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6.F. - Page 1 of 31 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: January 28, 2018 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Acceptance of Report on Impact Fees Received for Fiscal Year ending June 30, 2018 <br />RECOMMENDATION <br />Adopt a resolution accepting the annual report on receipt and use of impact fees for the year ending <br />June 30, 2018 and making findings as required by the Mitigation Fee Act. <br />STRATEGIC INITIATIVE <br />Community Building and Communication <br />BACKGROUND <br />The California Constitution grants cities broad discretionary power to protect the public health, safety, <br />and welfare of its residents, commonly referred to as police power. This police power allows cities to act <br />in the interest of residents to enact and enforce regulations that are not in conflict with state law. <br />Initially, cities used this police power to charge fees in exchange for services and/or to pay enterprise <br />fees for the capital and operating expenses of utilities such as water, sewer or electricity. Over the past <br />40 years, legislation has been passed which significantly impacted many California cities' fiscal situations <br />such that local infrastructure or resources not covered by enterprise fees have been consistently <br />underfunded. Examples of local infrastructure and resources not covered by enterprise fees include <br />transportation (roadways, sidewalks, signals, etc.), parkland and related facilities, schools, and housing. <br />In response to the limited funds available for infrastructure and other resources, the California <br />legislature passed the Mitigation Fee Act in 1987. The Mitigation Fee Act is a policy where newly created <br />commercial or residential developments are required to pay for expanded infrastructure or resources. <br />However, in order for there to be a requirement, cities must adopt local ordinances to establish the <br />collection of specific mitigation fees, which are also known as development impact fees ("impact fees"). <br />Redwood City has adopted three impact fees (in chronological order): <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />301 <br />