Redwood City Council Meeting June 10, 2024: Budget Study, Appointments, and Investment Policy Discussion

The Redwood City Council met on June 10, 2024, for a regular meeting that included proclamations, a presentation from Peninsula Clean Energy, public comment, consent calendar actions, a public hearing, appointments to multiple boards and commissions, and a budget study session. The council approved most consent items, discussed investment policy and social responsibility, set a public hearing for the FY2024-25 budget, and made numerous appointments.

Presentations & Acknowledgments

• Proclamations were presented to outgoing Senior Affairs Commissioners Barbara Britsky and Hal Dreger for their long-standing service, particularly advocacy for the new Veterans Memorial Senior Center. The center's ribbon cutting is expected in December 2024.
• Peninsula Clean Energy (PCE) CEO Sean Marshall presented on PCE's achievements: rates 10–15% below PG&E, near-zero emissions since 2020, $17.4 million in savings for Redwood City customers since 2016, 218 EV chargers installed with 304 more in development, and a $1.3 million member agency energy grant allocated to Redwood City. PCE also offers zero-percent loans up to $10,000 for home electrification and e-bike rebates. The board will consider further rate reductions in July 2024.

Public Comments & Testimony

• Item 6 (Public Comment on Consent & Non-Agenda Items): 12 in-person speakers and 6 emailed comments.
  • Multiple speakers urged the council to pull Item 7D (investment policy) from the consent calendar, demanding disclosure and divestment from companies (Toyota, Hyundai, Microsoft, Intel) they said profit from Israel's actions in Gaza. Speakers cited the city's $330 million portfolio and noted Hayward, CA had divested.
  • Other comments addressed reducing speed limits near schools, creek flooding on Cordilleras Creek, support for the pedestrian mall (7G), and concerns about the Business License Tax ad hoc committee process.
• Item 9C (Budget Study): Three in-person speakers and six emails (many form letters) advocated for maintaining funding for bike lanes, especially on El Camino Real, citing safety, health, and economic benefits.

Consent Calendar

• Items approved unanimously (6-0, Councilmember Aguirre absent): Routine approvals including the annual appropriations limit, financial report, investment report, contracts, ordinances, and claims. Items 7D, 7K, 7N, and 7O were pulled for separate discussion.

Discussion Items

• Item 7D – Investment Policy Annual Review: Councilmembers discussed the city's existing ESG (environmental, social, governance) approach, which currently excludes fossil fuels. Staff noted that exploring social justice divestment (e.g., from companies allegedly supporting war) is complex and would require study. The council voted 6-0 to approve the policy with a referral to the Finance and Audit Committee to consider expanded social criteria.
• Item 7K – Speed Reduction to 15 mph near Schools: Two schools (Roosevelt Elementary and Henry Ford Elementary) were selected for a pilot using county grant funds, based on city jurisdiction and complementary traffic calming. Council approved unanimously after discussion about equity and potential expansion.
• Items 7N & 7O – Homeless Services Contract Amendments: The council discussed performance metrics for the Downtown Streets Team (job placements) and LifeMoves (coordinated outreach). Vice Mayor Espinoza Gamiño requested more detailed demographic data on housing placements. Both amendments were approved unanimously.
• Item 8 – Public Hearing on Sewer Charges: Staff recommended continuing billing sewer charges on the county tax roll for residential customers (year 3 of a 5-year pilot) and sunsetting the separate Sewer Assistance Program, transferring the remaining $61,000 to the Utility Rate Assistance Program. No public comments or protests were received. The council approved unanimously.
• Item 9A – Appointments to Boards, Commissions, and Committees: The council filled 25 seats across eight bodies after interviewing 73 qualified applicants. Appointments were made via roll-call voting, with some requiring multiple rounds. Key appointments: Arts Commission (Paul Nas, Ashley Kintana, Anna Westendorf, Pamela Swint full-term; Sweekreedy Ratnam partial-term); Board of Building Review (Daniel Maldon, John Philpot, George Samon); Board of Port Commissioners (Chu Chang, Michael Clare, Daniela Gasparini); Housing and Human Concerns Committee (Max Disher, Albert Lowe, Elon Scheinman); Library Board (Ann Callery, Jesse Davy Kessler); Parks, Recreation and Community Services Commission (Isabel Ling, Marcella Padilla Ng, Yoshabel Blanco); Planning Commission (Maggie Cornejo, Kimberly Koch full-term; Dylan Finch partial-term); Senior Affairs Commission (Jacqueline Hartman, Bill Newell, Stephen Aram, Alfredo Chorro). The council also voted to maintain the applicant pool for any vacancies through January 31, 2025, with an open recruitment for new applicants.
• Item 9C – Fiscal Year 2024-25 Budget Study Session: City Manager Melissa Stevens Diaz presented the recommended budget, highlighting a structural deficit averaging $9.3 million over the next 10 years due to pandemic revenue loss and rising costs. The capital budget shows a $428 million gap over five years. Community survey results prioritized roads, flooding, public safety, and youth programs. Staff recommended using $7.1 million in one-time funds for capital projects (road repair, curb ramps, stormwater, park maintenance, security camera program, etc.). Council discussion focused on: reallocating some of the $1 million for security cameras to a pilot/study with a contingency for matching grants; support for bike lane funding; and concerns about specific allocations. Councilmember Stirkin suggested redirecting $10,000 to the Fresh Lifelines for Youth program, but this did not gain consensus. The council set the public hearing and adoption for June 24, 2024, and directed staff to return with revised one-time fund allocations.

Key Outcomes

• Votes: All consent items (except those pulled) and the three pulled items (7D, 7K, 7N/O) were approved 6-0. The sewer resolution was approved 6-0. The budget resolution setting the June 24 hearing was approved 6-0.
• Referrals: The investment policy will be reviewed by the Finance and Audit Committee for potential social responsibility expansion.
• Appointments: 25 seats filled; applicant pool preserved for future vacancies.
• Budget Direction: Staff to revise the $7.1 million one-time capital allocation, reducing the security camera program to a pilot study and creating a contingency for matching grants, to be presented at the June 24 public hearing.
• Next Steps: The next regular meeting is scheduled for June 24, 2024, at which the council will adopt the final budget and consider continuance of the parks impact fee discount item.