1 00:12:50,450 --> 00:12:55,250 Good evening, everyone. If you can take your seats, we're going to get it started. 2 00:12:56,170 --> 00:12:59,970 Thank you for joining our regular city council meeting of June 8th, 2020. 3 00:13:00,800 --> 00:13:05,900 We hold meetings in a hybrid format with both in-person and virtual participation available. 4 00:13:06,760 --> 00:13:11,480 Given the number of time-sensitive matters before us this evening, we appreciate your cooperation 5 00:13:11,480 --> 00:13:16,760 in keeping comments as concise as we can so that all speakers have the opportunity to 6 00:13:16,760 --> 00:13:22,020 be heard tonight. And the city welcomes public comments on topics within the city's subject 7 00:13:22,020 --> 00:13:27,200 matter jurisdiction. And members of the public may provide comments as follows. In-person 8 00:13:27,200 --> 00:13:32,280 speakers will be called first, speaker cards are located at the back table in the council 9 00:13:32,280 --> 00:13:37,020 chambers and must be turned into the City Clerk here at the dais. Please be sure to indicate 10 00:13:37,020 --> 00:13:41,800 the agenda item number you wish to speak on. Attendees who have joined us by Zoom will 11 00:13:41,800 --> 00:13:46,380 be called to speak after in-person comments have been given. Detailed instructions for 12 00:13:46,380 --> 00:13:50,060 public comment will be provided on the screen when the time for public comment begins. 13 00:13:50,960 --> 00:13:54,000 And with that, we'll now turn it over to our City Clerk to call the roll. 14 00:13:54,820 --> 00:13:59,840 Thank you and good evening everyone. Council member Chu is absent this evening. 15 00:14:00,110 --> 00:14:01,210 Councilmember G. 16 00:14:01,470 --> 00:14:01,890 Present. 17 00:14:02,310 --> 00:14:03,070 Councilmember Howard. 18 00:14:03,490 --> 00:14:03,710 Here. 19 00:14:04,030 --> 00:14:04,910 Councilmember Padilla. 20 00:14:05,750 --> 00:14:06,110 Present. 21 00:14:06,430 --> 00:14:07,310 Councilmember Sturkin. 22 00:14:07,810 --> 00:14:07,950 Here. 23 00:14:08,230 --> 00:14:09,010 Vice Mayor Aiken. 24 00:14:10,110 --> 00:14:10,750 Here. 25 00:14:11,050 --> 00:14:12,190 Mayor Martinez-Ebios. 26 00:14:12,410 --> 00:14:12,530 Here. 27 00:14:12,690 --> 00:14:13,030 Thank you. 28 00:14:13,530 --> 00:14:14,290 Thank you, everyone. 29 00:14:14,790 --> 00:14:16,890 We'll move to the Pledge of Allegiance. 30 00:14:17,730 --> 00:14:19,070 Vice Mayor, could you do the honors? 31 00:14:19,790 --> 00:14:22,430 Please join me in saluting our flag. 32 00:14:25,090 --> 00:14:31,190 I pledge allegiance to the flag of the United States of America and to the Republic 33 00:14:31,190 --> 00:14:38,130 for which it stands, one nation under God, indivisible with liberty and justice for all. 34 00:14:46,720 --> 00:14:48,040 Thank you Vice Mayor. 35 00:14:49,520 --> 00:14:52,960 And item four on the agenda does not apply for this evening. 36 00:14:53,180 --> 00:14:54,340 It's only a procedural item. 37 00:14:55,000 --> 00:14:57,700 So we'll move on to our next item. 38 00:14:58,800 --> 00:14:59,820 We have no presentation. 39 00:15:05,480 --> 00:15:10,520 Public comment section of the agenda will take public comment on the consent calendar, matters 40 00:15:10,520 --> 00:15:15,720 of council interest, as well as items that are not listed on tonight's agenda. We welcome 41 00:15:15,720 --> 00:15:20,360 speakers providing public comment, but please be advised that this is a limited public forum. 42 00:15:20,900 --> 00:15:25,180 As such, speakers must address matters within the subject manager's section of the city, 43 00:15:25,180 --> 00:15:29,360 and if speakers do not they'll be warned and if they continue to disregard city 44 00:15:29,360 --> 00:15:34,020 rules their opportunity to speak will be limited. If you're attending in person 45 00:15:34,020 --> 00:15:36,900 please fill out a speaker card and submit it to the city clerk here at the 46 00:15:36,900 --> 00:15:40,920 dais and if you're attending virtually feel free to raise your hand on zoom at 47 00:15:40,920 --> 00:15:45,140 this time or press star 9 if you've joined by phone. Once we've gathered 48 00:15:45,140 --> 00:15:49,080 all the speaker cards and raised hands and have begun public comment no 49 00:15:49,080 --> 00:15:52,740 additional speakers will be allowed to queue up to speak and I'll turn it 50 00:15:52,740 --> 00:15:54,780 to facilitate public comment. 51 00:15:55,340 --> 00:15:56,220 Thank you, Mayor. 52 00:15:56,600 --> 00:15:59,140 At this time, we have three speakers. 53 00:16:00,000 --> 00:16:03,220 Potentially four. Oh, another item, okay. 54 00:16:04,160 --> 00:16:11,240 Three speakers for public comment. I'll give one last call to the audience or our folks on Zoom to be recognized for public comment. 55 00:16:11,420 --> 00:16:15,540 Once we begin public comment, as the mayor stated, we will close the list of speakers. 56 00:16:16,280 --> 00:16:21,640 So I'll give you a few more seconds for any more public comment on general comment this evening. 57 00:16:25,060 --> 00:16:29,860 Okay. We will begin closing the speakers list and we'll start with Tony Gapastone. 58 00:16:29,860 --> 00:16:30,860 I'm 59 00:16:38,220 --> 00:16:43,200 wearing a shirt that says stories save lives because I really believe when we tell 60 00:16:43,200 --> 00:16:49,720 a powerful and brave story or see ourselves in film and TV or have someone lean over and 61 00:16:49,720 --> 00:16:54,500 talk about the pain that they've endured and survived, we can save a life, literally. 62 00:16:55,020 --> 00:16:55,820 Hi, I'm Tony Gappison. 63 00:16:56,040 --> 00:16:58,420 I'm the founder and executive director of BraveMaker. 64 00:16:58,660 --> 00:16:59,800 We're a film festival. 65 00:17:00,000 --> 00:17:13,160 Here in Redwood City. That happens in July. This is our eighth year. And I want to tell you this year. We're opening up on July 8th with Kevin Hines who is a survivor of a suicide attempt off the Golden Gate Bridge. 66 00:17:13,500 --> 00:17:24,320 He tried to take his own life in 2000 when he was 19 years old and survived with a broken back. He immediately regretted it when he jumped off. A sea lion pushed him to the top. 67 00:17:24,320 --> 00:17:29,940 and he was rescued. And since 2000, he's been making movies and telling his story all around 68 00:17:29,940 --> 00:17:33,920 the world. And he'll be here in Redwood City on July 8th at the Chan Zuckerberg Community 69 00:17:33,920 --> 00:17:38,700 Space. I want to invite you to come to this film festival because I really believe the 70 00:17:38,700 --> 00:17:44,620 107 films that we have are so life-changing. They talk about affordable housing. They talk 71 00:17:44,620 --> 00:17:49,900 about gender equality, LGBT rights. They talk about racial justice. And I'm so passionate 72 00:17:49,900 --> 00:17:53,900 about filmmaking, especially here in this city because I'm a 30-year resident 73 00:17:53,900 --> 00:17:56,460 and I believe the arts make us better. 74 00:17:56,700 --> 00:17:59,960 So thank you to everybody who's been a part of our film festival for the past eight years. 75 00:18:00,000 --> 00:18:04,900 The redwood city cultural commission, arts commission just gave us a grant this week, but 76 00:18:04,900 --> 00:18:12,220 we're down for grandfers from the past. We're down $20,000 from the past years we've had 77 00:18:12,220 --> 00:18:16,100 and your support and ticket sales help us to be great. So thank you so much. You're all 78 00:18:16,100 --> 00:18:16,320 invited. 79 00:18:18,580 --> 00:18:22,700 Thank you, Tony. We'll now move to our Zoom speakers. We'll start with 80 00:18:22,700 --> 00:18:28,260 Kelly Boyett, who will be followed by Tony Godbuske, and you may unmute yourself and 81 00:18:28,260 --> 00:18:29,060 begin your comments. 82 00:18:31,240 --> 00:18:38,420 Hi, my name is Kelly. I'll be commenting on agenda item 11a about the 83 00:18:38,420 --> 00:18:44,000 tobacco ordinance. Sorry Kelly, I don't mean to interrupt you but we are only taking comments 84 00:18:44,000 --> 00:18:52,240 for item 6 at this time when you can raise your hand again for item 11a. Gotcha, okay 85 00:18:52,240 --> 00:18:53,900 I'm sorry about that. Sorry about that, thank you. 86 00:18:56,500 --> 00:18:57,900 Okay, looks like the other raised 87 00:18:57,900 --> 00:18:59,680 hand went down so it 88 00:19:00,000 --> 00:19:01,960 Looks like that concludes public comment, Mayor. 89 00:19:05,590 --> 00:19:09,530 Thank you, City Clerk. Thank you, everybody, for making public comment on consents. 90 00:19:10,350 --> 00:19:15,090 Excuse me, on all of our items this evening, we'll move to consents. 91 00:19:15,590 --> 00:19:18,850 Items on consent are routine in nature and approved by one motion. 92 00:19:19,850 --> 00:19:23,630 And are there any items on consent from which council members are recused? 93 00:19:24,910 --> 00:19:25,570 Councilor Ampedia. 94 00:19:25,950 --> 00:19:31,210 Mayor, I'll be recusing myself from item 7D. 95 00:19:35,140 --> 00:19:39,480 My house was on the street where we're prayers 96 00:19:39,480 --> 00:19:41,520 for the replacement program was made 97 00:19:41,520 --> 00:19:43,100 and so I won't be participating. 98 00:19:43,520 --> 00:19:43,760 Thank you. 99 00:19:44,340 --> 00:19:45,640 Great, thank you council member. 100 00:19:45,880 --> 00:19:47,980 That's item 7D as in David. 101 00:19:48,920 --> 00:19:51,300 And are there any other items on consent? 102 00:19:51,800 --> 00:19:53,020 Not seeing any. 103 00:19:53,880 --> 00:19:59,000 So we will take a motion on item 7D first. 104 00:20:01,180 --> 00:20:04,320 Motion to approve item 7D. Second. 105 00:20:04,960 --> 00:20:10,360 Thank you. That was a motion from Councilmember Howard, a second from Vice Mayor Akin. Could we get an electronic vote, please? 106 00:20:15,500 --> 00:20:21,400 The motion passes with five votes. Councilmember Chu is absent, and Councilmember Padilla is recused. 107 00:20:23,460 --> 00:20:30,240 Thank you. May I like to make a motion to approve consent without this item we just voted on separately? 108 00:20:32,600 --> 00:20:36,220 motion from Council Member G, a second from Council Member Howard. Could we get 109 00:20:36,220 --> 00:20:37,040 electronic vote please? 110 00:20:46,360 --> 00:20:49,400 The motion passes with six votes. Council Member Chu is absent. 111 00:20:50,440 --> 00:20:56,880 Thank you everyone. With that, we'll move right into staff reports and we'll go 112 00:20:56,880 --> 00:20:59,980 into our first item, 8A, Spanish and 113 00:21:00,000 --> 00:21:04,600 Interpretation is being provided for this item, and I'd like to turn it over to our interpreter 114 00:21:04,600 --> 00:21:07,620 for instructions on how to participate in the meeting in Spanish. 115 00:21:09,620 --> 00:21:15,000 Buenas tardes. Esta noche se está proveyendo interpretación español. Si usted necesita 116 00:21:15,000 --> 00:21:29,980 escuchar la interpretación español, por favor, llame al 669-900-6833. Ingrese el AID de la 117 00:21:29,980 --> 00:21:32,320 y la contraseña 1017. 118 00:21:32,920 --> 00:21:37,360 Para hablar durante un comentario público, notifique a las personas de atrás de la sala 119 00:21:37,360 --> 00:21:39,860 y para recibir también interpretación en la sala, 120 00:21:40,320 --> 00:21:45,020 por favor reciba un receptor en la parte posterior de la sala. 121 00:21:45,400 --> 00:21:45,900 Muchas gracias. 122 00:21:47,640 --> 00:21:48,560 Gracias mucho. 123 00:21:49,120 --> 00:21:51,440 Con eso, voy a ponerlo a la ciudad de Clark, 124 00:21:52,120 --> 00:21:52,860 Jessica Castro, 125 00:21:53,200 --> 00:21:54,220 nuestro líder de la casa, 126 00:21:54,500 --> 00:21:55,740 Elin Lancaster 127 00:21:55,740 --> 00:21:58,100 y nuestro consultor, Jason Moody, 128 00:21:58,100 --> 00:21:59,780 con EPS, para dar la presentación. 129 00:22:00,240 --> 00:22:07,440 Thank you, mayor. My name is Jessica Castro. I'm the city clerk and I will be kicking off 130 00:22:07,440 --> 00:22:12,300 the presentation. I will be structured in three parts this evening. 131 00:22:14,690 --> 00:22:16,150 I'll begin with an overview 132 00:22:16,150 --> 00:22:23,390 of the initiative petition and election process, including a recap of events that led to tonight's 133 00:22:23,390 --> 00:22:29,490 recommended actions. Next, our housing leadership manager, Lynn Lancaster, will then give an 134 00:22:29,490 --> 00:22:35,090 overview of the proposed ordinance submitted by the proponents. And finally, Jason Moody 135 00:22:35,090 --> 00:22:40,370 with EPS, the City's Consultant, will present a comprehensive analysis of potential impacts 136 00:22:40,370 --> 00:22:43,370 referred to as the 9212 report. 137 00:22:46,550 --> 00:22:48,850 So before you are the three questions that will be 138 00:22:49,830 --> 00:22:55,090 asked for the Council to keep in mind, we will be pausing at every section of the presentation 139 00:22:55,090 --> 00:22:55,790 for questions. 140 00:23:00,000 --> 00:23:21,440 On this slide is sort of the overview of the timeline of the process. On October 29th, 2025, the City Clerk's Office received a notice of intent to circulate an initiative petition and a proposed ordinance, which will refer to tonight as the measure from three Redwood City residents known as the proponents. 141 00:23:21,440 --> 00:23:29,960 Following receipt of these documents and in accordance with the California elections code, the city attorney prepared a ballot title and summary. 142 00:23:30,880 --> 00:23:37,680 With this ballot title and summary, the proponents prepared a petition to circulate for signatures among redwood city voters. 143 00:23:37,680 --> 00:23:57,140 On April 22 of this year, the proponents submitted their petition and the City Clerk's Office conducted a Prima-Facia or on its face review and determined that the raw count of signatures presented met the minimum number of petition signatures required to accept the petition for filing. 144 00:23:57,140 --> 00:23:59,980 Following acceptance, the 145 00:24:00,000 --> 00:24:05,000 City Clerk's office transferred the petition to the San Mateo County Elections Office to conduct 146 00:24:05,000 --> 00:24:11,460 signature verification of each signature. On May 13th, I was notified by the elections 147 00:24:11,460 --> 00:24:20,500 office that of the 6,045 signatures reviewed, the petition received 4,751 valid signatures, 148 00:24:21,080 --> 00:24:27,440 achieving the minimum number of required signatures to qualify the proposed measures per elections 149 00:24:27,440 --> 00:24:33,080 Code section 9210, Subdivision A. As a result, I have certified the 150 00:24:33,080 --> 00:24:38,660 sufficiency of the petition. Tonight, the City Council will be asked to accept the 151 00:24:38,660 --> 00:24:45,480 certification and receive the 9212 report, and the City Council must act on one of the 152 00:24:45,480 --> 00:24:46,280 following options. 153 00:24:50,700 --> 00:24:54,540 So the recommendation this evening, because the 9212 report will be 154 00:24:54,540 --> 00:24:58,840 presented this evening, the elections code requires that the City Council take one 155 00:24:58,840 --> 00:24:59,860 of two possible 156 00:25:00,000 --> 00:25:06,620 Council actions. At this meeting, the city council must determine whether to, number one, adopt 157 00:25:06,620 --> 00:25:13,020 the proposed ordinance without alteration within 10 days, or, number two, call for an election 158 00:25:13,020 --> 00:25:19,920 to place the proposal on the ballot for voter consideration at the November 3, 2026 election. 159 00:25:20,880 --> 00:25:26,180 Should the city council choose to call an election, staff prepared a resolution which 160 00:25:26,180 --> 00:25:28,700 is Attachment E to the Council Agenda Packet, 161 00:25:28,840 --> 00:25:31,620 allowing such action to occur tonight. 162 00:25:34,580 --> 00:25:37,400 And before we move to the questions for this section, 163 00:25:37,540 --> 00:25:40,300 I wanna call out a revision that was made to Attachment E, 164 00:25:40,720 --> 00:25:42,780 which is the resolution calling the election 165 00:25:42,780 --> 00:25:46,560 on November 3rd, 2026 for this initiative measure, 166 00:25:47,000 --> 00:25:49,540 specifically a change to the ballot question, 167 00:25:49,620 --> 00:25:51,100 which is detailed on this slide. 168 00:25:51,800 --> 00:25:53,420 Copies of the updated resolution 169 00:25:53,420 --> 00:25:55,060 were provided to each Council member 170 00:25:56,400 --> 00:25:59,900 in the agenda packet for public viewing in the back of the 171 00:26:01,900 --> 00:26:08,560 The revised ballot question reads, shall the measure that caps annual rent increases for 172 00:26:08,560 --> 00:26:15,560 units built before February 1st, 1995 to 60% of the increase in the consumer price index 173 00:26:16,070 --> 00:26:22,840 with maximum increase of 5% and for rental units regardless of when built, increases requirements 174 00:26:22,840 --> 00:26:28,600 for just cause evictions, requires relocation payments of at least $12,000 for no fault 175 00:26:28,600 --> 00:26:33,720 evictions, provides additional tenant protections, and creates a new city 176 00:26:33,720 --> 00:26:38,120 administered renters rights protection program funded through annual landlord 177 00:26:38,120 --> 00:26:39,820 assessments be adopted. 178 00:26:42,830 --> 00:26:47,570 And with that I'll take any questions on the election 179 00:26:47,570 --> 00:26:50,690 or the initiative petition process that the council may have. 180 00:26:52,860 --> 00:26:53,540 Thank you city 181 00:26:53,540 --> 00:26:58,020 clerk, colleagues, any clarifying questions on the elections process? Have 182 00:26:58,020 --> 00:26:58,420 we got here. 183 00:27:01,760 --> 00:27:06,300 Great. We'll keep moving. Thank you. And with that, I'll turn it over to housing leadership 184 00:27:06,300 --> 00:27:14,060 manager Lynn Lancaster. Thank you. Thank you. Good evening mayor, vice mayor, and city council 185 00:27:14,060 --> 00:27:19,680 members. I'm a Lynn Lancaster housing leadership manager. As our city clerk noted, I'll be 186 00:27:19,680 --> 00:27:25,520 providing an overview of the proposed ordinance. And Jason Moody with economic planning systems 187 00:27:25,520 --> 00:27:31,440 or EPS will be giving the presentation on the 9212 report. I also want to note that we are joined 188 00:27:31,440 --> 00:27:37,780 this evening by Lalita Fernandez, Deputy City Attorney, Karen Tiedemann, Outside Legal Counsel, 189 00:27:38,100 --> 00:27:42,060 and Victor Gaetan, Housing Management Analyst, to also help answer any questions. 190 00:27:44,000 --> 00:27:49,060 Before going into the proposed ordinance, I do want to provide some state context. 191 00:27:49,060 --> 00:27:55,280 there is the Costa Hawkins Rental Housing Act which impacts how local cities 192 00:27:55,280 --> 00:27:59,960 can implement rent control. The Costa Hawkins 193 00:28:00,000 --> 00:28:05,160 Hawkins Act went into effect in 1995 and places limits on local rent stabilization ordinances 194 00:28:05,540 --> 00:28:11,140 by exempting single-family homes, condominiums, and any new construction built after February 195 00:28:11,140 --> 00:28:14,960 1st of 1995 from local rent control requirements. 196 00:28:15,860 --> 00:28:21,740 Costa Hawk Hawkins also requires vacancy decontrol, which means that landlords must be allowed 197 00:28:22,100 --> 00:28:25,780 to reset rental rates for their units at the start of a new tenancy. 198 00:28:25,780 --> 00:28:26,840 And 199 00:28:30,230 --> 00:28:37,370 so now I'll go over the key elements of the proposed ordinance. 200 00:28:38,150 --> 00:28:42,910 It includes a rent stabilization requirement where annual rent increases would be limited 201 00:28:42,910 --> 00:28:50,150 to 60% of the percent change in the consumer price index or CPI with a maximum of 5%. 202 00:28:51,130 --> 00:28:56,250 This requirement also includes an initial rollback of rents to October 29th of 2025 203 00:28:56,250 --> 00:28:59,970 and landlords would be not would not be allowed to bank or roll 204 00:29:00,000 --> 00:29:05,800 Roll over rent increases from year to year. Landlords can also not charge tenants for utilities 205 00:29:05,800 --> 00:29:11,920 in addition to rent unless the utility is separately or individually metered. Landlords are also 206 00:29:11,920 --> 00:29:17,680 not allowed to use a ratio utility system commonly referred to as rubs to divide utility 207 00:29:17,680 --> 00:29:24,380 costs among tenants. Landlords may file a fair return petition for higher rent increases. 208 00:29:25,520 --> 00:29:29,160 The proposed ordinance also includes just cause for eviction protections. 209 00:29:30,080 --> 00:29:36,400 These include expanded protections compared to the State Tenant Protection Act, also referred to as TPA, 210 00:29:37,180 --> 00:29:40,740 or the city's Tenant Protection Ordinance referred to as TPO. 211 00:29:42,040 --> 00:29:47,240 And it includes additional protections for students, educators, elderly, disabled, or terminally ill tenants. 212 00:29:48,540 --> 00:29:58,180 These just cause eviction protections would go into effect immediately, as opposed to the state TPA or city TPO where protections go into effect after one year of tenancy. 213 00:30:00,000 --> 00:30:04,940 Similar to the city TPO, the proposed ordinance includes right to return requirements, but these 214 00:30:04,940 --> 00:30:10,340 requirements are expanded to cover all no fault just cause termination reasons, which include 215 00:30:11,120 --> 00:30:16,140 owner move in, substantial renovation, demolition, and withdrawal from the rental market. 216 00:30:17,760 --> 00:30:21,460 Generally, the right to return has to be offered at the same rent in lease terms, 217 00:30:22,000 --> 00:30:23,720 and the right to return never expires. 218 00:30:30,680 --> 00:30:33,020 Additionally, the ordinance 219 00:30:36,100 --> 00:30:37,180 requires that 220 00:30:37,180 --> 00:30:43,820 landlords pay relocation assistance for all no fault just cause terminations and 221 00:30:43,820 --> 00:30:51,880 this is four months of fair market rent or $12,000 minimum and fair market 222 00:30:51,880 --> 00:30:56,400 rents which will often refer to as FMR are annually published rents by the 223 00:30:56,400 --> 00:30:58,280 US Department of Housing and Urban Development. 224 00:31:00,000 --> 00:31:06,240 For elderly tenants disabled or terminally ill tenants, they would receive an additional 225 00:31:06,240 --> 00:31:12,000 $6,000. And these rates are adjusted annually by the change in CPI. 226 00:31:17,770 --> 00:31:24,210 For any construction, landlords are required to provide a tenant safety plan, and this must 227 00:31:24,210 --> 00:31:30,530 be approved by the city. There's also requirements for optional short-term relocation assistance 228 00:31:30,530 --> 00:31:32,990 for construction less than 30 days. 229 00:31:34,010 --> 00:31:36,730 If the landlord is providing the short-term relocation assistance, 230 00:31:37,250 --> 00:31:39,550 the tenant would still need to continue paying rent. 231 00:31:40,510 --> 00:31:43,970 It also provides for anti-harassment protections 232 00:31:45,010 --> 00:31:50,070 and calls for the establishment of a rent stabilization 233 00:31:50,070 --> 00:31:52,870 and tenant protection program that the city would administer 234 00:31:52,870 --> 00:31:55,350 that includes a rent registry, 235 00:31:55,630 --> 00:31:57,530 whereas city would track rent increases, 236 00:31:57,530 --> 00:31:58,750 changes to tenancy. 237 00:32:02,900 --> 00:32:08,300 The city would also be responsible for processing petitions and appeals related to rent increases 238 00:32:08,300 --> 00:32:14,760 or decreases, as noted approving tenant safety plans, and any appeals regarding relocation 239 00:32:14,760 --> 00:32:22,700 assistance eligibility. The city would also contract with a third party to provide free 240 00:32:22,700 --> 00:32:29,220 legal counsel for low-income tenants, and this would need to be a fee-funded system 241 00:32:29,220 --> 00:32:34,740 costs and those fees would be paid by the landlord and costs could not be covered by the general fund. 242 00:32:44,140 --> 00:32:48,400 And so I'm going to go over now the kind of applicability of the proposed ordinance. 243 00:32:48,860 --> 00:32:54,060 So there are two tiers of applicability, which we refer to, the first is fully covered. 244 00:32:54,380 --> 00:32:58,160 So this covers units that are subject to all requirements of the proposed ordinance, 245 00:32:58,580 --> 00:32:59,600 including the rent stabilization. 246 00:33:01,120 --> 00:33:07,340 Fully covered units include multifamily properties built prior to February 1st of 1995. This is 247 00:33:07,340 --> 00:33:11,980 inclusive of deed restricted affordable units and ADUs also built prior to that February 248 00:33:11,980 --> 00:33:16,920 1st, 1995 date. Fully covered units does include mobile homes. 249 00:33:18,420 --> 00:33:22,220 Partially covered units are units that are not subject to the rent stabilization requirements 250 00:33:22,220 --> 00:33:27,500 but are still subject to all the other requirements of the proposed ordinance. This includes single 251 00:33:27,500 --> 00:33:33,200 family homes and housing built after 1995 also inclusive of deed restricted 252 00:33:33,200 --> 00:33:35,160 affordable units built after 1995. 253 00:33:40,470 --> 00:33:42,310 So this this chart that's quite large on 254 00:33:42,310 --> 00:33:47,210 here is a comparison of the key elements of the proposed ordinance compared 255 00:33:47,210 --> 00:33:53,370 to the city's tenant protection ordinance as well as state law. As noted on 256 00:33:53,370 --> 00:33:56,710 the previous slide the proposed ordinance has broader applicability 257 00:33:56,710 --> 00:33:59,330 compared to state law or the city's TPO. 258 00:34:00,370 --> 00:34:09,550 For example, the state law and the city TPO generally exempt single family homes, condos, deed restricted affordable housing, and ADUs. 259 00:34:10,930 --> 00:34:17,610 While state law includes rent stabilization, the proposed ordinance would place stricter limits on the amount that rents can be increased annually. 260 00:34:18,470 --> 00:34:23,610 State law has a range of 5 to 10%, and the maximum of the proposed ordinance is 5%. 261 00:34:24,530 --> 00:34:29,550 Like state law and the city's TPO, the proposed ordinance includes just cause for eviction 262 00:34:29,550 --> 00:34:32,550 protections, but protections would apply immediately. 263 00:34:33,590 --> 00:34:40,050 State law and the city TPO do require a 12-month waiting period, however the city's TPO does 264 00:34:40,050 --> 00:34:44,470 include minimum lease term requirements where landlords must offer a one-year lease. 265 00:34:46,090 --> 00:34:50,330 The proposed ordinance includes expanded right to return requirements by requiring, 266 00:34:50,330 --> 00:34:53,650 and I will review this more in depth on the next slides. 267 00:34:55,230 --> 00:34:58,110 It also includes expanded relocation assistance requirements, 268 00:34:58,350 --> 00:34:59,830 and again, I'll go over that in more detail. 269 00:35:00,000 --> 00:35:05,540 On the next slides. Lastly, state law includes anti-harassment protections, the proposed ordinance 270 00:35:05,540 --> 00:35:11,300 specifically outlines the anti-harassment protections that would protect all tenants. 271 00:35:18,220 --> 00:35:18,880 So going over 272 00:35:18,880 --> 00:35:23,780 in more depth the right to return requirements. The proposed ordinance requires landlords to 273 00:35:23,780 --> 00:35:28,880 offer a right to return for all no fault just causes. And as I've noted before, this 274 00:35:28,880 --> 00:35:35,040 right to return does not expire. For owner move-ins, a landlord cannot evict 275 00:35:35,920 --> 00:35:39,880 for an owner move-in if the tenant is elderly or disabled and has lived in the 276 00:35:39,880 --> 00:35:45,800 unit for at least three years or if the tenant is certified as terminally ill. A 277 00:35:45,800 --> 00:35:49,300 landlord can also not evict during the school year if the tenant has children 278 00:35:49,300 --> 00:35:55,780 or educators in the household. For substantial renovation, as noted 279 00:35:55,780 --> 00:35:59,880 earlier a tenant safety plan would be required and there are 280 00:36:00,000 --> 00:36:05,860 There are optional short-term relocation assistance requirements if that renovation takes less than 281 00:36:05,860 --> 00:36:11,380 30 days. Similar to owner movements, there are limitations, again, on evicting during the 282 00:36:11,380 --> 00:36:18,400 school year. For demolition, the rent control provisions of this ordinance would apply to 283 00:36:18,400 --> 00:36:22,660 the newly constructed rental units if they are constructed on the same property within 284 00:36:22,660 --> 00:36:28,220 five years. There are also extended noticing timelines ranging from 120 days to one 285 00:36:28,220 --> 00:36:30,440 year for elderly or disabled tenants. 286 00:36:32,580 --> 00:36:35,560 And with withdrawal from the rental market, 287 00:36:35,720 --> 00:36:37,680 there are the same expanded noticing requirements 288 00:36:37,680 --> 00:36:38,640 as demolition. 289 00:36:39,520 --> 00:36:44,420 And landlords can be held liable for punitive damages 290 00:36:44,950 --> 00:36:46,780 if the unit is returned to the rental market 291 00:36:46,780 --> 00:36:48,020 within certain time frames. 292 00:37:00,000 --> 00:37:05,680 All right. So, this table, because there are quite a few scenarios outlines kind of all 293 00:37:05,680 --> 00:37:11,040 of the right-to-return scenarios and compares the proposed ordinance to the city's tenant 294 00:37:11,040 --> 00:37:17,020 protection ordinance. For owner move-in, both ordinances require that the owner move-in within 295 00:37:17,020 --> 00:37:21,640 90 days and maintain the property as their primary residence for a set period of time. 296 00:37:22,600 --> 00:37:26,680 If the owner fails to reoccupy the unit following these requirements, they have to 297 00:37:26,680 --> 00:37:30,540 offered the tenant the right to return of the same rent and lease terms and I'll 298 00:37:30,540 --> 00:37:35,500 note that this requirement is also consistent with state law. If the owner 299 00:37:35,500 --> 00:37:39,540 moves in and follows all of the occupancy timely requirements then the 300 00:37:39,540 --> 00:37:42,600 city's ordinance does not require the right to return if eventually the 301 00:37:42,600 --> 00:37:46,740 owner returns the unit back to the rental market. However the proposed 302 00:37:46,740 --> 00:37:49,880 ordinance does require a right to return and at the same rent and lease 303 00:37:49,880 --> 00:37:55,120 terms. For substantial renovation both ordinances require a right to 304 00:37:55,120 --> 00:37:58,280 return, whether the remodel was completed or not. 305 00:37:59,440 --> 00:37:59,980 For un- 306 00:38:00,000 --> 00:38:03,580 When completed remodels or renovations, the right to return requirements are the same for 307 00:38:03,580 --> 00:38:10,880 both the city's ordinance and the proposed ordinance and state law. If the remodel is completed, 308 00:38:11,340 --> 00:38:18,340 the city's ordinance requires same rent with allowable increases by state law and also provides 309 00:38:18,340 --> 00:38:23,800 a fair rate of return appeals process. The proposed ordinance just requires the same 310 00:38:23,800 --> 00:38:24,560 rent and lease terms. 311 00:38:26,830 --> 00:38:31,330 For demolition, if it's not completed, the right to return requirements 312 00:38:31,330 --> 00:38:34,430 again are the same for both ordinances as well as state law. 313 00:38:38,520 --> 00:38:40,080 However, completed demolitions, 314 00:38:40,380 --> 00:38:45,700 the city's TPO does not require a right to return whereas the ordinance again does require 315 00:38:45,700 --> 00:38:51,140 that at the same rent and lease terms. I will note though that depending on the 316 00:38:51,140 --> 00:38:56,500 situation, state laws such as SB 330 can also require the right to return following 317 00:38:56,500 --> 00:38:57,780 a completed demolition. 318 00:39:00,000 --> 00:39:04,020 Proposed ordinance requires to return for withdrawal from the city, whereas the city's 319 00:39:04,020 --> 00:39:04,740 ordinance does not. 320 00:39:09,000 --> 00:39:11,460 And then lastly, here's the comparison of the relocation 321 00:39:11,460 --> 00:39:16,340 assistance requirements for both the city's ordinance and the proposed 322 00:39:16,340 --> 00:39:20,960 ordinance. Under the proposed ordinance, all tenants would receive four months of 323 00:39:20,960 --> 00:39:26,380 FMR or $12,000, whichever is greater. And as you can see here in the blue 324 00:39:26,380 --> 00:39:30,940 table, these are the current FMR rates. For elderly, disabled, or 325 00:39:30,940 --> 00:39:33,640 They would receive an additional 6,000. 326 00:39:34,900 --> 00:39:39,020 Under the city's ordinance, all tenants would receive one month of their current rent. 327 00:39:40,200 --> 00:39:44,140 Tenants that qualify as low income would receive three months of FMR rent. 328 00:39:45,000 --> 00:39:48,440 And tenants that are special circumstance, which means they are low income 329 00:39:48,440 --> 00:39:52,720 and also have a household member who's elderly, a child, disabled, 330 00:39:53,320 --> 00:39:55,280 or if the tenant has lived there for at least five years, 331 00:39:55,480 --> 00:39:57,380 would receive four months of FMR rent. 332 00:40:03,920 --> 00:40:09,620 And so just to give a little bit of background on what a 92-12 report is, it's a comprehensive 333 00:40:09,620 --> 00:40:15,460 analysis prepared by jurisdiction or consultant in response to a voter initiative. The report 334 00:40:15,460 --> 00:40:20,420 is named after section 92-12 of the California elections code and is intended to provide 335 00:40:20,420 --> 00:40:24,880 decision makers in the public with an understanding of the initiative's potential impacts. 336 00:40:25,940 --> 00:40:31,860 And the listed on the screen are the elements that are evaluated in a 92-12 report. We 337 00:40:31,860 --> 00:40:38,040 We have contracted with EPS to prepare this report, and I'm going to have Jason give 338 00:40:38,040 --> 00:40:38,900 an overview of the report. 339 00:40:39,020 --> 00:40:42,980 And just to clarify, we were intending to answer questions about the prohizontist and 340 00:40:42,980 --> 00:40:44,400 the report after that. 341 00:41:02,060 --> 00:41:08,920 Thank you. My name is Jason Moody. I'm a managing principal at Economic and Planning Systems. 342 00:41:09,600 --> 00:41:15,120 We're a real estate economics firm located in Oakland. We've been around for about 42 years. 343 00:41:15,600 --> 00:41:19,480 I've been with the firm for about over 30 years, so I've been doing this for a while. 344 00:41:20,960 --> 00:41:29,580 As was mentioned, we were commissioned to do a 92-12 report, which is pretty broad latitude in terms of what you can cover. 345 00:41:29,580 --> 00:41:38,200 but we focus on the economic and fiscal implications of this proposed ordinance or measure, as we're calling it, in the city, in Redwood City. 346 00:41:39,800 --> 00:41:49,720 So our scope and our methodology. First, we took a good look at the law itself and how it compares with existing state law and local policies. 347 00:41:49,720 --> 00:41:54,900 This is important because we're really trying to evaluate the impact of this measure, 348 00:41:55,360 --> 00:41:59,760 and the impact is really dependent upon the change from existing baseline conditions. 349 00:42:00,000 --> 00:42:05,280 So we didn't, we're not looking at the impact of all tenant protection because there's already 350 00:42:05,280 --> 00:42:10,120 some tenant protection. So we're just looking at the net increase in tenant protection and 351 00:42:10,120 --> 00:42:15,620 those factors as well as the rent control measures. The other area that we looked at is we looked 352 00:42:15,620 --> 00:42:19,660 at previous studies on rent control and other jurisdictions, primarily in California, but 353 00:42:19,660 --> 00:42:24,360 there's been a lot of studies on rent control and less studies on tenant protection but 354 00:42:24,360 --> 00:42:28,060 mostly on rent control. So we took a look at those studies to see what they found. 355 00:42:28,060 --> 00:42:41,940 The third element of our scope was to apply these two things to the existing city's housing stock and demographic situations to see how these laws like to apply locally. 356 00:42:43,080 --> 00:42:53,180 And then another big part of our task was to estimate the implementation and administration costs of this proposed measure, which would fall primarily on the city. 357 00:42:54,400 --> 00:42:59,840 And finally, we looked at the fact that this measure does require that there would be 358 00:43:00,000 --> 00:43:08,280 We estimate fees on rental units and we estimated what those fees might be, although if this measure 359 00:43:08,280 --> 00:43:13,860 is actually approved, those fees would have to be recalculated based on actual study. So 360 00:43:13,860 --> 00:43:15,680 we just provided an estimate of those fees. 361 00:43:17,930 --> 00:43:20,290 So next I'm going to go quickly over the key 362 00:43:20,290 --> 00:43:27,890 findings and then go into detail on some of these elements. So if the measure is approved, 363 00:43:27,890 --> 00:43:33,030 We found that, you know, existing tenants will likely benefit from both lower rent growth 364 00:43:33,030 --> 00:43:37,970 and from stronger protection against evictions above and beyond what they currently have. 365 00:43:38,930 --> 00:43:46,150 And in the city, about 48% of the housing stock is rental. 366 00:43:46,930 --> 00:43:51,250 So the tenant protection elements would apply to all the rental stock. 367 00:43:51,730 --> 00:43:56,450 About 19% would be subject to the rent control provisions, 368 00:43:57,130 --> 00:43:59,570 given the number of units in the city that are 369 00:44:04,140 --> 00:44:11,000 The impacts on new housing investment, new housing development are complicated, but will 370 00:44:11,000 --> 00:44:18,100 be limited by the application of Costa Hawkins because Costa Hawkins does protect any unit 371 00:44:18,100 --> 00:44:23,360 that is exempt from rent control in a unit that was built after 1995. So they wouldn't 372 00:44:23,360 --> 00:44:27,180 be subject to the rent control provisions, but they would be subject to the other provisions 373 00:44:27,180 --> 00:44:39,200 of the law. So its impact on new construction will be mixed, but clearly some of the landlords 374 00:44:39,200 --> 00:44:46,700 and owners will be subject to all tenant protection requirements. And some of them may be concerned 375 00:44:46,700 --> 00:44:53,040 about the fact that investing in their property or making a property available for rent, 376 00:44:53,040 --> 00:44:58,760 And this law would bring restrictions and so they may think twice about doing that. 377 00:44:59,280 --> 00:44:59,800 New development. 378 00:45:00,000 --> 00:45:04,020 Probably less affected because new developments exempt from the rent control component, but 379 00:45:04,020 --> 00:45:13,600 they would be, again, subject to the other elements. The other element is that there is a possibility 380 00:45:13,600 --> 00:45:19,480 that Costa Hopkins is amended in the future. So there may be some investors who would be 381 00:45:19,480 --> 00:45:24,700 concerned about that outcome and they may be, again, hesitant to invest in a city that 382 00:45:24,700 --> 00:45:28,540 if that happened their units would be subject to rent control. 383 00:45:28,540 --> 00:45:32,760 So new development could in an indirect way be affected from that perspective. 384 00:45:33,460 --> 00:45:36,860 The program administration costs are substantial. 385 00:45:38,000 --> 00:45:41,740 And we estimated between $4 and $10 million. 386 00:45:42,520 --> 00:45:43,500 It's hard to read this. 387 00:45:44,020 --> 00:45:45,440 So this was a way of being enlarged. 388 00:45:45,580 --> 00:45:53,060 But $4 to $10 million in costs, which can't come from the general fund. 389 00:45:53,140 --> 00:45:54,100 It has to come from another source. 390 00:45:54,100 --> 00:45:59,220 Most likely that would come from fees that are charged to rental units. 391 00:46:00,000 --> 00:46:04,560 And we made a preliminary estimate of what those fees would be, and those fees, which we'll 392 00:46:04,560 --> 00:46:09,820 see later, are much higher than the fees that are actually specified in the ordinance. So most 393 00:46:09,820 --> 00:46:17,000 likely the city would need to increase those fees, which would impose those fees on all units. 394 00:46:17,680 --> 00:46:22,920 The final element of this is the impact on affordable housing, which we found to be kind 395 00:46:22,920 --> 00:46:28,460 of unique because affordable housing developers can't raise their rent to the market when 396 00:46:28,460 --> 00:46:34,300 a tenant decides to leave unlike market rates. So they can't really catch up on rent and 397 00:46:34,300 --> 00:46:40,100 recover their costs. So they will face some challenges with regard to not only the fees 398 00:46:40,100 --> 00:46:46,660 themselves that they have to pay, but also with regard to paying for their maintenance 399 00:46:46,660 --> 00:46:53,000 costs, which clearly maintenance costs go up with inflation and this measure limits 400 00:46:53,000 --> 00:46:58,200 their increase in rent to 60% of inflation. So technically rents in real terms will 401 00:46:58,200 --> 00:46:59,700 will be declining, but their obligation 402 00:47:07,060 --> 00:47:15,000 Okay, so this slide just kind of gives you an indication of how this proposed rent cap would 403 00:47:15,000 --> 00:47:26,220 apply versus state law. So, again, it's 5%. The state law is 5% of the CPI plus the change 404 00:47:26,220 --> 00:47:33,220 in CPI. So technically the state law allows you to increase rent up to 10% but 5% plus 405 00:47:33,220 --> 00:47:39,140 inflation essentially. The proposed ordinance says you can only increase rent as 60% of the 406 00:47:39,140 --> 00:47:45,400 change in CPI. So up to 5%. So that's a pretty big difference. This illustrates an example 407 00:47:45,400 --> 00:47:53,080 of a particular unit that was renting for $2,500 in year one under the proposed 408 00:47:53,080 --> 00:47:59,800 ordinance after five years of occupancy, the per month rent would be $900. 409 00:48:00,000 --> 00:48:09,260 $37 less per month than the situation in which a property owner wasn't controlled by this measure 410 00:48:09,260 --> 00:48:14,920 and increased the rent at the maximum level every year. So that's kind of an extreme case, 411 00:48:15,000 --> 00:48:18,960 but it shows you the potential magnitude of the difference in rent that could occur over 412 00:48:18,960 --> 00:48:22,800 a five-year period with this measure versus the existing state law. 413 00:48:25,360 --> 00:48:26,960 A number of cities 414 00:48:26,960 --> 00:48:30,660 cities do have similar ordinances as this one. 415 00:48:31,420 --> 00:48:35,600 Roughly 30 plus California cities have some form of rent control. 416 00:48:37,680 --> 00:48:45,260 That accounting for about 22% of the state's population, so about 22% of the state's population 417 00:48:45,260 --> 00:48:46,400 has some rent control. 418 00:48:46,520 --> 00:48:50,720 However, this rent control, these existing rent control ordinances throughout the state 419 00:48:50,720 --> 00:48:51,880 vary significantly. 420 00:48:52,920 --> 00:48:59,900 Most of them are based on CPI, but the proposed ordinance has 60% CPI. 421 00:49:00,000 --> 00:49:04,680 On the more strict end of the spectrum, the average, as you can see there is, and I can't 422 00:49:04,680 --> 00:49:11,280 see it, but I think it says 79%. I haven't committed all these numbers to memory, so my apologies. 423 00:49:12,160 --> 00:49:18,020 The others are not based on CPI at all. They're based on a maximum level, which is about 5%. 424 00:49:18,020 --> 00:49:22,940 So this one is on the more strict side of the equation. There's only one that we were 425 00:49:22,940 --> 00:49:27,300 able to identify that it's stricter at 50%. 426 00:49:27,900 --> 00:49:32,360 So it's certainly more stricter than what 427 00:49:32,360 --> 00:49:34,960 you see elsewhere in the cities that have this. 428 00:49:36,700 --> 00:49:42,160 Just quickly focus on renter demographics in Redwood City, 429 00:49:42,200 --> 00:49:43,380 which we think is important. 430 00:49:44,140 --> 00:49:45,580 I really should have bought my computer 431 00:49:45,580 --> 00:49:47,200 because I have a hard time seeing these. 432 00:49:48,480 --> 00:49:48,980 Oh, thank you. 433 00:49:49,060 --> 00:49:49,740 This is so much better. 434 00:49:50,360 --> 00:49:51,040 I'm going to look at this one. 435 00:49:52,040 --> 00:49:59,920 Okay, in Redwood City about the Redwood City already facing 436 00:50:00,000 --> 00:50:04,940 This is a fair amount of rent burden among its renters. About 46 percent of the renter 437 00:50:04,940 --> 00:50:09,020 households are what they call rent burden. That means you have 30 percent or more of your income 438 00:50:09,020 --> 00:50:18,520 is spent on rent. But in that comparison, compared to say California or San Mateo County 439 00:50:18,520 --> 00:50:25,240 in general, a little bit higher than San Mateo, but a little bit lower than California in 440 00:50:25,240 --> 00:50:31,020 general. But rents in Redwood City have been declining in the last, say, five or six years. 441 00:50:33,640 --> 00:50:39,860 So while rents are high in Redwood City, they have been declining in real terms in the last 442 00:50:39,860 --> 00:50:47,880 five years. Prior studies, actually a study that was done between 2016 and 2021, found 443 00:50:47,880 --> 00:50:53,060 that about 25 percent of Redwood City's residents were displaced during that period. 444 00:50:53,060 --> 00:50:57,860 So it has, again, renter pressure in Red City is real. 445 00:50:59,580 --> 00:50:59,840 A quick. 446 00:51:00,000 --> 00:51:03,540 Overview of the housing stock, and this is going to repeat some of the stuff in the key 447 00:51:03,540 --> 00:51:09,700 finding in Redwood City. Forty-eight percent of the units are renter-occupied, so 52 percent 448 00:51:09,700 --> 00:51:16,040 aren't renter-occupied, they're owner-occupied. Overall, about 19 percent of the units would 449 00:51:16,040 --> 00:51:22,960 be subject to the rent control ordinances, the measures, the 60 percent of CPI component. 450 00:51:23,920 --> 00:51:29,120 However, all units, all rental units would be subject to the just cause eviction, right 451 00:51:29,120 --> 00:51:31,780 to return and the other provisions that are included in the ordinance. 452 00:51:35,020 --> 00:51:43,120 So a quick summary of how this measure is likely to affect housing supply and investment. 453 00:51:44,480 --> 00:51:49,200 So again, the key finding, the original key finding, I'm sorry, I'm not, thank you for 454 00:51:49,200 --> 00:51:49,320 that. 455 00:51:49,340 --> 00:51:49,720 I have a switch. 456 00:51:50,580 --> 00:51:50,880 Hopefully. 457 00:51:54,660 --> 00:51:59,820 One more because we saw this slide, and this is the slide we're on now. 458 00:52:00,980 --> 00:52:07,040 So, how does this law affect housing supply and investment impacts? We talked about how it 459 00:52:07,040 --> 00:52:13,000 obviously supports renters in the city. And there is concern that it may also affect new 460 00:52:13,000 --> 00:52:20,100 development for development as well as investment in existing property. Again, the cost of Hawkins 461 00:52:20,100 --> 00:52:28,200 currently limits the impact on new development because new development can continue to increase 462 00:52:28,200 --> 00:52:30,000 increase rent based on state law. 463 00:52:30,320 --> 00:52:31,720 So they won't be subject to this. 464 00:52:31,900 --> 00:52:34,520 Anything built after 1995 can be that. 465 00:52:36,500 --> 00:52:41,180 But as I mentioned before, there has been attempts to repeal cost of Hawkins over the 466 00:52:41,180 --> 00:52:41,360 years. 467 00:52:41,540 --> 00:52:45,860 I think three attempts through from 2018. 