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Managing Tomorrow’s Resources Today MEMORANDUM Page 6 of 11 RWC_Memo_19Dec2024 area that would be available for on-street parking. The depth of the area is the same as the width of a parallel parking space based on the City’s Municipal Code requirements. •All 19,656 accounts were included in the valuation of the area as the Agreement provides authorization to collect all containers within the right-of-way. The unit value of land was divided by the rental realization rate to convert the purchase value into a rental rate. This rental rate was applied to the square footage of the public right-of-way used for container collection throughout the City. The resulting public right of way rental value for solid waste containers is $507,383. Figure 4 summarizes the calculation of the minimum right-of-way encroachment value. For reference, the width of the cart is the measurement of the cart parallel to the curb and the depth of the encroachment is the length by which the cart extends into the street from the curb, thus preventing a car from occupying a space along the curb. Figure 4. Right of Way Encroachment Value Minimum ¹Median sale price for a single-family home in Redwood City as of August 2024 was $1,828,333. The median annual rent was $40,800. The minimum right-of-way encroachment value conservatively accounts for the value of land for a commercial or industrial-zoned parcel. However, the City’s parklet fee charged to restaurants that build sidewalk cafes in the public right of way, provides an alternative value of the land that is occupied by the containers and hauling vehicles during collection. A parklet fee is an annual permit paid for the use of on-street space by a restaurant. The parklet allows restaurants to expand outdoor service. The fee recovers the value of occupying the space for patron seating rather than for on-street parking. The City’s parklet fee was first adopted in 2023 and was last increased as of July 2024. Figure 5 summarizes the encroachment value if the value of the land is based on the parklet fee shown in Right of Way Encroachment Value Encroachment Area Wi dth per cart (ft)2.48 Spacing required between containers (ft)2.00 Number of containers 3 Depth of encroachment (ft)8.00 Total Area (sq ft)91.50 Value of land ($/sq ft)$88.74 Price-to-rent ratio¹44.81 Rental value of land ($/sq ft)$1.98 Total encroachment area per account 91.50 Encroachment rate/year $181.19 Total accounts in the City 19,656 Annual amount $3,561,440 % Use of Encroachment area (1 day per wk)14.2% Encroachment Value $507,383 ATTY/RESO.0003/CC RESO 2025 SOLID WASTE COLLECTION RATES & ADOPTING FRANCHISE FEE STUDY - EXHIBIT B REV: 01-14-25 MI Page 6 of 11