OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Redwood City Council Meeting: Business License Tax Modernization and Zoning Updates - July 22, 2024

City CouncilMonday, July 22, 2024
BodyRedwood City, California
SessionCity Council
DateMonday, July 22, 2024
StatusFILED
Video Record

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
5:19

Well, good evening, everyone, and welcome to our July 22nd, 2024 meeting of the Redwood City City Council.

5:25

Thank you for spending some time with us this evening.

5:28

We're continuing to offer in-person and remote options for city council meetings.

5:32

However, due to continued disruptions during public comment at open meetings throughout the region, we've modified our public comment procedures until further notice.

5:40

The city welcomes public comment on topics within the city's subject matter jurisdiction, and this can be provided in person during the meeting or by email ahead of the meeting.

5:50

At this time, we're temporarily suspending public comments by Zoom.

5:54

We want to ensure that the city can continue to conduct the city's business in a manner that allows all residents to participate.

6:01

We continue to reevaluate our public comment procedures and will share updates as necessary.

6:07

Our public comment procedures tonight for items on the agenda or within the city subject matter jurisdiction are as follows.

6:14

Public comment is taken in person during the meeting or in advance via email as outlined on the agenda.

6:21

Comments that were received via email by 5 o'clock P.M.

6:24

may be read aloud, time permitting, and in any case will be made part of the final meeting record.

6:30

In-person speakers must turn in a speaker card to the city clerk at the disc to be recognized to speak.

6:36

Please be sure to indicate the agenda item number you wish to speak on.

6:40

In-person speakers will be called in the order in which speaker cards were turned in.

6:45

If there is a high volume of public comment this evening, we may decrease the time allotted for each comment or limit the total time for public comment.

6:53

This is to ensure that the city council can address agenda items in a timely manner and is allowed under the city council's guide to communications and business.

7:01

In the event this occurs, please feel free to send your full comments to the city council at public comment at Redwood City.org so that we can see your comments and they will be part of the meeting record.

7:12

I'd like to turn the meeting over to our city clerk to call the roll.

7:14

Jessica.

7:18

Councilmember Aguirre.

7:20

Here.

7:20

Councilmember Aiken.

7:22

Present.

7:22

Councilmember Howard.

7:24

Here.

7:24

Councilmember Martina Savallos.

7:26

Councilmember Sturkin.

7:27

Here.

7:28

Vice Mayor Spinoza Garnica.

7:30

Here.

7:30

And Mayor G.

7:31

Present.

7:31

Thank you.

7:32

Thank you, Jessica.

7:33

Our next item is the Pledge of Allegiance.

7:35

I'd like to invite Councilmember Sterkin to lead us in the pledge.

7:38

Please join me for the Pledge of Allegiance as you're able.

8:22

Thank you, Mayor.

8:22

We have one speaker card and two emailed comments, totaling three this evening for this item.

8:27

Let's proceed with two minutes each.

8:29

Thank you.

8:30

Okay.

8:30

Our only in-person speaker for item number five, which is general public comment, is Pamela Estes.

8:40

Good evening, Mayor G and Council members.

8:42

I'm Pamela Estes.

8:43

I'm here on behalf of the Redwood City Parks and Arts Foundation.

8:46

And I just wanted to give you an update on what's been going on this summer.

8:50

As you know, we're a 501c3 nonprofit, and our one of our primary missions is to support the Parks Department and also to promote parks, recreational programming, arts, and culture within the city.

9:02

This summer has been vibrant with events like our chalk full of fun, which we hosted on July 3rd and 4th at Courthouse Square.

9:09

We had 30 volunteers support the event, which was free to anybody who wanted to sign up.

9:14

We had 104 amateur artists and 16 professional artists, which created stunning chalk art.

9:20

We wanted to express our gratitude to Lisa Duncan, who's a resident and volunteer who has served her fourth year as the Chalk Festival coordinator.

9:28

Another successful event which I'm still recovering from was Family Camp Out at Red Morton Park.

9:34

We had over 300 residents camping overnight in the park, and we're grateful for the 35 volunteers who supported the event, including eight off-duty Redwood City firefighters and cadets who were organized by Stephen Palazzo and Nick Grillo, who grilled 190 burgers, 90 hot dogs, and 40 veggie burgers for campers.

9:52

We continue to support music on the square each Friday night as we've done for many years now.