468 00:52:46,300 --> 00:52:50,240 So again, if you're an investor in the city, you would be thinking in the background 469 00:52:50,240 --> 00:52:55,240 about reinvest money and if cost of Hawkins is repealed, I will not be able to recover 470 00:52:55,240 --> 00:52:57,040 for my investment on rent. 471 00:53:01,700 --> 00:53:06,560 So, in that case, I do believe that it was most likely that you would have an incentive, 472 00:53:06,840 --> 00:53:11,520 you might have a distance to invest as well as conversion from rental units out of rental 473 00:53:11,520 --> 00:53:18,800 into ownership so people would no longer want to rent their properties. But that's, again, 474 00:53:19,060 --> 00:53:22,720 dependent on a variety of factors and would also depend on whether cost of Hawkins is ever 475 00:53:22,720 --> 00:53:26,720 amended or changed. In terms of investment in older properties 476 00:53:26,720 --> 00:53:37,160 that were built prior to 1995, this again, a very complex issue, but it could potentially 477 00:53:37,160 --> 00:53:43,360 affect an incentive for owners to invest in their property because they would have maybe 478 00:53:43,360 --> 00:53:49,120 a difficult time recovering their rent in the form of increased, recovering their investment 479 00:53:49,120 --> 00:53:53,220 in the form of increased rent because by definition you can't raise your rent. 480 00:53:53,220 --> 00:53:59,860 Now, they may be allowed to petition for a rent increase through a process. 481 00:54:00,000 --> 00:54:06,780 That has not been fully clarified in the ordinance, but the ordinance does suggest that you can 482 00:54:06,780 --> 00:54:10,180 file a petition to increase your rent to recover your investment. 483 00:54:12,280 --> 00:54:13,880 But those two things together 484 00:54:13,880 --> 00:54:22,920 could potentially affect the decision of property owners or operators to invest in property built 485 00:54:22,920 --> 00:54:25,140 prior to 1995 because of their concern 486 00:54:25,140 --> 00:54:26,680 of recouping their investment. 487 00:54:33,860 --> 00:54:34,440 Next slide. 488 00:54:35,980 --> 00:54:40,780 The preliminary estimate of program costs to the city. 489 00:54:41,280 --> 00:54:43,180 So in order to do this, first of all, 490 00:54:43,360 --> 00:54:44,700 it's established that the city does not 491 00:54:44,700 --> 00:54:48,660 have an excess capacity to, at this time, existing capacity 492 00:54:48,660 --> 00:54:50,660 to administer a program of this scale 493 00:54:50,660 --> 00:54:51,720 with the existing staff. 494 00:54:51,820 --> 00:54:54,300 So they would most likely have to hire a staff 495 00:54:54,300 --> 00:54:59,080 and office space and equipment, et cetera, so there would be a cost there. 496 00:55:00,580 --> 00:55:08,480 And the costs will likely include registry, petitions, hearings, counseling, outreach, legal support, enforcement, a whole range of things would be required. 497 00:55:09,120 --> 00:55:18,980 So in order to estimate this, we interviewed and did an analysis of probably about 10 to 12 cities that have rent control ordinances. 498 00:55:19,200 --> 00:55:23,280 And we figured out what their costs were on a per unit, per rental unit basis. 499 00:55:23,280 --> 00:55:29,440 in order to estimate, kind of, apply that kind of parallel basis to Redwood City. 500 00:55:29,800 --> 00:55:37,660 And so we established a minimum, average, and maximum cost, which includes the staff costs, 501 00:55:37,780 --> 00:55:39,920 as well as other costs in office space and whatnot. 502 00:55:40,700 --> 00:55:43,740 I would note that this one-time cost of, sorry, 503 00:55:43,840 --> 00:55:48,780 an annual cost of between $4 million, up to $10 million a year doesn't include 504 00:55:48,780 --> 00:55:54,900 the start-up costs of the program, which would be around $300,000 to $700,000. 505 00:55:55,160 --> 00:55:57,140 So that is our preliminary estimate. 506 00:55:58,440 --> 00:55:59,920 And in order to recover. 507 00:56:00,000 --> 00:56:06,860 To recover these costs, the city would most likely charge 508 00:56:09,200 --> 00:56:13,560 a fee on rental units to recover 509 00:56:13,560 --> 00:56:19,220 those costs. So we made a calculation of what that estimated fee would be, and we found that 510 00:56:19,220 --> 00:56:29,580 to be in the range of $545 per unit per year to a lower of $300. Actually, this is a tiered 511 00:56:30,180 --> 00:56:37,220 So units that are not covered by rent control would be less at $3.38 and the ones that are would be higher at $4.45. 512 00:56:37,480 --> 00:56:42,900 So that's a quick estimate of the essential fee burden that would be on a per-unit basis. 513 00:56:43,960 --> 00:56:54,720 Again, these numbers would need to be recalculated if the measure is approved to actually have a more official nexus analysis of those relationships. 514 00:56:57,280 --> 00:56:59,760 Finally, I want to talk a little bit about the unique challenges 515 00:57:00,000 --> 00:57:07,640 Facing affordable housing with this ordinance because affordable housing, again, is not exempted 516 00:57:07,640 --> 00:57:10,140 from the rent control provisions of this ordinance. 517 00:57:12,600 --> 00:57:16,660 So we estimate there's about 625 affordable 518 00:57:16,660 --> 00:57:21,660 housing units in the city that would be subject to the rent control provisions of this ordinance. 519 00:57:22,360 --> 00:57:26,140 Again, all affordable housing units would be subject to the tenant protection provisions, 520 00:57:26,140 --> 00:57:34,080 but only 625 would be affected by the, and this does present some complexity and challenges 521 00:57:34,080 --> 00:57:37,240 for affordable housing developers because they operate on very low margins. 522 00:57:37,860 --> 00:57:39,880 Many of these older properties have deferred maintenance. 523 00:57:40,580 --> 00:57:45,740 They depend very much on rental income to maintain and to operate their buildings, 524 00:57:47,000 --> 00:57:52,040 but they would not be able to keep up with their costs, not just the management costs 525 00:57:52,040 --> 00:57:55,900 but insurance, utilities, a whole host of deferred maintenance issues, 526 00:57:56,020 --> 00:57:58,460 a whole host of things which do increase at the rate of inflation, 527 00:57:58,860 --> 00:57:59,980 but their rents would not be. 528 00:58:01,660 --> 00:58:10,260 In addition to that, they would be charged a fee to support the implementation of the program. 529 00:58:10,400 --> 00:58:15,480 So their costs would go up just from that fee alone, and then they would also have additional costs 530 00:58:15,480 --> 00:58:22,400 that they would not be able to recoup. So there is some challenges that existing 531 00:58:22,400 --> 00:58:28,000 or deed restricted affordable housing operators would face if the ordinance or the measure was approved. 532 00:58:30,890 --> 00:58:34,050 I think I'm going to end it there. There's a lot of information there and we have a lot 533 00:58:34,050 --> 00:58:39,190 of back pocket slides that we can refer to during the Q&A section, but I think for now 534 00:58:39,190 --> 00:58:41,510 we're going to leave it open for questions. 535 00:58:51,400 --> 00:58:57,940 I'll just wrap up with one slide before going over the recommendations and the questions. 536 00:59:00,000 --> 00:59:05,440 With regards to, you know, if the measure is approved, what that implementation would look 537 00:59:05,440 --> 00:59:11,600 like. So if the city council adopted the ordinance without alteration, you know, this would go 538 00:59:11,600 --> 00:59:16,580 into effect within 30 days after the second reading, like our standard ordinance process. 539 00:59:17,340 --> 00:59:22,060 If it is placed on the ballot and approved by the voters, it would go into effect 10 540 00:59:22,060 --> 00:59:29,540 days after the vote is declared by the city council. Either way, these are accelerated 541 00:59:32,280 --> 00:59:38,640 And so initial implementation and administrative tasks would really fall on existing city staff. 542 00:59:39,440 --> 00:59:42,800 This would require a deep prioritization of other work. 543 00:59:43,300 --> 00:59:50,580 And we would make our best efforts to implement this to the minimum level needed of enforcement as prescribed in the ordinance. 544 00:59:51,480 --> 00:59:57,420 But we anticipate as noted that at a minimum this would require seven new staff, 545 00:59:57,420 --> 00:59:59,900 as well as likely reclassifying existence. 546 01:00:00,000 --> 01:00:02,940 I would like to thank all of the existing staff to take on these additional responsibilities 547 01:00:02,940 --> 01:00:08,300 and ensure adequate capacity to manage both this new program as well as all of our other housing 548 01:00:08,300 --> 01:00:14,440 programs. Full implementation would not be possible until these new staff positions are 549 01:00:14,440 --> 01:00:22,000 created and filled. Again, based on our experience with implementation of the city's tenant 550 01:00:22,000 --> 01:00:27,560 protection ordinance, we estimate kind of the initial implementation taking four to 551 01:00:28,260 --> 01:00:34,440 This would include establishing base rent, initial outreach and education to tenants and landlords, 552 01:00:35,360 --> 01:00:41,360 setting the fee rate that's prescribed in the ordinance and mechanisms to collect that fee, 553 01:00:42,340 --> 01:00:49,160 setting up an interim database and process to collect notices until we can actually put to forth 554 01:00:49,160 --> 01:00:51,700 a more comprehensive rental registry software. 555 01:00:52,560 --> 01:00:55,320 We would have to put together rules and regulations, 556 01:00:55,860 --> 01:00:59,900 as well as hire third-party consultants to provide the free legal. 557 01:01:00,000 --> 01:01:06,340 Local services for low-income tenants as well as setting up hearing officers. Full implementation 558 01:01:06,340 --> 01:01:12,720 and scaling would likely take up to one year or more. The big elements of this, again, are 559 01:01:12,720 --> 01:01:17,680 the hiring and creating of positions. We think this could take up to from seven to nine months. 560 01:01:18,440 --> 01:01:23,640 We would need to find new office space. And if there's any related tenant improvement 561 01:01:23,640 --> 01:01:30,960 We don't have sufficient facilities, existing facilities to accommodate that level of staffing. 562 01:01:32,080 --> 01:01:41,240 We would do, as Jason mentioned, a more in-depth fee study and establish a fee along with more proactive enforcement of that fee. 563 01:01:41,980 --> 01:01:47,360 We would procure and implement a rent registry software as well as managing that database over time, 564 01:01:48,440 --> 01:01:52,580 proactively enforcing any requirements and again continued outreach and education. 565 01:01:57,600 --> 01:01:59,960 And so on the side again are the... 566 01:02:00,000 --> 01:02:07,620 City recommendations before city council, which is to by motion accept the certification of the 567 01:02:07,620 --> 01:02:13,340 signature verifications, and then elect to take one of the two options, which is again 568 01:02:13,340 --> 01:02:19,600 is adopt within 10 days without alteration, or adopt a resolution calling for the election 569 01:02:20,880 --> 01:02:26,180 for this to be placed before the voters. And without I do want to invite our city 570 01:02:26,180 --> 01:02:32,700 I think Patrick Heisinger to just share final few remarks before we go into questions and public comment. 571 01:02:33,200 --> 01:02:35,900 Great. Thank you, Lynn. Patrick Heisinger, City Manager. 572 01:02:36,220 --> 01:02:40,360 I just wanted to add one piece of information regarding the 92-12 report as well. 573 01:02:40,940 --> 01:02:46,260 Under the statute, the 92-12 report really is a report for the decision-makers for the City Council. 574 01:02:47,180 --> 01:02:52,000 I directed staff to pursue the 92-12 report because we had a really short timeline. 575 01:02:52,740 --> 01:02:55,060 And so we did, and we made our timelines. 576 01:02:55,160 --> 01:02:58,080 I really appreciate staff's work and our consultants' work. 577 01:02:58,500 --> 01:02:59,980 That does not mean that more... 578 01:03:00,000 --> 01:03:03,600 Your questions can be asked tonight and information can be sought tonight that we can also bring 579 01:03:03,600 --> 01:03:08,460 back to the city council. I'd also like to acknowledge that we've received several letters with really 580 01:03:08,460 --> 01:03:12,860 good poignant questions that we just didn't have time to research. And so, as part of 581 01:03:12,860 --> 01:03:16,060 the process tonight, there might be questions that we might recommend, say, we'd like 582 01:03:16,060 --> 01:03:22,080 to come back with some more detail on those. So the 9212 report is your report, council. 583 01:03:22,300 --> 01:03:26,260 And so please ask any and all questions and we'll do our best to try to answer 584 01:03:26,260 --> 01:03:28,720 those questions in a tight turnaround. Thank you. 585 01:03:28,720 --> 01:03:29,400 Great, 586 01:03:34,080 --> 01:03:38,840 Patrick. Thank you, Alynn. Mr. Moody, thank you so much for all the work to get us to this point 587 01:03:38,840 --> 01:03:45,860 and so that we could have a 9212 to discuss. With that, colleagues, if anyone has any questions, 588 01:03:47,020 --> 01:03:51,120 we can relay some of those now. If not, we can move into public comment. 589 01:03:52,540 --> 01:03:55,340 Okay. City Clerk, let's move into public comment. 590 01:03:56,460 --> 01:03:57,140 Thank you, Mayor. 591 01:03:57,720 --> 01:03:59,720 So at this point we have 29. 592 01:04:00,000 --> 01:04:04,900 Signed speaker cards. And if we have any folks on Zoom who would like to speak on this 593 01:04:04,900 --> 01:04:09,280 item, please raise your hand at this time. And again, we close the speakers list once 594 01:04:09,280 --> 01:04:13,480 we begin public comment. So I'll give it a few more moments. If there's any last speaker 595 01:04:13,480 --> 01:04:16,840 cards out there in the audience that need to be turned in, please bring them forward 596 01:04:16,840 --> 01:04:20,740 now. And if you've joined us on Zoom, please raise your hand. 597 01:04:35,330 --> 01:04:36,490 Okay, with that, I will 598 01:04:36,490 --> 01:04:45,490 close the speakers list we have two raised hands on zoom in addition to 29 599 01:04:45,490 --> 01:04:52,090 in-person speaker cards totaling 31 speakers on this item mayor how would 600 01:04:52,090 --> 01:04:56,730 you like to allocate the public comment time let's decrease the speaking time for 601 01:04:56,730 --> 01:04:59,970 each comment and see how productive that lets us 602 01:05:00,000 --> 01:05:00,980 Let's get into the conversation. 603 01:05:03,640 --> 01:05:05,220 Decrease to one minute per comment. 604 01:05:05,460 --> 01:05:06,420 Right, for individual comment. 605 01:05:06,760 --> 01:05:11,460 Okay. So as the mayor said, each of you will have one minute to provide public comment. 606 01:05:11,780 --> 01:05:14,380 We'll run the timer that will begin as soon as you begin speaking. 607 01:05:15,000 --> 01:05:16,720 I'll call speakers two at a time. 608 01:05:17,920 --> 01:05:22,820 I also understand that we might have some folks giving public comment in Spanish this evening. 609 01:05:23,420 --> 01:05:27,720 And as the mayor mentioned earlier, we have Spanish interpretation available for this item. 610 01:05:27,720 --> 01:05:35,580 I do ask if you're giving comments in Spanish to please speak slowly to give the opportunity to the interpreter to 611 01:05:35,580 --> 01:05:42,660 Interpret the comments and you will only be timed for your comments not for the interpretation the English interpretation 612 01:05:43,480 --> 01:05:50,520 Okay, let's get started. We'll call John Mendez to the podium who will be followed by Amy Mendez 613 01:05:50,520 --> 01:05:51,540 Thank 614 01:05:59,860 --> 01:05:59,980 you 615 01:06:00,000 --> 01:06:03,640 Thank you for the opportunity to speak. One minute is not much time, so I'll jump right 616 01:06:03,640 --> 01:06:09,580 to the points. The reality is that the covered properties are owned by mom-and-pop landlords, 617 01:06:10,740 --> 01:06:16,840 operating under very thin margins and struggling under the weight of inflation, driving up interest 618 01:06:16,840 --> 01:06:22,980 rates, insurance, repairs, costs, utilities, et cetera, and that doesn't even get into 619 01:06:22,980 --> 01:06:29,580 the increasing burdens of taxes. I urge the council to do two things. One, do not 620 01:06:29,580 --> 01:06:33,820 adopt this ordinance tonight and refer it to the ballot so that voters can have a fair 621 01:06:33,820 --> 01:06:40,500 opportunity to vote on it. Second, go back to EPS and require that they expand the report 622 01:06:40,500 --> 01:06:46,520 to cover the numerous other provisions in the ordinance that directly impact operation 623 01:06:46,520 --> 01:06:52,900 of the subject properties. Council should then inform the citizenry to reject the 624 01:06:52,900 --> 01:06:59,980 advised ordinance, just like Cap Moon Bay has recently had to do, the 9212 625 01:07:04,100 --> 01:07:09,160 Our next speaker is Amy Mendez, who will be followed by Jeffrey Shabowski. 626 01:07:09,840 --> 01:07:15,900 Hello, good evening. I just want to say that all of us, I think here, agree that with the 627 01:07:15,900 --> 01:07:20,760 goals of promoting neighborhood stability, healthy housing, and affordability for renters, but 628 01:07:20,760 --> 01:07:26,920 this ordinance will not achieve those goals. The devil's in the details and the unintended consequences 629 01:07:26,920 --> 01:07:30,840 will include shrinking of the housing stock that you're hoping to protect, 630 01:07:31,220 --> 01:07:34,300 an increase in costs for the city, landlords and tenants, 631 01:07:35,180 --> 01:07:38,980 and a degradation of the quality of the housing and the character of the community. 632 01:07:40,080 --> 01:07:40,860 Thank you. 633 01:07:41,480 --> 01:07:42,160 Thank you. 634 01:07:42,680 --> 01:07:46,260 Our next speaker is Jeffrey Shabowski, who will be followed by Denise. 635 01:07:47,980 --> 01:07:51,360 Thank you, city leaders, for allowing me to speak. 636 01:07:51,360 --> 01:07:59,980 On the 92-192-12 report, two of the objectives were to cut 637 01:08:00,000 --> 01:08:06,400 Cover existing state laws and policies and, in particular, previous studies on impact of 638 01:08:06,400 --> 01:08:15,320 similar tenant protection ordinances. And I would like to hear about that every city that 639 01:08:15,320 --> 01:08:20,960 really attempted to do this has failed. They either adopted the ordinance and then it's 640 01:08:20,960 --> 01:08:27,700 been rejected, conquered, being the most recent, Half Moon Bay, where they had to stop it 641 01:08:27,700 --> 01:08:29,260 because there's no more housing stock. 642 01:08:29,620 --> 01:08:31,980 Also, Salinas, San Pablo, 643 01:08:35,270 --> 01:08:37,210 too quick. 644 01:08:38,550 --> 01:08:42,270 So I would like to move to not adopt this ordinance. 645 01:08:43,250 --> 01:08:47,830 You're going to need $4 to $10 million from the landlords. 646 01:08:48,150 --> 01:08:49,230 We don't have that kind of money. 647 01:08:49,370 --> 01:08:50,610 You're going to end up with a slum. 648 01:08:52,270 --> 01:08:52,890 Thank you. 649 01:08:53,470 --> 01:08:57,310 Our next speaker is Denise, who will be followed by Lupe 650 01:08:57,310 --> 01:08:58,090 Areola. 651 01:09:00,020 --> 01:09:10,740 So I brought one of my clients here tonight. She's a 95-year-old landlord, and she has worked hard on her properties for over 50 years. 652 01:09:11,240 --> 01:09:16,420 And she said tonight to me, what about us? So what about the voice of the landlords? 653 01:09:17,300 --> 01:09:27,960 She has rented out places helping the Hispanic community with low rents, a three bedroom one bath for $2,400, a one bedroom house for $800. 654 01:09:27,960 --> 01:09:36,340 And if you're asking the landlord to pay relocation in the amount of $12,000 plus another $6,000 655 01:09:36,340 --> 01:09:38,380 for four months, that's $18,000. 656 01:09:38,780 --> 01:09:45,100 And you're basically, you know, you're in the red because her $800 unit, that's only 657 01:09:45,100 --> 01:09:52,000 $3,200 rent for four months, or the other unit, you know, is about $10,000, and you're 658 01:09:52,000 --> 01:09:56,740 asking her to pay out $18,000 for these rents that 659 01:09:56,740 --> 01:09:57,540 are below market. 660 01:09:58,040 --> 01:09:58,920 So what about us? 661 01:09:59,200 --> 01:09:59,900 What about the land? 662 01:10:04,320 --> 01:10:11,700 Thank you. Our next speaker is Lupe Arreola, who will be followed by Eduardo Torres. 663 01:10:14,110 --> 01:10:21,710 Hello, good afternoon. Good evening, council members. My name is Lupe Arreola. I'm the executive director for Tenants Together, 664 01:10:22,010 --> 01:10:28,410 we're a statewide tenor and rights organization. And the reason I'm here is because I have been all around California 665 01:10:28,410 --> 01:10:30,850 and hearing the same thing from tenants everywhere. 666 01:10:31,570 --> 01:10:34,510 We are paying too much for our housing. 667 01:10:34,690 --> 01:10:36,050 We cannot sustain. 668 01:10:36,710 --> 01:10:38,290 This is unsustainable for us. 669 01:10:38,690 --> 01:10:40,270 Our wages have not gone up. 670 01:10:41,290 --> 01:10:43,370 Commiserate to how the rents have been rising. 671 01:10:43,870 --> 01:10:45,090 This is unsustainable. 672 01:10:45,370 --> 01:10:45,890 It's unhealthy. 673 01:10:46,650 --> 01:10:49,930 And it actually creates crowded, unhealthy conditions. 674 01:10:50,590 --> 01:10:53,330 It causes people to have to commute hours to go to work. 675 01:10:54,350 --> 01:10:57,470 These are drastic times that require drastic action. 676 01:10:57,470 --> 01:10:59,830 and by drastic action. 677 01:11:00,000 --> 01:11:06,220 It means keeping rent stable and affordable to people long term, right? It should not be a 678 01:11:06,220 --> 01:11:12,260 drastic action, but it's one that is needed right now. So we urge you to accept this proposal 679 01:11:12,260 --> 01:11:18,140 to approve this proposition, save the taxpayers the money of an election, and please approve 680 01:11:18,140 --> 01:11:23,640 this tonight. Thank you. Thank you. Our next speaker is Eduardo Torres, who will be followed 681 01:11:23,640 --> 01:11:24,580 by Emily Morris. 682 01:11:34,930 --> 01:11:38,150 Good evening, council. My name is Eduardo Torres. I'm also from Tennessee 683 01:11:38,150 --> 01:11:42,030 together. I'm the Northern California Regional Coordinator. I actually drove out here tonight 684 01:11:42,030 --> 01:11:46,450 from Pittsburgh, which is in Contra Costa County, just to speak tonight to support the 685 01:11:46,450 --> 01:11:49,870 tenants. It's such an important issue that's happening across the state, as our Executive 686 01:11:49,870 --> 01:11:53,890 Director just mentioned. I just also want to point out that the city is out there 687 01:11:53,890 --> 01:11:58,610 of Concord and Aeneok in recent years took the initiative to adopt a rent stabilization 688 01:11:58,610 --> 01:11:59,130 ordinance. 689 01:11:59,130 --> 01:11:59,970 And so. 690 01:12:00,000 --> 01:12:04,160 So I know that the city of Redwood City has tried to do that in the past, and so you have 691 01:12:04,160 --> 01:12:08,040 a perfect opportunity to adopt the ordinance tonight. And so I'm really encouraging the city 692 01:12:08,040 --> 01:12:11,800 council to listen to your constituents, to the folks who are not only going to get a chance 693 01:12:11,800 --> 01:12:17,380 to possibly vote for this in November, but also vote for future city council members who 694 01:12:17,380 --> 01:12:21,080 don't support this, right? So it's really important to listen to the constituents, 695 01:12:21,320 --> 01:12:24,460 to the voters, to democracy, because we know we're living in a time where democracy 696 01:12:24,460 --> 01:12:26,360 is being demolished every single day. Thank you. 697 01:12:26,360 --> 01:12:26,680 Thank 698 01:12:29,240 --> 01:12:34,160 you. Our next speaker is Emily. Before we go on to the next, I just want 699 01:12:34,160 --> 01:12:37,740 a friendly reminder to everybody that for us to be able to get through the 700 01:12:37,740 --> 01:12:42,000 meeting, there is no cheering, no applause. Please keep that to yourself. 701 01:12:42,060 --> 01:12:46,160 You're more than welcome to do jazz hands, something nonverbal, but just so 702 01:12:46,160 --> 01:12:49,960 that we aren't interrupting our next speaker. If we could contain that, that 703 01:12:49,960 --> 01:12:53,780 would be great. Thank you. Thank you, Mayor. Emily Morris. Welcome. 704 01:12:57,980 --> 01:12:58,440 And Martha 705 01:12:58,440 --> 01:12:59,860 volunteer with faith in action. 706 01:13:00,000 --> 01:13:04,860 Bay Area. And I'm among the many volunteers who collected signatures from the community 707 01:13:04,860 --> 01:13:10,060 to qualify rent control for the ballot. I went all over the city and knocked on doors. People 708 01:13:10,060 --> 01:13:15,380 I talked to, both homeowners and renters, were clamoring to sign. So many people I spoke 709 01:13:15,380 --> 01:13:20,340 to told me about how the cost of rent was out of control. We collected well over the 710 01:13:20,340 --> 01:13:24,440 required number of signatures to qualify for the ballot, and we know why. The cost 711 01:13:24,440 --> 01:13:28,620 of rent is way, way too high. Wages are not keeping up. People are working two 712 01:13:28,620 --> 01:13:32,880 to three jobs to pay the rent. Families are leaving. I love Redwood City for so 713 01:13:32,880 --> 01:13:36,900 many reasons, among them the vibrancy and diversity of the city. Rent control and 714 01:13:36,900 --> 01:13:39,920 tenant protections will help keep families together in Redwood City so it 715 01:13:39,920 --> 01:13:43,820 can continue to be the diverse welcoming place that we love. The solution 716 01:13:43,820 --> 01:13:49,800 is needed now and we can't afford to delay. Thank you. Thank you. Our next 717 01:13:49,800 --> 01:13:52,600 speaker is Martha Beatley who will be followed by Clara Jekyll. 718 01:13:57,000 --> 01:13:57,440 Good 719 01:13:57,440 --> 01:13:59,880 rent control initiative because our neighbors need 720 01:14:00,000 --> 01:14:04,240 We want to help to stay in our community and our neighborhoods benefit from the stability 721 01:14:04,240 --> 01:14:09,860 of long-term residency. I want kids to grow up in a home where they know their neighbors 722 01:14:10,720 --> 01:14:17,320 and where they have deep relationships with their school classmates. Rising rents cause 723 01:14:17,320 --> 01:14:23,200 families to feel economic stress, to look for less expensive housing farther away, and 724 01:14:23,200 --> 01:14:29,740 to double up in cramped living spaces. None of this is healthy for families. Rent control 725 01:14:29,740 --> 01:14:34,060 will give all of us in Redwood City the chance to share our city with a variety of residents, 726 01:14:34,460 --> 01:14:39,920 mechanics, nurses, teachers, firefighters, and others who want to thrive in the Bay Area, 727 01:14:40,200 --> 01:14:43,560 but whose salaries do not keep up with the high cost of living here. 728 01:14:44,100 --> 01:14:50,060 When we say climate best for government test, I hope that we mean economic climate and 729 01:14:50,060 --> 01:14:55,120 housing climate and a welcoming climate, not just the temperature on the thermometer. 730 01:14:55,120 --> 01:14:59,960 Thank you. Our next speaker is Clara Jekyll, who 731 01:15:00,000 --> 01:15:01,840 We'll be followed by Al-Heli Kang. 732 01:15:02,880 --> 01:15:06,620 Thank you. My name is Clara Jekyll. I've been a renter in Redwood City for 10 years. 733 01:15:07,280 --> 01:15:10,200 Everyone deserves a safe and dignified place to live. 734 01:15:10,800 --> 01:15:16,580 And the fair and affordable housing ordinance is a measure that stems out of years of Redwood City residents' experiences. 735 01:15:17,360 --> 01:15:21,160 A dirtily response to the issues my neighbors and tenants across the city are facing. 736 01:15:21,960 --> 01:15:24,980 Unsustainably high rents, harassment, and unsafe living conditions. 737 01:15:24,980 --> 01:15:29,380 These problems have led to families either being displaced out of the city altogether 738 01:15:29,380 --> 01:15:33,400 or forced into extreme measures like working two or three jobs 739 01:15:33,400 --> 01:15:35,040 to attempt to keep up with rent increases. 740 01:15:35,720 --> 01:15:38,540 The protections in this ordinance will help families stay in their homes, 741 01:15:38,920 --> 01:15:40,920 keep our neighborhoods and schools more stable, 742 01:15:41,500 --> 01:15:43,700 protect seniors and disabled people on low incomes, 743 01:15:44,020 --> 01:15:46,520 and allow essential workers to live where they work. 744 01:15:47,040 --> 01:15:50,460 It strikes a good balance for landlords to ensure a fair return on their investment 745 01:15:50,460 --> 01:15:52,100 and will reduce tenant turnover. 746 01:15:52,620 --> 01:15:56,660 This measure can be a real cornerstone for the diverse and thriving city we all want. 747 01:15:57,000 --> 01:15:59,900 I urge you to implement tonight, otherwise under your ministerial 748 01:16:01,420 --> 01:16:04,980 I'm really excited about the chance for us to do something really good for our city. 749 01:16:06,720 --> 01:16:11,860 Thank you. Our next speaker is Aheli Kang, who will be followed by Andrea Gill. 750 01:16:12,320 --> 01:16:16,920 I'm a community advocate and a youth development practitioner at Youth Leadership Institute. 751 01:16:17,480 --> 01:16:21,040 Our youth leaders have spent three years learning about how they can make change in their community, 752 01:16:21,340 --> 01:16:24,320 and when it came to an issue they cared about, it was housing affordability, 753 01:16:24,520 --> 01:16:26,180 and more specifically, rent control. 754 01:16:26,180 --> 01:16:30,280 We are here in solidarity with faith in action and in support of rent control. 755 01:16:30,500 --> 01:16:34,380 Our youth leaders and their families have gone too long without common sense protections. 756 01:16:34,820 --> 01:16:37,660 We urge you to adopt what the community members have before. Thank you. 757 01:16:39,960 --> 01:16:44,000 Thank you. Our next speaker is Andrea Gill, who will be followed by Elizabeth Prado. 758 01:16:44,860 --> 01:16:47,020 Good evening, Mayor Martinez and City Council. 759 01:16:47,300 --> 01:16:51,060 My name is Andrea Gill and I'm here today with Faith in Action Bay Area and Youth Leadership Institute. 760 01:16:51,740 --> 01:16:54,660 I have the honor to work alongside youth leaders here in Redwood City. 761 01:16:54,660 --> 01:16:59,440 Over the past years when asking them what issues or challenges do you face in your community? 762 01:17:00,000 --> 01:17:04,740 It's always been housing. It's always about them envisioning, can I even say in a city that 763 01:17:04,740 --> 01:17:09,660 I grew up in? And that is why we also partner with Faith in Action, because in those spaces 764 01:17:09,660 --> 01:17:15,760 they felt heard and seen of the words they couldn't say out loud. And we said, many have 765 01:17:15,760 --> 01:17:19,720 shared fears of being in this place, and many find it hard to envision long-term housing 766 01:17:19,720 --> 01:17:24,500 because of the cost of living. We heard today that 46% are rent burden. I just asked 767 01:17:24,500 --> 01:17:27,320 y'all, listen to the folks in the room and the signatures that were gathered 768 01:17:27,320 --> 01:17:30,620 why we should pass tenant protection and rent control measures. 769 01:17:31,140 --> 01:17:34,980 Families more now and ever need stronger protection to live a dignified life. 770 01:17:35,280 --> 01:17:36,580 Thank you for listening to us tonight. 771 01:17:37,520 --> 01:17:38,260 Thank you. 772 01:17:38,860 --> 01:17:43,200 Our next speaker is Elizabeth Prado, who will be followed by Teresa Barrowman. 773 01:17:44,260 --> 01:17:49,060 Hi, my name is Elizabeth and I am speaking in support of strong rent control measures. 774 01:17:50,720 --> 01:17:59,980 Many renters are working overtime taking extra shifts and sometimes working two or three jobs just to keep a roof over their heads, instead of being present with their families. 775 01:18:00,000 --> 01:18:01,500 They're forced to spend more time working. 776 01:18:02,600 --> 01:18:09,460 Speaking for the next generation, I'm concerned about what this means for us. Many of us might be unable to live in this city where we grew up. 777 01:18:09,840 --> 01:18:15,360 A city cannot be successful if the people who work here study here and hope to build their futures here can't afford it. 778 01:18:15,980 --> 01:18:25,220 Rent control is not just about housing costs. It's about community protecting families and ensuring that Redwood City remains a place where working future generations have a chance to live and succeed. 779 01:18:25,720 --> 01:18:29,560 I urge the council to implement red control that provides stability and protection for 780 01:18:29,560 --> 01:18:29,960 renters. 781 01:18:30,600 --> 01:18:34,340 Speaking for many youth, as a teenager myself, I shouldn't have to be here worried about 782 01:18:34,340 --> 01:18:36,360 whether my parents have enough for next month. 783 01:18:38,980 --> 01:18:39,420 Thank you. 784 01:18:39,840 --> 01:18:44,140 Our next speaker is Teresa Berumen, who will be followed by Hyun-mi Kim. 785 01:18:45,040 --> 01:18:45,360 Yes. 786 01:18:45,760 --> 01:18:47,080 Good evening, council members. 787 01:18:47,580 --> 01:18:51,940 My name is Teresa Berumen, and I lived in Redwood City for over 50 years. 788 01:18:52,380 --> 01:18:54,940 And I'm a leader with faith in action. 789 01:18:54,940 --> 01:18:59,180 I urge you to pass the stand-in protection and rent control measure today. 790 01:19:00,000 --> 01:19:04,960 Protect families, seniors, and working residents from this placement. 791 01:19:05,600 --> 01:19:10,860 I have watched family members in a long time neighborhood forced to leave the city because 792 01:19:10,860 --> 01:19:16,600 they could no longer afford the rising rents, including my elderly parents, which they had 793 01:19:16,600 --> 01:19:22,160 to move away because they couldn't afford it here anymore. 794 01:19:22,600 --> 01:19:28,140 When seniors are pushed out, they lose vital support networks and their health and dignity 795 01:19:28,140 --> 01:19:28,680 suffer. 796 01:19:28,680 --> 01:19:34,480 When workers and family members are forced to move further away, our local businesses 797 01:19:34,480 --> 01:19:37,060 and schools lose customers and students. 798 01:19:37,560 --> 01:19:40,360 Commutes get longer and community life weekends. 799 01:19:40,980 --> 01:19:43,780 This is not just for policy issues, it's for moral one. 800 01:19:44,180 --> 01:19:48,640 Protecting tenants prevent unfair and excessive rent increases. 801 01:19:49,300 --> 01:19:50,400 Please vote now. 802 01:19:51,000 --> 01:19:51,480 Thank you. 803 01:19:52,300 --> 01:19:56,340 Our next speaker is Hyun-mi Kim, who will be followed by Taylor Brady. 804 01:19:56,340 --> 01:19:59,980 Okay. Good evening. My name is 805 01:20:00,000 --> 01:20:05,500 Ms. Hyun-mi Kim, I am a senior housing rights attorney, a community legal services in Palo Alto, 806 01:20:05,800 --> 01:20:11,520 also known as CLASPA. CLASPA, along with the Legal Aid Society of San Mateo County, represent 807 01:20:11,520 --> 01:20:16,760 almost all unrepresented vulnerable loan-income tenants from every corner of San Mateo County 808 01:20:17,240 --> 01:20:21,300 who face losing their homes at the County of San Mateo's eviction court, also known 809 01:20:21,300 --> 01:20:26,620 as unlawful detainment proceedings every Tuesday. We also regularly receive calls 810 01:20:26,620 --> 01:20:32,020 from the tenants in Redwood City asking legal advice or representation after having received 811 01:20:32,020 --> 01:20:39,480 on-law for eviction and rent increase notices. I personally represented several tenants from 812 01:20:39,480 --> 01:20:45,660 Redwood City including a case involving a landlord who filed a meritless on-law for 813 01:20:45,660 --> 01:20:50,780 detainer suit based on illegal rent increase notice. In that case, I was able to successfully 814 01:20:50,780 --> 01:20:57,820 dismiss the suit. Every week I directly witness how local based tenants protection 815 01:20:57,820 --> 01:20:59,660 ordinances, for example, 816 01:21:03,420 --> 01:21:08,400 Ms. Kim, that's your time. Ms. Kim, that's your time. 817 01:21:08,460 --> 01:21:11,720 Ms. Kim, that's your time. Ms. Kim, that's your minute. 818 01:21:16,600 --> 01:21:23,420 Thank you. Thank you. Our next speaker is Taylor Brady, who will be followed by Nicholas Kennan. 819 01:21:30,340 --> 01:21:34,600 Good evening, City Council. My name is Taylor Brady, and I've been a resident of Redwood 820 01:21:34,600 --> 01:21:40,000 City for six years. As a public employee myself in Mountain View, I appreciate the stress of 821 01:21:40,000 --> 01:21:46,580 your job. So thank you for listening to us tonight. I urge you tonight to vote to adopt 822 01:21:46,580 --> 01:21:52,460 the ordinance as proposed. Rent control is an absolutely vital piece of the slate of 823 01:21:52,460 --> 01:21:57,760 policies that are needed to provide affordable housing, consistency, and dignity for the 824 01:21:57,760 --> 01:21:59,980 people of this community. There's a great 825 01:22:00,000 --> 01:22:05,100 Everyday symmetry between the information available to renters and that available to landlords who 826 01:22:05,100 --> 01:22:09,820 are able to use algorithmic pricing and cartel-like behavior to exploit tenants. 827 01:22:12,400 --> 01:22:13,700 The people who 828 01:22:13,700 --> 01:22:19,980 make up our community and enliven it need safe and dignified housing. I hope that you show 829 01:22:19,980 --> 01:22:25,840 the courage to pass this measure rather than demurring this evening. I understand it's 830 01:22:25,840 --> 01:22:27,100 the politically safe option. 831 01:22:27,780 --> 01:22:30,060 But there has been a great and resounding call 832 01:22:30,060 --> 01:22:31,520 from the people of this community 833 01:22:32,100 --> 01:22:33,740 to provide and safe housing. 834 01:22:34,160 --> 01:22:35,000 Oh, yes, thank you. 835 01:22:35,600 --> 01:22:36,140 Thank you. 836 01:22:36,460 --> 01:22:38,340 Our next speaker is Nicholas Kennan, 837 01:22:38,660 --> 01:22:42,320 who will be followed by Sophia Gonzalez Rodriguez. 838 01:22:43,600 --> 01:22:45,940 My name is Nick Kennan, district six resident. 839 01:22:46,320 --> 01:22:48,580 I'm here to speak in favor of the rent control ordinance. 840 01:22:49,400 --> 01:22:50,820 When I think about housing solutions 841 01:22:50,820 --> 01:22:52,060 and what we have to do, 842 01:22:52,180 --> 01:22:53,540 I picture this long timeline. 843 01:22:54,060 --> 01:22:58,140 One end is the building of housing which we are all deeply engaged in, trying to flood 844 01:22:58,140 --> 01:22:59,980 the system with housing to meet everyone's needs. 845 01:23:00,000 --> 01:23:05,860 But this is not a quick endeavor when it takes years to get housing built. So we move to the 846 01:23:05,860 --> 01:23:11,420 other end of the timeline with rent control, which we can implement more quickly. We need 847 01:23:11,420 --> 01:23:15,920 to bring people along when the overarching vision is supplying housing for all and the 848 01:23:15,920 --> 01:23:21,280 time that will take. People need that immediate relief in the meantime to prevent displacement. 849 01:23:22,220 --> 01:23:26,800 And our political upsides to consider with rent control and increased tenant protections, 850 01:23:27,520 --> 01:23:33,840 residents will feel secure, not left behind, and more willing to allow change with respect 851 01:23:33,840 --> 01:23:34,640 to housing development. 852 01:23:35,140 --> 01:23:35,640 Thank you for your time. 853 01:23:36,560 --> 01:23:37,360 Thank you. 854 01:23:38,000 --> 01:23:42,100 Next speaker is Sophia Gonzalez Rodriguez, who will be followed by Amanda Chang. 855 01:23:44,240 --> 01:23:44,800 Good evening. 856 01:23:45,040 --> 01:23:46,000 My name is Sophia Gonzalez. 857 01:23:46,460 --> 01:23:50,400 I work at the Council of San Mateo County, a local nonprofit organization that has 858 01:23:50,400 --> 01:23:54,540 been providing direct services to the Redwood City community from our office down on Middle 859 01:23:54,540 --> 01:23:55,880 Field for over 45 years. 860 01:23:56,700 --> 01:23:59,880 Every day we see firsthand how the near 50% 861 01:24:00,000 --> 01:24:04,720 And burden statistic plays out in our clients. A city rent control ordinance is a necessary 862 01:24:04,720 --> 01:24:07,060 and urgent step to address the needs of our community. 863 01:24:09,600 --> 01:24:11,300 High rents create economic strain 864 01:24:11,300 --> 01:24:15,300 for residents leaving less income available to purchase healthy foods or cover medical expenses. 865 01:24:16,080 --> 01:24:20,040 A lot of our clients come in for help with affordable housing applications, but even these 866 01:24:20,040 --> 01:24:25,380 can now be outside of people's budgets requiring monthly incomes up to $3,000 to $5,000. 867 01:24:26,220 --> 01:24:31,000 This reality is why we see our clients entering cramped living conditions, living as many 868 01:24:31,000 --> 01:24:35,720 as 8 to 10 people in a two bedroom apartment or moving out east as their rents increase. 869 01:24:36,520 --> 01:24:38,600 I myself live in Berkeley in a rent control unit. 870 01:24:39,980 --> 01:24:44,500 These conditions are not conducive to economic flourishing, let alone holistic stability 871 01:24:44,500 --> 01:24:45,040 or well-being. 872 01:24:46,560 --> 01:24:50,240 I ask the City Council to stand with the tenants and implement the ordinance tonight. 873 01:24:50,500 --> 01:24:50,740 Thank you. 874 01:24:51,000 --> 01:24:51,380 Thank you. 875 01:24:51,880 --> 01:24:53,680 Our next speaker is Amanda Chang. 876 01:24:53,680 --> 01:24:56,140 will be followed by Salvador Herrera. 877 01:25:04,270 --> 01:25:10,250 Good evening, City Council. My name is Amanda Chang, and I'm here as a staff member of Urban Habitat. 878 01:25:10,770 --> 01:25:16,330 We released a report on the impact of tenant protections in Redwood City back in April. I 879 01:25:16,330 --> 01:25:22,270 encourage you to read this. Among some of our findings in this report, we found that the 880 01:25:22,270 --> 01:25:31,130 average rent in Redwood City has increased 47% from 2010 to 2025. And that two out of 881 01:25:31,130 --> 01:25:35,230 three low-income families are paying more than half their income on housing 882 01:25:35,230 --> 01:25:41,530 up just from 44% just 10 years ago. And approximately 40,000 people could have 883 01:25:41,530 --> 01:25:45,350 increased housing stability through just cause and anti harassment protections 884 01:25:45,350 --> 01:25:49,950 which is about half the city. This includes nearly 5,000 children under 885 01:25:49,950 --> 01:25:56,520 the age of 18 and over 6,000 seniors. And approximately 22,000 people in 886 01:25:56,520 --> 01:25:59,840 with city, a quarter of the population could be protected by rent stable. 887 01:26:00,840 --> 01:26:06,880 You can vote to approve this measure now or wait for November for the ballot for the people to pass it. Thank you. 888 01:26:07,560 --> 01:26:12,860 Thank you. Our next speaker is Salvador Herrera, who will be followed by Michael Pierce. 889 01:26:12,860 --> 01:26:13,700 Good 890 01:26:23,330 --> 01:26:28,470 afternoon, gentlemen of the Council. My name is Salvador Herrera and I am in the 891 01:26:28,470 --> 01:26:33,870 Fey Action Organization, for which we have joined because we are seeing the increase 892 01:26:33,870 --> 01:26:40,270 in rent and then the number of elderly people of the third age who do not have where to 893 01:26:40,270 --> 01:26:46,110 stay, where to have a place, because the truth for them is very difficult to pay 894 01:26:46,110 --> 01:26:51,910 un una renta de dos mil dólares y queremos para ellos un lugar digno y para 895 01:26:51,910 --> 01:26:55,530 todas esas familias para todas esas mujeres solteras que tienen hasta tres 896 01:26:55,530 --> 01:26:59,970 cuatro niños y sólo ellas trabajan yo creo que justo que nos ayude a 897 01:27:26,740 --> 01:27:29,940 Thank you. And now we'll hear the English interpreter. 898 01:27:29,940 --> 01:27:30,860 of the comments. 899 01:27:32,720 --> 01:27:34,420 My name is Salvador Herrera, 900 01:27:35,060 --> 01:27:37,460 and I am a resident of Robert City. 901 01:27:42,710 --> 01:27:44,410 And we were here, 902 01:27:44,590 --> 01:27:46,530 and I'm part of their faith in action, 903 01:27:46,690 --> 01:27:48,950 and we're here because we're seeing the increase of rent, 904 01:27:49,370 --> 01:27:51,390 and also a lot of elderly people 905 01:27:51,390 --> 01:27:53,590 that they do not have a place to stay. 906 01:27:53,710 --> 01:27:55,410 They don't have a place 907 01:27:55,410 --> 01:27:57,450 because honestly, for them, 908 01:27:57,570 --> 01:27:59,630 it's very difficult to pay a rent 909 01:27:59,630 --> 01:27:59,830 Thank you. 910 01:28:00,000 --> 01:28:07,380 For $2,000 and we want for them a good place for all of those families, for all of those single 911 01:28:07,380 --> 01:28:13,240 moms that have like three, four kids and it's just them working. So I think it's fair for 912 01:28:13,240 --> 01:28:19,980 you guys to help us for this ordinance to pass for you guys to be with us because there's 913 01:28:19,980 --> 01:28:24,220 a lot of need. There's a lot of families that are doing bad. I think that you guys 914 01:28:24,220 --> 01:28:30,380 have seen the places, not only drug addicts are sleeping in those places, healthy families 915 01:28:30,380 --> 01:28:34,060 are sleeping in those places because they don't have work to sleep, they don't have 916 01:28:34,060 --> 01:28:34,660 a good place. 917 01:28:35,080 --> 01:28:39,200 So this is why we are here, all of the city that we're here, and we are all united. 918 01:28:39,540 --> 01:28:39,920 Thank you. 919 01:28:41,730 --> 01:28:42,850 Thank you very much for that. 920 01:28:43,370 --> 01:28:48,150 And we'll move on to our next speaker, Michael Pierce, who will be followed by Conor O'Brien. 921 01:28:52,240 --> 01:28:55,660 I'm Michael Pierce, Chair of the Board of the St. Francis Center on Nonprofit in 922 01:28:55,660 --> 01:28:56,120 Redwood City. 923 01:28:56,120 --> 01:28:59,720 We operate 267 units of low-income housing in San Mateo County. 924 01:29:00,000 --> 01:29:06,240 90 of which are in the city of Redwood City. I'm gravely concerned about the impact this will 925 01:29:06,240 --> 01:29:11,940 have on nonprofits like us and others because of the impact. If we lose our property tax abatements, 926 01:29:12,120 --> 01:29:15,860 it grossly affects our ability to continue to operate low-income housing, and that risk 927 01:29:15,860 --> 01:29:22,200 is very great under this proposed ordinance. I urge you to go back and revisit the 9212 928 01:29:22,200 --> 01:29:26,140 report and really study these impacts on other low-income housing providers. For the 929 01:29:26,140 --> 01:29:29,360 in Francis Center alone that would be $468,000 a year 930 01:29:29,360 --> 01:29:31,520 across our five parcels in Redwood City 931 01:29:31,520 --> 01:29:33,200 if we lost those property tax abatements. 932 01:29:33,720 --> 01:29:36,560 It also dictates the removal of rubs. 933 01:29:37,200 --> 01:29:39,340 We have voluntarily lowered rents for tenants 934 01:29:39,340 --> 01:29:41,600 in order for them to participate with utility costs. 935 01:29:41,920 --> 01:29:43,380 They'd have no incentive to lower costs. 936 01:29:43,720 --> 01:29:45,780 Under this ordinance, our rents would be capped, 937 01:29:46,240 --> 01:29:47,140 absent those costs, 938 01:29:47,200 --> 01:29:48,580 because there's no provision to add that back. 939 01:29:48,660 --> 01:29:50,240 So it's a great concern for us 940 01:29:50,240 --> 01:29:51,640 and other low-income housing providers. 941 01:29:52,160 --> 01:29:53,460 I think this is ill-conceived 942 01:29:53,460 --> 01:29:54,120 in the way it's formed. 943 01:29:54,360 --> 01:29:54,680 Thank you. 944 01:29:55,460 --> 01:29:59,920 Thank you, our next speaker is Connor O'Brien who will be followed by 945 01:30:00,080 --> 01:30:01,200 Mayor Slackie. 946 01:30:06,930 --> 01:30:12,850 Good evening. My name is Connor O'Brien. I am a member of Silicon Valley DSA and 947 01:30:12,850 --> 01:30:18,050 have been as a volunteer signature gathering for this initiative have been hearing from residents 948 01:30:18,050 --> 01:30:23,710 here about the urgency of adopting it. I'm also a resident and renter in Mountain View where this 949 01:30:23,710 --> 01:30:27,630 year will be celebrating the 10th anniversary of winning our own renter protections and rent 950 01:30:27,630 --> 01:30:32,290 control. And so I wanted to speak to the benefits that we've seen from that in terms 951 01:30:32,290 --> 01:30:37,310 of residents gaining stability, gaining some peace of mind that unexpected rent increases 952 01:30:37,310 --> 01:30:40,290 or unjust evictions won't displace them from their neighborhood. 