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6.B. - Page 1 of 29 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: February 10, 2020 <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, 2019 <br />RECOMMENDATION <br />Adopt a resolution accepting the annual report on receipt and use of impact fees for the year ending June <br />30, 2019 and making findings as required by the Mitigation Fee Act. <br />STRATEGIC PLAN GUIDING PRINCIPLE <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. Initially, <br />cities used this police power to charge fees in exchange for services and/or to pay enterprise fees for the <br />capital and operating expenses of utilities such as water, sewer or electricity. Over the past 50 years, new <br />laws which significantly impacted many California cities' fiscal situations, such as Proposition 13, have <br />gone into effect, and local infrastructure or resources not covered by enterprise fees have been <br />consistently underfunded. Examples of local infrastructure and resources not covered by enterprise fees <br />include transportation (roadways, sidewalks, signals, etc.), parkland and related facilities, schools, and <br />housing. <br />In response to the limited funds available for infrastructure and other resources, the California legislature <br />passed the Mitigation Fee Act in 1987. The Mitigation Fee Act is a law where newly created commercial <br />or residential developments are required to pay for expanded infrastructure or resources. In addition, the <br />Mitigation Fee Act allows for the use of funds for services if the service is identified in the nexus study as <br />Page 1 of 6 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />23 <br />