Redwood City Council Regular Meeting - February 26, 2024

The Redwood City Council met on February 26, 2024, at 6:00 PM. The meeting included a closed session with no reportable action, recognition of Boys and Girls Club Youth of the Year participants, public comment on the consent calendar and general matters, a public hearing on solid waste rates, and discussion of an aggregate fee burden analysis and mid-year budget update. The council voted unanimously on several items, including the consent calendar, solid waste rate increase, and budget framework.

Consent Calendar

• Approved unanimously (6-0) without discussion: Investment report for period ending December 31, 2023; amendments to agreements with Strategic Economics Inc., Economic and Planning Systems Inc., and ELS Architecture and Urban Design; approval of Pro Housing Incentive Pilot Program funds; approval of February 12, 2024, City Council minutes; and approval of claims and checks from February 26 to March 11, 2024.

Public Comments & Testimony

• General Public Comment (Item 6): Fifteen speakers (12 in person, 3 emailed) addressed the council. The majority urged the council to pass a ceasefire resolution on Palestine at the March 11 meeting, citing the ongoing humanitarian crisis in Gaza. Key points: Alice Robinson (Jewish American, supports ceasefire for unity); Sima Shami (described family trapped in Gaza, 30,000 dead, 69,879 injured, 1.5 million displaced); Michelle Riaz (honored Aaron Bushnell, asked to not be complicit); America Yamaguchi (formerly homeless, student, argued $1.1 million from Redwood City taxpayers goes to Israel military, urged redirecting funds to local needs); Brandon H (distributed pamphlets, denounced genocide, called for ceasefire); Nam Lee (distressed tax dollars funding bombs); Mary Bernier (did not speak); John Howat (Palestinian, showed father's death certificate from Palestine, asked for ceasefire); Zach Kleiman (emphasized interconnectedness of Jewish and Palestinian safety, supported ceasefire); Jackson Peterson (promoted GovGPT AI tool for city governance); Marcelena Luna (appealed to humanity, cited poet Mahmoud Darwish); Valerie Robinson (asked council to support ceasefire). Emailed comments: Rona Gundrum (requested outreach to homeless near Navigation Center, praised barbershop providing free haircuts); Kennedy Matern (urged ceasefire, noted identity as queer Pacific Islander); Chris Robell and Chris Wright (objected to $1.023 million in consultant contracts for tax and fee increases, alleged push polling by Godby Research, cited Government Code 54964).
• Public Hearing on Solid Waste Rates (Item 8A): One emailed comment from Chris Robell and Chris Wright criticized the city's use of consultants to raise utility rates and called for a cost reduction subcommittee. No in-person speakers. No majority protest was filed.
• Public Comment on Fee Burden Analysis (Item 9A): Three in-person speakers and four emailed. Leo McCarroll (American Legion Post 105) requested reduction of park impact fees for their project at 651 El Camino Real, citing community benefits for veterans and low-income housing. Bob Mendelson supported the request, noting the Legion's long history of free community use. Chester Palasol Sr. echoed the request. Emailed comments: George W. Smith (same request); Kevin Guabara (opposed increased fees, said they reduce jobs); Veronica Klein (Tishman Speyer, asked for pipeline projects to be subject to fees at initial application submittal); Mark Manning (called bedroom addition fees excessive and disproportionate).

Discussion Items

• Solid Waste Rate Increase (Item 8A): Public Works staff presented a proposed $7/month increase on all cart sizes (from $12 projected) to meet a $26 million revenue requirement for 2024, due to contractual cost increases and a new disposal contract. The increase is reduced from $12 by using one-time funds ($1.2 million balancing account, $348,000 cap carry forward, $481,000 Rethink Waste stabilization fund). The new rates keep Redwood City below average for 20- and 32-gallon carts, slightly above for 64- and 96-gallon. The council discussed the URAP assistance program (currently 250 households, increasing credit by $5/month). Councilmember Howard noted the need for multi-year planning. The item was approved unanimously (6-0).
• Aggregate Fee Burden Analysis (Item 9A): Staff and consultant EPS presented a comparison of impact fees across seven peer cities for multiple development prototypes. Key findings: Redwood City is generally in the middle, with the highest fees only for single-family bedroom additions (parks fee per bedroom). Staff recommended: (1) exemptions for ADUs, bedroom additions, and child care facilities; (2) TIFF discounts within AB 2097 area (38% residential, 25% non-residential) and 38% discount for affordable housing outside that area; (3) expire TIFF phasing in July 2024; (4) inform applicants of existing fee deferral ordinance; (5) monitor pending legislation. Council debated an additional option to reinstate 50% parks fee discount for pipeline projects (nine projects, 521 units, representing 10% of RHNA, $8.1 million in lost revenue). Councilmember Aiken and Vice Mayor Espinoza-Garnica opposed the discount, citing existing park deficits and financial uncertainty. Councilmember Sturkin made a motion to adopt staff recommendations plus direction to study the pipeline project option, specifically for projects with community facilities. The motion was seconded by Councilmember Martinez-Sabayos and amended to direct staff to study the option and return with analysis. The motion passed 6-0.
• Mid-Year Budget Update (Item 9B): City Manager Melissa Diaz presented the FY2023-24 mid-year budget update. Key points: 75% of departmental goals on track; economic challenges from soft property and sales tax, high commercial vacancy, and state funding uncertainties. Preliminary forecast: $18 million operating balance for current year, $7 million to cover projected FY2024-25 deficit, with a recommended framework including 80% of remaining balance to liabilities and 20% to one-time priorities (deferred to February 2025). Council discussion included support for the framework, concerns about pension liabilities ($312 million unfunded as of 2022), and a suggestion to redirect unclaimed currency ($45,000) from police equipment to the PACE program. The council voted to approve all six staff recommendations, including the budget framework, mid-year adjustments, and appropriation of unclaimed currency for police equipment. Motion passed 6-0.

Key Outcomes

• Consent Calendar: Approved 6-0.
• Solid Waste Rate Increase: Resolution adopted 6-0, with new rates effective March 1, 2024.
• Fee Burden Analysis: Council directed staff to prepare implementing resolutions for the five staff-recommended items (exemptions, TIFF discounts, phase-out, etc.) and to study the pipeline project option for parks fee discount, focusing on projects with community facilities, and return with options (current fee at time of application vs. 50% discount). Motion passed 6-0.
• Mid-Year Budget Update: Approved 6-0, including the budget framework, mid-year budget amendments, and direction for FY2024-25 budget development.
• Meeting Extended: Motion to extend meeting to 11:15 PM and then to 11:30 PM, both passed.
• Adjournment: Meeting adjourned at 11:30 PM in memory of Margaret "Peggy" Ellen Clifford.