953 01:30:40,590 --> 01:30:45,710 One testament to that is that four years into our adoption of rent control in 2020, voters 954 01:30:45,710 --> 01:30:50,070 had the opportunity to weaken the measure and overwhelmingly chose to maintain it by 955 01:30:50,070 --> 01:30:52,510 a margin of a 70% majority. 956 01:30:53,330 --> 01:30:58,370 So I think that looking to that experience, you have the opportunity now to allow renters 957 01:30:58,370 --> 01:30:59,970 to benefit immediately from this. 958 01:31:00,000 --> 01:31:04,640 The same protections that have been such a benefit to the tenants in our city. Thank you. 959 01:31:05,800 --> 01:31:11,720 Thank you. Our next speaker is Mayor Sleiki. We'll be followed by a Silly Morrison. 960 01:31:14,930 --> 01:31:21,590 Hello. Mark Sleiki for the record, but Mark Sleiki, I'm a lifelong resident here in the peninsula. 961 01:31:22,010 --> 01:31:26,830 Renter here in Redwood City, a member of Peninsula DSA and a local leader for this campaign as well. 962 01:31:28,430 --> 01:31:32,450 From my point of view, this is the bare minimum we can do for hunters at this point. 963 01:31:32,750 --> 01:31:35,930 We are well behind an insane affordability crisis. 964 01:31:36,350 --> 01:31:38,250 We talk a lot about who can afford what. 965 01:31:38,650 --> 01:31:40,230 I'll give you some simple numbers. 966 01:31:40,570 --> 01:31:42,690 I work at the cafe across the street at the yard. 967 01:31:42,850 --> 01:31:46,410 I've had the pleasure of serving some people in this chamber, many of my community members. 968 01:31:46,930 --> 01:31:48,610 We make $19 an hour. 969 01:31:49,450 --> 01:31:50,330 That is minimum wage. 970 01:31:51,050 --> 01:31:54,830 If you have a studio apartment like mine, which is the cheapest one in Redwood City, 971 01:31:54,830 --> 01:31:57,010 you're paying $19.29 for rent. 972 01:31:57,410 --> 01:31:59,790 That means almost 90% of your income. 973 01:32:00,000 --> 01:32:05,060 is going to rent. It's unreal. We cannot afford to not pass something like this. 974 01:32:05,760 --> 01:32:10,800 Beyond that, last I checked, it's citizens who have voted you in, not investors, 975 01:32:11,260 --> 01:32:15,140 not the investments that could be affected, not affordable housing providers, even. 976 01:32:15,760 --> 01:32:21,960 I love what they do. However, it's 48% of the population will be affected immediately by this, 977 01:32:22,040 --> 01:32:24,080 rather than the 1,000. Thank you, Mark. Thank you. 978 01:32:24,120 --> 01:32:26,620 Thank you, Mark. Sorry about that. 979 01:32:26,620 --> 01:32:31,420 Next speaker is Vasili Morrison, who will be followed by Paul Boca Negra. 980 01:32:33,680 --> 01:32:36,600 Hi, I'm Vasili Morrison. I'm a member of Silicon Valley DSA. 981 01:32:37,120 --> 01:32:42,560 I have members of my community and family that have personally been affected by rent evictions 982 01:32:42,560 --> 01:32:46,480 and had to have families who have not been able to afford housing. 983 01:32:46,740 --> 01:32:49,100 They've had to stay in my house, my family's house. 984 01:32:49,600 --> 01:32:54,280 I am fortunate enough to be able to have my family own a house. 985 01:32:54,280 --> 01:32:59,980 Hundreds of thousands of people of this community do not have that affordability. 986 01:33:00,000 --> 01:33:04,600 That affordability that many landlords here do, who have more than one housing, aren't able 987 01:33:04,600 --> 01:33:10,280 to rent said housing out to other people. It is the thousands of workers in this community 988 01:33:10,280 --> 01:33:15,960 who provide the teachers, who provide the construction labor, who could provide the value 989 01:33:15,960 --> 01:33:22,220 that the thousands that the landlords here may benefit from with their land raises and 990 01:33:22,220 --> 01:33:26,660 rents. This rent control measure would provide those laborers with the ability to stay 991 01:33:26,660 --> 01:33:30,940 in this community and not have to worry about their rents increasing and have to worry about 992 01:33:30,940 --> 01:33:37,440 getting a second or third job just to stay in their house. Thank you guys. Thank you. Our next 993 01:33:37,440 --> 01:33:43,360 speaker is Paul Volconegra who will be followed by David Gonzalez. Good evening Mayor Ceballos, 994 01:33:43,420 --> 01:33:48,720 council members. My name is Paul Volconegra. I am executive director of Unlocked Futures. 995 01:33:49,260 --> 01:33:57,200 I am also a homeowner and a landlord. We need to pass rank control. As executive director 996 01:33:57,200 --> 01:33:59,920 of Unlocked Futures, I work with system-impacted youth. 997 01:34:00,000 --> 01:34:05,260 Many of these youth do not know if they're going to be living in the same location that 998 01:34:05,260 --> 01:34:12,420 they did when they returned home. Many of these youth are also willing to work at 14-15 just 999 01:34:12,420 --> 01:34:18,480 to be able to assist their parents to pay rent so they have extra money for food and clothing. 1000 01:34:19,040 --> 01:34:25,180 This is a problem. We have thousands of voters who have already signed onto this, and I believe 1001 01:34:25,180 --> 01:34:31,820 that we should adopt this tonight and be leaders in ranked control rather than continue to trail 1002 01:34:32,300 --> 01:34:34,220 in the Bay Area. Thank you so much. Have a good night. 1003 01:34:35,440 --> 01:34:40,520 Thank you. Our next speaker is David Gonzalez, who will be followed by Roe V. Antonio. 1004 01:34:45,630 --> 01:34:49,810 Good evening. Good evening, city representatives. My name is David Gonzalez, 1005 01:34:50,030 --> 01:34:54,630 and I moved here in 2022 to the beautiful Redwood Shores, and every year I experienced 1006 01:34:54,630 --> 01:34:57,650 a rental increase of 10% until I could no longer afford to stay. 1007 01:34:58,190 --> 01:34:59,970 Each time, I would see the V- 1008 01:35:00,000 --> 01:35:04,140 Taking neighboring units on their online website being priced hundreds of dollars below what 1009 01:35:04,140 --> 01:35:08,220 they were asking me to renew with. So I know for a fact that this was not due to increasing 1010 01:35:08,220 --> 01:35:14,080 costs. City representatives, I implore you to pass this ordinance now and protect your 1011 01:35:14,080 --> 01:35:22,380 constituents from algorithmic pricing and greed and supply and demand. I promise you we won't 1012 01:35:22,380 --> 01:35:23,680 forget this. Thank you. 1013 01:35:25,260 --> 01:35:30,840 Thank you. Our next speaker is Roevee Antonio, who will be followed by Fernando Peña. 1014 01:35:43,740 --> 01:35:46,980 Good evening, Mayor and City Council. Roevee Antonio with the California Apartment Association, 1015 01:35:47,620 --> 01:35:51,560 a non-profit trade association representing rental property owners in Redwood City. 1016 01:35:52,140 --> 01:35:56,740 Tonight we are asking you to slow this process down. This is not a city-sponsored measure. 1017 01:35:57,360 --> 01:35:58,640 You did not write this. 1018 01:36:00,000 --> 01:36:06,200 I cannot write this. Unless you were in the room when these 46 pages were drafted, you cannot 1019 01:36:06,200 --> 01:36:12,100 note tonight whether the city has fully understood every consequence. In fact, tonight is the first 1020 01:36:12,100 --> 01:36:19,040 time that this has been presented to the city council to have a public discussion. The 9-1-2 1021 01:36:19,040 --> 01:36:24,860 report is useful, but incomplete. It analyzes rent control, which is fewer than two pages, 1022 01:36:25,040 --> 01:36:29,440 but more than 40 pages create rules affecting single-family rentals, condos, accessory 1023 01:36:29,440 --> 01:36:34,500 dwelling units, mobile homes, and affordable housing. The rules include relocation payments, 1024 01:36:34,700 --> 01:36:39,020 owner move and restrictions, and renovation restrictions. Due diligence require more than 1025 01:36:39,020 --> 01:36:43,180 a partial report. Before taking final ballot action, you need to study the full fiscal 1026 01:36:43,180 --> 01:36:45,500 housing and economic picture. Thank you. 1027 01:36:46,460 --> 01:36:51,200 Thank you. Our next speaker is Fernando Peña, who will be followed by Steven Howard. 1028 01:36:51,700 --> 01:36:55,320 Good evening, Mayor and Council Members. My name is Fernando Peña here on behalf 1029 01:36:55,320 --> 01:36:59,860 of the San Mateo County Association of Realtors. The proposal caps ranked 1030 01:37:00,000 --> 01:37:06,460 Regulatory increases at just 60% of CPI, ignoring the reality that insurance, maintenance, utilities, 1031 01:37:06,960 --> 01:37:13,040 property taxes, labor, and regulatory costs continue to rise far faster than that formula 1032 01:37:13,040 --> 01:37:19,460 allows. It also calls for increased taxpayer expense and imposes significant new regulations 1033 01:37:19,460 --> 01:37:25,580 beyond rent control that could affect a broader range of housing in Redwood City. While section 1034 01:37:25,580 --> 01:37:28,220 Section 9212 analyzes the rent control provisions. 1035 01:37:28,800 --> 01:37:33,660 It does not fully evaluate the economic impacts of these additional regulations. 1036 01:37:34,060 --> 01:37:39,840 I respectfully request that the Council direct staff to prepare supplemental Section 92 analysis 1037 01:37:39,840 --> 01:37:45,420 so voters can fully understand the potential impacts on housing availability, production, 1038 01:37:45,900 --> 01:37:47,220 and on our local economy. 1039 01:37:47,700 --> 01:37:52,260 Redwood City residents deserve balanced objective information before casting their ballots. 1040 01:37:52,680 --> 01:37:53,040 Thank you. 1041 01:37:55,820 --> 01:37:56,400 Thank you. 1042 01:37:56,400 --> 01:37:59,840 The next speaker is Steven Howard, who will be followed by Nancy Moya. 1043 01:38:01,520 --> 01:38:07,180 Good evening, council. This ordinance will have significant unintended consequences, too 1044 01:38:07,180 --> 01:38:12,760 numerous to mention in one minute. The organizers have very good intentions but are naive about 1045 01:38:12,760 --> 01:38:18,180 basic economics and the laws of supply and demand. Rents are what they are due to supply 1046 01:38:18,180 --> 01:38:25,620 and demand. In order to increase, if we want to decrease the rents, we need to increase 1047 01:38:25,620 --> 01:38:30,280 the supply. So you want to do as much as you can to encourage developers to come into 1048 01:38:30,280 --> 01:38:35,100 community, not discourage them. If you have less development, you will have less supply, 1049 01:38:35,740 --> 01:38:39,660 and therefore you will have increased prices of rents, exactly the opposite of what the 1050 01:38:39,660 --> 01:38:44,480 organizers had intended. We need to look no further than the price of eggs and the 1051 01:38:44,480 --> 01:38:50,300 price of gasoline as to far as what happens when supply is reduced. California is already 1052 01:38:50,300 --> 01:38:54,140 the most tenant-friendly state in the country, and there are plenty of protections 1053 01:38:55,140 --> 01:38:59,480 I would urge you not to support this measure and let it go to the ballot. 1054 01:39:00,000 --> 01:39:04,920 Hopefully to educate the public of the damage that will do, including the people who have put 1055 01:39:04,920 --> 01:39:06,080 this forward. Thank you. 1056 01:39:07,200 --> 01:39:12,520 Thank you. Our next speaker is Nancy Moya and I can give you a handheld microphone as 1057 01:39:12,520 --> 01:39:12,700 well. 1058 01:39:19,240 --> 01:39:25,480 Buenas tardes, mi nombre es Nancy Moya y estoy aquí en representación de mi hija. Nosotros 1059 01:39:25,480 --> 01:39:34,500 vivimos en un departamento que cuesta $3,500, es compartido, dos recámaras, un solo baño 1060 01:39:34,500 --> 01:39:39,280 en el segundo piso, sin patio, ni a ni balcón. 1061 01:39:39,940 --> 01:39:43,960 Mi esposo trabaja jornadas laborales de 12 horas por la noche, 1062 01:39:44,160 --> 01:39:49,200 seis días a la semana, para cubrir los básicos para nosotros. 1063 01:39:49,560 --> 01:39:53,660 Yo no puedo trabajar debido a que mi hija necesita supervisión, 1064 01:39:53,780 --> 01:39:56,340 24 horas al día, siete días a la semana. 1065 01:39:57,460 --> 01:39:59,980 Nosotros estamos aquí porque nos ponen 1066 01:40:16,840 --> 01:40:19,220 Thank you. And now for English interpretation. 1067 01:40:21,770 --> 01:40:23,850 Good evening. My name is Nancy Moyan. I'm here 1068 01:40:23,850 --> 01:40:31,270 representing my daughter. We are here because we live in an apartment that the rent is $3,000 1069 01:40:31,270 --> 01:40:41,430 and it's a shared unit, two rooms, one bathroom in the second floor, without a patio nor a balcony. 1070 01:40:42,450 --> 01:40:51,790 So my husband works 12 hours a day, six days a week, just to cover basics for us. 1071 01:40:52,250 --> 01:40:59,970 So I cannot work because my daughter needs supervision 24 hours a day, seven days a week. 1072 01:41:00,000 --> 01:41:05,380 So we are here because we are concerned, we are very concerned that we don't have enough 1073 01:41:05,380 --> 01:41:13,360 to have a savings account for emergencies or for whatever comes up and we need to, we need, 1074 01:41:14,120 --> 01:41:18,800 we need affordable housing for people with disabilities. Thank you very much. 1075 01:41:21,210 --> 01:41:26,970 Thank you. And that concludes our in-person speakers. We'll move now to our two speakers 1076 01:41:27,610 --> 01:41:31,910 We'll start with Becca Keeler, and following Becca will be Mae Lamb. 1077 01:41:32,410 --> 01:41:35,110 And Becca, you may unmute yourself and begin your comments, 1078 01:41:35,250 --> 01:41:37,010 and the timer will begin when you start speaking. 1079 01:41:38,310 --> 01:41:42,210 Thank you. My name's Rebecca Keeler, and I've grew up here in the peninsula. 1080 01:41:42,610 --> 01:41:46,170 I've been a homeowner here in Redwood City for the last 20 years. 1081 01:41:46,490 --> 01:41:52,490 I also serve in our community working with underserved youth and working with unlock futures. 1082 01:41:53,710 --> 01:41:57,430 and I'm in solidarity with faith and action. I want to tell you that I have 1083 01:41:57,430 --> 01:41:59,510 seen so many of the families I work with. 1084 01:42:00,000 --> 01:42:07,440 Displaced. I have seen so many of the children be upended from their schools and their places 1085 01:42:07,440 --> 01:42:12,760 of living, and I've seen them with multiple families in the same home. This is not something 1086 01:42:12,760 --> 01:42:19,240 that can continue. One way or the other, we have to find a solution to this. I ask you 1087 01:42:19,240 --> 01:42:27,260 please pay serious attention to this tenant rent control, and please take action on it 1088 01:42:27,260 --> 01:42:32,960 immediately. Thank you. Thank you. Our next speaker is May Lam. 1089 01:42:40,980 --> 01:42:41,940 Hi there, we can hear you. 1090 01:42:42,620 --> 01:42:43,220 Oh, hi. 1091 01:42:45,340 --> 01:42:51,960 So, thank you for this time to speak. So, I just wanted to say, you know, 1092 01:42:52,160 --> 01:42:59,160 please do not adopt the current proposed measure. Let me echo what other small business owners have pointed out. 1093 01:43:00,050 --> 01:43:06,710 This is a very restrictive initiative as it would greatly hurt small mom-and-pop landlords. 1094 01:43:07,170 --> 01:43:14,230 The burden on small businesses will be unsustainable. This is not the solution. We do need better 1095 01:43:15,730 --> 01:43:21,870 help for our tenants, but this is not it. You certainly will reduce the amount of affordable 1096 01:43:21,870 --> 01:43:24,750 housing available in the city. Thank you for your time. 1097 01:43:28,240 --> 01:43:31,620 Thank you very much, and that concludes public comment. Mayor, back to you. 1098 01:43:33,610 --> 01:43:37,070 Thank you, City Clerk. And again, thank you to everybody who made public comment this 1099 01:43:37,070 --> 01:43:40,770 evening, shared your time with us, whether you're in person or joining us online. 1100 01:43:41,570 --> 01:43:44,430 And we'll bring it back to the dais for council discussion. 1101 01:43:45,530 --> 01:43:48,450 Who has any questions? They'd like to start us off with. 1102 01:43:51,410 --> 01:43:55,550 Council Member Sturgeon. Thank you, Mayor. Firstly, thank you to everyone who spoke 1103 01:43:55,550 --> 01:43:59,670 this evening. I really do appreciate your input. And I also saw a lot of the 1104 01:43:59,670 --> 01:43:59,890 email. 1105 01:44:00,000 --> 01:44:08,540 Thank you to those folks who wrote in. Initial question I have with regards to the fee is what 1106 01:44:08,540 --> 01:44:17,020 flexibility is there, if any, to reduce the fee for affordable housing providers, nonprofit 1107 01:44:17,020 --> 01:44:21,940 affordable housing providers? I'm actually going to ask our city attorney 1108 01:44:21,940 --> 01:44:29,980 to answer that question. Thank you, Ms. Lane-Caster, and thank you, 1109 01:44:29,980 --> 01:44:36,260 is if adopted by the council or sent to the voters 1110 01:44:36,260 --> 01:44:38,920 and adopted by the voters is an ordinance 1111 01:44:38,920 --> 01:44:40,700 adopted by initiative petition. 1112 01:44:41,560 --> 01:44:45,020 And the city council is limited in its ability 1113 01:44:45,020 --> 01:44:48,420 to change substantively the ordinance. 1114 01:44:49,340 --> 01:44:51,240 So what we need to do is we need to look 1115 01:44:51,240 --> 01:44:53,740 at the ordinance itself to determine 1116 01:45:01,960 --> 01:45:11,920 If you go to section 42.14d, it identifies how the rental housing fee may be adopted. And 1117 01:45:11,920 --> 01:45:17,800 it makes very clear that the city council shall finance the reasonable and necessary expenses 1118 01:45:17,800 --> 01:45:23,600 of the program by charging landlords an annual rental housing fee. That the council shall 1119 01:45:23,600 --> 01:45:27,860 ensure that the rental housing fee is set at a level sufficient to fund the duties and 1120 01:45:27,860 --> 01:45:32,760 responsibilities under the program. And then it says that the program and staff 1121 01:45:32,760 --> 01:45:38,780 to enforce this chapter shall be funded only by the rental housing fee and not 1122 01:45:38,780 --> 01:45:44,320 from the city's general fund. So understanding those limitations is 1123 01:45:44,320 --> 01:45:49,720 critical in understanding what we can do. If the ordinance is adopted the 1124 01:45:49,720 --> 01:45:54,820 city will need to conduct a fee analysis in order to determine what the 1125 01:45:54,820 --> 01:45:59,920 ultimate rental housing fee will be for those landlords and whether this 1126 01:46:00,000 --> 01:46:08,400 City could exempt, waive, reduce fees for affordable units will depend on this fee analysis and the 1127 01:46:08,400 --> 01:46:15,640 ordinance's limitations, as we will need to ensure that any exemption reduction waiver would 1128 01:46:15,640 --> 01:46:18,420 not disproportionately impact other landlords. 1129 01:46:19,120 --> 01:46:19,880 Thank 1130 01:46:24,900 --> 01:46:26,200 you very much. That's very helpful. 1131 01:46:31,580 --> 01:46:39,020 Since the mayor is momentarily gone, do any of my other colleagues have additional questions, 1132 01:46:39,600 --> 01:46:42,980 clarifications, or if they want to start with comments. 1133 01:46:48,360 --> 01:46:49,640 Council Member G, please. 1134 01:46:50,300 --> 01:46:50,820 Thank you. 1135 01:46:51,040 --> 01:46:51,780 Excuse me. 1136 01:46:51,880 --> 01:46:52,600 Thank you, Vice Mayor. 1137 01:46:53,200 --> 01:46:55,900 And thank you, everyone, that emailed, came here, 1138 01:46:57,000 --> 01:46:59,720 and offered comments online. 1139 01:47:01,220 --> 01:47:09,160 I want to preface my inquiries first by saying this is the first time, or when the packet was 1140 01:47:09,160 --> 01:47:16,320 posted on Thursday, is the first time council got, or at least a lot of information about 1141 01:47:16,320 --> 01:47:22,940 the proposed initiative. Up until then, we haven't seen this. This is the first time. 1142 01:47:23,080 --> 01:47:28,100 So we've had only since Thursday afternoon, I think, when this was posted into tonight, 1143 01:47:28,100 --> 01:47:34,480 to kind of absorb the details, the emails, the letters, and the substance of the proposed 1144 01:47:34,480 --> 01:47:41,640 ordinance. So we have had not a lot of time to dive into it. So I want to thank everyone 1145 01:47:41,640 --> 01:47:48,840 for helping us try to understand both sides, all sides of the issues, but I have a lot 1146 01:47:48,840 --> 01:47:53,400 of questions given the short amount of time we've had to really dive into this. 1147 01:47:56,460 --> 01:47:59,980 So I'm not going to try to guess who's going to answer the questions that I have. 1148 01:48:00,000 --> 01:48:06,360 But I suspect it's going to include staff, our city attorney, our city manager, and our consultant. 1149 01:48:08,900 --> 01:48:17,700 So, the presentation will sort of help answer this, but I want to make sure I understood the 40-something pages of the proposed ordinance 1150 01:48:17,700 --> 01:48:26,460 and all the other associated documents that we even were getting this afternoon, which is kind of hard to absorb if we got it at 2 o'clock 1151 01:48:26,460 --> 01:48:31,320 in our meetings at six and I think most of us still have a regular job to take 1152 01:48:31,320 --> 01:48:36,480 care of. So my first question is to our staff, does Council have all the 1153 01:48:36,480 --> 01:48:40,080 information or are there any missing documents that we don't have? 1154 01:48:42,620 --> 01:48:42,800 Because 1155 01:48:42,800 --> 01:48:46,780 that's what my questions are going to be based on what we have if so there's 1156 01:48:46,780 --> 01:48:49,200 something that we don't have my apologies ahead of time. 1157 01:48:52,190 --> 01:48:53,350 I'm not aware of 1158 01:48:53,350 --> 01:48:58,090 any missing documents. Thank you. So I'm just going to start to dive in and 1159 01:48:58,090 --> 01:48:59,970 All right, my apologies to my colleagues. 1160 01:49:00,000 --> 01:49:05,760 I've got a whole long list of questions. You can feel free, Mayor, to cut me off any time 1161 01:49:05,760 --> 01:49:06,120 you want. 1162 01:49:09,680 --> 01:49:14,700 It appears, and I think you had this in the slide between yourself, Alen, and Jason, 1163 01:49:15,080 --> 01:49:23,760 that if passed, while the rent control portion may not apply to a lot of post-1995 properties, 1164 01:49:24,260 --> 01:49:31,300 the TPO, as proposed, does apply to more properties than the city's ordinance, including ADUs, 1165 01:49:31,300 --> 01:49:39,000 single-family homes, mobile homes, and non-occupied single-family homes. Am I 1166 01:49:39,000 --> 01:49:39,820 reading that correctly? 1167 01:49:42,660 --> 01:49:45,320 Can you rephrase the question? Are you referring to the 1168 01:49:45,320 --> 01:49:51,140 city's tenant protection ordinance or the proposed ordinance would apply the 1169 01:49:51,140 --> 01:49:57,700 tenant protections to these other properties I just listed? Yes, like, sorry, 1170 01:49:57,700 --> 01:49:59,920 We're getting confused with TPO in our city. 1171 01:50:00,000 --> 01:50:06,400 Yes, so this is the slide. So fully covered, and this is just related to the proposed ordinance. 1172 01:50:06,780 --> 01:50:07,100 Correct. 1173 01:50:07,360 --> 01:50:13,100 Means rent stabilization plus all of the other requirements. So that's inclusive of just cause, 1174 01:50:13,400 --> 01:50:19,420 relocation, right to return. Partially covered under the proposed ordinance means those rental 1175 01:50:19,420 --> 01:50:26,040 units are only subject to the just cause provisions, the right to return provisions, the relocation 1176 01:50:26,040 --> 01:50:30,300 and provisions, all the other ones besides rent stabilization. 1177 01:50:30,580 --> 01:50:32,680 All the other ones other than the rent stabilization. 1178 01:50:33,240 --> 01:50:34,800 So I did read that fairly correctly. 1179 01:50:36,280 --> 01:50:39,740 So then now I'm gonna pivot into the EPS report. 1180 01:50:39,960 --> 01:50:44,480 So between you and Jason maybe you can tag team things here. 1181 01:50:46,180 --> 01:50:48,440 Alin just mentioned a whole bunch of stuff. 1182 01:50:51,660 --> 01:50:54,920 And I couldn't find in your report, Jason, 1183 01:50:54,920 --> 01:50:59,960 about the effect or impact of those operating costs on property ownership. 1184 01:51:00,000 --> 01:51:07,260 There are a lot of regulations there that Ellen just mentioned. Was there a clear assessment 1185 01:51:07,260 --> 01:51:10,520 about the cumulative impact on operating costs for property owners? 1186 01:51:15,140 --> 01:51:20,460 Some of those are very difficult to quantify and our analysis was done primarily on secondary 1187 01:51:20,460 --> 01:51:28,040 research and available data. Estimating the cost of some of the other than what's clearly 1188 01:51:28,040 --> 01:51:34,360 in the ordinance, like how much you have to pay for a relocation, we did not do a detailed 1189 01:51:34,360 --> 01:51:41,000 estimate of how much some of the other tenant protection components would affect a landlord. 1190 01:51:41,420 --> 01:51:48,120 That was not, we did not have the schedule and scope and resources to do that during 1191 01:51:48,120 --> 01:51:52,440 the analysis. So we didn't do that detailed analysis of those items. 1192 01:51:53,240 --> 01:51:59,600 Would it be safe to assume that there are going to be financial impacts to property owners? 1193 01:52:00,270 --> 01:52:02,850 Beyond the rent stabilization component. 1194 01:52:03,630 --> 01:52:06,150 There will be financial impacts for sure. 1195 01:52:06,470 --> 01:52:07,810 But they were not quantified. 1196 01:52:08,050 --> 01:52:14,530 Yeah, estimating those would require more analysis than we were able to do during the first round of this analysis. 1197 01:52:14,970 --> 01:52:18,330 And you can say it wasn't in my scope of work. That's fine. 1198 01:52:18,630 --> 01:52:23,450 I mean, I know this was done in a very short amount of time on a very limited fee basis. 1199 01:52:24,310 --> 01:52:25,430 So that's okay to say that. 1200 01:52:25,430 --> 01:52:29,190 two and a half months we did this and so it was there were you know that would 1201 01:52:29,190 --> 01:52:33,190 require a fair to do that analysis require interviewing property owners doing 1202 01:52:33,190 --> 01:52:37,990 a lot of case studies of examples of where this is great it's doable it's 1203 01:52:37,990 --> 01:52:44,650 doable yes okay but wasn't in your scope it was fine similarly and this is 1204 01:52:44,650 --> 01:52:51,110 consistent with the way I look at even our impact fees on developments I have 1205 01:52:51,110 --> 01:52:55,050 been a strong advocate for assessing the cumulative impact of policy ordinance 1206 01:52:55,050 --> 01:52:58,990 fees, assessments, and utility costs on businesses. 1207 01:53:00,080 --> 01:53:08,920 I wasn't able to see the cumulative impact of all these other things on the property owners. 1208 01:53:09,200 --> 01:53:15,220 Was there, did I miss it, or was it out of scope and not able to do in the compressed amount of time? 1209 01:53:16,480 --> 01:53:21,440 When you say cumulative impact, do you mean other policies that already exist? 1210 01:53:21,440 --> 01:53:28,600 policies that the council adopts, increased utility costs, business license tax increases, 1211 01:53:29,300 --> 01:53:33,900 the cumulative impact of all the things we do here at the dais on businesses. 1212 01:53:34,360 --> 01:53:40,040 Was there an assessment on the cumulative impact on property owners if this were to 1213 01:53:40,040 --> 01:53:42,880 move forward by either council or the voters? 1214 01:53:43,840 --> 01:53:48,240 Our analysis focused on the incremental impacts of this particular ordinance, not 1215 01:53:48,760 --> 01:53:52,040 So the answer is no, we did not look at the cumulative impacts. 1216 01:53:52,460 --> 01:53:54,420 We tried to focus on the incremental impacts. 1217 01:53:54,420 --> 01:53:57,480 Is it possible to do that, given more time and more fee? 1218 01:54:00,300 --> 01:54:04,900 I'm going to say tentatively yes, depending on the scope and the time frame. I know we have 1219 01:54:04,900 --> 01:54:11,240 an election in November, so. Beyond that, I'm not asking about, you know, is it doable? It 1220 01:54:11,240 --> 01:54:15,620 is doable, yes. We have to define the scope, but yes. And again, at this day, as we have 1221 01:54:15,620 --> 01:54:23,760 approved a series of utility cost increases, sewer, solid waste, water, but by the way 1222 01:54:23,760 --> 01:54:29,000 I read the ordinance proposed, those are not able to be passed on to the tenants 1223 01:54:29,000 --> 01:54:30,420 unless they're separately metered. 1224 01:54:31,140 --> 01:54:32,420 Am I reading that correctly? 1225 01:54:34,620 --> 01:54:35,500 That is correct. 1226 01:54:36,420 --> 01:54:42,000 So, again, I go back to when you look at the operating impact on property owners, 1227 01:54:42,720 --> 01:54:48,300 the cumulative impact, and the utility cost increases. 1228 01:54:48,640 --> 01:54:51,320 There's got to be a financial impact on the property owner, 1229 01:54:51,440 --> 01:54:56,300 at least administration, that I couldn't find the analysis in the report 1230 01:54:56,300 --> 01:54:59,340 because it probably was out of scope or you didn't have enough time. 1231 01:54:59,340 --> 01:54:59,960 and am I reading? 1232 01:55:00,000 --> 01:55:00,360 Is that correct? 1233 01:55:03,200 --> 01:55:05,560 Yes, we did not do analysis of the cumulative 1234 01:55:05,560 --> 01:55:08,560 impact from all those other regulations that you mentioned or policies. 1235 01:55:09,360 --> 01:55:19,460 Okay. And Jason, your presentation, you started to kind of convey the potential impact of this 1236 01:55:19,460 --> 01:55:24,040 ordinance on our non-profit affordable housing providers. 1237 01:55:26,960 --> 01:55:28,660 I didn't see anything about section 1238 01:55:30,120 --> 01:55:38,440 I didn't see. I think you had a slide about the growing gap over five years. I think you said $937. 1239 01:55:39,880 --> 01:55:46,300 The rents would be falling behind, at least capital replacement. I think that was your slide number three. 1240 01:55:47,360 --> 01:55:52,280 What happens with that continued falling behind? What does that do to the property condition? 1241 01:55:54,200 --> 01:55:54,680 Yes. 1242 01:55:54,840 --> 01:55:59,060 Are you talking about the market rate or deed restrictive affordable? 1243 01:56:00,780 --> 01:56:03,080 It was your slide three. 1244 01:56:04,180 --> 01:56:04,820 Yes. 1245 01:56:05,360 --> 01:56:06,000 The bottom one. 1246 01:56:06,520 --> 01:56:10,360 Yeah, this was referring to all units, not just affordable. 1247 01:56:10,760 --> 01:56:13,900 Okay, well, what happens with the continuing falling behind? 1248 01:56:15,380 --> 01:56:18,740 Pretend it's 10 years or 15 years that continue falling behind. 1249 01:56:18,880 --> 01:56:20,080 What's the impact on the property? 1250 01:56:20,780 --> 01:56:24,720 And this would apply for units built prior to 1995. 1251 01:56:24,720 --> 01:56:33,220 So yes, it would make it difficult in some cases for the property owner operator to cover 1252 01:56:33,220 --> 01:56:40,520 those increased costs without a doubt until the unit is vacated in which time the property 1253 01:56:40,520 --> 01:56:45,260 owner can then go back to the market rate, kind of do it. 1254 01:56:45,360 --> 01:56:51,240 If you're a market rate unit, you can charge the rent that the market will bear once 1255 01:56:51,240 --> 01:56:55,680 to existing tenant leaves, if you are an affordable housing operator, you don't have the liberty 1256 01:56:55,680 --> 01:56:57,240 to rate charge market rate. 1257 01:56:57,360 --> 01:56:59,300 You have to go with the- 1258 01:57:00,050 --> 01:57:03,430 Area median income restrictions of the affordable unit. 1259 01:57:03,570 --> 01:57:15,130 We did hear from at least one not-profit provider, the St. Francis Center, about falling behind and the impact potentially on, was that kind of analysis covered in the report? 1260 01:57:15,730 --> 01:57:19,650 I think it was hinted at, but I didn't see depth in the report. 1261 01:57:21,190 --> 01:57:25,650 That particular analysis is going to be unique to every single property, right? 1262 01:57:25,650 --> 01:57:29,110 So it's generally true that if you are not 1263 01:57:29,110 --> 01:57:31,030 able to raise your rents with the market, 1264 01:57:31,210 --> 01:57:33,330 you are likely to continue to fall behind. 1265 01:57:34,030 --> 01:57:36,250 The way in which it will impact the financials 1266 01:57:36,250 --> 01:57:38,630 of any given property may differ depending 1267 01:57:38,630 --> 01:57:41,290 upon their own operating budget to what 1268 01:57:41,290 --> 01:57:43,950 degree they have deferred maintenance issues, what 1269 01:57:43,950 --> 01:57:45,430 their existing rents are, the turnover. 1270 01:57:45,670 --> 01:57:47,170 There's many factors, variables 1271 01:57:47,170 --> 01:57:49,730 that would go into the calculation 1272 01:57:49,730 --> 01:57:51,310 for an individual property owner. 1273 01:57:51,390 --> 01:57:53,410 But I think it's fair to say that in general, 1274 01:57:53,410 --> 01:57:57,290 you would fall behind and you would not be able to keep up with your operating 1275 01:57:57,290 --> 01:57:59,810 expenses over a longer period of time, particularly 1276 01:58:00,000 --> 01:58:01,320 Really if you do not have tenant turnover. 1277 01:58:04,290 --> 01:58:13,090 So I guess keeping up is a formula of tenant turnover. If I heard you at the converse of what 1278 01:58:13,090 --> 01:58:19,490 you just said, the only way to keep up is tenant turnover, which isn't the intent of this initiative. 1279 01:58:19,770 --> 01:58:23,110 It's to provide housing stability, not tenant turnover. 1280 01:58:25,330 --> 01:58:27,790 I'm just trying to make sure I, using 1281 01:58:27,790 --> 01:58:31,410 Jeff's language, I understand what's in the initiative and the analysis. 1282 01:58:34,500 --> 01:58:36,880 Also, the administration 1283 01:58:36,880 --> 01:58:41,700 fee, I believe, cannot be passed on to the tenant. Is that correct? 1284 01:58:43,060 --> 01:58:43,940 That is correct. 1285 01:58:44,540 --> 01:58:54,620 So in your analysis, the 12084 is substantially less than what it would cost to actually 1286 01:58:55,080 --> 01:58:59,740 And even if the higher number cannot be passed on to the tenants, it's got to be absorbed. 1287 01:59:00,000 --> 01:59:04,960 By the property owner, and its administrative burden or whatever you want to call it, and 1288 01:59:04,960 --> 01:59:10,280 again, going back to my earlier question, that cumulative impact, it's got to have an impact 1289 01:59:10,280 --> 01:59:16,760 somewhere. Whether it's $500 per unit per year or $1,000 per unit per year, there's 1290 01:59:16,760 --> 01:59:22,980 got to be an impact somewhere. And it wasn't, it was just lightly touched on, I guess, 1291 01:59:23,100 --> 01:59:28,480 about the cumulative impact. There is one, but it wasn't too deep. 1292 01:59:28,480 --> 01:59:34,060 Well, the cumulative impact is essentially the fee times the number of units you have. 1293 01:59:35,040 --> 01:59:37,900 So every project has a different number of units. 1294 01:59:38,040 --> 01:59:41,280 So the cumulative impact would be the number of units you have times the fee. 1295 01:59:41,760 --> 01:59:44,300 We haven't finalized what the fee would be if this is approved. 1296 01:59:44,440 --> 01:59:45,920 There would be a study doing that. 1297 01:59:46,080 --> 01:59:51,100 And so every property owner would say, well, if I have 100 units and it's $500 a unit, 1298 01:59:51,680 --> 01:59:53,640 the math is $50,000 in that case. 1299 01:59:53,780 --> 01:59:57,420 So there's going to be impact, but it will vary for each particular unit. 1300 01:59:57,420 --> 01:59:59,860 But based on your previous report on TPO 1301 02:00:00,000 --> 02:00:07,820 Can properties owners absorb that kind of fee burden on an annual basis? 1302 02:00:10,080 --> 02:00:18,580 Well, it will be more difficult for affordable housing owners to do so because they can't pass it on rent even when the unit is vacated. 1303 02:00:20,080 --> 02:00:28,320 For post-1995 units, they may be able to pass those costs on, and they can't do it directly 1304 02:00:28,320 --> 02:00:34,540 because that would be illegal, but they can do it once the lease that they have with the 1305 02:00:34,540 --> 02:00:35,620 current tenant expires. 1306 02:00:35,840 --> 02:00:38,180 They said, well, now you have a new lease, and here's our new rent. 1307 02:00:40,550 --> 02:00:44,990 That adds a dimension of complexity to their operating perform, though, doesn't it? 1308 02:00:47,610 --> 02:00:55,030 And on the pre-1995 affordable housing with that constitutive force measure that the funders 1309 02:00:55,030 --> 02:00:59,970 could argue that they're out of compliance with the 1310 02:01:00,000 --> 02:01:05,760 Other pro forma because competing for low interest housing tax credits is a competitive basis. 1311 02:01:06,640 --> 02:01:14,560 It's based on areas of economic desire and need. It's based on rental pro forma. It's based 1312 02:01:14,560 --> 02:01:19,740 on a lot of different things to be competitive and to be awarded those tax credits and other 1313 02:01:19,740 --> 02:01:25,640 funding grants. So if we change the community changes or the council changes of the rules, 1314 02:01:26,420 --> 02:01:31,080 would that put some of the projects potentially in jeopardy 1315 02:01:31,080 --> 02:01:33,820 because the funding requirements and the performance were changed? 1316 02:01:34,140 --> 02:01:34,740 I 1317 02:01:39,830 --> 02:01:43,550 can't speak definitively, but we would need to evaluate 1318 02:01:44,710 --> 02:01:48,830 our own affordability restrictions on those properties along with their funders. 1319 02:01:49,750 --> 02:01:52,930 I can't speak to what actions those funders would take, 1320 02:01:53,270 --> 02:01:59,150 but there could be potential conflicts between what is in the proposed ordinance 1321 02:01:59,150 --> 02:01:59,950 and what's in. 1322 02:02:00,000 --> 02:02:01,980 Existing affordability covenants. 1323 02:02:02,760 --> 02:02:04,520 Thanks, Lynn, for stepping into that. 1324 02:02:04,660 --> 02:02:06,700 Then who has 1325 02:02:09,320 --> 02:02:11,660 responsibility and liability for that conflict? 1326 02:02:16,600 --> 02:02:18,620 And it's okay to say I don't know right now. 1327 02:02:18,700 --> 02:02:21,760 It's a really good question. I think, yeah. 1328 02:02:22,720 --> 02:02:23,940 That's okay to say I don't know. 1329 02:02:24,060 --> 02:02:27,080 I mean, this is a very short timeframe that, again, we just got this stuff. 1330 02:02:27,200 --> 02:02:31,160 I just got the pack of Thursday and spent my weekend reading it. 1331 02:02:31,240 --> 02:02:35,280 I had all these questions that, you know, 1332 02:02:35,280 --> 02:02:39,700 And we've got letters that ask some pretty significant questions too. 1333 02:02:40,760 --> 02:02:46,640 It's okay to say I don't know and we need more time or whatever, but this is kind of important stuff. 1334 02:02:47,100 --> 02:02:52,240 Because this is a big, I think this is a big issue for the community as the community has told us. 1335 02:02:52,420 --> 02:02:53,100 It's a big issue. 1336 02:02:54,040 --> 02:02:56,420 Thank you, Council Member Jay, and you're right. 1337 02:02:56,580 --> 02:02:57,840 I don't have an answer. 1338 02:02:58,520 --> 02:02:59,940 It is something that we would 1339 02:03:00,640 --> 02:03:06,000 It might be that we won't have an answer, right? It will be dependent on what each of 1340 02:03:06,000 --> 02:03:13,560 the funder's requirements are. We do have Ms. Tiedemann on, and I know she does quite a bit 1341 02:03:13,560 --> 02:03:17,480 with housing, and so I do want to provide an opportunity if she knows how this tends 1342 02:03:17,480 --> 02:03:23,300 to work from other agencies' experiences before we let you know that we don't have 1343 02:03:23,300 --> 02:03:24,000 an answer for you. 1344 02:03:25,860 --> 02:03:35,000 Hi, good evening, Karen Tiedemann with Goulter and Litman. I think the issues that affordable 1345 02:03:35,000 --> 02:03:41,220 housing developers are going to have is essentially what Jason said. Eventually, this is going 1346 02:03:41,220 --> 02:03:45,340 to impact their operating income because they're very limited and they can't raise 1347 02:03:45,340 --> 02:03:53,860 sprints when units turn over the way that non-regulated landlords can do. 1348 02:03:55,140 --> 02:03:59,980 So my guess is that there are going to be a reduction in the number of people who are 1349 02:04:00,000 --> 02:04:11,620 Potentially be request for additional subsidy for operating expenses long term. But once again 1350 02:04:11,620 --> 02:04:18,020 it depends on each project and property and their operating expenses and the multiple sources 1351 02:04:18,020 --> 02:04:20,160 of funding that they currently are accessing. 1352 02:04:22,930 --> 02:04:29,630 Thank you. Is it safe to say then that there's potential unintended consequences of this proposed 1353 02:04:29,630 --> 02:04:34,970 ordinance or initiative or the potential for unintended consequences? 1354 02:04:37,370 --> 02:04:38,510 Yes, I mean I 1355 02:04:38,510 --> 02:04:44,590 think that the impact on affordable housing is something that will have to 1356 02:04:44,590 --> 02:04:50,490 be looked at if this were adopted in the long term not a lot of rent control 1357 02:04:50,490 --> 02:04:56,270 jurisdictions cover affordable housing housing that's restricted and how it 1358 02:04:56,270 --> 02:04:56,970 raise its rent. 1359 02:05:00,000 --> 02:05:02,100 This initiative here in front of us? 1360 02:05:04,280 --> 02:05:07,740 I don't want to say definitively it is unique. 1361 02:05:08,360 --> 02:05:09,020 Not typical. 1362 02:05:09,480 --> 02:05:14,060 Some rent control jurisdictions cover some subsets of affordable housing. 1363 02:05:17,340 --> 02:05:25,440 This one doesn't have any exemptions for any type of affordable housing unless it's owned 1364 02:05:25,440 --> 02:05:27,100 by a governmental unit. 1365 02:05:27,760 --> 02:05:28,940 That's the only exemption. 1366 02:05:29,780 --> 02:05:32,340 So that is a little more restrictive than 1367 02:05:33,320 --> 02:05:35,160 anyone I can think of at this moment. 1368 02:05:36,160 --> 02:05:37,200 Thank you for that. 1369 02:05:37,480 --> 02:05:39,360 And Mayor, I have a whole bunch more questions, 1370 02:05:39,440 --> 02:05:40,980 but I want to check in with my colleagues. 1371 02:05:41,340 --> 02:05:42,640 I don't want to monopolize the time. 1372 02:05:44,600 --> 02:05:46,320 May I continue? Please continue. 1373 02:05:46,640 --> 02:05:47,200 Thank you, Mayor. 1374 02:05:48,920 --> 02:05:51,320 You know, we heard from a speaker tonight where, 1375 02:05:51,320 --> 02:05:57,420 you know, we have had a long-standing community benefits program and that has 1376 02:05:57,420 --> 02:05:59,920 filled the pipeline of affordable housing in this. 1377 02:06:00,000 --> 02:06:05,160 This has been a council strategic priority, particularly at the lower income and ELI extremely 1378 02:06:05,160 --> 02:06:11,020 low income levels. One of the properties, as part of the community benefits, was to purchase 1379 02:06:11,020 --> 02:06:17,880 an exempt rental property and donate it to a non-profit, and it was deed restricted. 1380 02:06:19,180 --> 02:06:25,440 Under this proposed ordinance initiative, is that a viable option anymore, given the 1381 02:06:25,440 --> 02:06:30,740 dynamics you just shared about not being able to keep up, falling behind, not be 1382 02:06:30,740 --> 02:06:32,600 able to capitalize, things like that. 1383 02:06:34,920 --> 02:06:36,720 And it's okay to say I don't know, it's not 1384 02:06:36,720 --> 02:06:39,440 in scope, but it requires for analysis. It's okay. 1385 02:06:41,590 --> 02:06:43,070 I can't speak to all the 1386 02:06:43,070 --> 02:06:47,270 viability, but I think for future projects, if there is a, you know, if 1387 02:06:47,270 --> 02:06:50,490 there, this is approved and there is a fee, that will have to get 1388 02:06:50,490 --> 02:06:56,070 factored into project performance, which in turn would likely show that 1389 02:06:56,070 --> 02:06:59,690 projects need additional public subsidy, whether that's from the city or other. 1390 02:07:00,000 --> 02:07:01,440 Other funding agencies. 1391 02:07:04,340 --> 02:07:11,160 Yeah, so it would factor in, but they would be able to factor that in, I think, before making any bias. 1392 02:07:11,160 --> 02:07:17,040 So maybe not remove it as a viable option, but make it a little harder because of financial performance. 1393 02:07:17,260 --> 02:07:17,460 Potentially, yeah. 1394 02:07:18,880 --> 02:07:25,760 On a pivot to TEFRA, I mean, we've had as a council been brought items for TEFRA financing on affordable housing, 1395 02:07:25,760 --> 02:07:34,380 Not only on new construction, but also on major repairs like the Woodside Fire and the taxes on financing mechanism. 1396 02:07:35,740 --> 02:07:44,320 Would this proposed initiative affect Tafra or Tafra consideration of financing projects in Redwood City? 1397 02:07:46,970 --> 02:07:53,190 I will say we have not researched that question, so I don't have an answer for you for that. 1398 02:07:53,190 --> 02:07:59,550 Because if I recall correctly, one of the properties on Woodside Road, the major, I think it was Hallmark House. 1399 02:08:06,120 --> 02:08:18,380 That was a pre-1995 building. And would that count as pre-1995 in its renovated state or post-1995? 1400 02:08:23,240 --> 02:08:31,120 That is a good question. I don't know if any of our legal counsel knows how costa-huggins it's based on when you got a certificate of occupancy. 1401 02:08:31,120 --> 02:08:37,600 So I don't know if the new certificate of occupancy post-renovation completion, if that 1402 02:08:37,600 --> 02:08:41,160 would be considered the first, or if the original certificate of occupancy. 1403 02:08:41,820 --> 02:08:43,360 Okay, I guess further start. 1404 02:08:44,060 --> 02:08:45,340 Sorry, excuse me. 1405 02:08:45,620 --> 02:08:45,760 Go ahead. 1406 02:08:46,200 --> 02:08:48,660 There's a series of cases on this. 1407 02:08:49,280 --> 02:08:53,700 The courts actually looked to when it was first used for residential purposes as opposed 1408 02:08:53,700 --> 02:08:58,960 to if a new certificate of occupancy is issued after renovation. 1409 02:08:58,960 --> 02:08:59,280 Thank you very much for your time, and I'll see you in the next presentation. 1410 02:09:00,530 --> 02:09:08,150 So in your example, yes, the units would be covered if they were occupied residential units before 95. 1411 02:09:08,570 --> 02:09:10,910 Which they were in the case of the Hallmark House. 1412 02:09:11,490 --> 02:09:17,770 As well as the other unit across the street that burned down or was severely damaged by fire. 1413 02:09:18,490 --> 02:09:24,110 So in both cases, they would be covered as pre-1995. Karen, thank you. 1414 02:09:25,580 --> 02:09:32,560 Jason, I'm trying to reconcile a couple things here with the initiative saying no city funds 1415 02:09:32,560 --> 02:09:43,800 are to be used, but in the report it says there's start-up fees, there's an administration 1416 02:09:44,840 --> 02:09:51,800 rate of $120 or 84 two tiers, I think your report says substantially below the level 1417 02:09:51,800 --> 02:09:59,960 needed to cover the estimated midpoint program cost and it further goes that the city would 1418 02:10:00,000 --> 02:10:06,140 We'd likely further incur additional administrative expenses not captured in this analysis, including 1419 02:10:06,140 --> 02:10:11,200 staff recruitment, onboarding, and long-term obligations such as pension liabilities. 1420 02:10:12,480 --> 02:10:20,480 So how do I reconcile no-city funds with what you found in the report, as well as the additional 1421 02:10:20,480 --> 02:10:24,400 costs for office space and all the other things? 1422 02:10:24,400 --> 02:10:34,280 How do I say no city fees, or no city general funds, but yet these expenses and real costs 1423 02:10:34,280 --> 02:10:35,520 are included and captured? 1424 02:10:37,130 --> 02:10:45,340 The ordinance does say the city may front fees, and so my look to our finance director 1425 02:10:45,340 --> 02:10:50,660 to explain how this works, but my understanding is we would be able to essentially loan the 1426 02:10:50,660 --> 02:10:53,560 program money from a different fund that would eventually 1427 02:10:53,560 --> 02:10:57,240 need to be repaid back through an inner fund transfer. 1428 02:10:58,100 --> 02:10:59,860 And I'm not probably explaining this quite. 1429 02:11:00,000 --> 02:11:05,520 Accurately, but there is a mechanism where we can front fees up front to implement the program 1430 02:11:05,520 --> 02:11:08,380 and then they would need to be, I believe, repaid by the fees. 1431 02:11:08,900 --> 02:11:15,520 And I know our finance director here is that loan, interest free? Or would you apply internal 1432 02:11:15,520 --> 02:11:17,220 interest to the internal borrowing? 