuring that the amount of the fee is proportional to the cost of the facility attributable to the development project. ·Identifying the purpose and use of the fees and adopting findings supporting the fee. ·Segregating fee revenue in separate accounts and preparing annual reports and periodic updates. AB 602, effective January 1, 2022, introduced additional requirements that affect this fee update: ·Fee Calculation Based on Square Footage: AB 602 mandates that residential impact fees be calculated proportionately based on the square footage of proposed units rather than solely on unit type (e.g., single-family or multi-family). ·Existing and Proposed Levels of Service: The nexus study must identify the existing level of service for each facility and, if proposing a higher level of service, explain why that increase is appropriate. ·Capital Improvement Plan (CIP): For jurisdictions over 250,000 residents or cities within such counties, a Capital Improvement Plan must be adopted with the nexus study to demonstrate how the fees will be used to expand facilities proportionate to new development. ·Public Transparency: The City is required to post the nexus study, fee schedules, and supporting documentation on its website. ·Periodic Updates: Nexus studies must be updated at least every eight years to ensure fees remain legally defensible and tied to current costs. The City’s 2023-2031 Housing Element contains a goal to increase housing production by removing constraints to residential development. The Housing Element includes various action items (Actions 10.8, 13.2 and 14.3) to ensure that the City’s development impact fees are not a constraint to residential development. These action items include the following: ·Prepare a comprehensive Impact Fee Study. ·Revise Park Development Impact Fees to reduce identified constraints to development. ·Identify the need for a standardized fee reduction and/or impact fee waiver program for affordable housing projects. Page 2 City of San Leandro Printed on 9/4/2025