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Page 5 of 7 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />meeting. Subsequent action would be required by the City Council at a regular meeting to waive the <br />second reading and adopt the Proposed Ordinance. <br />If the City council chooses to submit the Proposed Ordinance to be voted on at the November 3, 2026 <br />election (Option b), the ballot question will be as follows: <br />“Shall the measure repealing Redwood City Municipal Code Chapter 42 and replacing it with a <br />new Chapter 42 that (1) limits rent increases on multifamily housing built before February 1, 1995; <br />(2) expands just-cause eviction protections to most rental housing, including single-family homes, <br />ADUs, and affordable housing; (3) requires new City administration estimated to cost $5-$11 <br />million annually, funded by annual landlord fees; and (4) increases relocation assistance for no- <br />fault evictions, be adopted?” <br />EQUITY IMPACT STATEMENT <br />Some equity impacts are considered in the supplemental 9212 Report, but it is not currently feasible to <br />provide an in-depth analysis of local impacts without significant additional cost and staff burden. Should <br />the City Council request it, staff can provide an equity analysis separate from the supplemental 9212 <br />Report, at a to-be-determined later date. Should the Council choose option 1 (adopt the Proposed <br />Ordinance) or if City Council chooses option 2 and the Proposed Ordinance is approved by the voters, staff <br />would apply an equity lens to the implementation process. <br />FISCAL IMPACT <br />City engaged EPS to prepare the Initial 9212 Report and the associated cost was $25,875, and the <br />supplemental 9212 Report was an additional $25,900, for a total of $51,775. <br />The Proposed Ordinance includes an initial rental housing fee of $120 per unit, per year for fully covered <br />units4 and $84 per unit per year for partially covered units5. The Proposed Ordinance provides that the <br />City Council shall ensure that a fee is set at a level sufficient to fund the duties and responsibilities of the <br />program, and the actual fee amount will be determined by the City Council after the program provides a <br />recommendation to the City Council. The Proposed Ordinance requires that the program and staff will <br />only be funded by the fee and not from the general fund. However, the City shall front any necessary <br />funds to cover startup costs until the fees are collected. <br />Should the Proposed Ordinance be approved, preliminary estimates from the initial 9212 Report <br />suggested one-time start-up costs ranging from $320,000 to $690,000 as well as ongoing program <br />administration costs ranging from about $4 million to $10.1 million per year. However, after further <br />analysis and research, the supplemental 9212 Report is estimating one-time start-up costs ranging from <br />approximately $680,000 to $1 million. The increase in one-time costs reflects additional cost estimates <br />related to developing new job positions, recruiting, and onboarding. Additionally, ongoing program <br />4 Fully covered units are subject to all provisions of the Proposed Ordinance including rent stabilization <br />5 Partially covered units are not subject to rent stabilization but are subject to all other requirements of the <br />Proposed Ordinance <br />8.A. - Page 5 of 168 <br />15