1433 02:11:22,760 --> 02:11:32,460 That is a very good question. So in trying to digest the terms of this, there's a question 1434 02:11:32,460 --> 02:11:40,440 of the start-up fees and whether the start-up fees could be fronted by the city and whether 1435 02:11:40,440 --> 02:11:47,660 that would need to be paid back or not. The language is a little bit unclear. But whether 1436 02:11:47,660 --> 02:11:58,800 it would need to be paid back or not, the challenge is that we, the ordinance contemplates 1437 02:11:58,800 --> 02:11:59,780 it's not using the general 1438 02:12:00,000 --> 02:12:08,160 Fund. But we can't use our other funds either because our other funds are restricted. So if 1439 02:12:08,160 --> 02:12:16,760 we are in a situation where the fees aren't enough to cover the program costs either from 1440 02:12:16,760 --> 02:12:23,260 a startup perspective or on an ongoing basis, we would be in a little bit of a pickle, 1441 02:12:27,120 --> 02:12:27,120 if 1442 02:12:27,120 --> 02:12:33,640 of how you would fund that because of the one source that has the flexibility to do that. 1443 02:12:33,840 --> 02:12:42,720 And I'm not saying we have the financial flexibility, but the legal, the fungibility to do that is the general fund. 1444 02:12:43,400 --> 02:12:49,300 But yet, we're not allowed to use the general fund, so it becomes a little bit of a chicken and egg thing. 1445 02:12:49,300 --> 02:12:54,640 And so that's something that we would have to grapple with. 1446 02:12:55,160 --> 02:12:58,460 And do you scale the program back or not? 1447 02:12:59,000 --> 02:12:59,980 And a lot of the time, you know, 1448 02:13:00,000 --> 02:13:05,500 This starts to happen in real time, so it does potentially present an administrative and 1449 02:13:05,500 --> 02:13:06,480 financial challenge. 1450 02:13:08,220 --> 02:13:13,100 Beth, thank you for answering that, because I couldn't reconcile no general funds, but 1451 02:13:13,100 --> 02:13:19,580 not all costs are included. We've worked really hard, not just this council, but prior councils, 1452 02:13:19,760 --> 02:13:25,720 to manage our unfunded pension liabilities, and that's not even included in this analysis 1453 02:13:25,720 --> 02:13:27,240 or in the fee. 1454 02:13:28,060 --> 02:13:29,620 Did I read that correctly? 1455 02:13:30,880 --> 02:13:35,140 I can't speak to that personally based on my review, 1456 02:13:35,340 --> 02:13:38,820 but it would certainly be something we would want to consider. 1457 02:13:39,820 --> 02:13:43,880 I think the EPS report says it explicitly that it does not include 1458 02:13:43,880 --> 02:13:46,160 potential long-term pension liabilities. 1459 02:13:46,420 --> 02:13:48,780 Did I read that correctly, Jason? 1460 02:13:51,050 --> 02:13:51,930 Yeah, that's correct. 1461 02:13:51,930 --> 02:13:59,970 We did a very quick calculation of the potential cost and to the extent that the wardens is 1462 02:14:00,000 --> 02:14:05,040 Approved or the measure is approved. There would need to be a more detailed analysis to 1463 02:14:05,040 --> 02:14:10,340 get a fully loaded cost and not a midpoint but an actual estimate. 1464 02:14:11,480 --> 02:14:20,400 I mean, I know tonight's budget night, I mean, to just maybe what if is really hard when we 1465 02:14:20,400 --> 02:14:27,300 get to the budget conversation next and the agenda, we see declining revenues and long-term 1466 02:14:27,300 --> 02:14:35,780 deficits pending any proactive action by this council. And so that's why I'm just struggling 1467 02:14:35,780 --> 02:14:42,480 and reconciling it. And to say there's no claim on general fund, yet long-term pension 1468 02:14:42,480 --> 02:14:47,300 liabilities aren't there. It's not fully loaded. And another big question is if there's 1469 02:14:47,300 --> 02:14:52,480 any litigation on this, who pays for the litigation? Is it the proponents? 1470 02:14:56,920 --> 02:14:58,480 The city would pay for it. 1471 02:14:58,480 --> 02:14:59,840 and where's this 1472 02:15:00,000 --> 02:15:06,900 City money from that. It will be from the general fund. So is it inaccurate to say there's no general 1473 02:15:06,900 --> 02:15:15,560 fund commitment? I think this ordinance really presents a math problem for the city in that 1474 02:15:15,560 --> 02:15:26,540 we cannot use, we cannot use general fund for the enforcement of the program or the regulation 1475 02:15:26,540 --> 02:15:34,840 of the program but we also if this were to be adopted and the ordinance were to 1476 02:15:34,840 --> 02:15:40,060 be challenged the city would need to defend that and of course we wouldn't 1477 02:15:40,060 --> 02:15:44,760 have any fees yet that we have collected so it will have to be the 1478 02:15:44,760 --> 02:15:49,500 city's general fund that will pay for the defense of this it's one of those 1479 02:15:49,500 --> 02:15:54,680 awkward things that when we've talked about it we can talk about how we how 1480 02:15:54,680 --> 02:15:59,780 the city and it by the way the ordinance provides that the program and staff to enforce 1481 02:16:00,000 --> 02:16:05,580 This ordinance shall be funded only by the rental housing fee and not from the city's 1482 02:16:05,580 --> 02:16:10,800 general fund, which I read to you earlier. It does follow with, however, the city shall 1483 02:16:10,800 --> 02:16:16,320 fund any necessary funds until the city has collected such fees. And so I really do believe 1484 02:16:16,320 --> 02:16:21,100 that the general fund is going to fund all of the start-up costs at any litigation 1485 02:16:21,100 --> 02:16:25,800 that may ensue until fees start getting collected. 1486 02:16:25,800 --> 02:16:34,060 Thank you Veronica. That kind of segues into a follow-up question to Council 1487 02:16:34,060 --> 02:16:40,560 member Sturkin's question earlier. This is a, this is potentially a voter 1488 02:16:40,560 --> 02:16:47,800 approved ordinance. And I've heard stories that the proponents of this 1489 02:16:47,800 --> 02:16:55,020 ordinance may be negotiating a proposed implementation plan to either reduce or 1490 02:16:55,020 --> 02:16:59,340 exempt affordable housing providers from some of the requirements of the ordinance. 1491 02:17:01,650 --> 02:17:09,250 Can that happen? Or can staff change it? Or can council change it? Because this potentially is going to be approved by the voters. 1492 02:17:12,390 --> 02:17:20,730 And even if the council were to decide to adopt this ordinance in lieu of sending it to the electors or to the voters, 1493 02:17:21,170 --> 02:17:30,050 we would still be under the same limitations on the fact that the city council cannot amend this ordinance without sending it back to the voters. 1494 02:17:30,050 --> 02:17:34,870 So it doesn't matter whether it's adopted by the council or it's sent to the 1495 02:17:34,870 --> 02:17:41,490 voters and I understand that maybe there's been statements made but based on 1496 02:17:41,490 --> 02:17:48,470 this language's limitations we really do need to ensure that should there be any 1497 02:17:48,470 --> 02:17:52,010 waivers or reductions in fees by the affordable house for the affordable 1498 02:18:00,000 --> 02:18:04,340 We need to find a way and we're really limited based on what the ordinance says, so I don't 1499 02:18:04,340 --> 02:18:10,860 see how that can be done, but like I mentioned to Mr. Sturkin, to Councilmember Sturkin, it's 1500 02:18:10,860 --> 02:18:14,820 something that we would assess along when we do the fee analysis. 1501 02:18:17,200 --> 02:18:19,400 I just have a question about that question. 1502 02:18:21,440 --> 02:18:24,840 We cannot change this ordinance in any way. 1503 02:18:24,840 --> 02:18:25,760 Is that correct? 1504 02:18:26,260 --> 02:18:33,200 The 4,000 people that signed the petition signed the specific ordinance. 1505 02:18:34,640 --> 02:18:41,420 So we can't just will and nilly choose what we decide to keep or they can't willy nilly 1506 02:18:41,420 --> 02:18:45,360 decide to change it in any way, correct? 1507 02:18:45,840 --> 02:18:46,540 That is correct. 1508 02:18:46,540 --> 02:18:55,580 The ordinance is either the way it is right now forever and becomes law or it doesn't. 1509 02:18:55,780 --> 02:18:57,220 But we can't pick and choose. 1510 02:18:58,260 --> 02:18:59,200 Is that right? 1511 02:19:00,000 --> 02:19:07,340 That is correct. The ordinance gets adopted as is and remains unless and until it is amended 1512 02:19:07,340 --> 02:19:08,360 by the voters again. 1513 02:19:09,400 --> 02:19:15,080 Okay, so Mr. Gee, maybe I didn't understand the question. You were saying there's some 1514 02:19:15,080 --> 02:19:22,260 rumor that affordable housing people are going to be exempted, but I'm hearing from the 1515 02:19:22,260 --> 02:19:24,180 city attorney that's impossible. 1516 02:19:24,180 --> 02:19:28,080 So that doesn't mean that they're not trying. 1517 02:19:29,500 --> 02:19:34,360 I'm just trying to understand the boundaries of what is going on. 1518 02:19:34,520 --> 02:19:38,480 I mean, we were given, you know, an implementation plan, 1519 02:19:38,760 --> 02:19:44,460 and I've been hearing stories that the proponents and the affordable housing 1520 02:19:44,460 --> 02:19:47,540 or the proponents are trying to negotiate exemptions 1521 02:19:47,540 --> 02:19:51,480 or reduce fees for affordable housing providers 1522 02:19:51,480 --> 02:19:56,720 that are not allowed in the initiative for council. 1523 02:19:57,980 --> 02:19:59,720 And so that's the part I'm trying to... 1524 02:20:00,000 --> 02:20:06,780 We can't change it. Any changes to the initiative require voter approval. You can't do it in the 1525 02:20:06,780 --> 02:20:14,320 back room. You can't do it in the implementation plan. If we wanted to exempt affordable, nonprofit 1526 02:20:14,320 --> 02:20:19,320 affordable housing providers, it would have to go back before the voters. We can't do 1527 02:20:19,320 --> 02:20:24,840 that. Staff can't do it and the proponents can't do it. As you indicated, it's what's 1528 02:20:24,840 --> 02:20:28,380 in front of us. We can't change it. Did I say that fairly correctly? 1529 02:20:28,380 --> 02:20:36,140 That is correct. There are places where, and this ordinance is an example of it too, there are places where the ordinance doesn't speak to something. 1530 02:20:36,440 --> 02:20:43,300 And so the city could fill in where there's, you know, where something is not covered. 1531 02:20:43,720 --> 02:20:52,860 But we definitely anything we do in an implementation or in the program would need to be consistent with the ordinance and its limitations. 1532 02:20:54,080 --> 02:20:59,980 And again, the ordinance's limitation provides that this program will be funded only by the 1533 02:21:00,000 --> 02:21:02,980 By the rental housing fee and not general fund. 1534 02:21:05,000 --> 02:21:15,560 Senator, thank you for that. I want to follow up one more thing that you shared is that when we talk about differential fees, I mean to me this is sort of like our utility fees. 1535 02:21:16,240 --> 02:21:22,300 And I believe the voters passed the state law that certain users are not allowed to subsidize other users. 1536 02:21:22,300 --> 02:21:29,960 So are we walking into that state law also that a two-unit provider can't be subsidized 1537 02:21:29,960 --> 02:21:32,100 by an eight-unit provider and there are fees? 1538 02:21:34,700 --> 02:21:39,280 That's exactly what the fee analysis would need to determine for us and why I said that 1539 02:21:39,280 --> 02:21:41,460 we can't definitively answer this. 1540 02:21:42,200 --> 02:21:47,200 But any study we do on determining what the fee is will need to ensure that we don't 1541 02:21:47,200 --> 02:21:52,480 disproportionately impact one type of housing provider as a result. 1542 02:21:52,980 --> 02:21:53,720 Great, thank you. 1543 02:21:54,760 --> 02:21:59,820 And then as we heard and received, we had a lot of questions from different organizations. 1544 02:22:00,000 --> 02:22:09,320 Are we able to answer those questions tonight? HLC, Housing Leadership Council, SAMSEDA, Chamber, 1545 02:22:10,680 --> 02:22:15,280 California Department Association, SAMCAR. There's a whole bunch of questions. Do we have answers 1546 02:22:15,280 --> 02:22:16,500 for all those questions tonight? 1547 02:22:19,890 --> 02:22:26,870 No, we're not able to answer those tonight. In depth. I think we've answered a couple 1548 02:22:26,870 --> 02:22:27,230 of them. 1549 02:22:27,410 --> 02:22:27,830 You answered a couple. 1550 02:22:28,030 --> 02:22:32,530 Yeah, but not. We get into HUD vouchers and how those would be, which is a vital 1551 02:22:32,530 --> 02:22:37,850 resource for funding new for housing so no I think those would be in my opening 1552 02:22:37,850 --> 02:22:41,470 remarks that I talked about a potential information coming back we'd like to 1553 02:22:41,470 --> 02:22:45,470 delve into that we've been focused on just trying to get agendized some of the 1554 02:22:45,470 --> 02:22:48,490 way where you it's not excuses but some of those questions are really nuanced 1555 02:22:48,490 --> 02:22:52,310 into weeds on how pro forma would work in operating budget that deserve to be 1556 02:22:52,310 --> 02:22:57,050 answered well and the HUD vouchers section a I mean we don't we don't 1557 02:22:57,050 --> 02:22:58,270 control those, the requirements. 1558 02:22:58,510 --> 02:22:59,230 Those are... 1559 02:23:00,000 --> 02:23:04,760 Mandated from Yon High. And we can't change those requirements. 1560 02:23:05,980 --> 02:23:11,420 Correct. To keep in mind any development that has HUD vouchers already has a previously recorded restriction. 1561 02:23:11,740 --> 02:23:17,500 And I don't know how that would play, you know, a restriction that obligates certain repayment obligations and whatnot. 1562 02:23:18,100 --> 02:23:22,360 And it gets into some of the questions you talked about earlier on how an underwriter could underwrite a deal like that. 1563 02:23:23,040 --> 02:23:26,440 I'm not sure there's somebody in D.C. that says, oh, we're fine, you know, with this. 1564 02:23:26,440 --> 02:23:30,560 because keep in mind any local payment that doesn't go to the project goes away from current 1565 02:23:30,560 --> 02:23:31,120 debt service. 1566 02:23:35,800 --> 02:23:36,360 Thank you. 1567 02:23:36,500 --> 02:23:37,020 Thank you, Patrick. 1568 02:23:37,300 --> 02:23:46,080 And then, Elin, there's one additional question that you talked about on your Slide 17 about 1569 02:23:46,080 --> 02:23:46,680 implementation. 1570 02:23:48,640 --> 02:23:53,320 And you talked about if this were to be approved by council or the voters, 1571 02:23:55,800 --> 02:23:56,140 I think 1572 02:23:56,140 --> 02:23:59,860 to use the term deprioritize other city. 1573 02:24:09,950 --> 02:24:16,690 We have two things there. One is, what do we have to not do if this were to be approved? 1574 02:24:17,890 --> 02:24:25,390 And two, are there any penalties if we don't implement fully the ordinance as written within the 10 days? 1575 02:24:28,660 --> 02:24:35,040 I will say we've not done a deep dive into this, but I think anything that is not mandated for the ordinance 1576 02:24:35,040 --> 02:24:37,540 like the housing division at the state or federal level, 1577 02:24:37,700 --> 02:24:41,480 we would basically need to drop to start working on this. 1578 02:24:42,340 --> 02:24:44,300 I imagine staff from other departments, 1579 02:24:44,440 --> 02:24:45,640 such as city attorney's office, 1580 02:24:46,300 --> 02:24:49,680 revenue services would also need to deprioritize work 1581 02:24:49,680 --> 02:24:51,840 to get the proposed fees in place 1582 02:24:52,980 --> 02:24:54,600 and do anything like that. 1583 02:24:55,260 --> 02:24:56,740 In terms of what are the consequences 1584 02:24:56,740 --> 02:24:59,520 if we don't have a fully implemented ordinance 1585 02:25:01,500 --> 02:25:08,520 I don't know if I have a great answer to that, and I don't know if any of our attorney's 1586 02:25:08,520 --> 02:25:15,840 staff have any answers, but that would be incredibly difficult to do, to have something fully up 1587 02:25:15,840 --> 02:25:16,800 and running in ten days. 1588 02:25:18,820 --> 02:25:26,260 If I may add, really a huge burden beyond human resources. We don't have any job classifications. 1589 02:25:26,260 --> 02:25:27,520 We would have to start from scratch. 1590 02:25:27,860 --> 02:25:30,840 We would have to, you know, rent controls are completely different. 1591 02:25:30,980 --> 02:25:31,820 You can't just say analysts. 1592 02:25:32,080 --> 02:25:34,320 It's a completely different skill sets. 1593 02:25:34,420 --> 02:25:38,000 Keep in mind every single job description must come before the city council, you know, 1594 02:25:38,220 --> 02:25:39,280 per the charter. 1595 02:25:40,000 --> 02:25:42,400 So as Alynn mentioned, it wouldn't just be the housing department. 1596 02:25:42,740 --> 02:25:44,860 That housing division, we could shift those responsibilities. 1597 02:25:45,480 --> 02:25:50,400 I do think it would be a big initial burden on human resources who's currently actively recruiting 1598 02:25:50,400 --> 02:25:53,360 for, you know, police and fire and all other positions. 1599 02:25:53,360 --> 02:25:55,020 But we have never started that work. 1600 02:25:55,020 --> 02:25:56,560 So we'd have to embark on that process. 1601 02:25:56,840 --> 02:25:59,720 I see that really as the longest, you know, really 1602 02:25:59,720 --> 02:25:59,980 leaping forward. 1603 02:26:00,000 --> 02:26:04,640 And then recruiting positions, and there's not a lot of folks out there with said experience. 1604 02:26:05,000 --> 02:26:11,720 So I think it would really be the human resources component of it and then legal, any aspects on that. 1605 02:26:12,700 --> 02:26:21,320 Patrick, thank you. So Jason, is that considered the HR recruitment job descriptions coming to council for approval part of the start-up costs? 1606 02:26:22,860 --> 02:26:26,660 Or is that in addition to the start-up costs that you identified in your report? 1607 02:26:28,020 --> 02:26:31,540 That would probably be in addition to the startup costs that we included in our report. 1608 02:26:32,600 --> 02:26:38,080 Thank you. I do have some comments, but I'll reserve my comments till later. 1609 02:26:38,180 --> 02:26:42,900 But I thank Mayor, you and my colleagues for indulging me in these questions. 1610 02:26:43,040 --> 02:26:48,140 These are important questions, I think, that we're in four days of trying to figure this out, 1611 02:26:48,400 --> 02:26:49,500 trying to figure it out still. 1612 02:26:49,920 --> 02:26:51,920 And so thank you, colleagues, for the time. 1613 02:26:52,080 --> 02:26:52,780 And Mayor, thank you. 1614 02:26:55,100 --> 02:26:59,820 Thank you councilmember G for the questions and we'll open it up to my 1615 02:26:59,820 --> 02:26:59,960 colleagues. 1616 02:27:00,000 --> 02:27:02,660 Colleagues again, who would like to go next? 1617 02:27:05,920 --> 02:27:06,720 Council Member Howard. 1618 02:27:07,520 --> 02:27:16,240 Thank you. I'd like to thank, first of all, I want to thank the community here. I really appreciate you showing up and speaking up. 1619 02:27:17,360 --> 02:27:26,440 This is such an important topic and we have many different opinions in the room, but I want to thank you all for having the courage to speak up and let us know how you feel. 1620 02:27:27,900 --> 02:27:33,700 As Council Member G said, we did not have a great deal of time to analyze this and there 1621 02:27:33,700 --> 02:27:40,160 are so many questions, just the Housing Leadership Council sent us a list of questions just today 1622 02:27:40,160 --> 02:27:45,700 and I can't answer one of them to be honest with you and I'm sure most of us can't because 1623 02:27:45,700 --> 02:27:47,700 we haven't had a chance to do that analysis. 1624 02:27:48,860 --> 02:27:56,020 But I did want to ask, I think Council Member G has asked very thorough, he's had a 1625 02:27:56,020 --> 02:27:59,740 very thorough questioning and questions I hadn't thought about. 1626 02:28:00,000 --> 02:28:04,980 So I can't think of an additional question, but what I did want to know is I believe in 1627 02:28:04,980 --> 02:28:12,620 the report we received from Faith in Action, it did have forms suggested if you wanted to 1628 02:28:13,260 --> 02:28:18,200 give someone a waiver or an exemption, a non-profit, for instance. There were a number of forms 1629 02:28:18,200 --> 02:28:24,700 there. They were suggesting that we could utilize if, in fact, this passed and a non-profit 1630 02:28:24,700 --> 02:28:32,280 it was impacted. But what I'm hearing is that may not be legally possible. Now, I think 1631 02:28:32,280 --> 02:28:37,960 that's important to know because if faith in action believes it is possible, I think 1632 02:28:37,960 --> 02:28:43,680 we need to find out if it's not possible, that needs to be told to the public that 1633 02:28:43,680 --> 02:28:48,940 if this passes, that means non-profits, and we have many of them in our community 1634 02:28:48,940 --> 02:28:55,900 or doing an admirable job supplying affordable housing and have plans to do much more, they 1635 02:28:55,900 --> 02:28:59,480 need to know and have some certainty on where they stand. 1636 02:29:00,000 --> 02:29:05,900 So would I ask you, the city attorney, would I ask you that question? Are those forms meaningful? 1637 02:29:06,360 --> 02:29:08,380 Are they legal? 1638 02:29:08,900 --> 02:29:13,360 So I understand, I think you're talking about the packet that Faith in Action might have given 1639 02:29:13,360 --> 02:29:17,020 staff a few weeks ago. Is that accurate, Elaine? 1640 02:29:17,300 --> 02:29:17,620 Yes. 1641 02:29:17,800 --> 02:29:17,960 Okay. 1642 02:29:18,300 --> 02:29:18,560 Yes. 1643 02:29:18,880 --> 02:29:27,960 And so I can't definitively answer that. I understand that those forms were provided 1644 02:29:27,960 --> 02:29:36,180 to the city to city staff a bit ago and if the city's fee analysis were to 1645 02:29:36,180 --> 02:29:44,920 conclude that the waiver or exemption of some of these fees for affordable 1646 02:29:44,920 --> 02:29:52,540 housing units would not disproportionately impact the other 1647 02:29:52,540 --> 02:29:56,040 providers, then maybe we could. 1648 02:30:00,000 --> 02:30:05,040 We have to rely on a conclusion like that, and I can't give you that conclusion without the analysis 1649 02:30:06,020 --> 02:30:12,260 because typically you've heard us say, oh, well, if you want to provide some type of subsidy, 1650 02:30:12,960 --> 02:30:19,020 you'll use your general fund. And so then I could tell you there are ways that you could do it. 1651 02:30:19,260 --> 02:30:24,240 Here we'd have to do this analysis in order to determine whether this can be done without 1652 02:30:25,100 --> 02:30:30,640 impacting negatively the other landlords and without utilizing the city's general 1653 02:30:30,640 --> 02:30:34,320 fund. So it really does depend on what that analysis shows. 1654 02:30:36,530 --> 02:30:37,770 I would find it so 1655 02:30:37,770 --> 02:30:43,050 hard to believe that it wouldn't impact. Well, but I don't have the the 1656 02:30:43,050 --> 02:30:46,950 information to prove that, but I would find it real difficult to believe. That 1657 02:30:46,950 --> 02:30:50,790 is my concern, but I just can't definitively tell you that. Exactly. 1658 02:30:50,790 --> 02:30:57,390 Exactly. And I also have a concern that, I mean, we are talking budget tonight. 1659 02:30:58,050 --> 02:30:59,970 Our general fund is not an unlimited fund. 1660 02:31:06,840 --> 02:31:14,340 We're still facing a looming deficit. So I have great concerns about how we're going to do this. 1661 02:31:14,740 --> 02:31:21,180 So I think these questions are excellent questions because you don't want to go in blindly as we go forward. 1662 02:31:22,020 --> 02:31:27,880 But thank you. I appreciate everybody's good intentions in trying to answer these questions. 1663 02:31:30,840 --> 02:31:32,020 Thank you, Council Member. 1664 02:31:33,420 --> 02:31:35,560 colleagues, any other questions? 1665 02:31:42,780 --> 02:31:46,860 We do have a lot more meeting to get through, so if anyone 1666 02:31:46,860 --> 02:31:48,300 feels brave, it'd be appreciated. 1667 02:31:49,540 --> 02:31:51,000 We're just doing questions or comments. 1668 02:31:51,620 --> 02:31:53,200 We can do questions and then comments later. 1669 02:31:53,620 --> 02:31:57,780 Oh, okay. All right. I do have a question. Let me just, sorry, my notes are a little 1670 02:31:57,780 --> 02:31:58,580 bit scrambled here. 1671 02:32:06,000 --> 02:32:18,560 I had a question, just how many, when I was reading this, how many opportunities for appeals 1672 02:32:18,560 --> 02:32:27,960 and hearings are there for landlords and tenants in this and who absorbs those costs? 1673 02:32:29,660 --> 02:32:37,060 So, processing any petitions or appeals would be administered by the city and so those costs, 1674 02:32:37,120 --> 02:32:41,120 as we've been discussing, would be paid through the fees imposed on landlords. 1675 02:32:42,440 --> 02:32:43,340 I believe I have. 1676 02:32:47,780 --> 02:32:53,360 We would process appeals for, and I'm trying to find my list here. 1677 02:32:55,860 --> 02:32:59,980 Tenant safety plans, so we are required to approve them. 1678 02:33:00,000 --> 02:33:05,620 And then if there's an appeal of that, we would process petitions for either rent increases 1679 02:33:05,620 --> 02:33:13,240 or decreases. We would process appeals for any relocation assistance eligibility requirements. 1680 02:33:14,760 --> 02:33:18,980 I think those are the three petitions and appeals. 1681 02:33:19,120 --> 02:33:24,000 So there's maybe three buckets for appeals. And then is there a limit to how many times 1682 02:33:24,000 --> 02:33:33,360 one can appeal. I didn't see that in the proposal. Can a landlord or tenant run out of appeals? 1683 02:33:33,560 --> 02:33:37,840 Can you exhaust them or can I keep challenging it? How does that process look? 1684 02:33:39,060 --> 02:33:47,160 I believe in rent increases you could petition annually to increase the rent above what the 1685 02:33:47,160 --> 02:33:52,880 the ordinance prescribes. In terms of, is there an appeal after an appeal? After an appeal, 1686 02:33:53,500 --> 02:33:58,820 I would need to double check that. But I think there is an end date. Typically, as it's described, 1687 02:33:59,060 --> 02:33:59,960 there is a here. 1688 02:34:00,000 --> 02:34:06,100 Hearing officer component, and so I do believe that hearing officer's decision would be final. 1689 02:34:07,540 --> 02:34:09,800 But I know everyone's double checking this. 1690 02:34:10,200 --> 02:34:17,160 Okay, it would be interesting to know, just with cost, I know that all of those have a number assigned to them. 1691 02:34:17,300 --> 02:34:20,500 So if you guys could get back, that would be information I would like to have. 1692 02:34:20,860 --> 02:34:21,840 Thanks. That's it for now. 1693 02:34:23,720 --> 02:34:26,340 Thank you, Council Member. We'll go to Council Member Strickland. 1694 02:34:26,340 --> 02:34:31,320 Thank you, Mayor. Just a quick follow-up on that. On page, I think 39 of the proposed ordinance. 1695 02:34:31,660 --> 02:34:35,640 So who appoints the hearing examiner? 1696 02:34:37,260 --> 02:34:43,420 And how does it compare to the examiner, if you will, for the TPO that we already adopted? 1697 02:34:48,600 --> 02:34:54,400 So this hearing examiner, I think this is one of those where the ordinance is silent. 1698 02:34:54,580 --> 02:34:56,760 We can develop our own rules and regulations. 1699 02:34:57,260 --> 02:34:59,660 The city would need to go through a program. 1700 02:35:00,000 --> 02:35:05,440 You know, requests for qualifications or requests for proposals from potential hearing examiners 1701 02:35:06,100 --> 02:35:11,700 and they would be selected. While we do have under contract a hearing officer right now, 1702 02:35:12,140 --> 02:35:17,960 they're under contract specifically for implementing our tenant protection ordinance. So we would 1703 02:35:17,960 --> 02:35:22,920 still need to go through some kind of procurement process to find hearing officers specifically 1704 02:35:22,920 --> 02:35:24,500 to implement this. 1705 02:35:24,500 --> 02:35:25,440 But 1706 02:35:28,700 --> 02:35:34,720 hearing that we have that kind of flexibility because the ordinance is somewhat silent. 1707 02:35:34,900 --> 02:35:41,520 I think you said on the specifics of the hearing examiner, who they are, who hires, I mean, 1708 02:35:42,080 --> 02:35:51,160 so we can ensure that that person is unbiased, objective, can be an objective third party 1709 02:35:51,160 --> 02:35:56,120 and kind of believing maybe any concerns or might be on the part of any 1710 02:35:56,120 --> 02:35:59,780 landlord or tenant about the... 1711 02:36:00,000 --> 02:36:02,800 Conclusion of their hearing. Right. 1712 02:36:03,680 --> 02:36:08,300 That's correct. That's usually, that's what we ask of a hearing examiner or a hearing officer. 1713 02:36:08,980 --> 02:36:18,060 And I'm still trying to answer Councilmember Badia's question because there are three opportunities for challenging a decision. 1714 02:36:18,620 --> 02:36:25,360 And there is, as Councilmember Sturkin referred to Section 39 for the petitions, 1715 02:36:26,360 --> 02:36:40,480 There is an opportunity for the hearing examiner to look at the record and make a determination and even that decision can be appealed and it's the City Council that is the final appeal body at least in that case. 1716 02:36:40,760 --> 02:36:41,380 So then there's even more. 1717 02:36:41,540 --> 02:36:44,940 So then there's another, then it comes to the next. 1718 02:36:45,520 --> 02:36:50,720 would probably be legal challenge if they weren't satisfied with the council determination. 1719 02:36:51,240 --> 02:36:54,720 But at least in that instance, and I haven't been able to come through that, 1720 02:36:54,820 --> 02:36:59,760 I know there's a couple of other options. I don't know if Deputy City Attorney Lolita Fernandez... 1721 02:37:00,640 --> 02:37:07,440 You are correct about that. The page 42 has the appeal section in there that applies to 1722 02:37:07,440 --> 02:37:13,480 all hearing procedures for hearings and appeals altogether, so it would go to the city council 1723 02:37:13,480 --> 02:37:18,700 for appeal, and if there are no appeals in that, the hearing examiner's decision would 1724 02:37:18,700 --> 02:37:22,700 be final, and then there's a judicial review if they're not, if they're agreed by the 1725 02:37:22,700 --> 02:37:22,920 action. 1726 02:37:35,920 --> 02:37:42,280 I want to thank everyone that came out today, both people that live in Redwood City and people 1727 02:37:42,280 --> 02:37:47,320 that live adjacent to Redwood City and people that live far away from Redwood City, across 1728 02:37:47,320 --> 02:37:48,340 the bay and so forth. 1729 02:37:49,020 --> 02:37:56,520 Thank you all for coming, and I also want to thank my colleagues for asking such probing 1730 02:37:56,520 --> 02:37:59,580 questions and for this. 1731 02:38:03,530 --> 02:38:17,790 So, city attorney, I've already asked this, but let me just ask it again. 4,000 Redwood City residents said they wanted this initiative put on the ballot. 1732 02:38:19,190 --> 02:38:25,630 Can we decide tonight based on all these concerns that have been expressed and all this uncertainty, 1733 02:38:26,250 --> 02:38:30,890 do we have the option to say to vote no, we won't put it on the ballot? 1734 02:38:35,420 --> 02:38:45,100 So under the elections code, the city council is required to consider the petition at the next regular meeting 1735 02:38:45,100 --> 02:38:48,600 after the petition has been certified as sufficient. 1736 02:38:48,600 --> 02:38:52,120 The petition has now been certified as sufficient 1737 02:38:52,120 --> 02:38:55,060 and so that's why it's here before the City Council. 1738 02:38:55,760 --> 02:38:59,760 Typically you have three options at 1739 02:39:00,000 --> 02:39:13,080 This council meeting. One is to adopt the ordinance without any changes. A second is to call an election 1740 02:39:13,080 --> 02:39:26,140 and submit this initiative measure to the voters. And then a third is to order a 9212 report is what 1741 02:39:26,140 --> 02:39:33,980 we call it, which is a report that Ms. Lane-Caster had kind of laid out what those elements were 1742 02:39:33,980 --> 02:39:38,320 and that staff has already provided preliminarily to the council. 1743 02:39:39,360 --> 02:39:44,760 So those are typically the only three actions that can be taken for a council. 1744 02:39:45,360 --> 02:39:52,200 If you find the 9212 report that the staff has brought forward, then you're left with 1745 02:39:52,200 --> 02:39:56,060 the determination, do you adopt the ordinance outright? 1746 02:39:56,280 --> 02:39:58,460 And you heard some public commenters asking 1747 02:39:58,460 --> 02:39:59,620 that the council do that. 1748 02:40:00,340 --> 02:40:05,920 Or submit the measure to the voters. So that's what's before you tonight. 1749 02:40:07,400 --> 02:40:14,380 Thank you so much. And one of the reasons that I ask that is, as the mayor referenced, we have 1750 02:40:14,380 --> 02:40:25,540 a full agenda tonight. We have four other pressing matters. And so I think we've identified a 1751 02:40:25,540 --> 02:40:36,060 of ambiguities and a lot of questions that are unanswered or but it kind of 1752 02:40:36,060 --> 02:40:43,270 doesn't matter I mean we either we either put it on the ballot for November we 1753 02:40:43,270 --> 02:40:47,410 either vote to put it on the ballot for November or we vote to adopt it 1754 02:40:47,410 --> 02:40:53,740 tonight those are our two options is that correct and the third one is to 1755 02:40:53,740 --> 02:40:58,260 order that the 9212 report which we did and that's what we've been 1756 02:40:58,260 --> 02:40:59,920 and discussing for the last two hours. 1757 02:41:00,000 --> 02:41:09,460 The rules and regulations that would implement the ordinance. 1758 02:41:10,280 --> 02:41:20,740 So the 9212 report is an analysis that provides information on the impacts of the ordinance. 1759 02:41:21,500 --> 02:41:26,140 So that's what the 9212 report is. It's not the rules and regulations. 1760 02:41:26,140 --> 02:41:37,540 It really is information to help both the City Council and members of the public understand what the impacts of this proposed ordinance is. 1761 02:41:38,860 --> 02:41:41,600 And thank you to staff for putting that up. 1762 02:41:42,280 --> 02:41:46,600 Well, thank you, and I'm very concerned. 1763 02:41:48,200 --> 02:41:54,440 The thing, I appreciate all the questions, and I'll hand it over to the Mayor to decide what to do next. 1764 02:41:54,440 --> 02:41:59,700 but I think the thing that bothers me the most. 1765 02:42:00,340 --> 02:42:10,460 Is that what I heard the attorney say that we would be forced to legally defend an ordinance 1766 02:42:10,460 --> 02:42:18,280 that we did not craft and that we don't fully understand. And we would have to do it with 1767 02:42:18,280 --> 02:42:26,620 general fund dollars. And that's concerning to me in this economy with the uncertainties. 1768 02:42:30,020 --> 02:42:38,340 But the devil is in the details as they say, but this is for the voters to decide. 1769 02:42:38,520 --> 02:42:40,520 This is not for us to decide. 1770 02:42:43,960 --> 02:42:47,480 I guess I'll leave it there and throw it to you, Mayor. 1771 02:42:49,020 --> 02:42:50,020 Thank you, Vice Mayor. 1772 02:42:50,700 --> 02:42:55,800 A quick clarifying question on what the Vice Mayor just mentioned. 1773 02:42:55,800 --> 02:42:59,160 and if we requested supplemental 92.12. 1774 02:43:00,000 --> 02:43:06,960 Are we then making that ultimate decision whether to adopt the ordinance outright or put it on 1775 02:43:06,960 --> 02:43:09,700 the ballot at that meeting or is that happening still tonight? 1776 02:43:13,640 --> 02:43:22,800 I think the city council can proceed one of two ways. If right now, if the city council 1777 02:43:22,800 --> 02:43:32,260 is interested in obtaining additional information and feels comfortable also 1778 02:43:32,260 --> 02:43:37,980 making the decision whether to adopt the ordinance or place the item on the 1779 02:43:37,980 --> 02:43:44,300 ballot then the council can move forward with both to dine. The City 1780 02:43:44,300 --> 02:43:49,840 Council if it doesn't feel comfortable acting until it's received the 1781 02:43:49,840 --> 02:43:55,520 additional information that's being that would be requested then we would need to 1782 02:43:55,520 --> 02:43:59,740 make sure that we meet the elections code requirements and bring 1783 02:44:00,000 --> 02:44:07,980 Meeting the supplemental report that meets the city council's interests and, you know, direction 1784 02:44:08,880 --> 02:44:16,500 within 30 days in order for it to act because the council must act. So those are, I think, 1785 02:44:16,620 --> 02:44:22,320 the options on the table. If the city council feels like the report in its current state 1786 02:44:22,320 --> 02:44:28,380 is deficient and they need additional information to act, then that's the option you have as 1787 02:44:28,380 --> 02:44:35,100 the second option. Thank you Veronica. Thank you city attorney. I appreciate that. You 1788 02:44:35,100 --> 02:44:40,960 know I'll jump into my comments. I think thank you my colleagues for the great 1789 02:44:40,960 --> 02:44:44,420 questions. They're really helpful. Thank you to everyone who made public 1790 02:44:44,420 --> 02:44:48,420 comments. I think when you have the community engaged in the process like 1791 02:44:48,420 --> 02:44:51,720 this it just it makes the end result better and it has us thinking about 1792 02:44:51,720 --> 02:44:55,620 things that we didn't even consider so I appreciate the level of engagement 1793 02:44:55,620 --> 02:44:59,960 when we've seen and we had housing night a few weeks ago. 1794 02:45:00,000 --> 02:45:05,260 I'm going to go where we were celebrating our TPO, which is one of the stronger tenant 1795 02:45:05,260 --> 02:45:10,260 protections on the peninsula, right? And that's been years of work. And I know that's not perfect, 1796 02:45:10,480 --> 02:45:16,180 right? But it was so labor intensive. And I've also heard it from the community. And I've 1797 02:45:16,180 --> 02:45:22,280 seen the community outs and collecting these signatures. And I know that, you know, they've 1798 02:45:22,280 --> 02:45:28,340 done the work and that has been deemed by our county elections officer. And so many 1799 02:45:28,340 --> 02:45:33,160 my colleagues have touched on this, the really sort of funny position that the city is in 1800 02:45:33,160 --> 02:45:39,980 where we are working in such fast timelines to digest the 9212, to look at the ordinance, 1801 02:45:40,080 --> 02:45:47,000 to look at the proposal, and we are also in an awkward position because we don't have 1802 02:45:47,000 --> 02:45:50,780 the ability to pick and choose and adopt certain parts of the policy that we like, 1803 02:45:50,920 --> 02:45:55,900 right? It's all or nothing. So I think just with the level of questions we've 1804 02:45:55,900 --> 02:45:59,680 heard today. I, before we initiate the process, I 1805 02:46:00,000 --> 02:46:05,440 Would want another 92-12 report 30 days. I know it isn't a lot of time, but I think the 1806 02:46:05,440 --> 02:46:10,760 answers we would get in that time period would be really valuable, not just to the people 1807 02:46:10,760 --> 02:46:16,040 who worked on this proposal, but for the voters who are going to make the ultimate decision 1808 02:46:16,040 --> 02:46:20,660 on this. I think they deserve the most information that we can before it's out of our hands. 1809 02:46:22,440 --> 02:46:27,500 I'll open it up to my colleagues if anyone feels differently, but to the Vice Mayor's 1810 02:46:27,500 --> 02:46:33,270 point that's where I'm thinking we should go next. Council Member Sturkin. Thank 1811 02:46:33,270 --> 02:46:39,190 you Mayor. I really appreciate that proposal. I just have one question. If I 1812 02:46:39,190 --> 02:46:46,230 remember correctly, our agendas are packed through the fall, right? So where 1813 02:46:46,230 --> 02:46:50,010 are we going to fit it? It is the question. That's just something I'm 1814 02:46:50,010 --> 02:46:56,010 cognizant of. We already punted, you know, consideration of affordable housing 1815 02:46:56,010 --> 02:46:58,550 on our library parking lot to the fall. 1816 02:47:00,000 --> 02:47:01,960 And that's just the one concern that I have. 1817 02:47:05,660 --> 02:47:06,500 Thank you, Council Member. 1818 02:47:06,680 --> 02:47:09,900 I'll just quickly say that I would work absolutely with our staff 1819 02:47:09,900 --> 02:47:14,500 to find a day where that could work or make another accommodation, 1820 02:47:14,720 --> 02:47:17,700 which I know we've done with the public hearing we had last week, right, 1821 02:47:17,800 --> 02:47:20,020 or a couple of weeks, but it just flies by. 1822 02:47:20,640 --> 02:47:24,240 So I'll say that, you know, I think we can figure something out, 1823 02:47:24,340 --> 02:47:28,320 but any other vice mayor? Sorry about that. 1824 02:47:28,500 --> 02:47:29,740 No, don't apologize. 1825 02:47:29,740 --> 02:47:32,520 I just have a question for staff. 1826 02:47:35,220 --> 02:47:42,940 Assuming that we did request a supplemental 9212 report to address some of the questions, 1827 02:47:44,020 --> 02:47:49,540 or all of the questions, or as many questions that were raised tonight. 1828 02:47:51,040 --> 02:47:54,880 I guess my question is, do you have clarity on what those questions are? 1829 02:47:54,880 --> 02:47:59,760 or are you sort of feeling like our questions are nebulous or... 1830 02:48:00,000 --> 02:48:08,240 You're not really quite sure what the supplemental 9212 would address and worried that then it's 1831 02:48:08,240 --> 02:48:14,220 in an addition would be inadequate or are we asking unanswerable questions that you think 1832 02:48:14,220 --> 02:48:24,460 in a supplemental 9212 wouldn't be able to address either. Do you kind of get my question? 1833 02:48:24,460 --> 02:48:28,240 No, I appreciate the question, Vice Mayor, because I was going to turn my light on as 1834 02:48:28,240 --> 02:48:32,060 soon as you all heard a lot of really good feedback tonight. 1835 02:48:32,520 --> 02:48:35,840 I took lots of notes, but I would like clear direction. 1836 02:48:36,120 --> 02:48:41,600 And I definitely got a lot of feedback from Council Member Gee because, but here's the 1837 02:48:41,600 --> 02:48:45,020 thing, if we're going to do this, you know, and again, we only have a couple of weeks, 1838 02:48:45,100 --> 02:48:48,000 so it's not like, I just want to make sure everybody feels, you know, heard. 1839 02:48:48,120 --> 02:48:52,520 So I do think that we should take a little bit of time to scope it right now on what 1840 02:48:52,520 --> 02:48:57,000 exactly the council has heard. Now, I do have a lot of notes on the, I think, look 1841 02:48:57,000 --> 02:48:59,800 at the cumulative impact, this is very important. Look in. 1842 02:49:00,000 --> 02:49:03,480 A lot on the affordable housing question. I think many of the letters that we got from 1843 02:49:04,100 --> 02:49:08,780 plenty of the stakeholders, probably 75% of where we could be. I do think we'll probably 1844 02:49:08,780 --> 02:49:12,940 come back with some questions. We probably will not be able to answer or we're not uncomfortable 1845 02:49:12,940 --> 02:49:18,060 or sorry, we feel a little uncomfortable maybe guessing on how it would work in implementation. 1846 02:49:19,000 --> 02:49:22,080 But I do think it would be great just to kind of maybe for a few minutes, you know, 1847 02:49:22,120 --> 02:49:26,160 make sure my list is good and then go from there and just to make sure that we don't 1848 02:49:26,160 --> 02:49:28,180 come back and say nope, we missed the mark? 1849 02:49:30,730 --> 02:49:33,030 Exactly because to Mr. Sturkin's 1850 02:49:33,030 --> 02:49:43,050 point, we have other business and so I don't want the tail wagging that I 1851 02:49:43,050 --> 02:49:47,810 myself don't want the tail wagging the dog. We have no discretion. It has to go 1852 02:49:47,810 --> 02:49:57,590 on the ballot or just be implemented without citywide vote. So I think it 1853 02:49:57,590 --> 02:49:59,970 I mean, to the extent, I guess, from my point of view. 1854 02:50:00,000 --> 02:50:11,900 To the extent that a supplemental 92-12 further educate the voters that would be looking at this 1855 02:50:11,900 --> 02:50:21,020 in November, then it's a good, perhaps a good use of staff time and energy. 1856 02:50:24,760 --> 02:50:26,100 I guess I'll leave 1857 02:50:26,100 --> 02:50:26,480 it there. 1858 02:50:28,630 --> 02:50:30,350 Thank you, Vice Mayor. I'll go to Council Member Padilla. 1859 02:50:31,010 --> 02:50:34,890 I just want to thank everyone for attending. I really appreciate the Fort. 1860 02:50:35,090 --> 02:50:38,490 I love things like this, and I wish we had them for everything. 1861 02:50:38,810 --> 02:50:43,470 I know that they are costly and they take time, but they're very important. 1862 02:50:43,810 --> 02:50:50,010 And I hear everyone talking, and I think to myself, I was looking at page 45, I guess, of 151, 1863 02:50:50,110 --> 02:50:55,130 and it says, the program shall publicize this chapter so that all residents of Redwood City 1864 02:50:55,130 --> 02:50:59,670 will have the opportunity to become informed about their legal rights and duties under this 1865 02:50:59,670 --> 02:50:59,870 chapter. 1866 02:51:03,600 --> 02:51:10,660 The thing that stays with me when I'm here is I want everyone to be informed. I don't ever 1867 02:51:10,660 --> 02:51:15,660 want to feel, I know I never want to feel like I'm not given all the information, and I also 1868 02:51:15,660 --> 02:51:20,520 don't want to interpret information for the voters. That's not something I feel comfortable 1869 02:51:20,520 --> 02:51:27,540 with. We've been presented with statistics. It's true. Our community is a mix of renters 1870 02:51:27,540 --> 02:51:34,500 and homeowners. And I think it is important that we have all the information to see how 1871 02:51:35,000 --> 02:51:42,540 our entire community is affected. I read some of the reports and it did, I did find it disheartening 1872 02:51:43,440 --> 02:51:49,100 that I don't want us to demonize some of our mom and pop. You know, just because 1873 02:51:49,880 --> 02:51:56,020 a person may be listed under an LLC, that doesn't mean that they're a faceless corporation. 1874 02:51:56,020 --> 02:51:59,920 Some people have found ways to protect them. 1875 02:52:00,000 --> 02:52:04,800 So I just want us to think that these aren't all giant corporations. These are also our 1876 02:52:04,800 --> 02:52:10,380 family members, our friends. We've had people speak about the communities within communities. 1877 02:52:10,580 --> 02:52:15,240 So I just want, I think we've mentioned unintended consequences. Are we going to hurt the community 1878 02:52:15,240 --> 02:52:19,520 members who have been supporting some of the marginalized members in our community? 1879 02:52:19,760 --> 02:52:25,300 So I just want us to always think, and I would really appreciate additional information 1880 02:52:25,300 --> 02:52:32,810 because I think it also we have to think is this something I saw that it was like 1881 02:52:32,810 --> 02:52:38,050 not seven to nineteen potentially in employees and with the four million to 1882 02:52:38,050 --> 02:52:46,250 ten million dollars that was not even including collection or enforcement so 1883 02:52:46,250 --> 02:52:51,750 these are very conservative numbers and many questions have been asked and so 1884 02:52:51,750 --> 02:52:54,610 many of the answers are we just don't know we don't know and to the vice 1885 02:52:54,610 --> 02:52:57,270 mayor's point, we didn't create this. 1886 02:53:00,000 --> 02:53:08,520 We are just now getting all this information and the details of years and first rights of 1887 02:53:08,520 --> 02:53:13,280 refusal that are never ending. And I just want to make sure we know the financial implications, 1888 02:53:14,200 --> 02:53:19,860 how lasting they are. So I would really welcome additional information in the report because 1889 02:53:19,860 --> 02:53:23,580 at the end of the day, I think we all should be informed. Thank you. 1890 02:53:25,880 --> 02:53:27,900 Thank you, Council Member, Vice Mayor. 1891 02:53:27,900 --> 02:53:33,700 I'm sorry. I have another fundamental question that it's sort of a follow-up to what Mr. G said. 1892 02:53:35,560 --> 02:53:47,940 What is it about the ADUs? So these are buildings on residents' property. 