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.