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Page 4 of 7 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org Impact Fee are currently set at the same rate because the impact fee represents the proportionate costs of providing an affordable unit. Similar to the Affordable Housing Impact Fee, the fee is used to fully fund or subsidize the construction of housing that is affordable to extremely low, very low, low, moderate incomes, consistent with the goals and policies contained in the City’s Housing Element and may also be used to fund the preparation of related technical studies. 3. Art in Public Places6 The Art-in-Public Places In-Lieu Fee allows new commercial developments exceeding 50,000 square feet to make a payment instead of providing an on-site art installation. The purpose of the Fee is to support art in public places by maintaining, refurbishing, preserving, or providing public art. Description of Capacity Fee Programs In FY 2023-24, the City started with four capacity fees. On January 22, 2024, Ordinance 2533 updated and amended these to three capacity fees. Capacity fees are typically related to utilities such as water or wastewater and are used to cover costs associated with expanding the associated infrastructure systems to accommodate increased demand by new development. 1. Wastewater Treatment Capacity Fee7 The Wastewater Treatment Capacity Fee (also sometimes referred to as the “Sewer Treatment Capacity Fee”) fee is a one-time charge that the City collects on behalf of Silicon Valley Clean Water (“SVCW”). This passthrough fee is imposed on residential and non-residential customers that require new or expanded connections to the City’s wastewater system. The purpose of this fee is to provide funding to compensate SVCW for the additional capacity required for new or expanded wastewater connections within the City. Wastewater Treatment Capacity fees are deposited into Account 688 and passed through to Silicon Valley Clean Water at the close of each fiscal year. As such, the Water Treatment Capacity account balance is $0 each year, and the City does not direct or control project-specific expenditures. 2. Wastewater Collection Capacity Charge8 The Wastewater Facilities Fee was modified by Ordinance 2533 adopted on January 22, 2024 and was renamed the Wastewater Collection Capacity Charge (also sometimes referred to as the “Sewer Collection Capacity Charge). It is a one-time charge that is imposed on new development to fund a proportionate share of the costs of existing and future wastewater system facilities and assets that are reasonably necessary to provide wastewater collection capacity to new development. Eligible expenditures are included in the City’s CIP and 6 Section D of https://library.municode.com/ca/redwood_city/codes/city_code?nodeId=CH45PUAR_S45.090PRPUVIARCEPRDE 7 https://library.municode.com/ca/redwood_city/codes/city_code?nodeId=CH27SASEFA_ARTIXFECH_S27.101WATR CACHWACOCACH 8 https://library.municode.com/ca/redwood_city/codes/city_code?nodeId=CH27SASEFA_ARTIXFECH_S27.101WATR CACHWACOCACH 6.A. - Page 4 of 55 9