1893 02:53:50,060 --> 02:53:51,380 How does this apply? 1894 02:53:51,380 --> 02:53:54,040 And if you can just, 1895 02:53:56,070 --> 02:53:59,730 so do ADU owners also have to pay this $500? 1896 02:54:00,000 --> 02:54:09,120 $300 fee or $300 fee? Yes, ADUs, depending on when they're constructed, would be either 1897 02:54:09,120 --> 02:54:16,580 fully covered if they are pre-1995 or partially covered and if they're being rented. Now, if 1898 02:54:16,580 --> 02:54:21,920 the unit's not being rented, then there is no fee, but the expectation would be that 1899 02:54:21,920 --> 02:54:26,860 they would pay a fee for those units if they're rented. 1900 02:54:31,100 --> 02:54:32,200 Thank you Vice Mayor. 1901 02:54:32,800 --> 02:54:39,360 Thank you Mayor. Thank you colleagues. Again, thank you everybody for sharing your thoughts and being here. 1902 02:54:39,420 --> 02:54:43,040 This will most likely wind up before the voters for consideration. 1903 02:54:43,500 --> 02:54:49,420 But Patrick, I'm happy to give you all the questions that you didn't have to write down. 1904 02:54:49,560 --> 02:54:51,860 I'm happy to share with you and staff all the questions I wrote. 1905 02:54:52,640 --> 02:54:59,880 But I would be very interested in a supplemental 9212 that really addressed three buckets of issues. 1906 02:55:00,000 --> 02:55:10,600 At the broadest level. The three buckets I think would be the cumulative impact on property 1907 02:55:10,600 --> 02:55:17,720 owners given the breadth of not only the rent stabilization but the tenant protection parts 1908 02:55:17,720 --> 02:55:25,840 of this as well as the administrative burden. The $12,000, the four months of rent or the 1909 02:55:25,840 --> 02:55:30,100 greater number of 12,000. It's going to have an impact, as we heard from one of the speakers. 1910 02:55:30,940 --> 02:55:38,160 Some of these family-owned property owners aren't cash-rich. And so I would want to 1911 02:55:38,160 --> 02:55:44,900 see an analysis to the extent possible of the cumulative impact on property owners 1912 02:55:44,900 --> 02:55:51,820 of the proposed initiative. The second thing is I want to see what the impact is on 1913 02:55:51,820 --> 02:55:55,280 our non-profit affordable housing providers. 1914 02:55:56,620 --> 02:55:57,360 That's a big deal. 1915 02:55:57,800 --> 02:55:59,960 I mean, we have sent the message out. 1916 02:56:00,000 --> 02:56:06,800 Come to Redwood City through community benefits, create your housing here, low income, extremely 1917 02:56:06,800 --> 02:56:13,500 low income. And if this is going to dissuade potential affordable housing development, 1918 02:56:13,660 --> 02:56:19,640 we need to provide that transparency to the public. And we can't change it. But as council 1919 02:56:19,640 --> 02:56:26,340 member Padilla said, we owe the public transparency. And probably the most important part, at least 1920 02:56:26,340 --> 02:56:32,320 for counsel is reconciliation of what the general fund impact of this initiative is. 1921 02:56:34,340 --> 02:56:38,620 I know I'm tired of saying this, but because of other work I'm doing, we are working under 1922 02:56:38,620 --> 02:56:39,900 a compressed timeline. 1923 02:56:41,740 --> 02:56:50,780 So I would be in favor of continuing this item to a date certain for supplemental 9212 1924 02:56:51,060 --> 02:56:55,380 that addresses those three buckets within the timing constraints that we have within 1925 02:56:55,380 --> 02:56:59,820 the election code and to be brought back to council at date certain. 1926 02:57:00,000 --> 02:57:04,700 to be established by the mayor and vice-mayor and staff. Because I think that transparency 1927 02:57:04,700 --> 02:57:10,320 to the public is critical when this goes out, because once this is on the ballot, we can't 1928 02:57:10,320 --> 02:57:16,060 take any action here at council. We can as individual council members, but once it's 1929 02:57:16,060 --> 02:57:21,640 out there, we cannot do electioneering from the dais, good or bad. So this is our opportunity 1930 02:57:21,640 --> 02:57:29,580 to generate information that I think all of us only got four days ago, and to be able to see 1931 02:57:30,280 --> 02:57:36,020 what those impacts are to property owners, to our non-profit affordable housing developers, 1932 02:57:37,700 --> 02:57:43,480 and the impact to our budget. Because I am not, and I said this before, 1933 02:57:43,740 --> 02:57:48,500 willing to sign a blank check on our general fund. That would be irresponsible 1934 02:57:48,500 --> 02:57:52,560 as a council member and elected official for anybody I sit on. 1935 02:57:53,140 --> 02:57:56,220 I cannot give a blank check on a general fund. 1936 02:57:57,940 --> 02:57:59,800 So Patrick, hopefully that's enough clarity. 1937 02:58:01,280 --> 02:58:08,240 And to our secretary, did I say anything wrong there? Is that doable if the council would entertain a motion? 1938 02:58:09,880 --> 02:58:19,880 I think that would be clear if the council was interested in making that a motion. As far as doable, you did add to the extent possible. 1939 02:58:20,520 --> 02:58:24,980 And so I do appreciate that because there is some of that that may not be feasible. 1940 02:58:24,980 --> 02:58:29,940 I understand completely. I mean, on the Financial Efficiency Committee, SB 63 Local Investment, 1941 02:58:30,540 --> 02:58:35,460 talk about compressed timeframe, you know, six weeks. That's not a lot of time. And so 1942 02:58:35,460 --> 02:58:40,460 there are going to be answers we can't answer within 30 days. I get that. But I think the 1943 02:58:40,460 --> 02:58:47,160 buckets of comments, my questioning, the letters from HLC, SAMHSA, all the other 1944 02:58:48,480 --> 02:58:51,200 can fairly fit into those three buckets. 1945 02:58:55,340 --> 02:58:57,840 I will second that motion. And I'd like 1946 02:58:57,840 --> 02:58:59,840 I'd like to say I appreciate the 1947 02:59:00,000 --> 02:59:05,160 That you're trying, really, because the more information we can get, it's the more we can 1948 02:59:05,160 --> 02:59:10,420 share with the public, and we'll all be enlightened. So thank you. Appreciate it. 1949 02:59:11,920 --> 02:59:16,760 I guess I will say I just made a motion since it was seconded. Thank you, Council Member 1950 02:59:16,760 --> 02:59:17,100 Howard. 1951 02:59:17,360 --> 02:59:18,400 Sure sounded like it. 1952 02:59:19,020 --> 02:59:23,440 Thank you both. That was a motion from Council Member Gee, and a second from Council Member 1953 02:59:23,440 --> 02:59:26,420 Howard. Not seeing anyone else's lights up. 1954 02:59:27,420 --> 02:59:28,660 I'm sorry to interrupt. 1955 02:59:28,880 --> 02:59:28,980 Please. 1956 02:59:28,980 --> 02:59:29,800 I just want to make sure. 1957 02:59:29,940 --> 02:59:32,780 Do we also need a motion to certify their certification? 1958 02:59:33,140 --> 02:59:35,140 I don't know if that procedurally needs to happen first. 1959 02:59:36,280 --> 02:59:37,200 Yes, please. 1960 02:59:37,380 --> 02:59:41,920 If we could get, I mean, I don't know if Council Member G 1961 02:59:41,920 --> 02:59:44,580 with Council Member Howard's acceptance 1962 02:59:44,580 --> 02:59:51,980 can amend his motion to do both A and what he said 1963 02:59:51,980 --> 02:59:55,380 where he asked to continue this item to a date 1964 02:59:55,380 --> 02:59:59,800 certain to be determined by the mayor and vice mayor within the elections. 1965 03:00:00,000 --> 03:00:07,960 Code provisions to receive a supplemental report. With those three buckets, I'm happy to list 1966 03:00:07,960 --> 03:00:15,020 them out if you would like to provide information regarding the cumulative impacts, including 1967 03:00:15,020 --> 03:00:21,820 rent control, tenant protections, as well as burdens on the landlords of all of the regulations 1968 03:00:21,820 --> 03:00:29,980 that are with the city, impacts on the non-profit affordable housing partners, and reconciling 1969 03:00:29,980 --> 03:00:34,160 the general fund impacts to the extent possible. 1970 03:00:36,760 --> 03:00:40,680 So thank you for clarifying my motion. Yes. 1971 03:00:43,080 --> 03:00:46,240 I also get yes. Perfect. Great. 1972 03:00:46,820 --> 03:00:50,440 Friendly amendment accepted by motion maker and the second. 1973 03:00:50,940 --> 03:00:53,080 Just question of clarification. That's very good. 1974 03:00:53,080 --> 03:00:56,120 Are you adding that we're certifying this then too? 1975 03:00:56,120 --> 03:00:56,720 Is that? 1976 03:01:00,000 --> 03:01:06,540 I'm sorry. I just referred to section A of the recommendation that's right before you. 1977 03:01:07,080 --> 03:01:11,340 By motion, you're accepting certification of signature verification. Would you like me to read? 1978 03:01:11,820 --> 03:01:13,620 I think you've got it. Thank you. 1979 03:01:14,440 --> 03:01:18,880 Great. And I think we're ready for a vote. So, City Clerk, could we get an electronic vote, please? 1980 03:01:31,260 --> 03:01:36,320 One more vote, please. Thank you. The motion passes with six votes. Council Member Chu is absent. 1981 03:01:37,780 --> 03:01:39,420 Thank you, City Clerk. Thank you, colleagues. 1982 03:01:39,420 --> 03:01:41,920 and thank you to the members of the public for joining us today. 1983 03:01:42,640 --> 03:01:45,120 We will continue this conversation very soon 1984 03:01:45,120 --> 03:01:51,160 and move on to item 9A, our public hearing items for the evening. 1985 03:01:52,000 --> 03:01:57,360 We have our Human Resources Director, Michelle Katsuyoshi, who will give a presentation. 1986 03:02:08,050 --> 03:02:16,350 Good evening, Mayor Martinez Sabayos, Vice Mayor Aiken, council members, members of the community, Michelle Katsuyoshi, Human Resources Director. 1987 03:02:16,930 --> 03:02:21,430 Also here with me today is Vanessa Lopez, Human Resources Manager. 1988 03:02:23,430 --> 03:02:26,970 Listed here is the presentation overview for tonight's report. 1989 03:02:31,790 --> 03:02:37,670 Listed on this slide is the question for the city council to consider, and we will return to this slide at the end of the report. 1990 03:02:37,670 --> 03:02:38,810 This 1991 03:02:42,300 --> 03:02:51,920 is staff's recommendation for consideration to receive the informational report on City of Redwood City Employment Vacancies and Employee Recruitment and Retention Efforts. 1992 03:02:51,920 --> 03:02:52,500 We're 1993 03:02:56,980 --> 03:02:59,900 22nd, 2020 for the government. 1994 03:03:00,000 --> 03:03:11,180 The governor signed AB 2561, which imposed new obligations on public agencies related to tracking and presenting information on job vacancies. 1995 03:03:11,860 --> 03:03:20,360 The legislature declared there is a statewide interest in ensuring that public agency operations are appropriately staffed. 1996 03:03:20,360 --> 03:03:28,100 High vacancy rates can lead to heavier workloads, turnout, increased turnover, and negative impacts 1997 03:03:28,100 --> 03:03:29,220 to service delivery. 1998 03:03:29,880 --> 03:03:37,040 Effected January 1, 2025, Government Code requires public agencies to present information 1999 03:03:37,040 --> 03:03:43,380 on their vacancies and recruitment and retention efforts at a public hearing before the City 2000 03:03:43,380 --> 03:03:49,600 Council at least once per fiscal year and prior to the adoption of the final budget. 2001 03:03:49,600 --> 03:03:52,640 The item tonight meets this requirement. 2002 03:03:55,520 --> 03:03:58,680 Keep visions of AB 2561. 2003 03:03:58,980 --> 03:03:59,980 There are three based on AB 2561. 2004 03:04:19,660 --> 03:04:27,860 There are other obligations and reporting requirements that apply if the vacancy rate in a single bargaining 2005 03:04:27,860 --> 03:04:35,960 group exceeds 20%. It is not a requirement this year as no single bargaining unit has 2006 03:04:35,960 --> 03:04:43,860 a vacancy rate of 20% or higher. Listed here are the vacancy rates by employee group. 2007 03:04:44,860 --> 03:04:53,500 For fiscal year 2526, there are a total of 621.68 budgeted full-time equivalent positions, 2008 03:04:53,500 --> 03:04:59,980 FTEs. As of March 17, 2026, there are 2009 03:05:00,000 --> 03:05:05,500 Our 57 vacancies, which correlate to a 9.2 percent vacancy rate. 2010 03:05:07,860 --> 03:05:17,000 Redwood City is not alone. We've surveyed 11 agencies of our labor comparator market, and 2011 03:05:17,000 --> 03:05:21,260 we are at the bottom three vacancy rate at the 9.2. 2012 03:05:25,320 --> 03:05:32,080 Recent successes, our human resources team in collaboration with hiring managers, we completed 2013 03:05:32,080 --> 03:05:39,460 98 requirements or I'm sorry, recruitment in 2025. We've also added capacity to our human 2014 03:05:39,460 --> 03:05:48,060 resources team to add an additional recruiter to assist with our recruitment efforts. And 2015 03:05:48,060 --> 03:05:53,560 we also have a variety of recruitment and retention incentives that are in place for 2016 03:05:53,560 --> 03:05:59,760 eligible teammates and that includes education, incentive, pay, and tuition reimbursement. 2017 03:06:00,080 --> 03:06:05,180 And this benefit supports continuous learning and development. 2018 03:06:05,880 --> 03:06:21,420 It can support educational, such as advancement towards college degree or college courses, professional training, as well as specialized licenses or certificates. 2019 03:06:21,420 --> 03:06:30,260 We also have a police lateral recruitment incentive trying to attract current police officers to join our agency. 2020 03:06:30,780 --> 03:06:41,220 And if a current police officer recruits a lateral candidate and is successful, that individual receives a $500 recruitment incentive. 2021 03:06:41,220 --> 03:06:47,940 We also have a vacation benefit accrual for any lateral police officer. 2022 03:06:48,520 --> 03:06:51,940 You know, typically if somebody were to leave an agency and join another, 2023 03:06:52,580 --> 03:06:59,980 they may lose their vacation and or sick balance and so an incentive to attract officers. 2024 03:07:00,000 --> 03:07:05,200 To our agency, we will front load them a vacation balance to use. 2025 03:07:06,190 --> 03:07:12,220 Areas of improvement, we are in the process of issuing a request for proposal for a cloud-based 2026 03:07:12,760 --> 03:07:20,920 software program to help our human resources team streamline recruitment processes as well 2027 03:07:20,920 --> 03:07:23,400 as to better track vacancy data. 2028 03:07:23,400 --> 03:07:30,400 We are also working with labor groups to establish hiring eligible list protocols, and what 2029 03:07:30,400 --> 03:07:36,360 that means right now is if a department has a vacancy, they are typically referred the 2030 03:07:36,360 --> 03:07:44,200 top three names of a candidate hiring list, and that really limits flexibility for strong 2031 03:07:44,200 --> 03:07:46,820 candidates who may not score in the top three. 2032 03:07:47,400 --> 03:07:52,940 And so we are working with labor groups to look at ways to be more flexible and 2033 03:07:52,940 --> 03:07:59,120 possibly have a hiring rule of the list where if you successfully competed in a recruitment 2034 03:08:00,000 --> 03:08:06,640 Your name has been placed on an eligibility list. You may be eligible for a position, even 2035 03:08:06,640 --> 03:08:12,880 if you didn't score in the top three. Another area of improvement is a time to establish 2036 03:08:12,880 --> 03:08:19,780 a new classification. A classification is just a fancy word of job position. And so when 2037 03:08:19,780 --> 03:08:25,100 the city is interested in creating a new position, it requires us to write a job description, 2038 03:08:25,100 --> 03:08:32,080 determine where the salary range would lie, work with the labor groups to 2039 03:08:32,080 --> 03:08:39,040 identify appropriate bargaining group unit designation, and a lot of this work 2040 03:08:39,040 --> 03:08:43,940 takes time, so we are working with hiring departments to streamline the process 2041 03:08:43,940 --> 03:08:46,640 to create new job descriptions. 2042 03:08:50,300 --> 03:08:51,800 Here again is the slide for the 2043 03:08:51,800 --> 03:08:56,040 recommendation to receive the informational report on City of 2044 03:08:56,040 --> 03:08:59,840 with City Employment Vacancies, Employee Recruitment and Retention Efforts. 2045 03:09:00,000 --> 03:09:01,720 Pursuant to government code. 2046 03:09:03,820 --> 03:09:07,300 Listed here is the question for council and happy to answer 2047 03:09:07,300 --> 03:09:08,900 any questions. Thank you. 2048 03:09:11,370 --> 03:09:17,910 Michelle, thank you for the great presentation and colleagues. Any questions for staff? Council 2049 03:09:17,910 --> 03:09:18,350 Member Howard. 2050 03:09:18,950 --> 03:09:26,010 Well, it's not a question. I just wanted to commend Michelle, you and your HR staff for 2051 03:09:26,010 --> 03:09:32,170 this proactive program that you've put into place as far as recruiting and retaining 2052 03:09:32,170 --> 03:09:42,570 who we currently have. When we have vacancies in our city, our service suffers. And we want to provide great quality service for the people in our community. 2053 03:09:43,430 --> 03:09:50,670 And that you've kept it under 20% of vacancy rate. I know that's an improvement from what we've seen in the past. 2054 03:09:51,050 --> 03:09:58,310 So I do want to thank you because this has shown a real benefit. I'm glad we get to see it once a year to see that we are making improvements. 2055 03:09:58,310 --> 03:09:59,970 improvements, although we'd like to see 2056 03:10:00,000 --> 03:10:07,240 I'd like to see better. It's a problem every city has, but I am glad you're making such a dent. Really appreciate it. 2057 03:10:08,780 --> 03:10:09,260 Thank you. 2058 03:10:10,020 --> 03:10:13,640 Thank you, Council Member. Any other comments? Council Member Sirken. 2059 03:10:14,240 --> 03:10:21,380 Similarly, I just applaud you for your recruitment and retention efforts. It's critical to city services and just thank you. 2060 03:10:22,320 --> 03:10:22,980 Thank you. 2061 03:10:24,700 --> 03:10:28,700 Yes, it was the number 98 for 2025, super impressive. 2062 03:10:29,180 --> 03:10:33,460 Just for everyone, I mean onboarding employees, that's a really big amount. 2063 03:10:33,680 --> 03:10:34,560 That's a huge number. 2064 03:10:34,900 --> 03:10:35,300 Thank you. 2065 03:10:36,080 --> 03:10:36,440 Thank you. 2066 03:10:38,870 --> 03:10:40,410 Not seeing any other lights on. 2067 03:10:40,590 --> 03:10:41,910 Michelle, I'll add my thanks. 2068 03:10:44,170 --> 03:10:48,850 I know there are lots of new labor laws coming from Sacramento that we're staying 2069 03:10:48,850 --> 03:10:51,530 on top of, so I appreciate you maneuvering through that. 2070 03:10:51,530 --> 03:10:57,910 but I think I saw it in the budget that was it at 80% satisfaction rate from our employees. 2071 03:11:00,000 --> 03:11:05,940 I might, I saw a lot of numbers, but I'm pretty sure it was 80% in terms of how happy our employees 2072 03:11:05,940 --> 03:11:13,300 are, right, which is a testament to the culture that's being grown here, but also it's just 2073 03:11:13,300 --> 03:11:18,460 a part of the work now. People don't stay around for 40 years, right? You don't have 2074 03:11:18,460 --> 03:11:24,660 too many examples like Miss Meeks. And yeah, so that's why this work is so important. 2075 03:11:24,660 --> 03:11:26,360 And so I appreciate that. 2076 03:11:26,780 --> 03:11:29,500 And I'll sing any of my other colleagues' slides on. 2077 03:11:29,680 --> 03:11:32,460 I will move the recommendation. 2078 03:11:33,120 --> 03:11:34,780 Actually, Mayor, I'm so sorry. 2079 03:11:35,320 --> 03:11:37,100 Excuse me, I'm moving way too fast. 2080 03:11:37,980 --> 03:11:38,840 Let's open public hearing. 2081 03:11:39,140 --> 03:11:39,460 Thank you. 2082 03:11:40,460 --> 03:11:41,100 Thank you. 2083 03:11:41,180 --> 03:11:42,800 I actually don't have any speaker cards, 2084 03:11:42,900 --> 03:11:44,200 but wanted to give the opportunity 2085 03:11:44,200 --> 03:11:46,320 to anyone in the audience or anyone on Zoom 2086 03:11:46,320 --> 03:11:47,840 to comment on this item tonight. 2087 03:11:51,680 --> 03:11:52,180 Going twice. 2088 03:11:52,780 --> 03:11:54,800 Seeing none, Mayor, please move forward. 2089 03:11:55,000 --> 03:11:55,140 Thank you. 2090 03:11:55,140 --> 03:11:58,540 Now I'll make the motion for staff's recommendation. 2091 03:11:58,900 --> 03:11:59,540 Council Member Howard. 2092 03:12:00,000 --> 03:12:03,480 I'll second the motion. Thank you. Could we get a electronic vote, please? 2093 03:12:09,960 --> 03:12:13,700 Thank you. The motion passes with six votes. Councilmember Chu is absent. Thank you. 2094 03:12:14,360 --> 03:12:20,100 Thank you again, Michelle. And with that, we will move to our staff reports beginning with 10a. 2095 03:12:20,960 --> 03:12:27,880 Our fiscal year 26 to 27 recommended budget, and our city manager Patrick Heisinger will give an overview, 2096 03:12:28,300 --> 03:12:31,400 and finance director, Beth Goldberg, will lead the presentation. 2097 03:12:31,400 --> 03:12:36,260 Great. Thank you, Mayor. Good evening, everybody. Patrick Heisinger, City Manager. 2098 03:12:37,140 --> 03:12:43,000 I'm pleased to produce or I should say introduce my first budget as your City Manager. 2099 03:12:43,920 --> 03:12:47,940 Before doing so, I did want to express a lot of gratitude to our entire staff. 2100 03:12:48,440 --> 03:12:51,680 So all the staff that are here, please raise your hand and really appreciate, 2101 03:12:52,340 --> 03:12:58,340 called for a little more enthusiasm than that, you know, but I really appreciate it. 2102 03:12:58,340 --> 03:12:59,960 I mean, for folks, no. 2103 03:13:00,000 --> 03:13:04,700 So literally every member of every department is involved to some extent into the budget process. 2104 03:13:05,060 --> 03:13:11,540 And so I really, really appreciate that. And Beth and Molly here as well from Finance, thank 2105 03:13:11,540 --> 03:13:16,640 you for crowling us all to get together. It truly does take a village. And I also want 2106 03:13:16,640 --> 03:13:20,680 to thank the council. You know, a lot of this work starts at the mid-year, then the 2107 03:13:20,680 --> 03:13:24,880 off-site, then the CIP. You know, I'm still in on your thunder, Beth, some of your slides. 2108 03:13:24,880 --> 03:13:30,000 but it really is a comprehensive approach that we embark on and, you know, I take feedback 2109 03:13:30,000 --> 03:13:35,640 from you, you take feedback from me and we, you know, come together in this big huge document. 2110 03:13:36,740 --> 03:13:41,800 The document you have before you, it's a balanced budget, but make no mistake, there 2111 03:13:41,800 --> 03:13:45,480 are asks about using one-time reserves, and that makes me nervous. 2112 03:13:46,240 --> 03:13:50,920 The reason why I say it makes me nervous is it's something that I will not recommend 2113 03:13:50,920 --> 03:13:54,800 doing a second year. You know, we really, I've seen other cities that get 2114 03:13:54,800 --> 03:13:59,380 comfortable continuing to dip into reserves and whatnot. This next year, as 2115 03:13:59,380 --> 03:13:59,980 we've talked about... 2116 03:14:00,000 --> 03:14:04,360 At the mid-year, and as we talk about, it's really a year for planning and to really figure 2117 03:14:04,360 --> 03:14:11,060 out how can we increase revenues but also keep our costs in check. So in this presentation, 2118 03:14:11,280 --> 03:14:14,580 you'll see some doom and gloom, you'll see some real exciting stuff, but you'll also see 2119 03:14:14,580 --> 03:14:20,440 a lot of reality checks. And look forward to the discussion as a reminder. This would 2120 03:14:20,440 --> 03:14:24,740 come back on June 22 for final approval. So we look forward to the feedback tonight. 2121 03:14:25,020 --> 03:14:28,000 And with that, I will turn it over to Beth Goldberg. Thank you. 2122 03:14:28,000 --> 03:14:36,350 Thank you city manager greetings mayor vice mayor and council members happy 2123 03:14:36,350 --> 03:14:44,330 budget night as the city manager pointed out we are on our budget journey and we 2124 03:14:44,330 --> 03:14:49,290 are on the penultimate stop on our budget journey where we are going to 2125 03:14:49,290 --> 03:14:53,830 present the recommended budget to the city council tonight and then we'll be 2126 03:14:53,830 --> 03:14:59,130 back in two weeks for the budget public hearing and for final adoption. 2127 03:15:00,000 --> 03:15:02,800 And as you're listening to the presentation tonight, 2128 03:15:03,920 --> 03:15:08,140 I would like you to think about a couple of questions. 2129 03:15:08,500 --> 03:15:13,400 Do you have feedback for us on the tenure forecast 2130 03:15:13,800 --> 03:15:18,200 and the financial trends, as well as city department 2131 03:15:18,200 --> 03:15:21,180 operations as proposed in the recommended budget? 2132 03:15:21,780 --> 03:15:23,700 And the feedback we hear from you tonight, 2133 03:15:23,900 --> 03:15:28,320 we will incorporate and get ready to come back in two weeks. 2134 03:15:28,320 --> 03:15:29,540 Okay, 2135 03:15:33,130 --> 03:15:40,830 so from a presentation overview, first I'm going to provide an overview of the budget economic outlook tenure forecast. 2136 03:15:41,630 --> 03:15:49,970 And then we'll hand it back over to City Manager Heisinger to talk about advancing City Council priorities and community priorities. 2137 03:15:49,970 --> 03:15:54,210 And then we'll have time for questions and answers. 2138 03:15:54,810 --> 03:15:59,490 And then at the end, we will be asking the council to pass a resolution to set 2139 03:16:00,000 --> 03:16:02,480 June 22nd as the public hearing. 2140 03:16:06,360 --> 03:16:13,980 Okay, so overview of the 26-27 operating budget. The budget totals 2141 03:16:13,980 --> 03:16:32,860 more than $410 million across the funds displayed on this chart. In addition, we and we'll talk 2142 03:16:32,860 --> 03:16:39,240 As is the case typically, we will spend most of our time talking about the general fund, 2143 03:16:39,420 --> 03:16:40,120 the mother fund. 2144 03:16:41,160 --> 03:16:44,160 So we'll go into that in more details. 2145 03:16:45,580 --> 03:16:52,720 But before I do that, I want to quote our fearless leader, City Manager Patrick Keisinger. 2146 03:16:52,720 --> 03:16:57,700 He included in the budget transmittal letter 2147 03:17:00,620 --> 03:17:10,140 A statement echoing his comments earlier today about, you know, times are changing fiscally and 2148 03:17:10,140 --> 03:17:16,260 we're at a bit of a crossroads and this does require increased fiscal discipline, prioritization, 2149 03:17:16,440 --> 03:17:23,380 and long-term planning. And this is a different situation than what the city has seen previously 2150 03:17:23,860 --> 03:17:28,880 and I'll go into some of that as we go through the 10-year forecast portion. 2151 03:17:28,880 --> 03:17:29,880 So, 2152 03:17:37,860 --> 03:17:42,940 what has changed this year? Why is this year different than past years? 2153 03:17:43,960 --> 03:17:51,800 First of all, what is unique about this year is we actually are seeing a slight contraction in revenues. 2154 03:17:52,600 --> 03:17:59,460 Not huge on a dollar basis, but we know we're in inflationary times. 2155 03:18:00,000 --> 03:18:08,780 Costs are increasing, and the fact that revenues are tempered is a changing dynamic. 2156 03:18:09,380 --> 03:18:15,860 Another thing that has changed, and this is where the city manager was speaking to use 2157 03:18:15,860 --> 03:18:24,760 of one-time funds, for a variety of reasons, we don't have the one-time fund balances, unassigned 2158 03:18:24,760 --> 03:18:26,800 and fund balances that we've had in the past. 2159 03:18:27,400 --> 03:18:31,720 And this is stemming from the deliberate drawdown 2160 03:18:31,720 --> 03:18:36,100 of one-time balances in the 2526 budget 2161 03:18:36,100 --> 03:18:38,240 to meet some long-standing needs 2162 03:18:38,940 --> 03:18:43,080 or also taking a more proactive and precise approach 2163 03:18:43,080 --> 03:18:44,360 to revenue forecasting, 2164 03:18:44,820 --> 03:18:49,680 which is meaning we're not ending with unfound money, 2165 03:18:49,780 --> 03:18:51,460 so to speak, at the end of the year, 2166 03:18:51,520 --> 03:18:54,080 which is what was contributing to those fund balances. 2167 03:18:54,080 --> 03:18:59,980 So for this year's budget, we are recommending that we... 2168 03:19:00,000 --> 03:19:04,600 Draw down the remaining fund balance to help balance the budget, and I'll talk about that 2169 03:19:04,600 --> 03:19:10,760 in a moment, but that does start to really limit our flexibility moving forward. I do 2170 03:19:10,760 --> 03:19:18,020 want to note, however, that our 15 percent council-established general fund reserve, emergency 2171 03:19:18,020 --> 03:19:25,280 reserve, is fully funded at about $31 million. So we've got that as a question. 2172 03:19:25,280 --> 03:19:26,420 So 2173 03:19:28,660 --> 03:19:32,440 what's contributing to this weaker revenue outlook? 2174 03:19:32,800 --> 03:19:35,860 There's a myriad of issues going on here. 2175 03:19:37,060 --> 03:19:42,180 And the first of which is something that the council is keenly aware of, 2176 03:19:42,380 --> 03:19:45,840 and that is the state appears, 2177 03:19:46,040 --> 03:19:48,420 unless something has changed in the last couple of days, 2178 03:19:48,920 --> 03:19:56,300 to not be providing us our vehicle license fee backfill monies 2179 03:19:56,300 --> 03:19:59,960 that are owed to us, that are obligated to us. 2180 03:20:00,000 --> 03:20:10,020 And that is creating $5.3 million loss of revenues that we cannot count on for the 26-27 budget. 2181 03:20:10,860 --> 03:20:18,060 In addition, we're seeing sales tax declining since its peak in 2022-2023. 2182 03:20:18,540 --> 03:20:21,280 I'll talk about that more in a few minutes. 2183 03:20:21,280 --> 03:20:29,720 Business license tax, Measure BB was approved by our voters last November, implemented, or 2184 03:20:29,720 --> 03:20:38,060 maybe it was anyway, it was implemented, this budget, with 50% or a 50% rate change happening 2185 03:20:38,060 --> 03:20:43,880 in 2526 and the remaining increase happening in 2627. 2186 03:20:43,880 --> 03:20:50,980 This was a new tax and it's difficult because of the way we were taxing before 2187 03:20:50,980 --> 03:20:55,360 and the information that we had to really get a precise forecast. 2188 03:20:55,640 --> 03:20:59,480 So we are seeing this perform slightly below forecast. 2189 03:21:02,260 --> 03:21:10,760 But we've also this year stepped up our efforts through one of our consultants, HDL, to step up 2190 03:21:10,760 --> 03:21:17,880 the administration of this tax and follow up with taxpayers to ensure payment. 2191 03:21:18,620 --> 03:21:25,580 So you may recall earlier this year, coming to you with concerns that this was really 2192 03:21:25,580 --> 03:21:35,400 falling short. HDL's efforts since they expanded their role in October has really yielded results 2193 03:21:35,400 --> 03:21:44,120 and doing some analysis of our latest results, I would suggest that about a million dollars 2194 03:21:44,120 --> 03:21:50,240 additional has been brought in by HDL than what we would have had had they not had 2195 03:21:50,240 --> 03:21:58,740 this expanded role. And of that million dollars, that includes about $377,000 from prior year 2196 03:21:58,740 --> 03:21:59,720 delinquent payments. 2197 03:22:00,000 --> 03:22:05,700 So really kind of helping us get caught up with those taxpayers that hadn't been paying. 2198 03:22:06,640 --> 03:22:11,960 Council is very familiar with loss of certain grant revenues, particularly at the federal 2199 03:22:11,960 --> 03:22:15,620 level that is having impacts on general fund revenues. 2200 03:22:17,220 --> 03:22:24,720 We in our work on ensuring best practices, financial management best practices, we've 2201 03:22:24,720 --> 03:22:29,040 determined that some longstanding general revenues should actually be allocated to 2202 03:22:29,040 --> 03:22:33,440 other funds so that represents a reduction to the general fund. 2203 03:22:34,180 --> 03:22:42,500 And then looking ahead, we have seen some recent commercial property sales that have 2204 03:22:42,500 --> 03:22:51,560 sold at a lower valuation, and so that may temper our property tax revenues in the 2205 03:22:51,560 --> 03:22:51,920 future. 2206 03:22:52,080 --> 03:22:54,780 And so that's going to be something we're going to have to watch. 2207 03:22:54,780 --> 03:22:59,620 which property tax has been a bright spot for us over these years. 2208 03:23:04,370 --> 03:23:12,350 So, next I want to just expand a little bit on the VLF backfill. And as the council is aware, 2209 03:23:12,510 --> 03:23:19,890 this has been a fairly volatile revenue source. But we have always, the state has always provided 2210 03:23:19,890 --> 03:23:30,290 what they have owed us until last year, fiscal year 24-25. We were owed about $5.3 million 2211 03:23:30,290 --> 03:23:37,670 dollars and we're only awarded about two-thirds of that. So we're shorted 1.8 million. This 2212 03:23:37,670 --> 03:23:43,870 year the state budget includes no money for us. Again, we were owed another 5.3 million 2213 03:23:43,870 --> 03:23:53,770 dollars and that appears as of now to not be materializing. So that creates a significant 2214 03:23:53,770 --> 03:23:56,190 financial hit for our general fund. 2215 03:24:00,000 --> 03:24:09,400 Sales tax is another revenue that has not been performing as well as we would like. So this 2216 03:24:09,400 --> 03:24:17,700 chart, what you'll see here is that sales tax has been down every year since fiscal year 2217 03:24:17,700 --> 03:24:27,700 2223 and is expected to drop a little bit further in 2627. This is down about 8.6 percent 2218 03:24:27,700 --> 03:24:40,800 from 2022-23. And a variety of factors are in play here. First, for fiscal year 2022-23, 2219 03:24:40,900 --> 03:24:45,320 that was when we were coming out of the COVID pandemic. And that's also when a lot of the 2220 03:24:45,320 --> 03:24:54,820 stimulus checks were out among the people being spent. And so I've heard several presentations 2221 03:24:54,820 --> 03:24:59,660 from HDL that, you know, as they look in hindsight. 2222 03:25:00,000 --> 03:25:08,920 Right. Suggest that 23, 2223, that performance was probably not sustainable because it was driven 2223 03:25:08,920 --> 03:25:15,980 so much by pent-up demand from COVID and those stimulus checks. But then every year since, 2224 03:25:16,220 --> 03:25:23,200 it's been dropping. And what we're seeing, there's variation locally, but where we're 2225 03:25:23,200 --> 03:25:31,500 challenging challenges locally is particularly in auto sales is contributing to our decline 2226 03:25:31,500 --> 03:25:39,900 in sales tax. And, you know, there's a number of economic variables in play, but, you know, 2227 03:25:39,920 --> 03:25:45,400 the fact of the matter is we have over the last three or four years seen sales tax drop. 2228 03:25:49,770 --> 03:25:50,530 So this is... 2229 03:25:50,530 --> 03:25:53,150 Sorry, Beth. Sorry to interrupt, just have a quick question. 2230 03:25:53,310 --> 03:25:55,310 Go ahead. Beth, could you go back to that slide? 2231 03:25:55,310 --> 03:25:59,590 I can thank you but use the trend is moving up 2232 03:26:00,000 --> 03:26:07,520 27, 28, 29. Can you explain? You're hopeful. I can see this. You're hopeful. You are projecting 2233 03:26:07,520 --> 03:26:20,080 something. So can you share? Yes. So the first two years, 26, 27, 27, 28 and 28, 29 are based 2234 03:26:20,080 --> 03:26:27,560 on HDL's forecasts. When they provide us our quarterly sales tax reports, they look out 2235 03:26:27,560 --> 03:26:34,120 two years into the future. So we're using those forecasts then and then beyond 2236 03:26:34,120 --> 03:26:40,340 that 29 through 30 and then beyond that we use you know a standard like 3% 2237 03:26:40,340 --> 03:26:45,560 inflation rate. So this does project that that there is going to be a 2238 03:26:45,560 --> 03:26:51,460 recovery but we also know that we live in really weird times and you know who 2239 03:26:51,460 --> 03:26:57,240 knows what the next shoe could be to drop. So we just have to watch this 2240 03:26:57,240 --> 03:26:59,020 this really, really closely. 2241 03:27:00,210 --> 03:27:02,050 Thank you. Appreciate it. 2242 03:27:07,790 --> 03:27:14,950 Okay, this is kind of the whiney slide where I've entitled it Can't 2243 03:27:14,950 --> 03:27:25,950 Win for Losing. So we made, you know, the council made a significant move a couple years ago in 2244 03:27:25,950 --> 03:27:35,210 putting Measure BB on the ballot and the voters of Redwood City approved it. And this was supposed 2245 03:27:35,210 --> 03:27:43,170 to be kind of our pathway to nirvana or whatever, budget bliss, whatever you want to call it. 2246 03:27:44,350 --> 03:27:53,110 But simultaneously, the world is striking out against us and the VLF backfill is a loss 2247 03:27:53,110 --> 03:27:59,870 and then we're seeing weakness in sales tax and cumulatively those hits from sales tax 2248 03:27:59,870 --> 03:27:59,970 Thanks. 2249 03:28:07,220 --> 03:28:08,780 Okay, so now this is, so we went from the complaining slide to now we're going to go to the gloom-and-doom 2250 03:28:08,780 --> 03:28:16,240 So we're kind of a little bit of right back where we started from, which it's not great, 2251 03:28:16,500 --> 03:28:23,180 but it helps explain this kind of, this stasis that we're finding ourselves in. 2252 03:28:28,880 --> 03:28:33,760 Okay, so now this is, so we went from the complaining slide to now we're going to go 2253 03:28:33,760 --> 03:28:44,140 of the gloom and doom slide. So this is a visual of our 10-year forecast and what you'll see on 2254 03:28:44,140 --> 03:28:53,580 this chart is our actual results from 2223 and 2324. And what you'll see there is that we ended 2255 03:28:53,580 --> 03:28:59,340 those years with a surplus, better than we anticipated. 2256 03:29:00,000 --> 03:29:12,680 And then what you're seeing in 24, 25, 25, 26, and 26, 27 is that we're actually projecting 2257 03:29:12,680 --> 03:29:20,860 – thank you for making that bigger – what we're seeing is that we're projecting shortfalls 2258 03:29:21,320 --> 03:29:28,400 that we would be using what remains of the unassigned fund balance to help balance the 2259 03:29:28,400 --> 03:29:36,180 budget for these years. And Matt gets us through partway through 26, 27, but 2260 03:29:36,180 --> 03:29:41,900 there's still a bit of a gap. And to close that remaining gap, what you're 2261 03:29:41,900 --> 03:29:49,620 seeing that blue represents in there is use of a partial use of our section 115 2262 03:29:49,620 --> 03:29:56,880 trust that the council proactively set aside starting in 2017 to meet future 2263 03:29:56,880 --> 03:29:59,980 pension costs, so we are as part of 2264 03:30:00,000 --> 03:30:05,860 We have this budget recommending that we draw that fund down by about $4 million to help balance 2265 03:30:05,860 --> 03:30:12,280 the budget. There's still a healthy balance in the Section 115 trust, about $36 million, 2266 03:30:13,300 --> 03:30:20,080 and we are not recommending at this point continuing to use that for the reasons that 2267 03:30:20,080 --> 03:30:26,580 City Manager Heisinger outlined in his opening comments is, you know, once it's gone, it's 2268 03:30:26,580 --> 03:30:30,140 So we need to be judicious about how we use that. 2269 03:30:30,640 --> 03:30:34,980 So the remaining, and this is where the gloom and doom comes in, 2270 03:30:35,200 --> 03:30:40,720 the remaining years on this chart shown in red are the projected deficits. 2271 03:30:41,280 --> 03:30:47,480 So our work, you know, once we get this budget adopted is to start figuring out 2272 03:30:47,480 --> 03:30:50,920 how are we through a combination of revenues, 2273 03:30:50,920 --> 03:30:59,040 potentially budget reductions, strategic use of reserves, how do we start closing those gaps? 2274 03:31:00,000 --> 03:31:06,220 We'll start closing those gaps on an ongoing basis that helps the subsequent years. So it's 2275 03:31:06,220 --> 03:31:13,620 the one-time measures that would start to kick the can. So this is the work that is ahead of 2276 03:31:13,620 --> 03:31:20,210 us is to turn those red bars into above the line. 2277 03:31:22,580 --> 03:31:24,440 Okay. And then this is the last gloom 2278 03:31:24,440 --> 03:31:31,320 and doom slide before I hand it over for the happy news from our city manager. And 2279 03:31:31,320 --> 03:31:37,920 And as you are all aware, economic uncertainty seems to be the new normal. 2280 03:31:38,660 --> 03:31:46,700 It's the new reality of the century we find ourselves in, and not to bring everyone down, 2281 03:31:47,060 --> 03:31:55,060 but have listed a couple of the variables that we're watching closely on this slide. 2282 03:31:55,060 --> 03:31:59,900 and some of these are potentially game-changer. 2283 03:32:00,000 --> 03:32:09,840 So, for example, the state of California is considering changes to the pension program that would, if enacted, 2284 03:32:10,440 --> 03:32:18,280 would lead to significantly more costs to us. So, if those come into play, that would make 2285 03:32:18,280 --> 03:32:25,600 those red bars on the previous slide worse and really be a game changer for us. Some of 2286 03:32:25,600 --> 03:32:30,620 So these are more external factors such as, you know, tech sector layoffs, it's affecting 2287 03:32:30,620 --> 03:32:34,680 the local economy, but not as much of a direct hit. 2288 03:32:34,840 --> 03:32:39,300 Certainly what's going on in the Middle East is something to watch with oil prices. 2289 03:32:39,840 --> 03:32:45,240 But the things like the pension changes, rent control, as we talked about previously, 2290 03:32:45,800 --> 03:32:51,440 really could, we could start seeing some immediate impacts on our budget that would 2291 03:32:51,440 --> 03:32:53,640 further exacerbate things. 2292 03:32:54,160 --> 03:32:58,540 And so with that, enough bad news, I'm going to turn it over for a little bit of the news. 2293 03:32:59,260 --> 03:32:59,620 Great. 2294 03:33:00,000 --> 03:33:11,660 So before you, I just have a couple slides. I know everybody read every page in the 600 page document before you, but there'll probably be some departments I don't hit on. 2295 03:33:12,180 --> 03:33:23,060 I do just want to let folks know that every single department is pushing forward some really interesting, you know, whether it's policies, programs, things that the community is really excited about. 2296 03:33:23,620 --> 03:33:27,940 For the purposes of my slides, I really just kind of want to hit a couple high level things. 2297 03:33:29,140 --> 03:33:33,140 Really bread and butter, you know, back to basics as much as possible. 2298 03:33:33,200 --> 03:33:35,940 And I feel like we've been like that for a couple of years. 2299 03:33:36,180 --> 03:33:39,280 But a lot of this came from listening to residents and, you know, 2300 03:33:39,460 --> 03:33:42,620 every single email that comes in and really trying to, you know, figure out, 2301 03:33:42,660 --> 03:33:44,120 okay, what can we do to help? 2302 03:33:44,260 --> 03:33:47,440 And so you'll see there'll be some elements around quality of life, 2303 03:33:48,760 --> 03:33:51,660 definitely public safety infrastructure. 2304 03:33:51,660 --> 03:33:56,820 I think folks are probably tired of hearing about infrastructure with me from me, I should say. 2305 03:33:56,940 --> 03:33:59,980 I know my staff is very tired of hearing about modernization, so we'll talk a little bit more. 2306 03:34:00,000 --> 03:34:04,300 And then we'll talk about some of the key policies that are already on our work plan and 2307 03:34:04,300 --> 03:34:09,580 then some other ones that we're proposing. And then we'll talk about, you know, new regulations 2308 03:34:09,580 --> 03:34:16,060 moving forward. Next slide, please. So looking at quality of life, you'll see an item being 2309 03:34:16,060 --> 03:34:21,040 proposed that we refer to as the neighborhood response team. One thing that we've noticed 2310 03:34:21,040 --> 03:34:26,280 is we get a lot of inquiries around, you know, illegal dumping. It might be, 2311 03:34:29,280 --> 03:34:29,980 you 2312 03:34:29,980 --> 03:34:33,480 And every time we deploy staff from there, whether it's public works or PD, 2313 03:34:33,900 --> 03:34:36,220 we have to pull them off of other jobs that they're working on. 2314 03:34:37,120 --> 03:34:42,340 And so what we're recommending this neighborhood response team would be a team of three to four individuals 2315 03:34:42,820 --> 03:34:47,760 that would report directly to Assistant City Manager, Derek Wolfgram, 2316 03:34:48,280 --> 03:34:53,860 that would be out in the field and be able to be deployed immediately to address a mattress that's on the side of the sheet 2317 03:34:53,860 --> 03:34:57,520 or a cart that was left so it doesn't have to be there for a couple of days. 2318 03:34:58,160 --> 03:34:59,760 And I know folks are saying, wait a minute. 2319 03:35:00,000 --> 03:35:04,880 Budget's tight. You know, what do you recommend? Not recommending full-time equivalents here. 2320 03:35:05,260 --> 03:35:07,900 You know, trying to look at a way to kind of use some contract staff for it. 2321 03:35:08,220 --> 03:35:12,760 Also want to see if there's a way to connect My Redwood City to this team, My Redwood City, the app, 2322 03:35:12,860 --> 03:35:16,080 where folks can do it and it can just be picked up without having to call. 2323 03:35:16,400 --> 03:35:17,860 I almost said TK, but I meant Adrian. 2324 03:35:18,500 --> 03:35:21,580 But you know, the director of Public Works said, hey, can you get to this? 2325 03:35:21,640 --> 03:35:25,880 Because when we do that, we do pull them off of, you know, a sewer improvement or whatnot. 2326 03:35:26,200 --> 03:35:28,040 So I can answer more questions about that. 2327 03:35:28,040 --> 03:35:32,460 You'll definitely see some language around the pedestrian mall and beautification. 2328 03:35:33,360 --> 03:35:37,000 And then other things around quality of life, improving the restrooms of the downtown library 2329 03:35:37,000 --> 03:35:43,280 and then lots of traffic calming and other traffic related, I would say, infrastructure projects. 2330 03:35:43,520 --> 03:35:44,020 Next slide, please. 2331 03:35:45,760 --> 03:35:53,540 With regard to public safety and operational readiness, there are two previously frozen police officer positions 2332 03:35:53,540 --> 03:35:55,640 that I am recommending that we put back into the budget. 2333 03:35:55,640 --> 03:35:59,980 For those who may recall, there was a side letter with the POA. 2334 03:36:00,000 --> 03:36:07,340 In the past about those positions, where we got them to agree for us to hire CSA officers, 2335 03:36:07,700 --> 03:36:13,460 and so this year I do think we could phase it in mid-year and absorb those costs. With 2336 03:36:13,460 --> 03:36:17,480 the fire department, they have training and other professional development in their budget. 2337 03:36:18,240 --> 03:36:23,200 We added a nice goat in there for Council Member Padilla, who I know likes the goats on the 2338 03:36:23,200 --> 03:36:27,680 fire mitigation. We're not saying goats, but there's other fire mitigation, but we 2339 03:36:27,680 --> 03:36:30,760 go would be cute to kind of lighten the mood here in the light in the late 2340 03:36:30,760 --> 03:36:35,280 evening and then another big one is cyber security so you'll see in the budget we 2341 03:36:35,280 --> 03:36:39,960 are looking and last year the council you know authorized other investments in 2342 03:36:39,960 --> 03:36:43,740 cyber security we're very grateful but we are you'll see that is another huge 2343 03:36:43,740 --> 03:36:48,620 need as well next slide please with regards to infrastructure I won't go 2344 03:36:48,620 --> 03:36:52,400 over the the specific projects we did this at the the CIP and it's in the 2345 03:36:52,400 --> 03:36:52,740 packet. 2346 03:36:54,120 --> 03:36:57,940 Beth, right, 40.1 million total in capital improvements? 2347 03:36:58,340 --> 03:36:59,980 Yeah, something happened to this slide. 2348 03:37:00,660 --> 03:37:03,040 Yes, 40.5 million. 2349 03:37:04,560 --> 03:37:11,780 Plenty of worthwhile projects. I'll just name a few. We have the Redwood Shores Levy, continue to plan on that. 2350 03:37:12,020 --> 03:37:20,020 We have the stormwater master plan, the recycled water master plan that we have several other actual real capital projects moving forward as well. 2351 03:37:20,520 --> 03:37:21,040 Next slide, please. 2352 03:37:22,740 --> 03:37:25,320 I'm getting into modernization and service delivery. 