Agda Pkt 2026.07.07 Special Council Meeting

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Page 6 of 7 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org administration cost estimates increased to approximately $5 million to $11 million per year. The ongoing administration cost estimates now include repaying the startup costs through a five-year interfund loan, funding a two-month operating reserve, and providing free legal services to low-income tenants. The cost estimates in the supplement 9212 Report suggest that the initial fee rates set by the Proposed Ordinance would cover approximately 13 percent to 32 percent of the expected program costs6. While the City is unable to predict the exact level of compliance, it’s reasonable to assume that there will be some level of non-compliance with landlords paying the fee. Assuming a two to eight percent (2-8%) level of non-compliance, as cited in the June 8th staff report, the City could expect a potential funding shortfall between approximately $100,000 to $900,000 in annual program funding. As noted above, to help mitigate the potential impact of non-compliance the cost estimates now include a two-month operating reserve. If the City Council calls for an election to place the Proposed Ordinance on the November 3, 2026 ballot, the City will contract with the San Mateo County Elections Office to facilitate the election. The estimate for total election services, including one measure and three municipal officers is approximately $226,000- $408,000, depending on a variety of factors including the number of pages required to publish the text of the measure in the voter information pamphlet. Historically, it takes up to four months after the election to receive the final invoice for election services. The City currently has a budget of approximately $300,000 for election services. Should the costs exceed that, staff will need to seek a budget amendment. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. PUBLIC NOTICE Public notification was achieved by posting the agenda, with the agenda items being listed, at least 72 hours prior to the meeting. ALTERNATIVES No alternatives are available to the City Council. 6 The percentage of program costs that would be covered by initial fee rates depends on level of staffing and enforcement as well as the period of implementation, as costs are higher initially to repay one-time startup costs (years 1-5). 8.A. - Page 6 of 168 16