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Preliminary fee results will be presented to City staff for their review, and comments will be incorporated into the final fee results. In our experience, at least two rounds of fee calculation and review are typically required before consensus is reached, and that level of effort is included in the cost estimate. The RFP indicates that equity issues for developers will need to be addressed for fees that have already been paid versus future payments if significant fee adjustments occur because of: 1) land use revisions, and/or 2) revised cost estimates. Determining the exact effect of land use changes on the fee program will be difficult and the effect will likely be limited. The greater effect will occur from revised cost estimates and the potential removal of the Woodside Road widening projects. It is possible that all of the changes will offset one another. We proposed to review the change in fees and consult with city staff as to how any discrepancies might be quantitatively addressed within the proposed study budget. The preliminary results of the fee update will be presented to a group of stakeholders (i.e., developers) prior to completion of the draft report. Task 11-4 - Evaluate Fee Variations/Exemptions/Credits The original fee program based the TIF on the total number of planned dwelling units (except for the Redwood Shores area) including the Downtown core. When new Downtown uses were exempted from the fee in 2003, the per trip fee was not adjusted and the overall revenue stream was diminished. This ordinance amendment was deemed acceptable to foster Downtown economic development. To address the effect of the Downtown exemption on the fee structure to date, we will identify the amount of revenue that was not collected since the exemption was enacted, and the amount that may be exempted through July 1, 2006. City staff will provide development data. We will also review the principles of the Downtown Precise Plan in evaluating the exemption and recommending the extension of it and the corresponding duration. Information on potential fee reductions to account for lower vehicle trip generation in the downtown core because of mixed-use and transit accessibility will also be provided. As part of this task, we will craft policy language on the application of a fee credit allowance for recently occupied land uses and conversion of land uses. We have researched this practice in other jurisdictions and will identify issues associated with a change in tenants or use. Task 11-5 - Documentation In addition to the technical memoranda described in the tasks above, we will document our analysis in a fee study report, which will be submitted to City staff for review and comment. A total of 10 copies of the draft report will be provided. Following receipt of comments, we will update the report for presentation to the City Council, and submit 10 copies of the final plus an electronic version of the report in PDF format. This scope does not anticipate changes to the project list as part of City review of the report. Task 11-6 - Meetings We will attend up to three project-level meetings, one stakeholder meeting, and one meeting of the Council as part of this work scope. The stakeholder meeting will be scheduled once staff has agreed to a draft version of the fee program. Attendance at additional meetings will be accommodated with an amendment to the budget. 6 fp I-lilR & PEEn