2353 03:37:25,320 --> 03:37:29,260 The one thing I just wanted to highlight is, every time we talk about modernization, everybody 2354 03:37:29,260 --> 03:37:32,580 always thinks about technology, technology, and that's true. 2355 03:37:33,200 --> 03:37:35,980 I mean, you'll see some key elements here, and you actually heard our HR director talking 2356 03:37:35,980 --> 03:37:40,600 about a technology that they're looking to get as well to help with recruitment. 2357 03:37:41,720 --> 03:37:47,400 But sometimes modernizing is removing some regulations or doing away with past ways we used to do things 2358 03:37:47,400 --> 03:37:49,120 to try to streamline. 2359 03:37:49,120 --> 03:37:58,460 So some of the work you see here is really technology focused, but in the packet we have a whole attachment in there of what departments are looking at. 2360 03:38:00,000 --> 03:38:05,180 We'll have several items that will be coming to council in July, especially around the zoning 2361 03:38:05,180 --> 03:38:09,440 code that we're hoping will be of excitement to the council. I'm trying to make things a 2362 03:38:09,440 --> 03:38:15,040 little bit easier on the permitting side so folks can redo their roof and other things 2363 03:38:15,040 --> 03:38:18,640 around there. But one of the key things I do want to talk about because it really 2364 03:38:18,640 --> 03:38:22,500 affects everybody in the organization is the ERP system. We are committed to the 2365 03:38:22,500 --> 03:38:27,920 fall to release the RFP to start reevaluating our options on the ERP and we have a whole 2366 03:38:27,920 --> 03:38:31,020 team together now and really making some strides there. 2367 03:38:31,840 --> 03:38:32,420 Next slide, please. 2368 03:38:34,000 --> 03:38:38,640 So as far as some existing really large policy work we're already working on, this is just 2369 03:38:38,640 --> 03:38:44,100 to frame our current workload as, and this might be some of the stuff that Council Member 2370 03:38:44,100 --> 03:38:47,460 Sturgeon was kind of referring to, is in the next couple months, there's some meaty 2371 03:38:47,460 --> 03:38:49,020 topics coming to Council. 2372 03:38:49,240 --> 03:38:55,060 So the mobile vending ordinance, that says SR79, that should be SB79, apologies. 2373 03:38:55,700 --> 03:38:58,160 Historic preservation, the Milzak work. 2374 03:38:58,760 --> 03:38:59,980 We have the recycled water map. 2375 03:39:00,000 --> 03:39:04,340 Master plan coming forward, objective design standards. I know that sounds like an innocuous 2376 03:39:04,340 --> 03:39:08,700 thing, but I think everybody's going to have a lot of input. And I know Jeff's ready to 2377 03:39:08,700 --> 03:39:12,140 offload that. I think he's been working on it for about two and a half years. Then some 2378 03:39:12,140 --> 03:39:17,920 really big study sessions that I think we've been waiting for on parking, the GDAP, and 2379 03:39:17,920 --> 03:39:21,760 then the children and youth initiatives. And then, as you all know, we're always tracking 2380 03:39:21,760 --> 03:39:26,700 large development projects. So I listed a few there, but there's far more. So already 2381 03:39:26,700 --> 03:39:32,200 a pretty full plate of I would say policy work that the staff is working on. Next slide please. 2382 03:39:32,780 --> 03:39:37,840 But within your budget, you know, we do have other work that we are proposing. We do feel like we 2383 03:39:37,840 --> 03:39:42,980 can, you know, fit into the work plan. A lot of this came from the offsite that we had with 2384 03:39:42,980 --> 03:39:48,320 the council on that Saturday in February. So you may recall that the council gave me the 2385 03:39:48,320 --> 03:39:53,280 nod to explore project labor agreements. I know our economic development manager, I mean, 2386 03:39:53,280 --> 03:39:55,280 and Anthony is really excited about the five-year economic 2387 03:39:55,280 --> 03:39:56,460 fatality strategy. 2388 03:39:57,240 --> 03:39:59,980 As we talk about our financial picks, 2389 03:40:00,000 --> 03:40:04,820 Sure, you know, I know a lot of time folks think about, you know, maybe taxes are cutting 2390 03:40:04,820 --> 03:40:09,600 or what not. Our economic development ability here in Redwood City is probably our biggest 2391 03:40:09,600 --> 03:40:14,540 driver that we can do. So, really investing the time and money into that project is going 2392 03:40:14,540 --> 03:40:19,380 to be essential to how we continue to, you know, attract, you know, businesses here as 2393 03:40:19,380 --> 03:40:25,240 well as great residents. Investigate new revenue options. You'll see in the staff 2394 03:40:25,240 --> 03:40:31,720 report that we added language in there about investigating a fire recovery fee or if our 2395 03:40:31,720 --> 03:40:35,820 fire department goes out and there's a fee, can we bill insurance companies? Not individuals 2396 03:40:35,820 --> 03:40:40,540 but insurance companies. A lot of other cities are starting to do it but most of our calls 2397 03:40:40,540 --> 03:40:44,540 are EMS related and we're trying to see can we recapture some of that. We'd like to study 2398 03:40:44,540 --> 03:40:51,540 that. Also looking at the new things around adding fees around the YouTube TVs as opposed 2399 03:40:51,540 --> 03:40:56,140 to the cable. I don't know if you want to explain a little bit more about that. There's 2400 03:40:56,140 --> 03:40:57,360 an opportunity there as well, correct? 2401 03:41:00,000 --> 03:41:07,340 There was a case recently out of Santa Barbara where they were testing their communications 2402 03:41:07,340 --> 03:41:17,160 user tax about applying that tax to streaming services. And there have been some favorable 2403 03:41:17,160 --> 03:41:27,180 court rulings that have allowed them to proceed with that tax. So we're going to be doing 2404 03:41:27,180 --> 03:41:34,920 some work to see if we believe our current language allows for that and we'll be exploring 2405 03:41:34,920 --> 03:41:42,300 whether that's something that we can start doing here. Obviously, you know, we will be 2406 03:41:42,300 --> 03:41:47,440 coming back to the council with more information about that. And that could be a really important 2407 03:41:47,440 --> 03:41:51,880 source because that goes in with the UUT to supporting our capital program. 2408 03:41:52,880 --> 03:41:59,980 Thank you. Sorry to put you on the spot, Beth. And this wrapping up here, we have put money in the budget. 2409 03:42:00,000 --> 03:42:06,420 Budget around the comprehensive facility, infrastructure, planning, a lot of Zodin Code 2410 03:42:06,420 --> 03:42:10,740 amendment work I had mentioned, really around customer service and trying to lower costs 2411 03:42:10,740 --> 03:42:15,020 for those that are utilizing our services. And those will be coming forward as early 2412 03:42:15,020 --> 03:42:21,880 as July. Already hit on ERP. And then the final thing is really intergovernmental relations. 2413 03:42:22,320 --> 03:42:27,600 There's a lot going on right now with the county, with Caltrain, with Silicon Valley 2414 03:42:27,600 --> 03:42:33,000 clean water with the port. And I listed a bunch of cities that we partner with on all the stormwater 2415 03:42:33,000 --> 03:42:38,400 work, whether it's San Carlos Menlo Park in Belmont. And we do this work, but really being 2416 03:42:38,400 --> 03:42:41,940 intentional and really trying to make strides in some of these areas as they're trying to 2417 03:42:41,940 --> 03:42:45,960 accomplish their goals. We want to make sure we have the seat at the table. So there's 2418 03:42:45,960 --> 03:42:50,220 a lot of time just trying to show on the list of work that takes time and resources. 2419 03:42:50,500 --> 03:42:53,900 And many of you are also involved in those on the various boards and whatnot. So we 2420 03:42:53,900 --> 03:42:59,980 appreciate your your commitments as well. Next slide please. And the final thing is 2421 03:43:00,000 --> 03:43:04,700 It's just a slide around. And I am the worst. I know my staff is looking at me probably right 2422 03:43:04,700 --> 03:43:10,780 now saying that Patrick really put this slide together. But as we think about regulation, 2423 03:43:11,160 --> 03:43:15,700 as we think about the tough financial position that we're in, is I'm going to try to exercise 2424 03:43:15,700 --> 03:43:20,540 discipline and restraint from, you know, I read a lot and I read, oh, city's doing 2425 03:43:20,540 --> 03:43:25,400 this and that's great, is chasing down that next policy. So what I would say in a very 2426 03:43:25,400 --> 03:43:30,960 respectful way is this next year maybe two is if we could really not refrain but 2427 03:43:30,960 --> 03:43:34,100 just have a little bit of a measured approach as it come to new policy and 2428 03:43:34,100 --> 03:43:38,600 regulation that could affect whether or not a business relocates here or whether 2429 03:43:38,600 --> 03:43:43,160 or not somebody decides to repaint their house or redo a new roof you 2430 03:43:43,160 --> 03:43:46,460 know is really think about you know sometimes we'll see that a city that 2431 03:43:46,460 --> 03:43:50,120 are really cool new policy you don't think about the unintended costs of 2432 03:43:50,120 --> 03:43:53,440 said policy and so just trying to have a little restraint again I know my 2433 03:43:53,440 --> 03:43:57,060 staff is probably laughing at me because I am always trying to say yeah we can 2434 03:43:57,060 --> 03:43:59,860 absolutely take that on but I'm just asking as we weather 2435 03:44:09,780 --> 03:44:15,000 Next slide, please. So, with that, I will turn it over to Beth just to wrap it up. But thank you. 2436 03:44:16,140 --> 03:44:24,580 Okay, thank you. So, a reminder for the council is you're contemplating what we've presented to you. 2437 03:44:24,820 --> 03:44:28,840 We're looking for feedback on the 10-year forecast and financial trends. 2438 03:44:28,840 --> 03:44:37,200 and city department operations and budget recommendations that are included in the recommended budget. 2439 03:44:37,620 --> 03:44:48,920 And we have a crowd of city staff here who I also want to echo my thanks to for partnering with the finance department 2440 03:44:48,920 --> 03:44:54,760 as we built this budget who are here to answer any questions that you might have. 2441 03:44:54,760 --> 03:44:59,940 and then just previewing previewing 2442 03:45:00,000 --> 03:45:07,380 And what we'll be asking after the questions is, oops, is, okay, we've got dual things going 2443 03:45:07,380 --> 03:45:14,580 on here, is, after providing the feedback, we'll be asking the council to adopt a resolution 2444 03:45:14,580 --> 03:45:21,700 setting June 22nd as the date for the public hearing and adoption of the budget. 2445 03:45:22,280 --> 03:45:25,020 So with that, open it up to all of you. Thank you. 2446 03:45:27,690 --> 03:45:32,510 Thank you, Beth. Thank you, Patrick and the whole team for getting us to this point. 2447 03:45:32,670 --> 03:45:36,210 I know it's a lot of work and we will open the public hearing. 2448 03:45:36,390 --> 03:45:38,410 So I'll turn things over to our city clerk. 2449 03:45:39,230 --> 03:45:41,670 Thank you, Mayor. We don't have any speaker cards at this time. 2450 03:45:42,310 --> 03:45:43,690 Looks like we might have one. 2451 03:45:45,210 --> 03:45:48,210 And if you're on Zoom, please raise your hand for public comment on this item. 2452 03:45:48,410 --> 03:45:48,690 Thank you. 2453 03:45:49,890 --> 03:45:52,530 You can stay close, Michael, because you'll be called up. 2454 03:45:54,700 --> 03:45:56,900 All right. We'll close the speaker's list. 2455 03:45:56,900 --> 03:45:59,800 Just no comments on Zoom, but we will call up Michael. 2456 03:46:01,600 --> 03:46:02,120 Hello, 2457 03:46:12,470 --> 03:46:18,010 my name is Michael Arusa. Just wanted to note a couple of things in the budget. Really 2458 03:46:18,010 --> 03:46:27,750 excited to see zoning, streamlining, and objective design standards on the 26-27 policy. I did 2459 03:46:27,750 --> 03:46:31,610 want to tie some of those back to the budget since I know that there's a deficit, a protected 2460 03:46:31,610 --> 03:46:37,670 deficit. And I do want to note, because of Prop 13, there is an inability to assess properties 2461 03:46:37,670 --> 03:46:43,070 properties, or increased property taxes on properties more than 2% every year, but that 2462 03:46:43,830 --> 03:46:47,510 does reassess every time a property changes hand or if there's sufficient redevelopment. 2463 03:46:48,030 --> 03:46:51,850 So I think it is important to stress that a lot of the work that will make it easier 2464 03:46:51,850 --> 03:46:58,030 to build missing middle housing or develop on certain plots of land throughout the 2465 03:46:58,030 --> 03:46:59,890 city can measurably improve. 2466 03:47:00,000 --> 03:47:04,800 The city's financial situation by allowing for reassessments of the property taxes on those 2467 03:47:04,800 --> 03:47:10,720 lots, which could go a long way towards helping with the long-term financial situation. So I 2468 03:47:10,720 --> 03:47:16,200 know I'm the housing guy, I always tie back to housing, but I think especially with zoning 2469 03:47:16,200 --> 03:47:23,540 reform and streamlining in the 26-27 budget, just wanted to stress that that could be 2470 03:47:23,540 --> 03:47:24,600 very important for revenue. Thank you. 2471 03:47:26,420 --> 03:47:28,420 Thank you. That concludes public comment, Mayor. 2472 03:47:30,460 --> 03:47:37,020 Thank you to our public commenter and bring it back to the dais for any council questions or comments. 2473 03:47:38,440 --> 03:47:40,120 Does anyone want to get us started? 2474 03:47:46,270 --> 03:47:47,510 Yeah, let's remember start and thank you. 2475 03:47:48,650 --> 03:47:49,650 We're sending time here. 2476 03:47:49,930 --> 03:47:54,990 So thank you. Thank you to all the staff who prepared this fantastic job. 2477 03:47:55,270 --> 03:47:58,290 I wanted to highlight some things I liked if I could find my notes. 2478 03:48:00,640 --> 03:48:06,820 Just adding that, admin clerk number three, to save the costs associated with consultants, 2479 03:48:07,580 --> 03:48:13,220 I really appreciate you adding a project coordinator, number one on page 224. It's kind of all over 2480 03:48:13,220 --> 03:48:18,160 the place here, sorry. And I really appreciate the investment in youth and teens on the 2481 03:48:18,160 --> 03:48:22,860 youth and teens division on page 309. So there's just a couple of quick highlights 2482 03:48:22,860 --> 03:48:27,680 that I have there. And then I wanted to delve into some of the other hiring recommendations. 2483 03:48:28,520 --> 03:48:30,000 very much appreciate it all. 2484 03:48:30,840 --> 03:48:35,940 But I want to start with a data point that I saw on page 326 first and foremost. 2485 03:48:37,360 --> 03:48:40,780 So yeah, colleagues, page 326 if you want to follow along. 2486 03:48:42,200 --> 03:48:46,300 The number of contacts with individuals who are experiencing a mental health crisis 2487 03:48:46,300 --> 03:48:51,380 who were referred to a mental health facility for evaluation was over 300. 2488 03:48:52,020 --> 03:48:52,740 That's a lot. 2489 03:48:52,740 --> 03:48:59,680 But when I read that I thought to myself, wow, that's like about almost one a day. 2490 03:49:01,640 --> 03:49:07,020 And, you know, we have one crisis response clinician in the city, Dr. Baker, who's fabulous, 2491 03:49:08,140 --> 03:49:13,540 but she hasn't worked 365 days a year, and we don't want her to work 365 days a year, right? 2492 03:49:15,640 --> 03:49:20,440 So I thought to myself, you know, what can we do to address that? You know, we know 2493 03:49:20,440 --> 03:49:26,900 from the community dashboard that follows Dr. Baker's responses to calls for service 2494 03:49:26,900 --> 03:49:29,740 that there's really a great need, right? 2495 03:49:30,560 --> 03:49:32,660 Especially during the week, Tuesdays, Wednesdays, 2496 03:49:32,680 --> 03:49:36,560 Thursdays, but it doesn't tell us 2497 03:49:36,560 --> 03:49:39,760 what those calls for service look like. 2498 03:49:40,120 --> 03:49:44,720 What calls would have required a clinician 2499 03:49:44,720 --> 03:49:49,420 to respond outside Dr. Baker's availability, 2500 03:49:49,950 --> 03:49:52,420 which is only nine to five Monday through Friday, 2501 03:49:52,560 --> 03:49:53,980 I believe, generally speaking. 2502 03:49:53,980 --> 03:49:59,840 So, that's something I'm kind of interested in going forward, kind of getting 2503 03:50:00,000 --> 03:50:07,780 And that type of data on how we can determine whether and when an additional clinician is 2504 03:50:07,780 --> 03:50:14,800 needed. Because, you know, based on the limited data I have here in the community dashboard and 2505 03:50:14,800 --> 03:50:23,640 then also in the budget, it seems like we're not quite meeting that need. And with a licensed 2506 03:50:24,560 --> 03:50:34,860 It's great to know that our officers, 90-70% of them have conducted, have completed mental 2507 03:50:34,860 --> 03:50:36,240 health crisis response training, 2508 03:50:38,270 --> 03:50:41,990 but that's not their primary job, right? 2509 03:50:43,270 --> 03:50:51,150 We've heard time and time again in our community survey from public comment, me personally 2510 03:50:51,150 --> 03:50:58,490 at the doors when, you know, meeting voters that our neighbors want our 2511 03:50:58,490 --> 03:50:59,970 officers to enforce our law. 2512 03:51:00,000 --> 03:51:04,020 Traffic laws, specifically our traffic laws. You know, a lot of, you know, we know that the 2513 03:51:04,020 --> 03:51:09,260 top three reasons why we have traffic-related incidents in the city is running red lights, 2514 03:51:09,560 --> 03:51:17,700 DUIs, and speeding. And so we need our officers doing that proactive enforcement to ultimately, 2515 03:51:18,160 --> 03:51:23,560 you know, bring down those number of accidents in the city and save people's lives ultimately. 2516 03:51:25,860 --> 03:51:33,080 So when I saw that we are recommending adding unfreezing, rather, to police officer positions, 2517 03:51:33,480 --> 03:51:34,040 I understand. 2518 03:51:34,900 --> 03:51:41,640 Because of the burden on our officers, the overtime that is costing taxpayers money as 2519 03:51:41,640 --> 03:51:41,880 well. 2520 03:51:42,620 --> 03:51:47,940 But with that said, it seems like a little bit of a mismatch, and maybe we need another 2521 03:51:47,940 --> 03:51:54,540 clinician to help take some of those mental health crisis response calls so that our officers 2522 03:51:54,540 --> 03:51:59,880 are freed up to respond to what residents are asking for and clamoring for. 2523 03:52:00,000 --> 03:52:06,460 Which is traffic-related incidents and proactive enforcement, among many other things, right? 2524 03:52:07,240 --> 03:52:14,600 So that's just a piece of kind of feedback I wanted to provide. Now I'm open to alternatives, 2525 03:52:15,520 --> 03:52:22,800 such as maybe I'm freezing one position and then hiring another Dr. Baker, or maybe at 2526 03:52:22,800 --> 03:52:26,580 the mid-year budget hearing, mid-year budget check-in, 2527 03:52:26,700 --> 03:52:30,580 if you will, re-evaluating what funds are available, 2528 03:52:30,760 --> 03:52:35,020 if any, to hire another clinician at that time instead. 2529 03:52:35,980 --> 03:52:40,280 But I just want to kind of proctor that question 2530 03:52:40,740 --> 03:52:43,880 to my colleagues, what is the best way 2531 03:52:43,880 --> 03:52:47,580 to meet the need of a mental health crisis response 2532 03:52:47,580 --> 03:52:50,440 in Redwood City, thank you. 2533 03:52:50,440 --> 03:52:51,140 Thank 2534 03:52:54,280 --> 03:52:59,980 you, Council Member. Any colleagues have any immediate reactions to 2535 03:53:03,800 --> 03:53:11,960 Thank you. I was looking at the number of staff with crisis intervention and training, and I 2536 03:53:11,960 --> 03:53:17,480 see that our numbers are pretty high with the sworn personnel, but it looks like as of now 2537 03:53:17,980 --> 03:53:27,220 80% of our dispatch personnel have that training. So I think at least at a minimum, I think it 2538 03:53:27,220 --> 03:53:32,920 It would be great if we could have a focus on getting dispatch personnel the crisis training 2539 03:53:32,920 --> 03:53:35,820 because they're the ones who are first receiving that call. 2540 03:53:36,580 --> 03:53:43,200 All the information that they obtain is so valuable for whoever they're bringing next 2541 03:53:43,200 --> 03:53:43,940 on the scene. 2542 03:53:48,000 --> 03:53:52,620 I would like to have two police officers and another mental health clinician. 2543 03:53:53,140 --> 03:53:56,420 I think we need enforcement. 2544 03:53:56,700 --> 03:53:57,140 I hear that. 2545 03:53:57,140 --> 03:53:59,780 that I see the way we do it. 2546 03:54:00,000 --> 03:54:07,620 City kids dodging cars, and I know how much our residents appreciate that, but I do also think 2547 03:54:07,620 --> 03:54:11,960 that we do have this need. But then I might want to ask the city manager, how does this 2548 03:54:11,960 --> 03:54:18,940 play in with, I know we have a coordinated effort with another agency that's potentially 2549 03:54:18,940 --> 03:54:25,840 working with some of their unhoused population. Could you speak to how that partnership works 2550 03:54:25,840 --> 03:54:26,400 with us? 2551 03:54:26,400 --> 03:54:28,120 Yeah, it's a great question. 2552 03:54:28,400 --> 03:54:29,360 I haven't seen Chief. 2553 03:54:29,360 --> 03:54:29,980 Where's Chief Bell? 2554 03:54:30,160 --> 03:54:30,340 Where's she? 2555 03:54:30,760 --> 03:54:31,680 If she could come in, yeah. 2556 03:54:33,680 --> 03:54:37,200 I want to real quick address Council Member Sir. 2557 03:54:37,360 --> 03:54:39,240 I had the exact same thought when I saw the data. 2558 03:54:39,340 --> 03:54:41,280 I was like, wow, this is really impressive. 2559 03:54:41,620 --> 03:54:43,660 And we're beyond the pilot stage now, right? 2560 03:54:43,740 --> 03:54:44,320 We've been doing this. 2561 03:54:44,820 --> 03:54:46,680 So I think your instincts are dead on, 2562 03:54:46,820 --> 03:54:50,360 on utilizing data to make informed decisions. 2563 03:54:50,520 --> 03:54:52,760 I'd love to hear Chief Bell kind of speak to it on, 2564 03:54:53,040 --> 03:54:54,440 because she and I had a really brief conversation 2565 03:54:54,440 --> 03:54:57,300 on what potential expansion could look like. 2566 03:54:57,960 --> 03:54:59,880 But I can't remember to your question. 2567 03:55:00,000 --> 03:55:04,800 As we start working and we firm up our agreements with life moves and other folks out in the field, 2568 03:55:04,900 --> 03:55:10,060 we will have to ask ourselves how do these folks work together? Right now they do work really, 2569 03:55:10,080 --> 03:55:13,760 really well together on our homeless response side of things, but there's more to it than 2570 03:55:13,760 --> 03:55:17,660 just the homeless side. So I think it's a good point, something that I'll work closely 2571 03:55:17,660 --> 03:55:22,400 with Derek Wolfgram, our city manager, to make sure that we get aligned on that. But no, 2572 03:55:22,580 --> 03:55:26,740 I appreciate that. And Chief Bell, if you want to talk about the clinician aspect 2573 03:55:26,740 --> 03:55:31,000 things would be great. Thank you. Hello everyone, Christina Bell, Chief of Police. 2574 03:55:31,600 --> 03:55:37,620 So I believe the question is the can we add to the question or do we need more? 2575 03:55:38,120 --> 03:55:44,740 Is that all right? So we are still kind of in the early stages of having 2576 03:55:44,740 --> 03:55:50,260 Patricia a part of our staff full-time and so we've grown a lot in her 2577 03:55:50,260 --> 03:55:54,260 ability to the different types of responses whereas before she was 2578 03:55:54,260 --> 03:55:59,760 limited in scope because of the contract. So as we get to look at the data more and understanding 2579 03:56:00,000 --> 03:56:05,040 Where the need is. And when Patricia comes on scene, that doesn't automatically alleviate 2580 03:56:05,040 --> 03:56:10,020 the officers that are on scene with her. So it wouldn't, if we had another clinician, it 2581 03:56:10,020 --> 03:56:17,340 wouldn't free up more officers to do other things. Sometimes her response doesn't necessitate 2582 03:56:17,340 --> 03:56:24,100 us, but that is very much a case by case basis. For future expansion, you know, there has 2583 03:56:24,100 --> 03:56:29,660 been like very low level talks about partnering with a county, potentially to have another, 2584 03:56:29,660 --> 03:56:35,540 but again like very very minimal for the future but something to look forward to. 2585 03:56:42,500 --> 03:56:45,340 Thank you Chief. Council Member any other questions? 2586 03:56:48,190 --> 03:56:52,630 Okay great colleagues who would like to go next? 2587 03:56:52,990 --> 03:56:59,830 Council Member Gee. Thank you Mayor. Patrick the entire team thank you. This is not a budget. 2588 03:57:00,370 --> 03:57:07,490 That is just put on the Excel spreadsheet, typed up, and here it is. It's a lot hard work. 2589 03:57:08,210 --> 03:57:13,790 And I think it would be safe to say this is a constrained budget, Beth. I mean, we don't 2590 03:57:13,790 --> 03:57:18,030 have enough money, so we have to figure out how to fit the services within the money we 2591 03:57:18,030 --> 03:57:28,400 have. So, thank you for that. A couple questions to dive into before I share my, what I'd 2592 03:57:28,400 --> 03:57:32,640 like to see coming back on the 22nd is, you know, 2593 03:57:33,020 --> 03:57:34,400 I think you alluded to this, Beth, 2594 03:57:34,540 --> 03:57:35,740 but this will be the third budget, 2595 03:57:35,980 --> 03:57:37,900 and I'll look at another one on Thursday. 2596 03:57:38,560 --> 03:57:40,240 It happens to be that time of year 2597 03:57:40,800 --> 03:57:43,140 where sales tax projections are all over the place. 2598 03:57:45,260 --> 03:57:47,340 CalTrain is up 1.8%, 2599 03:57:47,340 --> 03:57:48,540 Sam Chance is at zero. 2600 03:57:49,900 --> 03:57:52,940 A director from Palo Alto says they're looking at 2% up 2601 03:57:52,940 --> 03:57:54,080 and here we're looking at, 2602 03:57:54,720 --> 03:57:56,080 we haven't hit the bottom yet. 2603 03:57:56,080 --> 03:57:59,380 And we all hire the same consultants. 2604 03:58:00,180 --> 03:58:03,500 So maybe you can offer a comment on that? 2605 03:58:04,120 --> 03:58:13,880 Yeah, it really depends on what each jurisdiction's sales tax base is based on. 2606 03:58:14,680 --> 03:58:23,880 And we are heavily reliant on sales tax from auto sales because of our auto dealerships. 2607 03:58:23,880 --> 03:58:29,560 and that has been a drag on our sales tax performance. 2608 03:58:30,780 --> 03:58:37,060 Interestingly, luxury cars performance has been holding up, 2609 03:58:37,320 --> 03:58:41,000 but it's a smear mortals that are buying cars 2610 03:58:41,000 --> 03:58:45,320 where there's softening in that market. 2611 03:58:45,720 --> 03:58:48,100 So that's the biggest driver. 2612 03:58:48,100 --> 03:58:59,860 I am monitoring closely our sales tax results and comparing that with what HDL is projecting. 2613 03:59:00,000 --> 03:59:10,700 And for 2526, my projections based on what's coming in this data through March, I'm within 2614 03:59:10,700 --> 03:59:25,600 $200,000 of what their projection is. They're projecting that we'll bring in 34 million, 34.4 2615 03:59:25,600 --> 03:59:31,940 million and I'm sorry, there's too many sixes and fours. Let me start over again. They're 2616 03:59:31,940 --> 03:59:40,140 projecting 34.6 million based on data through March and our trajectory of the last months 2617 03:59:40,140 --> 03:59:50,440 of the fiscal year last year. I've got us at 36.6 million. So our sales tax is performing 2618 03:59:50,440 --> 03:59:54,620 pretty closely in alignment with their current year forecast. 2619 03:59:55,200 --> 03:59:59,980 Obviously, next year remains to be seen, but right now we're trying to 2620 04:00:01,280 --> 04:00:10,080 Well, very good. And that just reminded me of a request I made last year, and maybe it's 2621 04:00:10,080 --> 04:00:16,260 part of why we need to consider a new ERP system is to have more regular updates on where we 2622 04:00:16,260 --> 04:00:22,760 are from a revenue standpoint. I mean, my other boards, we see it monthly. And I'm not asking 2623 04:00:22,760 --> 04:00:29,020 for monthly yet, but at least quarterly to see where we're headed rather than every 2624 04:00:29,020 --> 04:00:35,440 June, oh, by the way, we came up short $10 million. At that point it's too late, but if 2625 04:00:35,440 --> 04:00:40,600 we can be more proactive about looking at whatever the right cadence is, monthly or quarterly, 2626 04:00:41,540 --> 04:00:43,740 I think that would be very helpful for the Council and the public. 2627 04:00:44,320 --> 04:00:52,180 Yes. And I do have a quarterly report ready to go that we can distribute to everyone, 2628 04:00:52,180 --> 04:00:57,380 but we can provide this, you know, monthly. 2629 04:00:57,580 --> 04:00:58,580 I'm looking at it monthly. 2630 04:01:00,000 --> 04:01:05,720 Look to the city manager or other places I've worked. It's something that we've provided. 2631 04:01:06,320 --> 04:01:13,260 So it is something, it's a manual process, but we finances got it down to a pretty good 2632 04:01:13,260 --> 04:01:23,340 cadence where by the 15th middle of each month, like June 15th, we'll have data for April. 2633 04:01:24,020 --> 04:01:26,260 And we can get on that pretty quickly. 2634 04:01:26,260 --> 04:01:31,220 I mean, I'll kind of look to my colleagues about what cadence they want, but I'll look 2635 04:01:31,220 --> 04:01:37,780 to the city manager to lead that, but I think more than once a year is important and no less 2636 04:01:37,780 --> 04:01:42,740 than quarterly, and if the council would like it monthly, and you're able to do that, I 2637 04:01:42,740 --> 04:01:43,380 think that'd be great. 2638 04:01:44,560 --> 04:01:45,180 Thank you. 2639 04:01:46,640 --> 04:01:52,080 To your transmittal letter to city manager, I mean, you know, and we're seeing the 2640 04:01:52,080 --> 04:01:58,920 business license tax, kind of do what we thought it might do, but not everything we thought 2641 04:01:58,920 --> 04:01:59,500 it might do. 2642 04:02:00,780 --> 04:02:06,640 And so my question, consistent with my previous comments earlier this evening, is to what extent 2643 04:02:07,960 --> 04:02:14,860 do our policies here, an accumulative standpoint, make Redwood City less attractive for employers? 2644 04:02:15,820 --> 04:02:20,300 And I think we need to take a very hard look at that. Employers these days have choices. 2645 04:02:21,900 --> 04:02:27,260 You know, there's plenty of empty buildings in St. Carlos. We're competing against Mountain View. 2646 04:02:27,960 --> 04:02:30,740 when the business license tax was put on the ballot. 2647 04:02:31,140 --> 04:02:33,520 There was a large tech company that was ready to sign a lease 2648 04:02:33,520 --> 04:02:34,400 and they said no thanks. 2649 04:02:35,760 --> 04:02:39,720 We've seen at least Amanda share with us 2650 04:02:39,720 --> 04:02:43,140 six or seven potential employers pass on Redwood City. 2651 04:02:43,920 --> 04:02:46,680 So I think we need to take a very, very hard look 2652 04:02:46,680 --> 04:02:51,140 at what policies cumulatively that council has put in place 2653 04:02:51,140 --> 04:02:54,000 that make us less attractive, less competitive 2654 04:02:54,000 --> 04:02:58,680 and really begin to decide is that where we want to be. 2655 04:03:00,000 --> 04:03:04,180 I mean, we'd love the community benefits that commercial developers have brought to 2656 04:03:04,180 --> 04:03:07,980 Reverend City, but if they're struggling to fill those buildings, 2657 04:03:08,980 --> 04:03:14,940 and, you know, that has an impact on our fiscal health, empty office buildings don't help us. 2658 04:03:15,740 --> 04:03:22,060 And so, to your slide number, whatever it was, City Manager, about looking at policies that we've 2659 04:03:22,060 --> 04:03:26,960 put in place, we need to be very disciplined and very thoughtful and look at the strong, 2660 04:03:26,960 --> 04:03:32,080 look at the long-term impacts of that, that make us pass. 2661 04:03:33,500 --> 04:03:45,880 Council Member Strickland, I appreciate your comment, but I'm going to go in a different direction in the sense that I did not see reserves in both the capital CIP or in the budget. 2662 04:03:46,760 --> 04:03:50,880 Beth, you put that slide with all those bubbles on it about the unknowns. 2663 04:03:53,180 --> 04:03:57,040 You know, I know some of my colleagues here might say we weren't elected to save money, 2664 04:03:57,860 --> 04:03:59,780 but when we know that there's potential, 2665 04:04:02,860 --> 04:04:19,340 We need to strategically plan for that and not dip into that 15% from my standpoint. We know for example that there is the likelihood of a litigation or claim or at least financial stress on the veteran's senior center. 2666 04:04:19,340 --> 04:04:27,600 We know that what we heard earlier, there may be a potential impact on an initiative before the voters. 2667 04:04:29,000 --> 04:04:36,900 We know AB 1383, I would say, has a likelihood of being adopted, which changes the pension liabilities for public safety, 2668 04:04:36,980 --> 04:04:39,700 which was going to have a ripple effect to other labor groups. 2669 04:04:41,040 --> 04:04:44,100 We know that 101.84 has financial stress on it. 2670 04:04:44,720 --> 04:04:50,480 And to not plan for that from my standpoint, speaking as one council member, is irresponsible 2671 04:04:51,620 --> 04:04:58,540 because we don't have any other fund source to go and fund these things and others that I haven't mentioned. 2672 04:05:00,000 --> 04:05:07,700 And we need to have some sort of reserve or set aside for the likelihood, and some of these 2673 04:05:07,700 --> 04:05:13,320 are beyond likelihood. They're very real about happening. We do not have a litigation reserve. 2674 04:05:13,960 --> 04:05:19,940 There's no line item in the budget for litigation. It just comes out of the general fund. And 2675 04:05:19,940 --> 04:05:26,620 we need to, from my standpoint, plan for these likelihoods and things that are actually 2676 04:05:26,620 --> 04:05:31,100 on our table, like this issue with the senior center. 2677 04:05:31,520 --> 04:05:32,240 That is not pretend. 2678 04:05:32,600 --> 04:05:37,420 That is very real, and zero is not going to be the right answer on that. 2679 04:05:37,840 --> 04:05:44,640 There will be legal fees, and there will be some sort of mediated or court resolution, 2680 04:05:44,880 --> 04:05:46,020 but it's not going to be zero. 2681 04:05:46,600 --> 04:05:47,820 So we should plan for that. 2682 04:05:49,160 --> 04:05:54,540 My last request for coming back on the 22nd 2683 04:05:54,800 --> 04:05:59,440 is there's great detail in the department by department. 2684 04:06:00,000 --> 04:06:08,020 Budget. Every department, thank you all for doing that. But I couldn't reconcile that against 2685 04:06:08,020 --> 04:06:15,600 the details. And then I think the problem or the challenges when there's initiatives with 2686 04:06:15,600 --> 04:06:23,520 multiple fund sources. So like the tenant protection ordinance says it's only $24,000 on the spreadsheet. 2687 04:06:24,300 --> 04:06:29,400 But when you dive into the department budget, it's a lot more than that. So what I'd 2688 04:06:29,400 --> 04:06:34,440 What I'd like to see is a schedule that shows the total 2689 04:06:35,320 --> 04:06:38,300 expand for that initiative on a spreadsheet. 2690 04:06:39,480 --> 04:06:42,140 And I think every council member and every previous council 2691 04:06:42,140 --> 04:06:44,280 says the budget reflects council priorities. 2692 04:06:45,380 --> 04:06:49,300 On that spreadsheet that ties, I'd like to see at top to bottom 2693 04:06:49,300 --> 04:06:54,240 those initiatives, whether it's 0 to 10 million or whatever, 2694 04:06:54,240 --> 04:06:58,800 to reinforce that we are spending consistent with the council priorities. 2695 04:07:00,000 --> 04:07:03,400 Right now, not everything ties to that detailed spreadsheet. 2696 04:07:04,180 --> 04:07:09,360 And so when you look at some of the initiatives like the homeless or TPO and things like that, 2697 04:07:09,820 --> 04:07:14,040 the number on the detailed spreadsheet compared to the department spreadsheet, they're not the 2698 04:07:14,040 --> 04:07:17,420 same number. And I think the issue is the multiple fund source. 2699 04:07:18,820 --> 04:07:24,780 So I'd like to see that number tie back. And then I'd like to see top to bottom from a 2700 04:07:24,780 --> 04:07:28,200 a miracle standpoint to reinforce that we are spending 2701 04:07:28,800 --> 04:07:31,420 on the initiatives consistent with the priorities 2702 04:07:31,420 --> 04:07:31,960 of the council. 2703 04:07:33,560 --> 04:07:36,120 So with that, I think hopefully that's helpful. 2704 04:07:36,300 --> 04:07:37,720 Hopefully that made sense first, Beth. 2705 04:07:38,280 --> 04:07:39,560 Was I hopefully clear? 2706 04:07:41,680 --> 04:07:43,060 We'll put our heads together. 2707 04:07:43,660 --> 04:07:45,780 Okay, I mean, I think Patrick understands 2708 04:07:45,780 --> 04:07:47,940 what I'm looking for and I talked to him about it, 2709 04:07:47,940 --> 04:07:49,520 but I was just trying to connect the dots 2710 04:07:49,520 --> 04:07:52,060 and they weren't connecting Apple for Apple, so. 2711 04:07:52,340 --> 04:07:53,220 So thank you, Mayor. 2712 04:07:54,780 --> 04:07:57,560 Thank you, Council Member Chi, and we'll go to Council Member Sturgeon. 2713 04:07:57,760 --> 04:07:59,300 Apologies, just two quick responses. 2714 04:08:01,880 --> 04:08:07,900 So I think as part of that spreadsheet, I think you put it, one thing that we didn't talk 2715 04:08:07,900 --> 04:08:17,100 about earlier is that that petition would replace the current TPO, right? It replaces a number 2716 04:08:17,100 --> 04:08:21,160 of tenant protections that we have already enacted. So there's a, I'm not going to say 2717 04:08:21,160 --> 04:08:28,300 it's a net savings because it's not, but there is a net difference there. So that's 2718 04:08:28,300 --> 04:08:30,080 something that should be factored into that spreadsheet. 2719 04:08:31,580 --> 04:08:34,700 Cost savings, anyway. 2720 04:08:35,480 --> 04:08:37,280 And then the biggest thing I forgot to mention 2721 04:08:37,280 --> 04:08:40,900 with regards to the two unfrozen police officer positions 2722 04:08:40,900 --> 04:08:44,240 is that on page three, 29 or so, 2723 04:08:44,440 --> 04:08:46,920 it states that the cost is $350,000. 2724 04:08:47,580 --> 04:08:48,740 That's only for six months. 2725 04:08:48,960 --> 04:08:51,380 So the true cost per year is $700,000 2726 04:08:51,380 --> 04:08:52,380 for those two officers. 2727 04:08:52,960 --> 04:08:56,900 And I thought to myself, with an anticipated deficit 2728 04:08:56,900 --> 04:08:59,720 instead of $22 million starting next fiscal year. 2729 04:09:00,000 --> 04:09:06,300 It's really hard to justify adding new staff when we may have to cut them in the future. 2730 04:09:06,780 --> 04:09:10,280 So that is just one of the other reasons I brought that up. 2731 04:09:11,880 --> 04:09:21,480 Concern over adding new staff who are very expensive when there are alternatives that are available. 2732 04:09:22,240 --> 04:09:22,680 Thank you. 2733 04:09:23,420 --> 04:09:24,320 Thank you, Council Member. 2734 04:09:24,420 --> 04:09:24,880 Council Member G. 2735 04:09:25,520 --> 04:09:33,120 I just want to be very clear, the reserve is for the future unknowns that we don't know, 2736 04:09:33,760 --> 04:09:39,720 and so the spreadsheet, for example, like I said, TPO, tenant protection, and the detailed 2737 04:09:39,720 --> 04:09:42,480 operating fund, it says it's only $24,000. 2738 04:09:44,060 --> 04:09:49,980 We know it's not, but because in the department detail, it's a lot more because of multiple 2739 04:09:49,980 --> 04:09:50,700 fund sources. 2740 04:09:51,520 --> 04:09:57,720 That number needs to be tied to that spreadsheet and then be sorted by whatever, so we can 2741 04:09:57,720 --> 04:09:59,400 see that investment. 2742 04:10:00,000 --> 04:10:05,200 Alliance with council priorities. The reserve I'm talking about is to deal with the net difference 2743 04:10:05,780 --> 04:10:10,860 if that initiative passes, because we don't know what it's going to be. We don't know how 2744 04:10:10,860 --> 04:10:16,740 much of it is going to replace our current ordinances, what the increase cost is, but 2745 04:10:16,740 --> 04:10:20,820 that's why we need to plan for some sort of reserve. Since we heard clearly earlier 2746 04:10:20,820 --> 04:10:27,940 this evening, the city is probably going to have to front that startup of some magnitude 2747 04:10:28,400 --> 04:10:30,440 and wind down what we have, too. 2748 04:10:30,800 --> 04:10:33,460 I mean, you can't just turn the switch overnight and say, 2749 04:10:33,460 --> 04:10:35,060 here's what we have and here's what's different. 2750 04:10:35,500 --> 04:10:37,020 So that's what the reserve is for, 2751 04:10:37,220 --> 04:10:39,880 because we know there's going to be a cost. 2752 04:10:40,780 --> 04:10:43,500 We just don't know how much and what the net number is going to be. 2753 04:10:44,160 --> 04:10:47,000 So that's why I argue there needs to be a reserve, 2754 04:10:47,140 --> 04:10:49,100 because we know if it does pass, there's going to be something. 2755 04:10:49,900 --> 04:10:51,980 We know there's a claim on the senior center. 2756 04:10:52,420 --> 04:10:55,080 We know AB 1383 is likely to pass. 2757 04:10:55,080 --> 04:10:57,900 We know it's likely we're not going to get VLF. 2758 04:10:58,620 --> 04:10:59,960 So knowing those things... 2759 04:11:00,000 --> 04:11:01,260 We should plan for them financially. 2760 04:11:04,510 --> 04:11:05,350 Thank you both. 2761 04:11:05,690 --> 04:11:06,210 Councilmember Padilla. 2762 04:11:07,710 --> 04:11:12,090 I would like to say, I would like to focus on something that I think is important. 2763 04:11:12,730 --> 04:11:15,770 And it's only going to become increasingly more important. 2764 04:11:16,010 --> 04:11:20,130 And it's something we've talked about a lot, and it's our PCI index. 2765 04:11:21,410 --> 04:11:26,550 I think I saw in the budget that we've allocated $5 million annually. 2766 04:11:26,550 --> 04:11:31,830 annually, but everything that I read said it, the road, the quality of our pavement. 2767 04:11:33,430 --> 04:11:37,510 And I know Ms. Warner has educated us a lot on it. 2768 04:11:38,210 --> 04:11:43,070 But with everything we're talking about and with Beth's, I know that you use green to 2769 04:11:43,070 --> 04:11:51,510 make it a little happier, but inflation, tariffs, oil gas, all of these prices, our roadwork 2770 04:11:51,510 --> 04:11:55,390 is only going to become increasingly more expensive those costs. 2771 04:11:55,390 --> 04:11:57,130 and it is needed. 2772 04:11:57,770 --> 04:11:59,530 And when we talk about when... 2773 04:12:00,000 --> 04:12:07,080 Councilmember G talks about welcoming new developers or companies or even quite 2774 04:12:07,080 --> 04:12:12,160 frankly people who want residents who want to move into our neighborhood. The quality 2775 04:12:12,160 --> 04:12:18,300 of a city's roads is an indicator of a lot. I think it speaks volumes without 2776 04:12:18,300 --> 04:12:21,660 having to say it. You know that feeling you have when you're driving somewhere in 2777 04:12:21,660 --> 04:12:26,120 the road is smooth. It sends a message and I think that it is an investment 2778 04:12:26,120 --> 04:12:31,580 worth making, so I actually think that we should be finding the money to put in, 2779 04:12:32,180 --> 04:12:35,740 I think they should have asked for closer, because of what we're doing now, 2780 04:12:36,180 --> 04:12:40,300 we're not ever going to catch up, look at us, we were at 70, the last time she 2781 04:12:40,300 --> 04:12:45,840 talked to us we were at 69, now we're dropping back to 68. If we kick this 2782 04:12:45,840 --> 04:12:49,240 can, it's only going to get more expensive and the road work is only 2783 04:12:49,240 --> 04:12:53,200 going to get more needed and more complex, so I actually would like to 2784 04:12:53,200 --> 04:12:56,880 see more money in the budget allocated to fixing our roads. 2785 04:12:57,460 --> 04:12:59,500 So I wanted to put that out there for discussion 2786 04:12:59,500 --> 04:12:59,980 because I 2787 04:13:00,000 --> 04:13:05,820 I believe it was said that we needed to have seven million a year to actually have a better 2788 04:13:05,820 --> 04:13:08,640 quality of roads. So I'd like to put that out there to the group. 2789 04:13:10,320 --> 04:13:12,720 Thank you, Council Member Padilla. We'll go to Vice Mayor Aiken. 2790 04:13:13,120 --> 04:13:20,120 Well, I'm just going to, on the road thing, we allocated more $2 million of our surplus 2791 04:13:20,120 --> 04:13:28,080 last year to the roads. And we, I believe we hired a consultant with that money who 2792 04:13:28,080 --> 04:13:37,680 prioritized, who did a whole new assessment of the roads and priority areas, and that's 2793 04:13:37,680 --> 04:13:38,800 kind of work that's ongoing. 2794 04:13:39,220 --> 04:13:42,800 So my feeling about that is let's let that play out. 2795 04:13:43,540 --> 04:13:46,840 Let's get, we're going to get reported back on that. 2796 04:13:47,220 --> 04:13:54,500 And again, because of all the unknowns, I feel like we're working on that right 2797 04:13:54,500 --> 04:13:58,520 now from the 2 million, the extra 2 million that we allocated last year. 2798 04:14:02,060 --> 04:14:02,560 That's all. 2799 04:14:03,380 --> 04:14:10,920 I appreciate that. And I remember I was one who was asking for that extra two months. And I do appreciate the gentleman. He gave us a nice talk about the different slurries. 2800 04:14:11,200 --> 04:14:19,120 But my point was we're just constantly playing catch up. So even then we're just going to go farther and farther and it's going to be more costly. 2801 04:14:19,280 --> 04:14:28,160 So I just want us to think we're going to need our roads. We're going to use them. I'm just, if we kick this can, it's a very expensive can. That's it. Thank you. 2802 04:14:28,160 --> 04:14:31,460 Thank you, Council Member. 2803 04:14:32,000 --> 04:14:35,380 And I'll just make a quick comment that, absolutely. 2804 04:14:35,880 --> 04:14:38,320 And that's why we have, I mean, so many capital needs, right? 2805 04:14:38,500 --> 04:14:43,360 And the budget went into detail about just the revenue sources 2806 04:14:43,360 --> 04:14:45,660 that we used to be able to fund all of our needs, 2807 04:14:45,780 --> 04:14:46,920 like street services, right? 2808 04:14:47,040 --> 04:14:49,080 Is just not meeting the cut anymore. 2809 04:14:49,420 --> 04:14:53,160 So just want to appreciate that comment 2810 04:14:53,160 --> 04:14:55,800 and also the work that staff is doing to start 2811 04:14:55,800 --> 04:14:58,160 that conversation and get a sense of what that total sum 2812 04:14:58,160 --> 04:14:58,660 is going to be. 2813 04:15:00,000 --> 04:15:03,780 Just wanted to add that comment, but colleagues, any other? 2814 04:15:05,000 --> 04:15:05,500 Council Member Howard. 2815 04:15:06,480 --> 04:15:11,480 Well, I really appreciate all the comments and from all my colleagues. 2816 04:15:11,780 --> 04:15:19,020 But I also want to thank our staff for the budget that you have presented to us because I feel so totally informed. 2817 04:15:19,740 --> 04:15:28,340 I'm not happy with some of the unexpected outcomes and things that are very disappointing like DLF. 2818 04:15:28,340 --> 04:15:36,500 But being transparent and letting us know, letting the public know this is where we're at will make us a better city. 2819 04:15:36,680 --> 04:15:40,020 Because we'll pull together and we'll try to solve these problems. 2820 04:15:40,680 --> 04:15:45,360 I do believe we're going to have to exercise a great deal of discipline these next several years. 2821 04:15:45,620 --> 04:15:49,520 There's just no doubt about it as much as I want to have many things done. 2822 04:15:49,920 --> 04:15:55,560 Our needs exceed the amount of money that we have and that's just being totally realistic and honest. 2823 04:15:55,560 --> 04:15:59,980 And I think the public needs to know that if they 2824 04:16:00,000 --> 04:16:05,760 We haven't already seen that, but I did want to ask if we could ask Amanda, because I have 2825 04:16:05,760 --> 04:16:11,380 concerns we've spent so much money on our downtown, spent so much money on beautifying 2826 04:16:11,380 --> 04:16:17,860 our city and making an attractive destination. I do have concerns that businesses are not 2827 04:16:17,860 --> 04:16:23,920 locating here, especially larger ones, and I was wondering if she could give us a report 2828 04:16:23,920 --> 04:16:28,480 on that, not necessarily tonight, because we have a lot more business to take care 2829 04:16:28,480 --> 04:16:33,320 But I really would like to know what could we be doing better? 