Redwood City Council Meeting - April 1, 2024

The Redwood City Council met on April 1, 2024, at 6:00 PM, with the meeting extended to 11:30 PM. The agenda included presentations from the Sequoia Healthcare District and the Midpeninsula Regional Open Space District, a public hearing on sewer service charge increases, review of community survey results and feasibility of revenue measures, and a study session on the Capital Improvement Program (CIP). The council also acted on the consent calendar and received reports from subcommittees.

Consent Calendar

• Approved items 7A through 7L (with 7C pulled for discussion) unanimously. Items included: award of Easter Bowl and Glen Lock Tanks Seismic Improvement project; technology service agreement with Building Eye Inc.; amendment to agreement with Pacific Pyramid Group for hotel respite program; license agreement with Redwood City Kiwanis Club for farmers market; agreement with Terry Black & Company for executive recruitment; agreement with Liebert Cassidy Whitmore for labor negotiations; authorization of payment to Silicon Valley Clean Water for emergency sewer rehabilitation; final acceptance of main library boiler replacement; approval of two settlement agreements; approval of March 11 and March 18, 2024 meeting minutes; and approval of claims and checks.

Public Comments & Testimony

• General Public Comment: Pam Swint, a resident with multiple sclerosis, advocated for the city to proclaim a Multiple Sclerosis Awareness Day (May 30, 2024). She highlighted the importance of early diagnosis and awareness. The council acknowledged her request.
• Public Comment on Sewer Rate Increase (Item 8A): No speakers in person; 24 written public comments were received, all opposed to the increase. The council noted the public's concerns.
• Public Comment on Revenue Measures (Item 9A): One speaker, Ty Tyson, a fifth-generation resident, expressed concern about the cumulative burden of taxes and fees on residents, suggesting that developers should bear more of the cost for city services.

Discussion Items

• Sequoia Healthcare District Presentation: Directors Bill Fong and Ivan Martinez, along with CEO Pamela Kurtzman, presented the district's mission, history, and grant programs. They highlighted over $4 million in annual grants, including funding for school nurses and mental health therapists. A proposal to convert their office into a dental clinic was discussed, with a cost estimate of $6 million, though a flood control issue (foundation two inches too short) is pending. Councilmembers asked about district boundaries and equity concerns, particularly regarding underserved areas like East Palo Alto and Bell Haven. The directors noted that boundary changes would require LAFCO and voter approval.
• Midpeninsula Regional Open Space District Presentation: Board members Margaret McNiven and Zoe Kristan Tucker, along with Governmental Affairs Manager Josh Hugg, presented on Midpen's 72,000 acres of open space, recent acquisitions (Cloverdale Ranch), wildfire resiliency efforts (increasing fuel treatment by 600% to 2,600 acres per year), youth outreach (including partnership with Siena Youth Center in North Fair Oaks), Highway 17 wildlife crossings, regional trail projects, and mountain lion research. Councilmembers praised the focus on underserved communities and workforce development for farm workers.
• Consent Calendar Item 7C – Park Impact Fee Exemptions: Councilmember Howard pulled the item for discussion. City Manager Melissa Diaz explained that the council is considering exemptions for ADUs over 750 sq ft, bedroom additions, and new child care facilities, with an estimated annual revenue loss of $300,000–$500,000. This follows a February 26, 2024 council discussion on fee burden. Councilmember Aiken clarified that this is separate from a larger $8 million fee waiver discussion to be brought back in May. The motion to approve 7C passed unanimously.
• Sewer Service Charge Increase (Item 8A): Public Works Director Terrence Jo and Wastewater Superintendent Robin Kim presented the proposed rate increases: 9.5% in FY2024-25, then 7% in each of the next two years. The increase is driven by capital needs at Silicon Valley Clean Water (SVCW) and aging infrastructure. The city maintains the lowest sewer rates among SVCW member agencies and below the median for San Mateo County. The Utility Rate Assistance Program (URAP) credit will increase from $20 to $25 per month. A reserve policy targeting 25% of O&M costs plus $2 million was also proposed. Councilmembers expressed reluctance but acknowledged necessity, noting that 46% of the increase is due to SVCW costs. The motion to approve the rates and reserve policy passed unanimously.
• Community Survey Results and Revenue Measure Feasibility (Item 9A):
  • Polco National Community Survey: Brandon Barnett presented results from 372 responses (margin of error ±5%). Highlights: Redwood City scored higher than national benchmarks in downtown vibrancy and attracting diverse backgrounds. Safety was rated highly, but utilities (including electricity/gas, not city-controlled) were identified as an area of lower quality relative to importance. Housing affordability was a concern (16% rated it excellent/good). The survey also showed declines in overall quality of life and direction, consistent with national trends.
  • Godby Research Public Opinion Survey: Brian Godby presented results from 603 likely voters (margin of error ±4%). The survey tested two hypothetical revenue measures: a real property transfer tax and a business license tax reform (gross receipts model). The transfer tax started at 52.6% support and dropped to 51.4% after information, remaining below the simple majority threshold. The business license tax reform started at 56.2% and rose to 59.9% after information, exceeding the threshold. Staff recommended further research on the business license tax (gross receipts) and suspending work on the property transfer tax.
  • Council discussion: Councilmembers Aiken, Howard, Sturkin, and Vice Mayor Espinoza-Garnica supported the staff recommendation, emphasizing careful study and community engagement. Mayor G expressed concerns about the lack of a clear definition of gross receipts and potential impacts on businesses, preferring a broader study including other models. The motion to direct staff to further research the feasibility of a business license tax (gross receipts model) and suspend research on property transfer tax passed 6-1, with Mayor G opposed.
• Capital Improvement Program (CIP) Study Session (Item 10A): Assistant City Manager Michelle Poche Flaherty, along with department directors, presented the FY2024-25 CIP and five-year plan. The city faces a $52 million shortfall in requested capital outlay funding ($39.1M requested vs. $8.3M available). Over five years, the estimated shortfall is $42 million. Staff highlighted completed and ongoing projects (e.g., Veterans Memorial Building/Senior Center, Dolphin Park playground, Hoover Park renovation) and deferred projects (e.g., ADA compliance, sidewalk repairs, pavement management). Councilmembers thanked staff and noted the need for future bond measures to address infrastructure gaps. No action was taken; the study session will inform the June budget.

Key Outcomes

• Consent Calendar: Approved unanimously (items 7A-7L except 7C).
• Item 7C – Park Impact Fee Exemptions: Approved unanimously.
• Item 8A – Sewer Service Charge Increase: Approved unanimously. Rates will increase 9.5% in FY2024-25, then 7% in each of the next two years. URAP credit increased to $25/month. Reserve policy adopted.
• Item 9A – Revenue Measure Feasibility: Motion passed 6-1 to direct staff to further research the feasibility of a business license tax (gross receipts model) for the November 2024 ballot and to suspend research on a real property transfer tax. Councilmember G dissented. Community outreach and business roundtables will be conducted.
• Item 10A – CIP Study Session: No action taken; staff will incorporate feedback into the final budget proposal for June 26, 2024.
• Closed Session: No reportable action.
• Emergency Procurement: City Manager authorized emergency replacement of police department lobby doors (30-year-old system failed) on March 21, 2024. A summary will be presented to council.

Additional Notes

• The council received 152 emails on various topics, all part of the public record.
• The next regular council meeting is scheduled for April 15, 2024.
• Committee reports were given for Utilities Subcommittee, Two-by-Two-by-Two (school districts), Transportation and Mobility Subcommittee, Equity and Social Justice Subcommittee, and 101/84 Project Ad Hoc Committee.