10:00

It's organized by volunteers to collect donations from concert goers during the Friday night concerts.

10:03

And from years of experience, we know that having three to four trusted volunteers each Friday night to so-called pass the bucket, which many of you have done and are familiar with, makes a big difference in collecting donations.

10:14

And so we invite council members and commissioners who sit on the boards and commissions as trusted volunteers to help us out on Friday nights.

10:22

We're excited to also talk to you about our upcoming fundraiser, Picnic on Blanc, which is scheduled for August 10 from 6 to 10 PM.

Discussion Breakdown — Share of Meeting
Economic Development████████████████████████████████32%
Budget and Fiscal Management████████████████████████████28%
Land Use Planning██████████10%
Public Comment█████████9%
Procedural████████8%
Community Engagement█████5%
Public Safety██2%
Personnel Matters██2%
Parks and Recreation1%
Summary of Proceedings

Redwood City Council Meeting Summary - July 22, 2024

The Redwood City Council met on July 22, 2024, to address a range of items, most notably the proposed modernization of the business license tax, which was ultimately approved for the November ballot with amendments. The council also made appointments to city committees and adopted zoning code updates. The meeting, which began at 6:00 PM, included extensive public comment and deliberation, culminating in unanimous decisions on all major items.

Consent Calendar

  • Approved the consent calendar unanimously, which included:
    • Amendment to agreement with Cherry Road Technologies for Oracle Cloud Services.
    • Excess insurance policy renewal with PRISM for workers' comp.
    • Annexation of 23 Don Court to Oak Knoll Seward Maintenance District.
    • Final acceptance of the Hopkins Avenue Traffic Calming Project, a grant-funded safety project.
    • Ordinance amendment to remove property owner consent for outdoor business activities (parklets and sidewalk cafes).
    • Agreement with Crossing Guard Services LLC.
    • Approval of July 15, 2024 City Council minutes.
    • Approval of claims and checks through August 26, 2024.

Public Comments & Testimony

  • Pamela Estes (Redwood City Parks and Arts Foundation) updated the council on summer events, including Chalk Full of Fun (104 amateur artists, 16 professional artists) and Family Camp Out (over 300 campers, 190 burgers, 90 hot dogs, 40 veggie burgers served). She invited council members to volunteer at Music on the Square and announced the upcoming 'Picnic on Blanc' fundraiser for youth initiatives.
  • Ruth Robinson and Marty Putnam expressed support for the revised business license tax proposal.
  • Stacey Wagner (Kaiser Permanente) noted a 622% increase in their tax (from $26,457 to $191,000) and urged the council to consider alternative structuring like South San Francisco's.
  • Pat Mappelli (Granite Rock) suggested holding excess revenue in reserves and considering the cumulative tax burden on businesses.
  • Greg Greenway (Seaport Industrial Association) supported the proposed rates for port businesses but urged caution to avoid a failed ballot measure.
  • Steve Mincy (DES Architects) opposed the tax, citing a five-fold increase for his firm.
  • Lenny Scutieris (Chamber San Mateo County) opposed the current recommendation, calling the cap 'unreasonable' and urging rejection.
  • Elon Scheinman (HHCC, HART) suggested adding a gross receipts reporting requirement for multifamily housing to track rents, though this was not adopted.
  • Jim Rimmer (Toyota 101) supported the employee-based model but sympathized with professional services concerns.
  • Mike Grizzo (Kilroy Realty) warned the tax would make Redwood City less competitive.
  • Laureana Castrop (small architecture firm) opposed the proposal, highlighting a 300% increase for her business.
  • Multiple emailed comments included support for child care exemptions (from providers and parent advocates) and opposition from business groups like SAMCEDA, Lane Partners, and Premia.
  • George Saman (business owner and North Fair Oaks councilmember) opposed the tax, arguing it would be passed to tenants and consumers.