2830 04:16:33,720 --> 04:16:35,100 What can we be doing differently? 2831 04:16:35,380 --> 04:16:39,720 Are there needs we're not meeting that these companies decide not to come here? 2832 04:16:39,840 --> 04:16:42,880 I think we're a very desirable place for a company. 2833 04:16:43,140 --> 04:16:49,920 We have attorneys moving from certain cities because the vibrancy here is what is bringing them. 2834 04:16:50,560 --> 04:16:54,840 So I think it's important that we understand what's the disconnect here 2835 04:16:54,840 --> 04:16:59,980 because maybe we can resolve that and that might help because certainly we 2836 04:17:00,000 --> 04:17:02,960 We need more companies locating here to help pay the bills. 2837 04:17:04,000 --> 04:17:11,180 So I think if Amanda could do that for us and maybe with her, Patrick, come up with, well, 2838 04:17:11,440 --> 04:17:15,960 it seems like maybe we didn't streamline this enough or this is what didn't meet their needs. 2839 04:17:16,580 --> 04:17:22,060 Maybe we figure out, well, maybe we needed to look at it more closely and meet their needs. 2840 04:17:22,620 --> 04:17:25,500 So that would be something I'd really like to see. 2841 04:17:25,500 --> 04:17:29,820 I don't want to stop lobbying Sacramento for the vehicle license fees. 2842 04:17:30,280 --> 04:17:34,560 I think if we do that, that would be a major mistake on our part. 2843 04:17:35,120 --> 04:17:40,180 If we stop going, they'll think we don't care anymore, and they'll just write us off. 2844 04:17:40,820 --> 04:17:48,260 So I think it's important that either by email, by phone call, contact your legislators in Sacramento. 2845 04:17:48,560 --> 04:17:50,720 I'm asking everyone in Redwood City. 2846 04:17:50,720 --> 04:17:59,640 San Mateo County is one of three, three counties in the state of California that has been chosen 2847 04:18:00,000 --> 04:18:07,360 Not to get vehicle license feeds based on an outdated formula, and so that's truly upsetting 2848 04:18:07,360 --> 04:18:11,880 to me because last year they said they were going to fix the formula and solve the problem, 2849 04:18:12,280 --> 04:18:19,540 and they pushed it off. So if you don't become the thorn in their side, we're going to be 2850 04:18:19,540 --> 04:18:25,380 treated like they can do without five and a half million dollars. Well, we can't. So 2851 04:18:25,380 --> 04:18:31,620 So if anyone here in the audience has an interest in contacting your legislators, they're easy 2852 04:18:31,620 --> 04:18:36,780 enough to get those numbers, write an email, write a letter, make a phone call because 2853 04:18:36,780 --> 04:18:39,560 we can't back down, we have to keep talking. 2854 04:18:39,720 --> 04:18:43,200 The county is being very aggressive and we're working with the county. 2855 04:18:43,480 --> 04:18:49,140 So I strongly advise you, these are monies that are owed to our city that are owed 2856 04:18:49,140 --> 04:18:53,920 to our county and they're depriving us of that money and that's wrong. 2857 04:18:53,920 --> 04:18:57,040 So we're asking for your help on that. 2858 04:18:57,800 --> 04:18:59,980 But other than that, I think this... 2859 04:19:00,000 --> 04:19:05,620 The staff has done a marvelous job of really highlighting what we need to do, that we do 2860 04:19:05,620 --> 04:19:12,400 need to be disciplined. You're putting emphasis on the right areas, in my opinion, and I think 2861 04:19:12,400 --> 04:19:20,200 we just have to be careful that we don't jump into new projects or a lot of new things when 2862 04:19:20,200 --> 04:19:25,700 we really haven't cleaned up what we already have. So that's where I'd like to focus. 2863 04:19:25,700 --> 04:19:31,240 because one thing I would say is modernizing our service delivery I'm very excited about. 2864 04:19:31,780 --> 04:19:36,780 So thank you Patrick for not losing that vision that you presented to us when you interviewed 2865 04:19:36,780 --> 04:19:37,380 with us. 2866 04:19:37,720 --> 04:19:38,940 Really appreciate that. 2867 04:19:39,380 --> 04:19:44,560 But other than that I just think the staff has done a wonderful job and appreciate their 2868 04:19:44,560 --> 04:19:49,720 honesty in coming to us with the real facts so that we can make good solid decisions. 2869 04:19:50,480 --> 04:19:51,120 Thank you. 2870 04:19:53,050 --> 04:19:54,350 Thank you Council Member Howard. 2871 04:19:54,490 --> 04:19:55,270 We'll go to the Vice Mayor. 2872 04:19:56,290 --> 04:19:59,970 So, first of all, it's fun to see so many of the 2873 04:20:00,000 --> 04:20:03,560 The staff here tonight, thank you for staying up with us. 2874 04:20:05,000 --> 04:20:11,240 And you know, our, this budget, or last year's budget, won an award. 2875 04:20:12,020 --> 04:20:18,040 I wrote it down somewhere, the Distinguished Budget Presentation Award by the Government 2876 04:20:18,040 --> 04:20:20,200 Finance Officers Association. 2877 04:20:21,320 --> 04:20:26,320 And it's no coincidence, you guys are just amazing pros. 2878 04:20:26,320 --> 04:20:29,420 And I'm so glad you're here with us tonight. 2879 04:20:30,980 --> 04:20:37,200 On both my colleagues, so I don't like to, you know, when it's sparse like this budget 2880 04:20:37,200 --> 04:20:41,040 where we're really tightening the belt, I don't like to second... 2881 04:20:41,040 --> 04:20:45,980 I personally don't like to second guess staff's choices. 2882 04:20:46,660 --> 04:20:48,860 We do policy, they do implementation. 2883 04:20:50,300 --> 04:20:52,060 I do love the clinician. 2884 04:20:52,060 --> 04:20:58,180 I'm thrilled and I'm thrilled that she's on staff instead of a consultant and thank you. 2885 04:21:00,000 --> 04:21:11,000 Councilmember Sturkin for asking about it, and thank you for your answer, Cable, that you're still assessing it and improving it, and that's good. 2886 04:21:11,860 --> 04:21:18,360 I'm fine with hiring the new police officers. We do need more traffic safety. We do need all of that. 2887 04:21:20,360 --> 04:21:26,240 So I just, this one, I'm just going to go through, well, actually, let me do my question, though, to Beth. 2888 04:21:27,480 --> 04:21:43,080 So is it accurate, Beth, that Stanford is our fourth largest employer and is exempt from paying the business license tax? 2889 04:21:43,280 --> 04:21:43,920 Is that accurate? 2890 04:21:44,300 --> 04:21:45,140 Yes, that's accurate. 2891 04:21:45,360 --> 04:21:46,040 Okay, thank you. 2892 04:21:46,040 --> 04:21:59,020 So now with the Greater Downtown Area Plan, so Amanda, I just think it's amazing that the engagement 2893 04:21:59,020 --> 04:21:59,980 Thank you. 2894 04:22:06,020 --> 04:22:13,980 I read it on page 96 of the budget. That's you, Jeff. So, is that because people are just 2895 04:22:13,980 --> 04:22:20,240 so excited and they want to be involved? I mean, that's just awesome. Please tell me more. 2896 04:22:25,890 --> 04:22:32,830 Jeff Wabb, Community Development Director. Yes, I think in part it's the excitement about the possibilities of what the future holds. 2897 04:22:32,830 --> 04:22:39,490 And in part, I do think it was staffs reaching out in multiple formats to the community, going 2898 04:22:39,490 --> 04:22:45,990 out door to door, going in various meetings, having the speakers come speak about some of 2899 04:22:45,990 --> 04:22:46,970 the topics. 2900 04:22:47,210 --> 04:22:49,150 I think it was a combination of things. 2901 04:22:49,790 --> 04:22:56,250 Well, I mean, it's the best kind of building of your built environment is what the community, 2902 04:22:56,690 --> 04:22:58,110 you know, getting community feedback. 2903 04:22:58,110 --> 04:22:59,550 We're the ones who live here. 2904 04:23:00,000 --> 04:23:07,340 We're the ones who use everything, and so I'm just so thrilled that we're not facing apathy and it's kudos to 2905 04:23:08,060 --> 04:23:15,400 our community and to our staff. So thank you. Keep up the good work. 2906 04:23:17,380 --> 04:23:31,780 This one floored me. 69% of the acreage in Redwood City is open space. That fascinated me. 2907 04:23:32,780 --> 04:23:39,580 I can't remember the page, but in Patrick you're going to get me a map of all that open space. 2908 04:23:39,580 --> 04:23:43,620 And then this one is kind of fun. 2909 04:23:45,720 --> 04:23:51,780 255 days a year are sunny in Redwood City, according 2910 04:23:51,780 --> 04:23:56,880 to page 49 of our award-winning budget report. 2911 04:23:56,880 --> 04:23:59,980 Um, I-I tell- 2912 04:24:00,000 --> 04:24:03,360 I've been telling my neighbors that since I read it. 2913 04:24:05,700 --> 04:24:10,640 The police statistics, K-Bell, what 2914 04:24:10,640 --> 04:24:15,260 is it? Human to human crime is down 17 percent. What's that statistic? 2915 04:24:27,000 --> 04:24:34,000 I took a picture of it. So it's the crimes against persons is down from 2024 to 2025. 2916 04:24:35,760 --> 04:24:36,320 Yes. 2917 04:24:36,640 --> 04:24:38,160 And it sounds 17 percent. 2918 04:24:38,420 --> 04:24:38,620 Yes. 2919 04:24:40,340 --> 04:24:48,180 And I asked you about this in writing and it's just, you said the reason it's hard to know 2920 04:24:48,180 --> 04:24:49,760 but it's a combination of factors. 2921 04:24:49,960 --> 04:24:50,760 Is that accurate? 2922 04:24:51,220 --> 04:24:51,420 Yes. 2923 04:24:52,320 --> 04:24:58,600 And crime in all three categories is down year over year from 24 to 25. 2924 04:24:59,500 --> 04:24:59,780 Yes. 2925 04:25:00,000 --> 04:25:03,740 And the greatest is human to human, or whatever you call that. 2926 04:25:03,760 --> 04:25:04,660 Crimes against persons. 2927 04:25:04,920 --> 04:25:06,040 Crimes against persons. 2928 04:25:06,640 --> 04:25:08,900 So I want to thank you and all your staff. 2929 04:25:09,080 --> 04:25:11,700 And it's important because, as people may know, 2930 04:25:13,320 --> 04:25:17,440 65% of our general fund budget is police and fire. 2931 04:25:18,720 --> 04:25:22,840 It's the bulk of our taxpayer money. 2932 04:25:22,840 --> 04:25:33,200 And so I thank you for really producing some good results in improving public safety. 2933 04:25:33,840 --> 04:25:35,260 And thank you. 2934 04:25:35,480 --> 04:25:41,080 And then can you just, you wrote about this, but if you could just talk a little bit about the success 2935 04:25:41,080 --> 04:25:44,860 that the community service officer at the high schools. 2936 04:25:45,640 --> 04:25:47,040 Yeah, our school liaison officer. 2937 04:25:47,260 --> 04:25:49,040 Your school liaison officer. 2938 04:25:49,580 --> 04:25:49,740 Yes. 2939 04:25:49,740 --> 04:25:52,780 Can you talk a little bit about that? 2940 04:25:53,980 --> 04:25:57,100 Yeah, so since Officer Aaron Sussman has been on campus 2941 04:25:57,100 --> 04:25:59,900 at Sequoia about October, he's built. 2942 04:26:00,000 --> 04:26:04,780 We've really done a lot of work building relationships with the youth and meeting them 2943 04:26:04,780 --> 04:26:10,120 where they're at and building such a relationship to where they have been comfortable to report 2944 04:26:10,120 --> 04:26:16,300 crimes or things that may happen in the future to the officer as opposed to letting them happen 2945 04:26:16,300 --> 04:26:21,400 and someone getting hurt. So just our mere presence on campus has really helped develop 2946 04:26:21,400 --> 04:26:25,340 that trust with our youth. And then there was something in your written 2947 04:26:25,340 --> 04:26:31,300 answer about like that kids understand he's not enforcing school rules like 2948 04:26:31,300 --> 04:26:34,980 he's not going to send them to the principal because they didn't do their 2949 04:26:34,980 --> 04:26:38,940 homework kind of thing. Could you talk a little bit about that? Yes, so he is not 2950 04:26:38,940 --> 04:26:44,520 responsible for anything school related as it pertains to their school work or 2951 04:26:44,520 --> 04:26:48,220 any discipline that the school would handle and the school would call us in 2952 04:26:48,220 --> 04:26:52,480 if they requested us but or if there was an officer or a safety issue at 2953 04:26:52,480 --> 04:26:56,480 school or even a possibility of a crime then we would be involved but it's 2954 04:26:56,480 --> 04:26:59,980 completely separate. Okay so so thank you that 2955 04:27:00,000 --> 04:27:02,280 That's helpful. Thank you. Thank you for all you do. 2956 04:27:03,880 --> 04:27:12,000 I was surprised to learn on page 67 that our transit center, and Mr. G, I'm sure you already 2957 04:27:12,000 --> 04:27:20,240 know this, but I was surprised that our transit center is the largest in the county other than 2958 04:27:20,240 --> 04:27:27,540 daily city and I'm sort of surprised that it's, I'm sort of surprised that we're 2959 04:27:27,540 --> 04:27:29,200 bigger than Milbray with Bart. 2960 04:27:32,120 --> 04:27:35,960 So I think that's a huge selling point for us to 2961 04:27:35,960 --> 04:27:41,180 bring those big employers because we're such a transit hub. 2962 04:27:43,240 --> 04:27:46,580 I'm almost done. I'm 2963 04:27:46,580 --> 04:27:47,920 excited about Mr. 2964 04:27:50,420 --> 04:27:54,900 Baraka, I'm really excited about the training facility, the fire training 2965 04:27:54,900 --> 04:27:59,760 facility. Would you care to give us an update on how 2966 04:28:01,900 --> 04:28:07,420 So, that long-awaited fire training facility that we've been waiting for, if you wanted to 2967 04:28:07,420 --> 04:28:08,680 say a few words about that. 2968 04:28:09,100 --> 04:28:15,520 Yeah, good evening. Thank you, Baraka Carter, Fire Chief. So, this is actually a great opportunity 2969 04:28:15,520 --> 04:28:19,420 to highlight some of the areas where we're currently doing our training, right? So, 2970 04:28:20,320 --> 04:28:25,680 with absence of having a dedicated training facility, which would be a staple facility 2971 04:28:25,680 --> 04:28:27,740 for the community and the fire department. 2972 04:28:29,440 --> 04:28:34,900 We're currently doing our training at the three-story parking garage right across from the fire station, 2973 04:28:35,460 --> 04:28:39,400 which impacts the community, impacts traffic, 2974 04:28:40,100 --> 04:28:46,600 and then we also would utilize the open parking lot behind the sports basement and coals, 2975 04:28:46,640 --> 04:28:52,540 which has its challenges as well because the time that we're actually doing our training, 2976 04:28:52,540 --> 04:28:57,560 delivery trucks. So we're really having to coordinate with the local businesses to ensure we're 2977 04:28:57,560 --> 04:28:59,020 not impacting them and residents. 2978 04:29:00,000 --> 04:29:07,780 So we're really hopeful that we're able to identify and move this project forward. It is 2979 04:29:07,780 --> 04:29:16,280 in a long time making, and it will be a dedicated training facility for our staff, which really 2980 04:29:16,280 --> 04:29:23,420 emphasizes our ability to be more resilient with responses, tactics, our ability to ensure 2981 04:29:23,420 --> 04:29:27,380 that we have a safe community, and then it also being an environment where with our youth, 2982 04:29:27,380 --> 04:29:31,240 our cadet programs, they'll have a dedicated training facility as well to 2983 04:29:31,240 --> 04:29:34,800 enhance those skill sets to hopefully get them into the fire service as well. 2984 04:29:35,180 --> 04:29:39,220 Thank you so much and I know I speak for myself and probably all my 2985 04:29:39,220 --> 04:29:44,640 colleagues that we will help you in any way we can in making sure 2986 04:29:44,640 --> 04:29:47,500 you get that fire training facility as soon as possible. 2987 04:29:47,940 --> 04:29:48,680 Appreciate the support. 2988 04:29:51,260 --> 04:29:53,020 The sales tax, Beth, 2989 04:29:55,400 --> 04:29:59,980 I guess, and Jeff, you don't need to get up there, but or maybe 2990 04:30:02,080 --> 04:30:08,940 I would really love with our greater downtown area plan, and I know part of it is just magic 2991 04:30:08,940 --> 04:30:16,960 like you can't just wave a wand, but this really speaks to the need of more retail downtown. 2992 04:30:18,480 --> 04:30:26,240 And I don't know, we've needed it for a long time, and we've tried all sorts of things 2993 04:30:26,240 --> 04:30:35,540 over the years, but maybe this greater downtown area plan, maybe there's some 2994 04:30:35,540 --> 04:30:45,420 exciting way to reignite retail downtown. I go to some other towns nearby and 2995 04:30:45,420 --> 04:30:52,620 they'll have like unique shops, maybe not chain stores or I'm not a retail 2996 04:30:52,620 --> 04:30:59,820 expert. But Amanda, if you have any thoughts, or if there's any way we can turbocharge our 2997 04:30:59,820 --> 04:30:59,980 Bye. 2998 04:31:00,000 --> 04:31:03,560 Budget to, oh, did you want to say anything, Amanda, please? 2999 04:31:06,130 --> 04:31:09,250 Yes, please. Because, you know, 3000 04:31:09,350 --> 04:31:15,770 sales tax, if we had some really exciting retail stores that could help our sales tax. 3001 04:31:16,410 --> 04:31:23,290 Amanda Anthony, Economic Development Manager. A lot of our sales tax comes from our auto dealers, 3002 04:31:23,290 --> 04:31:31,190 As Beth mentioned, a great deal of it comes from our discount retailers like Costco and Target, 3003 04:31:31,950 --> 04:31:34,310 and then we have a lot from appliance stores. 3004 04:31:35,110 --> 04:31:42,170 So the small retailers that I think that you dream of are not huge sales tax producers, 3005 04:31:42,350 --> 04:31:44,310 like in the aggregate, I think that they could be. 3006 04:31:45,030 --> 04:31:50,650 The other thing that's really been hitting us is Amazon, but not in the way that you think. 3007 04:31:50,650 --> 04:31:57,110 part of it is how the state allocates Amazon revenues so although we have quite 3008 04:31:57,110 --> 04:31:59,870 a few I'm sure 3009 04:32:00,000 --> 04:32:05,480 We have a ton of people here who order on Amazon. One of the things that has changed in 3010 04:32:05,480 --> 04:32:11,880 the last five years and has impacted our sales tax revenues is that the state allocates the 3011 04:32:11,880 --> 04:32:19,920 pool, and so most Amazon sales go to the pool, and it's allocated by what your percentage 3012 04:32:19,920 --> 04:32:24,600 of sales tax is. So like if you're already doing better in sales tax, then you get more 3013 04:32:24,600 --> 04:32:25,540 sales tax from the pool. 3014 04:32:26,300 --> 04:32:31,000 And so that's great, but also kind of self-fulfilling. 3015 04:32:31,700 --> 04:32:40,460 But Brisbane opened two Amazon fulfillment centers in the last year, and what it means 3016 04:32:40,460 --> 04:32:46,420 is that all of those Amazon sales are allocated now to Brisbane, and there are 4,000 people 3017 04:32:46,910 --> 04:32:50,400 instead of the pool and maybe our 82,000 people. 3018 04:32:50,400 --> 04:32:54,560 So that's been a really big hit that we kind of don't have a control over. 3019 04:32:55,200 --> 04:32:59,980 I think one of the things that we would like to do is continue to figure out how to 3020 04:33:00,000 --> 04:33:06,140 How to make retail work. But we do get quite a bit from restaurants, from auto dealers, from 3021 04:33:06,880 --> 04:33:12,280 appliance stores, and our discount retailers. Well, thank you. That's really informative. 3022 04:33:14,420 --> 04:33:24,560 Very supportive of the NRT. Do feel that people are frustrated with illegal dumping, carts, 3023 04:33:24,560 --> 04:33:29,820 you know, grocery carts just willy-nilly all over the place. 3024 04:33:30,280 --> 04:33:37,460 I hear a lot about it in my district, and I'm really hopeful that we can activate that. 3025 04:33:37,540 --> 04:33:38,820 So thank you for thinking of it. 3026 04:33:38,980 --> 04:33:47,780 And as I put in my email, I'm excited about opportunities to partner with the county, 3027 04:33:48,340 --> 04:33:51,160 who I'll just say when I did the math, 3028 04:33:52,240 --> 04:33:55,740 We would need to spend our $200 million 3029 04:33:55,740 --> 04:33:59,960 general fund every year for 20 years. 3030 04:34:00,000 --> 04:34:09,320 25 years to make up what the county spends in its general fund in one year. So some of these, 3031 04:34:10,020 --> 04:34:16,860 you know, we have the county courthouse, we have the county seat, we have the county jails, 3032 04:34:17,620 --> 04:34:23,720 and I'm looking for opportunities for, you know, some of our issues are health issues, 3033 04:34:23,720 --> 04:34:27,260 And we don't have a health department, but the county does. 3034 04:34:28,420 --> 04:34:35,140 And so I really feel that they have tools that we don't have. 3035 04:34:35,300 --> 04:34:36,900 They have money that we don't have. 3036 04:34:37,760 --> 04:34:48,060 And I'm looking in the next 12 months and beyond that we show the county how much 3037 04:34:48,060 --> 04:34:56,220 were helping them and how much, if they gave us money, they would be better off and that 3038 04:34:56,220 --> 04:34:58,720 it would be a more fair thing and that the N.R.T. 3039 04:35:00,140 --> 04:35:05,880 It is an example of it because some of it is mental health issues that people steal grocery 3040 04:35:05,880 --> 04:35:18,410 carts and dump stuff and I just see some opportunities there. I think I'm done. Let me just, I guess 3041 04:35:18,410 --> 04:35:26,570 I'll just say one final comment and that is the budget was award-winning and it was amazing, 3042 04:35:26,570 --> 04:35:33,570 particularly the redwood city history page was outstanding. I was chagrined a little bit disappointed 3043 04:35:34,490 --> 04:35:42,590 that our veteran's center was not had a two or three cursory sentences without an amazing picture. 3044 04:35:43,450 --> 04:35:50,710 So I hope next year that we tout our amazing veteran's center a little bit more. I'll leave 3045 04:35:50,710 --> 04:35:51,030 it there. 3046 04:35:53,060 --> 04:35:59,600 Thank you Vice Mayor. Any? Councillor Serkin, we'll go to you. Two quick responses. 3047 04:36:00,760 --> 04:36:07,760 So I support the idea of like allocating $2 million more to our payment program to get 3048 04:36:07,760 --> 04:36:12,060 us up to 75. I'm just like asking myself, where do we pull it from? Because we have to make 3049 04:36:12,060 --> 04:36:15,780 a tradeoff. And I don't know what the answer to that question is, but if we can figure 3050 04:36:15,780 --> 04:36:22,300 that out today or June 22nd or somewhere in between, I'm open to that. So I just wanted 3051 04:36:22,300 --> 04:36:25,740 to express my support and openness to that. I just don't have the answer to the question. 3052 04:36:26,840 --> 04:36:32,940 And finally, on the topic of being cognizant of unintended consequences of policies or taxes 3053 04:36:32,940 --> 04:36:38,240 or what have you, now they may affect our desirability to attract new business. 3054 04:36:39,660 --> 04:36:43,960 I think, aside from that, it's also our job to be ambassadors to the business community, right? 3055 04:36:44,100 --> 04:36:49,740 And, like, I go to RCIA, the Robert City Improvement Association, meetings on a monthly basis, 3056 04:36:49,960 --> 04:36:52,760 and it'd be nice to see some of my colleagues there as well. 3057 04:36:52,760 --> 04:36:59,740 I know we all can't make it, but you know kind of showing up to these spaces the chamber hosts 3058 04:37:00,700 --> 04:37:06,860 You know, that RCIA has, and developing those relationships, that's something I learned from 3059 04:37:06,860 --> 04:37:11,240 Councilmember G very early on, that we have to build those relationships with the business 3060 04:37:11,240 --> 04:37:16,360 community to attract them to Rapid City. So putting it out there. Thank you. 3061 04:37:19,910 --> 04:37:25,990 All right, not seeing any other lights on. I guess it's my turn. Staff, again, thank 3062 04:37:25,990 --> 04:37:31,810 you for all the work. I know there are so many more names than what are included 3063 04:37:31,810 --> 04:37:35,950 in the first couple of pages of the budget of people who played some role in developing 3064 04:37:35,950 --> 04:37:36,270 this. 3065 04:37:36,550 --> 04:37:43,170 So to everyone who's listed and everyone who's tuned in or have helped, thank you. 3066 04:37:43,730 --> 04:37:48,530 And I start with my talking points first. 3067 04:37:49,090 --> 04:37:53,330 I feel like this budget really speaks to all of the unknowns that we've been dealing 3068 04:37:53,330 --> 04:37:54,970 with over the course of the year. 3069 04:37:55,910 --> 04:37:59,970 the things that we're tracking to see what the outcome is, right, like our... 3070 04:38:00,520 --> 04:38:06,020 Our funding streams at the state and federal levels, BLF, right? Councilmember Howard and 3071 04:38:06,020 --> 04:38:13,100 I went up to Sacramento to let them know what we thought of that change, pension laws at 3072 04:38:13,100 --> 04:38:18,480 the state level, the ordinance we heard earlier tonight. And then there are things that we 3073 04:38:18,480 --> 04:38:24,800 aren't even on our radar yet that we haven't planned for. So it's not an easy thing to 3074 04:38:24,800 --> 04:38:30,640 do, but I think this budget really speaks to our staff trying to answer those questions 3075 04:38:30,640 --> 04:38:35,500 the best that they can. So thank you. And I think there are a lot of strengths that were 3076 04:38:35,500 --> 04:38:42,820 included in this budget that were highlighted. Our restaurants, our hotels, the discount 3077 04:38:42,820 --> 04:38:48,560 retailers, our car dealerships had a little bit less than projected, but still a very 3078 04:38:48,560 --> 04:38:54,000 strong year. There are highlights in parts of our economy that are doing well, and 3079 04:38:54,000 --> 04:38:58,380 I don't want that to be lost in 451 pages of our budget. 3080 04:39:00,460 --> 04:39:06,400 And there are really interesting ideas. The neighborhood response team, I think, rises to the top. 3081 04:39:06,980 --> 04:39:17,760 That is definitely the concerns that are always going to rise at the top of the inbox for people who are worried about illegal dumping or are noticing shopping carts in their community, right, abandoned. 3082 04:39:18,280 --> 04:39:27,480 And, you know, I think being able to change the way that people see government, our government in action, I think just builds confidence. 3083 04:39:27,480 --> 04:39:29,920 and I could see this being something 3084 04:39:29,920 --> 04:39:31,160 that will generate more costs 3085 04:39:31,160 --> 04:39:32,460 because people will want to see 3086 04:39:33,020 --> 04:39:34,740 a neighborhood response team, right? 3087 04:39:34,960 --> 04:39:35,900 We're going to start seeing 3088 04:39:35,900 --> 04:39:37,140 that many more complaints come in 3089 04:39:37,140 --> 04:39:38,820 and because people will expect 3090 04:39:38,820 --> 04:39:40,740 that we're going to be on top of it that much more. 3091 04:39:41,100 --> 04:39:43,940 So really excited to see how that rolls out. 3092 04:39:44,440 --> 04:39:46,800 I mentioned, you know, to Council Member Padilla's 3093 04:39:47,460 --> 04:39:49,380 point around the pavement quality, 3094 04:39:50,160 --> 04:39:53,580 our work around capital needs is really important, right? 3095 04:39:54,660 --> 04:39:55,960 From everything from street pavement 3096 04:39:55,960 --> 04:39:59,980 into replacing buildings, and I'm really proud of that. 3097 04:40:00,000 --> 04:40:07,220 You know, we are going to be having a conversation around PLAs as to how we build and who is constructing 3098 04:40:07,220 --> 04:40:14,060 these projects. So, I'm excited for that work to continue. The economic vitality plan, right, 3099 04:40:14,420 --> 04:40:20,720 that Amanda and her team are going to be working on, that is really exciting. I've heard it at the 3100 04:40:20,720 --> 04:40:26,620 dais before that so many of us want to nurture our local businesses and also 3101 04:40:28,380 --> 04:40:29,980 So we need to be self-resilient. 3102 04:40:30,180 --> 04:40:34,980 So the more that we can nurture who we have here and attract more businesses to Revit City, 3103 04:40:35,580 --> 04:40:36,800 it's only going to make us stronger. 3104 04:40:37,240 --> 04:40:44,680 So the last thing that I just want to mention on the strengths here is going to use a line 3105 04:40:44,680 --> 04:40:50,340 from our city manager modernizing our city operations, including not just the ERP which 3106 04:40:50,340 --> 04:40:56,200 is so important for our staff internally every day, but cybersecurity is something 3107 04:40:56,200 --> 04:40:59,980 that so many local jurisdictions are playing catch up on, so to make it 3108 04:41:00,000 --> 04:41:05,180 And investments now before we need to react to something is really important. So thank you 3109 04:41:05,180 --> 04:41:06,380 for including that staff. 3110 04:41:08,460 --> 04:41:12,400 And with all that said, lots to love, but also I felt like there 3111 04:41:12,400 --> 04:41:17,560 were still some things that were missing. My colleagues mentioned a few things. I wanted 3112 04:41:17,560 --> 04:41:23,360 to throw my support behind quarterly updates on city revenues. I think especially if we're 3113 04:41:23,360 --> 04:41:27,640 coming up with an economic plan, it makes sense for us to start familiarizing ourselves 3114 04:41:27,640 --> 04:41:29,540 with what the picture is on the ground. 3115 04:41:30,760 --> 04:41:34,460 I think we had a conversation maybe last year, 3116 04:41:34,540 --> 04:41:36,040 the year before around reserve funds. 3117 04:41:36,320 --> 04:41:38,020 I think it's time for us to talk about that 3118 04:41:38,660 --> 04:41:40,780 so that we can be ready for the things 3119 04:41:40,780 --> 04:41:41,920 that aren't even on our radar. 3120 04:41:43,300 --> 04:41:45,780 And then the last couple of ideas are just, 3121 04:41:47,280 --> 04:41:49,000 it feels like these are responding 3122 04:41:49,000 --> 04:41:51,540 to the level of homelessness 3123 04:41:51,540 --> 04:41:53,400 that we're still seeing in our city 3124 04:41:53,400 --> 04:41:55,860 and the work that our staff are doing 3125 04:41:55,860 --> 04:41:58,040 to address that for our residents. 3126 04:42:00,000 --> 04:42:04,620 I really liked the idea of a new clinician for our police department. I think we're already 3127 04:42:04,620 --> 04:42:10,700 heading in that direction with community service officers who are taking on more work that has 3128 04:42:10,700 --> 04:42:18,040 traditionally taken up police time. So I think building that into our work plan makes a lot 3129 04:42:18,040 --> 04:42:23,060 of sense. And there is a different purpose than the outreach workers that we've hired. 3130 04:42:23,500 --> 04:42:27,780 I think the outreach workers are really trying to just build trust, build a relationship, 3131 04:42:27,780 --> 04:42:32,940 whereas our clinicians, I'm thinking of Patricia, 3132 04:42:33,540 --> 04:42:35,000 is de-escalating those situations 3133 04:42:35,000 --> 04:42:37,460 where I think in how each worker typically 3134 04:42:37,790 --> 04:42:39,880 just wouldn't engage out of their own safety, right? 3135 04:42:40,120 --> 04:42:43,260 So I see the value in the clinicians 3136 04:42:43,630 --> 04:42:48,520 and I also am cognizant that our labor groups 3137 04:42:48,520 --> 04:42:51,740 are expecting some extra support and some backup there. 3138 04:42:51,960 --> 04:42:55,500 So I don't wanna lose the conversation piece 3139 04:42:55,500 --> 04:42:59,820 around our clinicians and we'd like to see ourselves 3140 04:43:00,000 --> 04:43:05,680 And I've sort of explored what that pathway to hiring a new clinician in the next budget 3141 04:43:05,680 --> 04:43:10,720 cycle would look like. Chief Bell, you mentioned that there are some questions you are still 3142 04:43:10,720 --> 04:43:18,100 developing what, you know, our current clinician's role is. And I'm curious to see what questions 3143 04:43:18,100 --> 04:43:24,040 we can help answer and, you know, what policy questions the council can weigh in on. But 3144 04:43:24,040 --> 04:43:28,920 I think there's a lot of value in hiring another clinician. And in the same way, I 3145 04:43:28,920 --> 04:43:31,860 I feel like I've heard from our city staff, 3146 04:43:32,540 --> 04:43:36,800 our first responders who are addressing 3147 04:43:37,440 --> 04:43:39,300 issues around homelessness every day, 3148 04:43:40,080 --> 04:43:43,200 talk about the housing pipeline being backed up, 3149 04:43:43,420 --> 04:43:46,300 that we have the beautiful navigation center 3150 04:43:46,300 --> 04:43:47,360 on the other side of 101, 3151 04:43:48,000 --> 04:43:50,120 and not enough people are moving out for us 3152 04:43:50,120 --> 04:43:51,740 to be able to start transitioning people 3153 04:43:52,200 --> 04:43:54,280 into the spaces that we have at the NAV center. 3154 04:43:54,280 --> 04:43:59,880 And last year, we had talked about how this council unanimously 3155 04:44:00,000 --> 04:44:07,560 I honestly wanted to explore Prop 1 as a potential funding source for this kind of housing, and 3156 04:44:07,560 --> 04:44:13,460 I think, again, baking this into the work plan so that we can be ready so that if a grant 3157 04:44:13,460 --> 04:44:18,020 became available, we're not being reactive, but we already have an idea of where we want 3158 04:44:18,020 --> 04:44:23,280 to place the housing, where it makes sense, and this won't happen overnight and it's 3159 04:44:23,280 --> 04:44:27,560 going to need intergovernmental support, so I think having that conversation now, building 3160 04:44:27,560 --> 04:44:34,620 it in as a policy discussion so that we're prepared when the opportunity arises. We're 3161 04:44:34,620 --> 04:44:42,760 ready to go into it 50-50 with the county and hopefully tap into some of the revenues 3162 04:44:42,760 --> 04:44:50,360 that the county has because this is social safety network. So I think all of those circulate 3163 04:44:50,360 --> 04:44:56,200 around just homelessness and how we best support our unhoused neighbors. And I know 3164 04:44:56,200 --> 04:44:59,780 that won't happen this year so 3165 04:45:00,000 --> 04:45:03,900 So how do we just start those conversations? How do we start answering questions for ourselves 3166 04:45:04,580 --> 04:45:12,540 so that we can start taking advantage if, let's say, we see veal of money, right? That would 3167 04:45:12,540 --> 04:45:21,960 be amazing. Or another bucket of funds that a grant that we've secured. So I know it's 3168 04:45:21,960 --> 04:45:28,000 late. I'd be open to just hearing some of my council colleagues' reactions to that about 3169 04:45:28,000 --> 04:45:31,400 out baking this into the work plan for the next budget year, 3170 04:45:31,640 --> 04:45:34,960 but I'll leave it there. 3171 04:45:35,280 --> 04:45:37,960 I think this has been a lot of work to answer 3172 04:45:37,960 --> 04:45:39,940 a lot of the unknowns that the city's facing. 3173 04:45:40,200 --> 04:45:42,900 So I appreciate that work from staff, 3174 04:45:43,280 --> 04:45:46,480 but we'll open it up to my colleagues 3175 04:45:46,480 --> 04:45:48,760 if anybody has any reactions to that. 3176 04:45:49,920 --> 04:45:50,880 Council Member Sarkin. 3177 04:45:51,860 --> 04:45:55,180 Yes, I wanna bake that into the work plan. 3178 04:45:55,840 --> 04:45:57,680 Referring to Prop 1, you mentioned yes. 3179 04:45:58,040 --> 04:45:59,900 Okay, and then we already have a couple little. 3180 04:46:00,000 --> 04:46:07,080 Properties kind of in the pipeline, but continuing to just explicitly place on the work plan would 3181 04:46:07,080 --> 04:46:12,620 be really helpful in advancing our shared priorities and goals as a city. And I also want to throw 3182 04:46:12,620 --> 04:46:17,040 my support behind the quarterly reporting on sales tax revenue. Thank you for reminding 3183 04:46:17,040 --> 04:46:20,160 me about that. Thank you, Council Member Sturkin. Council 3184 04:46:20,160 --> 04:46:24,180 Member Howard. Yes, I'm certainly in favor of looking 3185 04:46:24,180 --> 04:46:32,180 into that, but I'd like to let our city manager and our police chief determine when and how 3186 04:46:32,180 --> 04:46:32,960 it's implemented. 3187 04:46:33,480 --> 04:46:38,800 I don't want to push something if it's not ready because it sounds like Chief Bell has 3188 04:46:38,800 --> 04:46:40,920 some more research to do and a number of other things. 3189 04:46:41,100 --> 04:46:43,260 So I'm going to keep putting your capable hands. 3190 04:46:43,560 --> 04:46:46,360 You've heard the desire, the need is certainly out there. 3191 04:46:46,700 --> 04:46:50,600 So I think it's something good to plan for when it comes. 3192 04:46:50,880 --> 04:46:52,960 That's something you can bring back to us. 3193 04:46:52,960 --> 04:46:54,820 And was there something else? 3194 04:46:55,220 --> 04:46:55,580 I'm sorry. 3195 04:46:56,020 --> 04:46:59,980 What you said I agreed with, let's be shovel ready to work with. 3196 04:47:00,960 --> 04:47:05,980 I'd like to do that very much, and maybe we can do some projects together in the future. 3197 04:47:06,660 --> 04:47:06,940 Thank you. 3198 04:47:07,440 --> 04:47:08,620 Thank you, Council Member Howard. 3199 04:47:09,840 --> 04:47:11,380 Colleagues, anybody else? 3200 04:47:12,700 --> 04:47:20,400 I would just like to throw out that I was thinking about something that Vice Mayor mentioned about how we do. 3201 04:47:20,780 --> 04:47:23,420 We hold, we are the county seat. 3202 04:47:23,520 --> 04:47:26,480 We have the navigation centers. We have the jails. 3203 04:47:26,480 --> 04:47:28,680 So I would like to just put it out there 3204 04:47:28,680 --> 04:47:31,300 that I think we are a fantastic neighbor 3205 04:47:31,300 --> 04:47:34,180 and I would welcome the county working with us 3206 04:47:34,180 --> 04:47:35,500 in any way they can. 3207 04:47:35,620 --> 04:47:36,880 I think you did mention, Vice Mayor, 3208 04:47:36,980 --> 04:47:39,020 that they have a much larger budget than we do. 3209 04:47:39,920 --> 04:47:42,420 And I would, I don't know, I would think 3210 04:47:42,420 --> 04:47:45,980 that wasn't the clinician originally funded by the county? 3211 04:47:46,480 --> 04:47:48,320 Could someone correct me if I'm wrong? 3212 04:47:48,420 --> 04:47:50,700 Was that originally funded as a pilot? 3213 04:47:51,140 --> 04:47:53,380 Okay, well I do think there is a connection there. 3214 04:47:53,760 --> 04:47:55,200 I don't know if we can always distinguish 3215 04:47:55,200 --> 04:47:59,020 between a Redwood City resident or a county resident but I do think there's 3216 04:47:59,020 --> 04:47:59,900 an opportunity for 3217 04:48:00,000 --> 04:48:01,740 The county to help. 3218 04:48:05,330 --> 04:48:09,210 Definitely. Thank you, Council Member Padilla. Any other thoughts? 3219 04:48:12,880 --> 04:48:13,740 Okay. Council. 3220 04:48:14,160 --> 04:48:14,600 Council. 3221 04:48:15,000 --> 04:48:18,160 Staff. Patrick, is that enough feedback for you all? 3222 04:48:18,500 --> 04:48:25,100 Yeah, that was great. And what we'll do from here in the 22nd is fine tune and we'll definitely see the clinician put in. 3223 04:48:25,180 --> 04:48:28,480 It might be on the work plan with some recommended approaches, you know. 3224 04:48:29,380 --> 04:48:31,380 But there's a myriad of other items on here. 3225 04:48:31,520 --> 04:48:34,940 I took feverish notes and I saw some of my staff take notes, 3226 04:48:35,040 --> 04:48:36,260 but not everybody appreciate that. 3227 04:48:36,360 --> 04:48:38,520 But anyway, we'll put our comprehensive packets together 3228 04:48:38,520 --> 04:48:40,740 on the 22nd, but I really appreciate it. 3229 04:48:40,860 --> 04:48:41,120 Thank you. 3230 04:48:41,420 --> 04:48:41,600 Great. 3231 04:48:41,780 --> 04:48:46,460 Patrick, just to make sure we're not also losing the actual housing, 3232 04:48:46,620 --> 04:48:48,620 the permanent supportive piece to that, right? 3233 04:48:49,680 --> 04:48:50,480 Sorry, say that again? 3234 04:48:51,200 --> 04:48:54,360 The permanent supportive housing, just exploring that idea. 3235 04:48:54,600 --> 04:48:54,820 Correct. 3236 04:48:54,980 --> 04:48:55,240 Making sure. 3237 04:48:55,300 --> 04:48:56,520 Yeah, thank you. 3238 04:48:56,520 --> 04:48:58,280 Obviously, there's already false support. 3239 04:49:00,000 --> 04:49:04,540 We'll come back with recommended approaches on how it would lay out with the funding strategy 3240 04:49:04,540 --> 04:49:06,700 on our housing fund. So, cool. Thank you. 3241 04:49:07,140 --> 04:49:08,160 Thank you, City Manager. 3242 04:49:08,560 --> 04:49:15,280 Mayor, I'd like to make a motion that we adopt the resolution setting June 22nd, 2026 is the 3243 04:49:15,280 --> 04:49:18,920 date for the public hearing and adoption of our fiscal year budget. 3244 04:49:19,660 --> 04:49:20,140 Raise. 3245 04:49:20,200 --> 04:49:20,580 Is there a second? 3246 04:49:20,980 --> 04:49:21,400 Second. 3247 04:49:21,960 --> 04:49:25,140 How's the motion from Council Member Howard, a second from Vice Mayor Aiken. Could we 3248 04:49:25,140 --> 04:49:26,520 get an electronic vote, please? 3249 04:49:35,230 --> 04:49:36,070 Motion passes. 3250 04:49:36,310 --> 04:49:36,950 With six votes. 3251 04:49:36,950 --> 04:49:42,490 Councilmember Chu is absent. Thank you. Thank you again colleagues for doing the 3252 04:49:42,490 --> 04:49:47,850 homework and a great discussion tonight. We'll move on to item 11 which is our 3253 04:49:47,850 --> 04:49:53,410 public hearings on the smoking regulations related to tobacco retail 3254 04:49:53,410 --> 04:49:57,930 permits and our economic development manager Amanda Anthony will give a 3255 04:49:57,930 --> 04:49:59,930 presentation and I'll now 3256 04:50:00,780 --> 04:50:02,740 And I'll now pass things over to Amanda. 3257 04:50:03,720 --> 04:50:06,640 Thank you so much. Amanda Anthony, economic development manager. 3258 04:50:07,240 --> 04:50:11,240 We have a short presentation just going over some of the pieces from last time. 3259 04:50:13,260 --> 04:50:14,200 Crystal, next slide. 3260 04:50:18,040 --> 04:50:21,540 I'm going to give you just a brief recap of the April 27th presentation. 3261 04:50:21,980 --> 04:50:25,760 A reminder of the staff recommendation, the action taken, and then tonight's recommendation. 3262 04:50:26,500 --> 04:50:37,460 On May 11th, on April 27th, City Council received information regarding the tobacco retailer regulation in Redwood City, including the city's ordinance, the county's ordinance and potential approaches. 3263 04:50:38,060 --> 04:50:38,760 You go to the next slide. 3264 04:50:41,800 --> 04:50:52,280 Just a reminder that one of the things we talked about on April 27th is how state laws have evolved to ban flavored tobacco in most forms. 3265 04:50:52,280 --> 04:50:56,660 This was done as part of a ballot measure in November of 2022. 3266 04:50:57,900 --> 04:50:59,960 There's also been a lot of evolution in. 3267 04:51:00,000 --> 04:51:06,180 In local law, Redwood City adopted an ordinance banning flavored tobacco in all cases except 3268 04:51:06,180 --> 04:51:12,080 for three businesses who were offering on-site adoption. It was any business that had their 3269 04:51:12,080 --> 04:51:17,420 permit at that time. We also, in San Mateo County in Redwood City, also banned e-cigarettes 3270 04:51:17,420 --> 04:51:24,320 and vapes. The effect of these bans has been positive. I don't know if you guys remember 3271 04:51:24,320 --> 04:51:29,680 of the slide, but lots of down direction arrows on youth access and use. 3272 04:51:30,520 --> 04:51:36,980 Not only youth access and use, we are also seeing decreases in adult access and adult 3273 04:51:36,980 --> 04:51:37,820 use as well. 3274 04:51:38,420 --> 04:51:39,840 And so these are really positive outcomes. 3275 04:51:41,260 --> 04:51:49,160 In 2023, San Mateo County updated its law to add restrictions on locations, discounts 3276 04:51:49,160 --> 04:51:50,360 and types of products sold. 3277 04:51:50,360 --> 04:51:59,400 The impact of that is that they also started enforcing for any city that adopted their ordinance by reference or verbatim. 3278 04:52:00,000 --> 04:52:05,500 So these are the background. We talked about a lot of these things at length, and I'm happy 3279 04:52:05,500 --> 04:52:13,060 to go through any, answer any questions if you've got some. Next slide, please. So on April 3280 04:52:13,060 --> 04:52:20,120 27th, we recommended that the city council adopt the county's ordinance for regulating 3281 04:52:20,900 --> 04:52:26,420 tobacco retailers. And these are the reasons why. The county would manage all the administration 3282 04:52:26,420 --> 04:52:30,940 and no cost to the city's general fund, the retailers would pay significantly less for 3283 04:52:30,940 --> 04:52:31,460 their permits. 3284 04:52:32,280 --> 04:52:37,600 The county would be able to implement effectively immediately after the ordinance effective 3285 04:52:37,600 --> 04:52:37,980 date. 3286 04:52:38,180 --> 04:52:45,260 So if it were adopted tonight, they would be able to start enforcing as of July 7th. 3287 04:52:45,780 --> 04:52:49,660 The county would be managing enforcement in all cases where retailers are unpermitted 3288 04:52:49,660 --> 04:52:51,320 or selling illegal products. 3289 04:52:51,320 --> 04:52:56,800 and the county permits hookah lounges to continue to offer non-tobacco hookah to 3290 04:52:56,800 --> 04:52:59,820 keep operating, but they would not be able to sell tobacco. 3291 04:53:01,500 --> 04:53:07,720 So those are the reasons. On April 27th, we read the first, we raved the first reading and 3292 04:53:07,720 --> 04:53:11,840 introduced the ordinance and city council voted to approve that staff recommendation five to 3293 04:53:11,840 --> 04:53:18,440 two. And we also set the hearing date. So today is the public hearing. We are required to 3294 04:53:18,440 --> 04:53:22,800 do a public hearing because we are adopting this or we are recommending that this be adopted 3295 04:53:22,800 --> 04:53:28,840 by reference. And in order to adopt a ordinance by reference, you have to have a public 3296 04:53:28,840 --> 04:53:35,040 curing on the second date. So that is what is before you tonight and we can move 3297 04:53:35,040 --> 04:53:37,760 to the next slide. The recommended action is to waive the second reading and 3298 04:53:37,760 --> 04:53:42,820 adopt an ordinance. I'm ending Redwood City Municipal Code to repeal what is 3299 04:53:42,820 --> 04:53:47,380 currently there, adopt by reference the county ordinance and then amend some 3300 04:53:47,380 --> 04:53:50,000 definitions. Thank you. 3301 04:53:56,110 --> 04:53:58,730 Thank you Amanda. Appreciate the great presentation and 3302 04:53:58,730 --> 04:53:59,830 and with 3303 04:54:00,000 --> 04:54:04,000 With that, we will now open the public hearing, and I'll pass things over to our city clerk 3304 04:54:04,000 --> 04:54:06,000 to help facilitate public comment. 3305 04:54:07,200 --> 04:54:13,720 Thank you, Mayor. I do have 11 speaker cards at the moment, and I've got a few hands on 3306 04:54:13,720 --> 04:54:21,320 Zoom. So last call for any remaining public comment on this item tonight. I'll let the 3307 04:54:21,320 --> 04:54:24,120 Zoom folks queue up. We've got a few more coming in. 3308 04:54:30,620 --> 04:54:33,860 So we have a total of 18 speakers. 3309 04:54:34,680 --> 04:54:37,940 We've got 11 in person and seven on Zoom. 3310 04:54:38,560 --> 04:54:40,780 How would you like to proceed with the public comment, Mayor? 3311 04:54:40,960 --> 04:54:41,940 Two minutes, one minute. 3312 04:54:43,120 --> 04:54:44,280 We had 11 speakers. 3313 04:54:44,600 --> 04:54:46,000 We have a total of 18, actually. 3314 04:54:46,260 --> 04:54:46,700 18? Yeah. 3315 04:54:46,940 --> 04:54:47,560 Let's go with one minute. 3316 04:54:47,680 --> 04:54:47,840 Okay. 3317 04:54:48,460 --> 04:54:50,860 So everyone will be allotted one minute. 3318 04:54:51,020 --> 04:54:52,760 The timer will begin when you start speaking. 3319 04:54:53,180 --> 04:54:57,120 We will call the in-person speakers first, beginning with David Kasuf. 3320 04:54:58,220 --> 04:54:59,820 who will be followed by Neil. 3321 04:55:00,000 --> 04:55:02,900 Lundy. And then we'll move to our Zoom folks. Thank you. 3322 04:55:22,310 --> 04:55:26,770 Good evening, Mayor and council members. My name is David Kasouf, and I'm the owner of 3323 04:55:26,770 --> 04:55:32,150 the Sandwich Spot. For more than 15 years, I have employed local residents, paid taxes, 3324 04:55:32,410 --> 04:55:35,670 invested in our community, and built a business that serves Redwood City. 3325 04:55:36,890 --> 04:55:40,090 I'm here tonight because of the issue is not just about the hookah. 