Redwood City Council Meeting Summary - February 27, 2023

The Redwood City Council met on February 27, 2023, at 6:00 PM. The meeting included a closed session on anticipated litigation, public comments, approval of a consent calendar, a labor agreement with the Police Officers Association (POA), and a comprehensive budget update and mid-year review. The council also heard from residents about creek flooding and infrastructure needs, and discussed financial challenges including a projected $10 million annual operating deficit and a $360 million capital funding gap.

Closed Session

• The council adjourned to closed session for a conference with legal counsel on anticipated litigation, returning after approximately 45 minutes with no reportable actions.

Public Comments & Testimony

• Greg Biles (G Street resident) requested creek maintenance and bridge upgrades for Cordilleras Creek, noting that one bridge on Stafford Street was built in 1908.
• Chris Roble criticized the city's financial management, citing a $360 million capital funding gap and a $10 million annual operating deficit. He urged prioritizing spending cuts over new taxes and opposed items like diversity consultants and furniture contracts.
• Cameron Moody advocated for making the Spring Marshall Parklet dog park permanent, calling it a significant improvement.
• Clara Jackal (police advisory committee member, speaking as an individual) urged investment in programs addressing root causes of inequity rather than deterrent or punitive measures.
• Debbie Joy (Stafford Street resident) reported her property flooded twice on December 31, 2022, with over $17,000 in damages. She urged the city to allocate funds for creek maintenance and bridge upgrades.
• Marcelina Luna (Centennial Neighborhood) and Denise Kowaji (G Street) also requested funding for Cordilleras Creek bridges and maintenance, and called for changing the ordinance that places creek maintenance responsibility on adjacent residents.

Consent Calendar

• The council unanimously approved the consent calendar (7-0) via roll call. Items included:
  • Award of contract for Maple Street Shelter Hazardous Materials Remediation Project.
  • Amendment to agreement with AECOM for design services for the 101/84 interchange reconstruction.
  • Ordinance amending membership criteria for city boards, commissions, and committees.
  • Application for the Pro Housing Designation Program and Pro Housing Incentive Pilot Program.
  • Approval of February 11 and February 13, 2023, meeting minutes.
  • Approval of claims and checks from February 27 to March 13, 2023.

Discussion Items

8A: Police Officers Association Memorandum of Understanding (MOU)

• Staff presented a three-year agreement (August 30, 2021 – August 25, 2024) with the Redwood City Police Officers Association. Key provisions:
  • Salary increases: 3% cost-of-living adjustment (COLA) effective February 27, 2023; 1.5% market equity adjustment; and an additional 2.5%–5% market equity adjustment in September 2023 based on a compensation survey.
  • Lump sum retroactive payments for the period when the POA was out of contract.
  • Changes to retiree health benefits: Current employees will contribute 1.8% of base salary toward the unfunded liability. For new hires after January 30, 2023, industrial disability retirement benefits change from family to single-party coverage. The city will also establish a retiree health savings account with $40 per month contributions from both the city and the employee.
• Councilmember Howard noted that the agreement was reached after long negotiations and thanked staff. The city manager confirmed that staffing studies for police and fire are expected in April and May.
• The council unanimously approved all three actions associated with the MOU.

8B: FY2021-22 Year-End Budget Update, Mid-Year Update for FY2022-23, and FY2023-24 Budget Framework

• The city manager and assistant city manager presented a detailed financial outlook. Key points:
  • The city faces a $360 million funding gap for capital projects and a $10 million annual operating deficit (approximately 7% of the operating budget).
  • General fund revenues: 40% from property taxes, 20% from sales tax. The city projects a 1.2% softening in sales tax for FY2022-23 and a 5% decline in FY2023-24, followed by moderate growth.
  • Unfunded pension liability stands at $218 million (as of June 2021); CalPERS funding dropped from 65% to 62% due to negative investment returns.
  • Staffing challenges: Population growth has outpaced staffing increases; low unemployment (2.5%) and high cost of living make recruitment difficult.
  • Planned studies on police and fire service levels will be presented in April and May.
  • The proposed framework for FY2023-24 includes continuing financial best practices, advancing strategic priorities, studying cost recovery, and exploring new revenue sources (e.g., cannabis taxes, business license tax, hotel tax, property transfer tax).
• Public comments reiterated concerns about creek flooding and urged the city to prioritize maintenance.
• Council discussion included questions about past revenue measures, the retroactive pay differential for police executives (5% retroactive to June 2021), and the need to avoid compaction. Councilmember Howard stressed the importance of including San Carlos in creek maintenance discussions.
• The council unanimously approved the mid-year budget amendments, the classification and salary plan amendment, and the framework for developing the FY2023-24 budget.

Key Outcomes

• Consent Calendar: Approved unanimously (7-0).
• Police Officers Association MOU: Approved unanimously (7-0).
• Budget Update and Framework: Approved unanimously (7-0), including the mid-year budget amendments, classification/salary plan amendment, and the proposed budget development framework.
• Directives: Staff will continue work on the FY2023-24 budget, with a recommended budget due in June. The city will hold a community meeting on Cordilleras Creek in mid-March. The police and fire staffing studies are scheduled for April and May. The finance and audit committee will further explore revenue options, including cost recovery and potential new taxes.
• Committee Reports: Councilmember Sterkin reported on Commute.org and Airport Land Use Committee meetings; Councilmember Howard reported on her election as vice chair of the Housing Endowment Regional Trust (HEART) Board; Councilmember Aguirre reported on the Joint Venture Silicon Valley State of the Valley; Councilmember Aiken reported on the Council of Cities dinner.
• City Manager Report: Melissa Stevenson Diaz updated on the February 22-23 power outages, thanking city staff for response, and noted her attendance at a Center for Public Safety Excellence board meeting.