Discussion Items

  • Business License Tax Modernization (Item 7A): Staff presented a proposal to update the 1967-era business license tax, which currently raises $2.8 million annually. The original gross receipts model was abandoned after extensive outreach; the new model increases registration fees from $86 to $90, sets per-employee rates by category (retail, contractor, services, professional services), maintains residential rates at $31/unit, and increases commercial property rates to $75/1,000 sq ft. The cap would rise from $7,121 to $500,000, generating an estimated $7.7 million annually. The ad hoc committee (Aguirre, Howard, Sterkin) supported the proposal. Amendments were proposed by Councilmember Martinez Sabayos to lower the cap to $250,000 and phase in the tax over two years. After debate, the council voted unanimously to adopt the staff recommendation with these amendments.
  • Zoning Code Updates (Item 8A): Principal Planner John Francis presented amendments to implement housing element programs (allowing SROs and group homes in certain districts, low-barrier navigation centers, and parking clarifications for shelters), implement El Camino Real Corridor Plan strategies for child care (FAR exemptions for on-site child care in large mixed-use developments, by-right use for large child care facilities, and allowance of shared open space), and code maintenance (density bonus compliance, new Temporary Use Permit, hotel FAR removal, and architectural permit threshold changes). The planning commission had recommended eliminating parking minimums for group homes, but staff recommended keeping them pending a citywide study. The council adopted the ordinance unanimously.
  • Committee Appointments (Item 7B): The council appointed Clinton Chang to the Housing and Human Concerns Committee (4-3 vote) and reappointed Max Disher to the Police Advisory Committee.

Key Outcomes

  • Business License Tax: Council adopted a resolution to place the business license tax modernization on the November 5, 2024 ballot, with a $250,000 cap and a two-year phase-in (50% in FY 2025-26, 50% in FY 2026-27). Estimated to generate $7.2 million annually. The ordinance includes a CPI adjustment starting July 1, 2027.
  • Zoning Ordinance: Unanimously introduced and adopted the zoning code amendments, including the parking minimum for group homes as recommended by staff.
  • Appointments: Clinton Chang appointed to HHCC; Max Disher reappointed to Police Advisory Committee.
  • Next Meeting: The next regular council meeting is scheduled for August 26, 2024, with a special meeting on August 17.

Meeting Transcript

Well, good evening, everyone, and welcome to our July 22nd, 2024 meeting of the Redwood City City Council. Thank you for spending some time with us this evening. We're continuing to offer in-person and remote options for city council meetings. However, due to continued disruptions during public comment at open meetings throughout the region, we've modified our public comment procedures until further notice. The city welcomes public comment on topics within the city's subject matter jurisdiction, and this can be provided in person during the meeting or by email ahead of the meeting. At this time, we're temporarily suspending public comments by Zoom. We want to ensure that the city can continue to conduct the city's business in a manner that allows all residents to participate. We continue to reevaluate our public comment procedures and will share updates as necessary. Our public comment procedures tonight for items on the agenda or within the city subject matter jurisdiction are as follows. Public comment is taken in person during the meeting or in advance via email as outlined on the agenda. Comments that were received via email by 5 o'clock P.M. may be read aloud, time permitting, and in any case will be made part of the final meeting record. In-person speakers must turn in a speaker card to the city clerk at the disc to be recognized to speak. Please be sure to indicate the agenda item number you wish to speak on. In-person speakers will be called in the order in which speaker cards were turned in. If there is a high volume of public comment this evening, we may decrease the time allotted for each comment or limit the total time for public comment. This is to ensure that the city council can address agenda items in a timely manner and is allowed under the city council's guide to communications and business. In the event this occurs, please feel free to send your full comments to the city council at public comment at Redwood City.org so that we can see your comments and they will be part of the meeting record. I'd like to turn the meeting over to our city clerk to call the roll. Jessica. Councilmember Aguirre. Here. Councilmember Aiken. Present. Councilmember Howard. Here. Councilmember Martina Savallos. Councilmember Sturkin. Here. Vice Mayor Spinoza Garnica. Here. And Mayor G. Present. Thank you. Thank you, Jessica. Our next item is the Pledge of Allegiance. I'd like to invite Councilmember Sterkin to lead us in the pledge. Please join me for the Pledge of Allegiance as you're able. Thank you, Mayor. We have one speaker card and two emailed comments, totaling three this evening for this item. Let's proceed with two minutes each. Thank you. Okay. Our only in-person speaker for item number five, which is general public comment, is Pamela Estes. Good evening, Mayor G and Council members. I'm Pamela Estes. I'm here on behalf of the Redwood City Parks and Arts Foundation. And I just wanted to give you an update on what's been going on this summer. As you know, we're a 501c3 nonprofit, and our one of our primary missions is to support the Parks Department and also to promote parks, recreational programming, arts, and culture within the city. This summer has been vibrant with events like our chalk full of fun, which we hosted on July 3rd and 4th at Courthouse Square.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com