3326 04:55:40,950 --> 04:55:44,830 It's about jobs, small businesses, and the families who depend on them. 3327 04:55:44,830 --> 04:55:51,970 I respectfully ask you to consider the real-world consequences of eliminating the grandfathered 3328 04:55:51,970 --> 04:55:59,430 exception that existing businesses such as the sandwich pasha and rock n' wrap replied 3329 04:55:59,430 --> 04:55:59,630 slide. 3330 04:56:00,140 --> 04:56:06,540 Relyed on four years. Many of our customers come for Huca, but they also buy food, drinks, 3331 04:56:06,660 --> 04:56:13,000 and support our business throughout the evening. If that reason for visiting is removed, customer 3332 04:56:13,740 --> 04:56:18,380 traffic will decline, sales will decrease, employee hours will be cut, and job will 3333 04:56:18,380 --> 04:56:18,840 be lost. 3334 04:56:21,180 --> 04:56:23,860 I wish you gave us two minutes like many others. 3335 04:56:23,860 --> 04:56:31,540 Thank you. Our next speaker is Neil Lundy, who will be followed by Ayub Gochi. 3336 04:56:34,840 --> 04:56:38,760 Good evening, Mayor, members of the Council. My name is Neil. I'm a local business owner. 3337 04:56:38,920 --> 04:56:46,680 The retail enforcement you're adopting is overdue. Protecting our young people with you on that, I definitely agree with. 3338 04:56:47,280 --> 04:56:55,660 Concerns most about the message that a business can follow our city's own law to the letter and still have the ground pulled out from under it. 3339 04:56:55,660 --> 04:56:59,440 When businesses face more regulations reduced operating flexibility 3340 04:57:00,000 --> 04:57:04,840 An uncertainty about their future. Customers spend less, businesses invest less, and sales 3341 04:57:04,840 --> 04:57:09,580 tax revenue suffers. If the city continues, adding restrictions on long-standing businesses, 3342 04:57:09,780 --> 04:57:15,140 investors will turn a right. Don't think these three businesses are fully considered when 3343 04:57:15,140 --> 04:57:21,020 this was drafted. Even California statewide flavored tobacco ban exempts on site Shisha 3344 04:57:21,020 --> 04:57:25,900 at 21 and over venues. We're not asking the council to invent anything. We're asking 3345 04:57:25,900 --> 04:57:28,760 them to stay aligned with the state law. That's it. 3346 04:57:29,560 --> 04:57:35,960 Thank you. Our next speaker is Ayub Gokshi, who will be 3347 04:57:35,960 --> 04:57:37,980 followed by Jameson Fong. 3348 04:57:39,690 --> 04:57:43,820 My name is Ayub. I am Pasha owner. I would like to speak about our 3349 04:57:43,820 --> 04:57:45,100 investment debt business. 3350 04:57:47,640 --> 04:57:50,180 Over the years we have invested 3351 04:57:50,180 --> 04:57:54,260 a significant amount of money into our business, our facilities, 3352 04:57:54,260 --> 04:57:58,780 equipment, outdoor space permits, furniture, and improvements. 3353 04:58:00,000 --> 04:58:06,320 All with understanding that could continue operating under grandfather's expectation. This 3354 04:58:06,320 --> 04:58:13,040 investment was not made overnight. It was made over many years based on the city's provost's 3355 04:58:13,040 --> 04:58:18,940 decision and the expectation that existing business would be allowed to continue operating 3356 04:58:18,940 --> 04:58:26,100 responsibly. Many people don't realize that Huca sports much more than just Huca sales. 3357 04:58:26,100 --> 04:58:30,920 It's bring customers who also purchase food, drinks, and other services. 3358 04:58:31,580 --> 04:58:37,600 Many business depend on that customer traffic to survive, employees depend on those job, 3359 04:58:38,060 --> 04:58:43,080 vendors depend on those orders, and local business depend on those customers continue 3360 04:58:43,080 --> 04:58:44,160 to visit the Resort City. 3361 04:58:44,620 --> 04:58:45,160 Thank you. 3362 04:58:45,920 --> 04:58:50,320 Next speaker is Jamison Fong, who will be followed by Ali Ahmad. 3363 04:58:53,100 --> 04:58:56,540 Good evening, Vice Mayor, Mayor, Council members. 3364 04:58:56,540 --> 04:58:59,760 My name is James Sinfong and I represent the owners of 3365 04:59:03,940 --> 04:59:09,840 I think it's very clear, and I don't want this to be missed, that the restaurant members 3366 04:59:10,380 --> 04:59:16,860 are all in favor of protecting the youth and supporting as much regulation as that is necessary. 3367 04:59:17,320 --> 04:59:23,680 I think the issue was misframed as it was an either or situation. The situation was we 3368 04:59:23,680 --> 04:59:30,440 We must and can go with just the county ordinance or self-regulate the same way that Berlin 3369 04:59:30,440 --> 04:59:32,920 game has done and Foster City has done. 3370 04:59:33,520 --> 04:59:38,920 I think it's very, very poignant that today was the budget and you're talking about looking 3371 04:59:38,920 --> 04:59:44,020 at losing significant revenue from three standing businesses that have been here for 3372 04:59:44,020 --> 04:59:45,140 over a decade. 3373 04:59:45,900 --> 04:59:50,800 I think there is still an opportunity to, instead of going with the county's way, 3374 04:59:50,800 --> 04:59:57,600 self-regulate, continue to use your own your own resources. Thank you. Thank you. 3375 04:59:57,920 --> 04:59:59,520 Next speaker is Ali Ahmad. 3376 05:00:00,000 --> 05:00:04,020 We'll be followed by Gabrielle M. 3377 05:00:05,260 --> 05:00:06,900 Hi. Good evening everybody. 3378 05:00:11,830 --> 05:00:15,910 My name is Aliya, owner of Rock and Raps. I've been here like 13, 14s. 3379 05:00:16,450 --> 05:00:20,970 It's, when I came here, it was very slow business in Ridwis City, downtown empty. 3380 05:00:21,670 --> 05:00:27,950 We, we helped, how we're going to make it busy. We opened the restaurant, the hookah spot, and, 3381 05:00:28,530 --> 05:00:31,730 and invite people to come Ridwis City. It become a culture. 3382 05:00:31,730 --> 05:00:37,190 So a lot of people they like to get together night time, day time, with this hookah and 3383 05:00:37,190 --> 05:00:42,530 drinking tea, come to downtown Ridwiss city and we invest a lot of money in our businesses. 3384 05:00:43,090 --> 05:00:46,290 In just a bucket cost me over, it's going to cost me over a hundred thousand dollars 3385 05:00:46,290 --> 05:00:49,770 because I was dependent in that I keep the hookah in my business. 3386 05:00:50,290 --> 05:00:55,550 All of us, three of us, the hookah, rock and raps, passion and self spot, we build 3387 05:00:55,550 --> 05:00:57,190 a lot of taxes for Ridwiss city. 3388 05:00:58,010 --> 05:00:59,970 I mean we want to keep it the way it is. 3389 05:01:00,000 --> 05:01:04,200 Please, if you don't mind and keep the city alive. Thank you. 3390 05:01:05,460 --> 05:01:11,600 Thank you. Next speaker is Gabrielle Mihajlovic, who will be followed by Omar Salim. 3391 05:01:12,680 --> 05:01:17,780 Good evening. My name is Gabrielle Mihajlovic, and I am here to speak against this motion. 3392 05:01:18,480 --> 05:01:24,960 Redwood City is a community that supports the American values of business entrepreneurship, culture, and celebrating diversity. 3393 05:01:24,960 --> 05:01:29,380 community. Our community leads the peninsula in highlighting multiple cultures through channels 3394 05:01:29,380 --> 05:01:34,820 such as restaurants, festivals and other community gatherings. The establishments listed are prime 3395 05:01:34,820 --> 05:01:40,860 examples of honoring the roughly 20,000 plus Arab Americans living in San Mateo County and 3396 05:01:40,860 --> 05:01:45,200 Northern Santa Clara. Year after year the establishments have followed and supported 3397 05:01:45,200 --> 05:01:50,820 American federal regulations respectfully moderating the sale of any tobacco products to adults 3398 05:01:50,820 --> 05:01:55,100 ages 20 and over and they stand with the community on supporting minors not 3399 05:01:55,100 --> 05:01:59,900 participating. If any of you were to go to these establishments you would see a 3400 05:01:59,900 --> 05:01:59,980 lot of 3401 05:02:22,580 --> 05:02:28,080 Thank you, our next speaker is Omar Salem, who will be followed by Jeffrey Vasalo. 3402 05:02:29,460 --> 05:02:33,960 Respectful Mayor and Council Members, I want to start with this. 3403 05:02:34,140 --> 05:02:38,480 In April's hearing, many people spoke but none was truly heard. 3404 05:02:38,660 --> 05:02:40,360 Today I want to speak to you differently. 3405 05:02:41,020 --> 05:02:44,060 Not as policy makers, not as politicians, but as leaders. 3406 05:02:45,380 --> 05:02:49,060 You have the power to create a redwood city ordinance. 3407 05:02:49,920 --> 05:02:52,880 One that targets the actual problem. 3408 05:02:52,880 --> 05:02:59,820 Do the work differentiate between irresponsible, unregulated smoke shops and regulated 21-plus establishments? 3409 05:03:00,050 --> 05:03:07,910 Not because it's easy, we know it's not. But because it's right, because leadership is measured by whether you stood up when it matters. 3410 05:03:08,250 --> 05:03:12,770 Years from now, people will not remember how efficiently this moved through committee. 3411 05:03:13,270 --> 05:03:18,270 But they will remember whether you listened, they will remember whether you stood up for inclusivity, 3412 05:03:18,930 --> 05:03:23,990 and they will remember whether you had the courage to say, we're not just going to follow, we're going to lead. 3413 05:03:24,850 --> 05:03:31,690 As Vice Mayor Aikin said earlier, we haven't created this about AA. 3414 05:03:33,370 --> 05:03:37,330 Please listen to the 700 petition signatures you've received. 3415 05:03:37,810 --> 05:03:38,290 Thank you. 3416 05:03:38,430 --> 05:03:38,790 Thank you. 3417 05:03:39,350 --> 05:03:40,530 Our next speaker is... 3418 05:03:40,530 --> 05:03:42,150 And City Clerk, sorry to interrupt you. 3419 05:03:42,330 --> 05:03:43,930 It's almost 11 o'clock. 3420 05:03:44,110 --> 05:03:45,790 I think we've got a vote to extend the meeting. 3421 05:03:46,270 --> 05:03:49,290 Mayor, I'd like to make a motion to extend the meeting to 1130. 3422 05:03:49,930 --> 05:03:50,330 Thank you. 3423 05:03:50,370 --> 05:03:50,770 Is there a second? 3424 05:03:50,990 --> 05:03:51,390 Second. 3425 05:03:51,390 --> 05:03:55,730 That was a motion from G and a second from Council Member Howard. Could we get a vote please? 3426 05:04:00,020 --> 05:04:01,740 Hello, my name is Jeffrey Vassallo. 3427 05:04:02,280 --> 05:04:04,920 Sorry, Jeffrey, one second. Sorry, we're taking a quick vote. 3428 05:04:06,280 --> 05:04:07,480 And we'll give you your full time. 3429 05:04:07,740 --> 05:04:10,760 Motion passes with six votes. Councilmember Chiu is absent. Thank you. 3430 05:04:12,160 --> 05:04:13,340 Thank you. Over to you. 3431 05:04:14,600 --> 05:04:23,620 My name is Jeffrey Vassallo, and I noticed a few speakers ago, you're looking for ways to investigate ways to add revenue to the county. 3432 05:04:23,620 --> 05:04:31,400 In the meantime, you're taking away hundreds of jobs of people of Redwood City that have 3433 05:04:31,400 --> 05:04:38,960 families and these establishments entertain thousands of people a week and bring in millions 3434 05:04:38,960 --> 05:04:40,480 of dollars of business a year. 3435 05:04:41,280 --> 05:04:47,380 So it kind of contradicts what you guys are trying to do here, close businesses down and 3436 05:04:47,380 --> 05:04:48,220 increase revenues. 3437 05:04:49,400 --> 05:04:55,060 So, I've noticed recently in the 45 years in this county, we've taken away entertainment. 3438 05:04:55,900 --> 05:04:59,980 We've taken away the Redwood City Drive-ins, the GO Cards, the miniature... 3439 05:05:00,000 --> 05:05:06,400 What's your golf? What's next? We take away the parks? So I'm just saying to help your city 3440 05:05:06,400 --> 05:05:14,860 by leaving these establishments going and having these employees keep their jobs and more entertainment 3441 05:05:14,860 --> 05:05:16,660 in Redwood City, not less. 3442 05:05:20,820 --> 05:05:24,580 Thank you. Next speaker is Trisha Barr, who will be followed 3443 05:05:24,580 --> 05:05:25,820 by Astrid Ryber. 3444 05:05:39,710 --> 05:05:43,970 Thank you. Mayor, council members, thank you for the opportunity to 3445 05:05:43,970 --> 05:05:48,530 speak tonight. My name is Trisha Barr and I'm a mom of three kids and the chair of the 3446 05:05:48,530 --> 05:05:54,070 San Mateo County Tobacco Education Coalition. I'm asking you tonight to please adopt the 3447 05:05:54,070 --> 05:05:59,670 county's tobacco retailer ordinance. This past weekend I visited two local retailers 3448 05:05:59,670 --> 05:05:59,970 Thank you for watching. 3449 05:06:00,110 --> 05:06:06,310 One downtown, I'd asked for a flavored tobacco product, which is illegal to sell here in Redwood 3450 05:06:06,310 --> 05:06:11,490 City and in the state. The clerk pulled hidden flavored product from behind the counter and 3451 05:06:11,490 --> 05:06:18,470 sold it to me at the vape shop on El Camino. There were walls of flavored vapes and other 3452 05:06:18,470 --> 05:06:24,450 illegal flavored tobacco openly on display, which they also sold to me. So that tells 3453 05:06:24,450 --> 05:06:31,250 me this is not an exception. This tends to be the norm. So right now, last time we heard 3454 05:06:31,250 --> 05:06:35,690 about the $100 fine that is really not taken seriously by retailers. It's just sort of 3455 05:06:35,690 --> 05:06:42,750 a cost of doing business. You have the opportunity today to close that, to strengthen the existing 3456 05:06:42,750 --> 05:06:50,210 ordinance with some teeth and I'm happy to pass this around. I have receipts in here. 3457 05:06:50,210 --> 05:06:55,150 Thank you. Next speaker is Astrid Reiber, who will be followed by David Reiber. 3458 05:06:56,070 --> 05:06:59,970 Good evening. My name is Estridied Reiber, and I'm a proud 3459 05:07:00,000 --> 05:07:03,980 About Redwood City resident and parent, I raised my three children here who all attended 3460 05:07:03,980 --> 05:07:08,320 Redwood City schools. I'm here to ask for your vote in support of adopting the county's 3461 05:07:08,320 --> 05:07:12,660 tobacco retailer permit ordinance. I worried for years when my children were teenagers 3462 05:07:12,660 --> 05:07:17,240 about how easily they and their friends could so easily access vaping and tobacco products. 3463 05:07:17,680 --> 05:07:21,020 So I completely understand what parents in this situation today are going through. 3464 05:07:21,460 --> 05:07:25,720 I want our local businesses to thrive and I believe they can continue to do so while 3465 05:07:25,720 --> 05:07:29,680 adhering to the guidelines that help ensure the health and safety of our children. The 3466 05:07:29,680 --> 05:07:33,320 The adoption of the ordinance will also help with the resources needed for regulation and 3467 05:07:33,320 --> 05:07:38,240 enforcement in order to protect our youth since this would be handled by San Mateo County 3468 05:07:38,240 --> 05:07:41,340 staff versus our already spread thin city resources. 3469 05:07:42,000 --> 05:07:46,600 Although parents in schools can educate students in support prevention efforts, education alone 3470 05:07:46,600 --> 05:07:49,780 is not enough if there's no consistent enforcement in the community. 3471 05:07:50,180 --> 05:07:54,360 Until Redwood City adopts the stronger ordinance, there's very little the city can actually 3472 05:07:54,360 --> 05:07:56,600 enforce as heard by Ms. Barr. 3473 05:07:56,600 --> 05:07:59,760 Our students deserve to grow up happy and healthy in a community 3474 05:08:00,000 --> 05:08:04,920 That takes our safety seriously. Thank you. Thank you. Our next speaker is David Reaver. 3475 05:08:08,900 --> 05:08:13,600 I live in Redwood City for 25 years now and raised three children in the public schools 3476 05:08:13,600 --> 05:08:19,880 right here. This is about the health of our community, of our children, and our adults. 3477 05:08:20,680 --> 05:08:25,320 Tobacco use is starting to increase again in our schools. Redwood City is currently by 3478 05:08:25,320 --> 05:08:31,100 far the city with easiest access to vaping and tobacco products. If nothing is done, 3479 05:08:31,100 --> 05:08:37,400 tobacco use will continue to go up in our city. We do not want to be an island of 3480 05:08:37,400 --> 05:08:42,620 tobacco and vaping consumption in the Bay Area. Some vaping products are 3481 05:08:42,620 --> 05:08:46,880 equivalent to 18 packs of cigarettes, others are equivalent to 30 packs of 3482 05:08:46,880 --> 05:08:52,780 cigarettes. Things change. Sixty years ago cars didn't have seatbelts, a hundred 3483 05:08:52,780 --> 05:08:57,500 years ago there were no semi-forces street corners, maybe not everyone 3484 05:08:57,500 --> 05:08:59,480 want to agree to those changes at first. 3485 05:09:00,000 --> 05:09:03,280 But they were implemented for the benefit of the community to save lives. 3486 05:09:03,940 --> 05:09:10,660 Please adopt the county's ordinance. Let's catch up to the rest of the county and the rest of the state. Thank you. 3487 05:09:12,980 --> 05:09:19,360 Thank you. That concludes our in-person speakers, but, Mayor, I just wanted to apologize because for public hearings, 3488 05:09:20,440 --> 05:09:29,680 we can have up to an hour of public comment. And I had asked for your feedback on public comment timing because it was the late hour. 3489 05:09:29,680 --> 05:09:41,220 But I wanted to say that maybe we can offer the opportunity for the in-person speakers to speak for an additional minute before we move on to our Zoom speakers, if you're okay with that. 3490 05:09:41,460 --> 05:09:42,980 And again, I apologize for the confusion. 3491 05:09:43,800 --> 05:09:47,520 No worries city clerk. I think that makes a lot of sense to offer that up. 3492 05:09:47,820 --> 05:09:48,620 Okay. Thank you. 3493 05:09:49,160 --> 05:09:58,160 So if you have given public comment in person this evening, and if you would like to speak for one additional minute, feel free to approach the podium at this time. 3494 05:09:58,160 --> 05:09:58,440 Thank you. 3495 05:10:00,000 --> 05:10:01,700 David Kasoof, welcome. 3496 05:10:02,260 --> 05:10:02,440 Thank 3497 05:10:06,600 --> 05:10:13,640 you for this opportunity. I'm not going to talk from the paper. As the lady respectfully 3498 05:10:14,160 --> 05:10:21,520 has the cigarettes with her, it's not a hookah. So she brought here to show all of you guys 3499 05:10:21,520 --> 05:10:29,000 what the kid's doing and you know exactly who is violating every single law in Redwood 3500 05:10:29,000 --> 05:10:33,760 City. So the job of the city council and everybody else in Redwood City to be responsible 3501 05:10:33,760 --> 05:10:40,160 to save us as residents of Redwood City, which we respected every single rule that you did. 3502 05:10:41,200 --> 05:10:45,100 And another thing, you were talking about South San Francisco restaurant. 3503 05:10:45,900 --> 05:10:53,080 It's open and they sell food. They are not selling no nicotine free hookah at all yet. 3504 05:10:53,680 --> 05:10:59,740 The restaurant is under construction and all what you showed on board here for statistics 3505 05:11:00,180 --> 05:11:07,140 They were really wrong. And somebody needs to read and get educated about the hookah. I 3506 05:11:07,140 --> 05:11:10,920 have never seen a kid walking on the street with a hookah and two charcoals on top. 3507 05:11:11,820 --> 05:11:13,500 Thank you, David. None. 3508 05:11:16,140 --> 05:11:20,120 Thank you. Are there any other speakers that spoke in person this evening that would like 3509 05:11:20,120 --> 05:11:20,900 an additional minute? 3510 05:11:27,890 --> 05:11:33,230 Thank you. Thank you again, council. I did just want to reiterate because one aspect 3511 05:11:33,230 --> 05:11:38,350 that was brought up at last here at the last council meeting was that there have 3512 05:11:38,350 --> 05:11:44,630 been other instances of successful businesses running with non non nicotine 3513 05:11:44,630 --> 05:11:50,250 or non tobacco hookup and I think that that was misstated just because that 3514 05:11:50,250 --> 05:11:55,210 hasn't happened yet there is one there was one establishment in South 3515 05:11:55,210 --> 05:11:59,970 San Francisco that previously without a permit was selling hookup 3516 05:12:00,000 --> 05:12:06,800 Hukka. Since the implementation by the county, they have been told that they have mentioned 3517 05:12:06,800 --> 05:12:13,280 that they would try to sell tobacco-free hukka. That still has not happened yet. And that business, 3518 05:12:13,640 --> 05:12:17,380 as I've spoken to the owner quite a few times, is not sure if they are going to be able 3519 05:12:17,380 --> 05:12:24,140 to survive. I think that does need to be considered because it is not just a, oh, they can just 3520 05:12:24,140 --> 05:12:30,900 pivot to something else because there's evidence of this success in other cities and it just 3521 05:12:30,900 --> 05:12:31,420 is not there. 3522 05:12:32,760 --> 05:12:33,980 Thank you Mr. Fong. 3523 05:12:34,840 --> 05:12:36,860 Any other speakers for one additional minute? 3524 05:12:43,310 --> 05:12:45,450 Hi, my name is Ayup Pashaonar. 3525 05:12:46,010 --> 05:12:49,030 I checked the police record last 20 years. 3526 05:12:49,350 --> 05:12:53,730 We didn't find any record young kids smoking hookah. 3527 05:12:54,210 --> 05:12:59,410 Hookah is different, web is different, web size is like that, they can put it in 3528 05:13:00,000 --> 05:13:05,340 They can smoke everywhere. Hookah sizes is like that, and then you have to get an electrical 3529 05:13:05,840 --> 05:13:11,980 heater for the charcoal. They can put it in the pocket or back. They can smoke in the street 3530 05:13:11,980 --> 05:13:19,320 or anywhere. We need to understand, hookah is different. Wave is different. We are not 3531 05:13:19,320 --> 05:13:25,160 selling the tree location here, sandwich spot, rock n' wrap, and pasha. We are not selling 3532 05:13:25,160 --> 05:13:29,320 tobacco. We are selling hookah. Any kids or any adults come they want the 3533 05:13:29,320 --> 05:13:34,740 tobacco. We are not selling to them. You have to understand we are selling 3534 05:13:34,740 --> 05:13:41,020 hookah. Like Redwood, Burlingame and Foster City, two hookah place and they 3535 05:13:41,020 --> 05:13:45,480 give the permission to them to sell hookah. They sell hookah no problem. Do 3536 05:13:45,480 --> 05:13:51,340 it the same thing in Redwood City. Thank you. Any other speakers? 3537 05:13:52,980 --> 05:13:54,320 Trisha Barr, welcome back. 3538 05:14:00,000 --> 05:14:06,160 Regarding hookah, no one is talking about taking away jobs. Hookah businesses are also restaurants 3539 05:14:06,160 --> 05:14:12,100 and bars. They also have other options other than flavored tobacco, including switching to 3540 05:14:12,100 --> 05:14:17,440 non-tobacco products like steam stones and herbal products, so that you can keep that 3541 05:14:17,440 --> 05:14:23,940 social experience without tobacco. Council members, you have the opportunity tonight 3542 05:14:23,940 --> 05:14:28,860 to align your policies and your values and truly protect Redwood City kids. We just 3543 05:14:28,860 --> 05:14:32,780 Just heard about the budget challenges and city staff spoke last time about the cost of 3544 05:14:32,780 --> 05:14:34,080 implementing your own program. 3545 05:14:34,580 --> 05:14:37,080 We know that there is a gap here in enforcement. 3546 05:14:37,960 --> 05:14:42,180 Please adopt the county ordinance and put real enforcement and compliance behind your 3547 05:14:42,180 --> 05:14:42,960 tobacco law. 3548 05:14:45,260 --> 05:14:45,680 Thank you. 3549 05:14:46,620 --> 05:14:47,960 And Mr. Salem, welcome back. 3550 05:14:50,970 --> 05:14:52,290 Three very quick points. 3551 05:14:52,810 --> 05:14:55,610 Cultures do change, but they change from within. 3552 05:14:55,930 --> 05:14:58,970 They don't change by telling people what to do. 3553 05:15:00,000 --> 05:15:08,900 Number two, I want to talk about if Vice Mayor allows me again to quote her, we have not done 3554 05:15:08,900 --> 05:15:20,080 this. This place exists, local government exists, so we can adhere to local needs. We can keep 3555 05:15:20,080 --> 05:15:26,960 Redwood City a special place. We can stay as a magnet for people from all over the Bay 3556 05:15:26,960 --> 05:15:33,660 area. Third point is you were talking about budgetary constraints, and I absolutely understand 3557 05:15:33,660 --> 05:15:41,020 we have an issue with finding the budget or finding the money to have our own regulation. 3558 05:15:41,820 --> 05:15:49,740 But if convenience becomes the go-to, then this place should not exist. We should just 3559 05:15:49,740 --> 05:15:52,000 have government in SAC. Thank you. 3560 05:15:55,870 --> 05:15:57,390 Thank you. Mr. Ahmad. 3561 05:16:00,560 --> 05:16:06,760 One more time. I just want to tell you about the hookah, the beaver company. You see beaver 3562 05:16:06,760 --> 05:16:11,280 smoking hookah, but didn't see how many beaver smoking cigarettes in the streets and smoking 3563 05:16:11,280 --> 05:16:16,300 marijuana. Did you go force him to stop cigarette? Did you get the count? Did you get somebody 3564 05:16:16,300 --> 05:16:20,820 to force him to smoke the cigarette? Your employees listening in the corner over there, 3565 05:16:21,220 --> 05:16:26,200 city employees, everybody have a cigarette in his hand. Why don't you go stop them? 3566 05:16:26,200 --> 05:16:28,600 Why are you going to stop our business doing these things? 3567 05:16:29,400 --> 05:16:34,120 I see a lot of your employees sitting down in the beach by the boss office. 3568 05:16:34,520 --> 05:16:38,160 And I see a lot of people in the parking lot smoking cigarettes and marijuana. 3569 05:16:38,560 --> 05:16:41,300 How are you going to oppose the law of nobody smoking cigarettes? 3570 05:16:43,990 --> 05:16:45,910 Does anybody could answer my question? 3571 05:16:46,350 --> 05:16:47,390 How are you going to stop these people? 3572 05:16:47,630 --> 05:16:48,570 Somebody smokes cigarettes. 3573 05:16:48,870 --> 05:16:52,110 You can tell them, don't stop smoking or you're going to send the police. 3574 05:16:52,390 --> 05:16:54,510 Tell them, don't stop the cigarette and you give them a ticket. 3575 05:16:55,330 --> 05:16:55,850 Thank you. 3576 05:17:00,850 --> 05:17:01,530 Thank you. 3577 05:17:03,570 --> 05:17:04,810 Amila welcome back. 3578 05:17:09,920 --> 05:17:13,300 Hi again. I just want to say that I agree with you 3579 05:17:13,300 --> 05:17:16,600 parents that the sale of those products should not be allowed to our children. 3580 05:17:17,080 --> 05:17:21,540 I've worked in child care for 12 years. I've worked with the city in our schools for six 3581 05:17:21,540 --> 05:17:27,800 years and I still volunteer with child care organizations here. Within the last three 3582 05:17:27,800 --> 05:17:31,820 to four years you guys have approved three different marijuana businesses to 3583 05:17:31,820 --> 05:17:38,620 to sell their products here, that is the growing evil within our child care system. 3584 05:17:39,300 --> 05:17:41,880 These businesses, they do not allow minors in there. 3585 05:17:42,900 --> 05:17:49,800 I would push this committee to enforce if they need electronic scanning of identification 3586 05:17:49,800 --> 05:17:52,880 within their businesses before you get rid of the services altogether. 3587 05:17:53,280 --> 05:17:59,660 But all of these businesses support letting those services not be available to minors. 3588 05:18:00,000 --> 05:18:09,320 Additionally, our community promotes drinking. We have an Oktoberfest. That's a high cause for drunk driving, impaired sexual engagement. 3589 05:18:10,000 --> 05:18:20,380 That does not happen with smoking hookah. It is a leisure activity done by consenting adults that understand the cognitive effects that it's going to have on their bodies. 3590 05:18:20,800 --> 05:18:24,020 Thank you for listening and we agree with your point. 3591 05:18:25,140 --> 05:18:29,700 Thank you. Anyone else who hasn't spoken yet for an additional minute? 3592 05:18:37,190 --> 05:18:46,150 Thank you. To answer the ladies' question here, these employees could find jobs at bars and dance places amongst Broadway. 3593 05:18:46,850 --> 05:18:51,130 Sure, these are bars where people leave and they get DUIs and they're drinking. 3594 05:18:51,790 --> 05:18:56,490 If you go to these hookah lounges, most people are smoking the hookah and drinking tea. 3595 05:18:57,090 --> 05:18:59,970 Did everybody find a couple of people that have a drink or so? 3596 05:19:00,000 --> 05:19:06,960 But most 90% of the people are having tea. So you're making actually Redwood City safer by 3597 05:19:06,960 --> 05:19:13,280 not letting in alcohol and have these employees go to the bars. And I also notice people come 3598 05:19:13,280 --> 05:19:18,140 from San Jose, they come from Fremont, they come from San Francisco to go to these places. 3599 05:19:18,440 --> 05:19:24,460 So you're bringing revenue from other cities into Redwood City, which benefits everybody 3600 05:19:24,460 --> 05:19:27,140 here in Redwood City. That's all I have to say. 3601 05:19:27,140 --> 05:19:27,940 Thank 3602 05:19:30,180 --> 05:19:39,120 you. With that, I will move to our Zoom speakers, and we will give everyone two minutes. 3603 05:19:39,480 --> 05:19:45,760 Sorry again, Mayor. We'll start with Zubin Modi, who will be followed by Blythe Young. 3604 05:19:46,560 --> 05:19:53,380 You may begin speaking. You may unmute yourself and begin speaking. 3605 05:19:54,680 --> 05:19:55,920 Perfect. Can you hear me? 3606 05:19:56,340 --> 05:19:57,100 Yes, we can. 3607 05:19:58,380 --> 05:19:58,740 Excellent. 3608 05:19:59,400 --> 05:19:59,980 So, I find... 3609 05:20:00,000 --> 05:20:05,860 Given this proposal to be one of the most self-defeating racist ideas I've seen from this council, these 3610 05:20:05,860 --> 05:20:10,160 establishments are one of the few businesses in Redwood City that consistently attracts 3611 05:20:10,160 --> 05:20:15,820 customers from all over the Bay Area. If you don't believe me, we'll visit Tasha on a 3612 05:20:15,820 --> 05:20:20,600 Thursday, Friday, or Saturday night. The wait times and the lines speak from themselves. 3613 05:20:21,400 --> 05:20:26,780 People here are coming from San Francisco, San Jose, SREMA, and the East Bay to spend 3614 05:20:26,780 --> 05:20:32,580 their money here in Redwood City. These are all 21 and over establishments serving consulting 3615 05:20:32,580 --> 05:20:38,880 adults. They are licensed, regulated, tax-paying businesses that create jobs and bring economic 3616 05:20:38,880 --> 05:20:43,920 activity into Redwood City. Yet, instead of supporting local businesses, the city is trying 3617 05:20:43,920 --> 05:20:49,700 to shut them down and let's be honest, who's being affected? Hoka has deep cultural roots 3618 05:20:49,700 --> 05:20:55,320 in many Middle Eastern and South Asian communities. For a city that prides itself in diversity 3619 05:20:55,320 --> 05:20:58,460 to be an inclusion, this proposal sends the wrong message. 3620 05:20:59,440 --> 05:20:59,860 Most important, 3621 05:21:00,000 --> 05:21:05,880 Currently, this ban won't accomplish its stated goals. People won't stop. They'll drive across 3622 05:21:05,880 --> 05:21:11,640 the 84 to Fremont and spend their money there instead. The customers leave, the jobs leave, 3623 05:21:12,180 --> 05:21:19,460 the tax revenue leaves. Fremont and Alameda County wins. Redwood City and San Mateo County 3624 05:21:19,460 --> 05:21:24,180 loses. So I urge you to reject this proposal. Thank you. 3625 05:21:24,180 --> 05:21:31,910 Thank you. Our next speaker is Blythe Young who will be followed by AROC. 3626 05:21:35,930 --> 05:21:39,850 Good evening, Mayor and City Council members. My name is Blythe Young. I'm the Regents Senior 3627 05:21:39,850 --> 05:21:44,090 Lead of Community Government Relations for the American Heart Association. I'm here tonight 3628 05:21:44,090 --> 05:21:48,530 to express support for the proposal to adopt the San Mateo County model ordinance. This 3629 05:21:48,530 --> 05:21:52,990 proposed policy will reduce access to products that are the tobacco industry's key strategy 3630 05:21:52,990 --> 05:21:57,570 for targeting and addicting new smokers, Redwood City's youth. The American Heart 3631 05:21:57,570 --> 05:21:59,430 Association spent three years helping develop 3632 05:22:00,000 --> 05:22:05,460 The policy at San Mateo County and turned into a model for incorporated studies. We've 3633 05:22:05,460 --> 05:22:12,220 since seen this policy be adopted by South San Francisco, by San Bruno, and others that spent 3634 05:22:12,220 --> 05:22:16,860 a bit more time considering the ordinance. The ordinance does not prevent hookah businesses 3635 05:22:16,860 --> 05:22:21,860 from staying in business. San Francisco, not South San Francisco, but San Francisco proper 3636 05:22:22,380 --> 05:22:27,920 has had a comprehensive flavored tobacco ban for many, many years at this point. Their 3637 05:22:27,920 --> 05:22:29,580 where hookah businesses are still in business. 3638 05:22:30,560 --> 05:22:35,600 The fact that hookah is exempted at the state in terms of the flavor ban was a policy compromise 3639 05:22:36,160 --> 05:22:39,740 and we know that there's a best practice in the Bay Area that has been here long before 3640 05:22:39,740 --> 05:22:42,580 that policy was passed and we expect to continue. 3641 05:22:43,260 --> 05:22:45,860 Hookah businesses have many routes to stay in business. 3642 05:22:46,420 --> 05:22:47,340 We're not closing doors. 3643 05:22:47,660 --> 05:22:50,680 Businesses have not closed doors since we've had comprehensive flavor tobacco 3644 05:22:50,680 --> 05:22:52,200 bans in Bay Area cities. 3645 05:22:53,200 --> 05:22:56,700 So adopting the county's policy I think makes a lot of sense for the reasons 3646 05:22:56,700 --> 05:22:59,880 that staff recommended in terms of the enforcement. 3647 05:23:00,000 --> 05:23:10,400 Actual enforcement protocol offered by the county and cost savings. At the end of the day, if you do decide to adopt your own TRL and enforce it yourselves, I really hope that you'll match the same best practice standards. 3648 05:23:11,100 --> 05:23:20,680 But I think that the county's model was developed in with a lot of thought given to impact both economic and health and is a really sound model to go with. 3649 05:23:21,500 --> 05:23:27,140 So looking forward to your decision outcome. And thank you all for hanging in there past 11pm. 3650 05:23:27,140 --> 05:23:35,160 Thank you. Our next comment is from AROC, who will be followed by Kelly Boyet. 3651 05:23:41,880 --> 05:23:47,100 Good evening, Mayor, Vice Mayor and Council members. My name is Mohamed Shek. I'm the 3652 05:23:47,100 --> 05:23:53,200 Organizing and Advocacy Director at the Arab Resource and Organizing Center, or AROC. We're 3653 05:23:53,200 --> 05:23:56,940 a non-profit serving the Arab and Muslim community here in the San Francisco Bay Area. 3654 05:23:56,940 --> 05:23:59,980 I'm calling in tonight to urge you not to adopt... 3655 05:24:00,000 --> 05:24:05,500 The county tobacco enforcement ordinance, but instead to fully explore the city-run alternative. 3656 05:24:06,220 --> 05:24:11,540 All of you should have received an email with a preliminary breakdown of how a city-run enforcement 3657 05:24:11,540 --> 05:24:17,080 program could be self-funded without tapping into the general fund, and we believe it makes 3658 05:24:17,080 --> 05:24:22,060 a compelling case for a fuller analysis to be done before taking this vote that would 3659 05:24:22,060 --> 05:24:27,320 harm cherished Redwood City small businesses serving Hookah. Many of our constituents 3660 05:24:27,320 --> 05:24:31,280 live in Redwood City and as you know a significant number of our Arab and 3661 05:24:31,280 --> 05:24:35,980 Muslim and Swana community do not drink so do not go to bars and many choose the 3662 05:24:35,980 --> 05:24:39,860 option of enjoying hookah together instead. It's a long-standing social and 3663 05:24:39,860 --> 05:24:43,720 cultural practice unique to Middle Eastern communities and having these 3664 05:24:43,720 --> 05:24:48,280 spaces for our community together have become ever more important especially 3665 05:24:48,280 --> 05:24:53,040 in these times. Unfortunately non-tobacco hookah is not really a 3666 05:24:53,040 --> 05:24:59,400 viable alternative. I mean, imagine what would happen to the revenue for our local bars if 3667 05:24:59,400 --> 05:24:59,980 we told them they 3668 05:25:00,000 --> 05:25:03,440 They can only serve non-alcoholic beer and wine. It wouldn't be good. 3669 05:25:04,280 --> 05:25:10,880 To be clear, we all agree that we need a policy to address flavor tobacco products, vapes, e-cigarettes 3670 05:25:10,880 --> 05:25:16,800 and the like, particularly those targeted and marketed toward our youth. We can do this 3671 05:25:16,800 --> 05:25:22,280 without jeopardizing hookah-serving businesses, but the issue is that the city-run enforcement 3672 05:25:22,280 --> 05:25:28,680 option was not fully analyzed, particularly with regards to cost recovery options. I've 3673 05:25:28,680 --> 05:25:33,720 sitting through this entire meeting and suffice it to say that you all really know how to ask 3674 05:25:33,720 --> 05:25:39,540 rigorous questions and request more information to make informed decisions. So we're asking at the 3675 05:25:39,540 --> 05:25:45,520 very least that we do our due diligence and fully explore that alternative option before moving 3676 05:25:45,520 --> 05:25:51,660 on to the county ordinance tonight. Thank you. Our next comment is from Kelly Boyet who will 3677 05:25:51,660 --> 05:25:53,560 will be followed by Tony Godluschi. 3678 05:25:56,050 --> 05:25:58,250 Hello, thank you so much for listening. 3679 05:26:07,340 --> 05:26:09,900 Kelly, sorry about that. Can you please unmute yourself? 3680 05:26:10,620 --> 05:26:14,740 Oh, I'm sorry about that. Thank you for taking public comment tonight. 3681 05:26:15,480 --> 05:26:23,160 I understand that Redwood City is facing budgetary constraints that limit their capacity to properly fulfill tobacco complaints and permitting issues, 3682 05:26:23,480 --> 05:26:28,940 and I'm also very passionate about limiting access for youth to sales and use of tobacco products. 3683 05:26:29,380 --> 05:26:32,900 But how can we advocate for one demographic while undermining another? 3684 05:26:32,900 --> 05:26:37,440 Huka is an important cultural practice for many communities here in Medwood City as many 3685 05:26:37,440 --> 05:26:41,720 folks have said tonight and for many other consenting adults, it's a medium for connection 3686 05:26:41,720 --> 05:26:42,320 and leisure. 3687 05:26:42,860 --> 05:26:48,260 There are many businesses here, most of which are in attendance that have been compliant. 3688 05:26:48,580 --> 05:26:49,920 They do not sell to underage kids. 3689 05:26:50,060 --> 05:26:56,980 They pay their annual fees and they offer tax profit and offer popular third space 3690 05:26:56,980 --> 05:26:59,880 for friends and family to get together, eat, talk and smoke huka. 3691 05:27:00,000 --> 05:27:05,540 It's not unfortunate that these businesses have been lumped in with other non-compliant businesses. 3692 05:27:06,200 --> 05:27:13,340 It is lazy oversight by our city council. We elected you to support and represent our community, which this ordinance does not do. 3693 05:27:13,700 --> 05:27:22,600 So I urge you to find another way to protect our youth from tobacco access without disregarding the many establishments that make Redwood City so great and unique. Thank you. 3694 05:27:23,840 --> 05:27:29,080 Thank you. Our next speaker is Tony Godluschi, who will be followed by Daniel Moltke. 3695 05:27:41,160 --> 05:27:45,460 Tony, we can't hear you if you're speaking. I do see you're unmuted. 3696 05:27:47,120 --> 05:27:48,900 Hello. Can everyone hear me okay? 3697 05:27:49,200 --> 05:27:50,140 Yes, we can. Thank you. 3698 05:27:50,840 --> 05:27:55,300 Okay. All right. Perfect. Well, yes. As you've heard, my name is Tony. I live here in District 4. 3699 05:27:56,360 --> 05:27:59,960 And I work from home, and whenever I get the opportunity, I like to... 3700 05:28:00,000 --> 05:28:05,940 You work from various coffee shops, cafes, lounges, and hookah lounges around the city. 3701 05:28:07,300 --> 05:28:11,980 It's not really news to anybody, especially here in Silicon Valley, that there's a loneliness 3702 05:28:11,980 --> 05:28:15,340 epidemic across our country, including in our own neighborhood. 3703 05:28:16,280 --> 05:28:21,680 The American Journal of Epidemiology, the American Psychology Association, and other 3704 05:28:21,680 --> 05:28:28,260 organizations have linked chronic isolation to increases in cognitive 3705 05:28:28,260 --> 05:28:35,400 decline, depression, cardiovascular disease, and Cassandra Alcarez with the 3706 05:28:35,400 --> 05:28:40,780 American Journal of Epidemiology shared that the magnitude of risk presented 3707 05:28:40,780 --> 05:28:46,460 by social isolation is very similar in magnitude to that even of smoking. I'm 3708 05:28:46,460 --> 05:28:50,700 I'm not a doctor like I said I work from home I'm not sure how accurate 3709 05:28:50,700 --> 05:28:59,640 any of that really is, but I do find it weird that in this age of social isolation that we would 3710 05:29:00,000 --> 05:29:07,720 Take this step against third spaces in our community. As we heard tonight from all these business 3711 05:29:07,720 --> 05:29:18,840 owners, nobody is against selling tobacco to younger kids. And while this ordinance is 3712 05:29:18,840 --> 05:29:26,020 well-meaning, then it will surely exacerbate the epidemic of loneliness by closing the city's 3713 05:29:26,020 --> 05:29:31,900 lounges. Honest to God, small business proprietors who, as the city notes in its own equity impact 3714 05:29:31,900 --> 05:29:37,340 statement, are disproportionately South Asian or Middle Eastern descent. They're going to be forced 3715 05:29:37,340 --> 05:29:44,000 to shudder friendly third spaces while consenting adults go to eat, work, gossip, and even smoke. 3716 05:29:45,200 --> 05:29:51,060 I encourage you to put your heads together and think of something more creative than a blanket 3717 05:29:51,060 --> 05:29:51,340 Thank you, Ben. 3718 05:29:52,460 --> 05:29:52,860 Thank you. 3719 05:29:55,560 --> 05:29:57,780 Our next speaker is Daniel Moltke. 3720 05:29:58,580 --> 05:29:59,140 What was it? 3721 05:30:06,860 --> 05:30:12,300 Hey, can you hear me? Good evening, Mayor and council members. My name is Daniel Shane Mulkey. 3722 05:30:12,460 --> 05:30:16,900 I'm with the National Hookah Community Association with, which along with AROC submitted a joint 3723 05:30:16,900 --> 05:30:22,960 proposal today, really just asking for one thing. Don't close the door tonight. Give us the time 3724 05:30:22,960 --> 05:30:27,220 to build a solution that protects youth, doesn't cost the city anything, and keeps 3725 05:30:27,220 --> 05:30:32,400 it away from cultural spaces alive in your city. Your staff report shows that a city-run program 3726 05:30:32,400 --> 05:30:37,120 can be nearly self-funded through permit fees alone, and that's before accounting for two 3727 05:30:37,120 --> 05:30:41,700 key revenue sources that the report didn't consider. That's first, that the three hookah 3728 05:30:41,700 --> 05:30:46,720 establishments have volunteered to pay enhanced permit fees through three times what standard 3729 05:30:46,720 --> 05:30:51,160 retailers would pay because they want this program to work they're willing to pay for it. 3730 05:30:51,620 --> 05:30:55,920 The second big one was that the report doesn't account for the impact of financial penalties 3731 05:30:55,920 --> 05:30:59,960 for non-compliance, which the city could easily increase to $1,000 each. 3732 05:31:00,000 --> 05:31:05,240 Each, potentially more. I think it's also worth noting the county program only checks permit 3733 05:31:05,240 --> 05:31:11,120 holders roughly twice a year, so that would mean 110 visits across the 55 retailers in Redwood 3734 05:31:11,120 --> 05:31:17,340 City. Meanwhile, Redwood City's current complaint-based code enforcement generally would be 558 actions 3735 05:31:17,340 --> 05:31:22,400 in 2020. So we think a locally run program is more responsive, more accountable, and really 3736 05:31:22,400 --> 05:31:26,980 better positioned to actually protect kids. So with regard to the county ordinance, there 3737 05:31:26,980 --> 05:31:31,640 There are parts that we could get behind and we'd love to talk about them, but really adopting 3738 05:31:31,640 --> 05:31:35,780 that that ordinance tonight forecloses the only option that would preserve our Redwood 3739 05:31:35,780 --> 05:31:40,420 City's three existing hookah-serving restaurants, which are cultural gathering places for the 3740 05:31:40,420 --> 05:31:41,240 Middle Eastern community. 3741 05:31:41,780 --> 05:31:46,820 For many people in our community, they don't drink, and so these places don't have a substitute. 3742 05:31:47,060 --> 05:31:51,840 It's like having a sports bar without alcohol or bringing alcohol-free wine to your dinner 3743 05:31:51,840 --> 05:31:53,760 party doesn't have the same impact, right? 3744 05:31:53,760 --> 05:31:58,420 So, we're just asking you please reject the ordinance and direct your staff to fully 3745 05:31:58,420 --> 05:31:59,920 analyze the options for the city. 3746 05:32:09,130 --> 05:32:13,310 Thank you. And with that, Mayor, I turn it back to you. It includes public comment. 3747 05:32:14,490 --> 05:32:18,850 Great. Thank you, City Clerk. And again, thank you to everyone who joined us in person or online 3748 05:32:18,850 --> 05:32:23,210 and make some public comment on this, especially with the lateness of the hour. We appreciate 3749 05:32:23,210 --> 05:32:30,010 just getting engagement on this. So with that, I will pass it over to our colleagues with 3750 05:32:30,010 --> 05:32:30,790 Council Member Strickland. 3751 05:32:30,790 --> 05:32:33,590 May I make a motion to extend the meeting to midnight, please? 3752 05:32:34,890 --> 05:32:35,690 Is there a second? 3753 05:32:37,230 --> 05:32:38,070 Sadly, second. 3754 05:32:39,790 --> 05:32:40,590 Thank you both. 3755 05:32:41,110 --> 05:32:43,330 Motion from Sturkin and a second from Gee. 3756 05:32:43,490 --> 05:32:44,250 Could we get a vote, please? 3757 05:33:01,010 --> 05:33:03,910 Motion passes with six votes. Councilmember Chu absent. 3758 05:33:06,040 --> 05:33:07,900 Great. Thank you for the fast vote, everybody. 3759 05:33:08,360 --> 05:33:12,560 And who would like to get us started with any questions or comments? 3760 05:33:17,920 --> 05:33:22,020 We're so close, y'all. Councilmember Gee, thank you. 3761 05:33:22,260 --> 05:33:25,000 Thank you, Mayor. Just some clarifying questions. 3762 05:33:25,960 --> 05:33:28,340 Excuse me. Amanda, you've been working on this for a while. 3763 05:33:28,540 --> 05:33:32,940 So can you just remind all of us just because it's getting late 3764 05:33:32,940 --> 05:33:35,380 and we still have more agenda after this? 3765 05:33:35,380 --> 05:33:40,780 your work and the team's work on trying to bring something to council. 3766 05:33:41,560 --> 05:33:50,020 And not only the timeline, but how many meetings and the journey to get to tonight. 3767 05:33:51,420 --> 05:33:53,040 Yes, I'd be happy to talk about that. 3768 05:33:53,440 --> 05:33:58,180 We had a study session in September of 2024 on two topics. 3769 05:33:58,540 --> 05:33:59,980 One was smoking in the public right away. 3770 05:34:00,000 --> 05:34:07,200 And one was the regulation of tobacco retailers. We were able to bring back an ordinance on smoking 3771 05:34:07,200 --> 05:34:14,460 in the public right-of-way in January of 2025. Following that, we proceeded with work on addressing 3772 05:34:15,040 --> 05:34:24,060 the concerns of council throughout the spring of 2025 into the summer of 2025. We met with 3773 05:34:24,060 --> 05:34:32,900 business, all of our tobacco retailers in April of 2025 working to get a solution 3774 05:34:32,900 --> 05:34:40,220 throughout the summer. City Attorney Ramirez was meeting with or seeking 3775 05:34:40,220 --> 05:34:44,140 seeking to meet with representation from the hookah attorneys throughout the 3776 05:34:44,140 --> 05:34:53,340 last summer throughout the fall. Starting in the spring we started to 3777 05:34:53,340 --> 05:34:57,360 And I think we've been trying to get on an agenda since November of last year. 3778 05:34:57,360 --> 05:34:58,520 and so 3779 05:35:00,000 --> 05:35:04,240 We finally brought it in April of this year. Prior to that, we did additional outreach to 3780 05:35:04,240 --> 05:35:07,000 the hooker retailers and also all of the tobacco retailers. 3781 05:35:09,240 --> 05:35:13,260 Thank you, Maniki. Spent a little bit more time about the outreach over the last year 3782 05:35:13,260 --> 05:35:21,520 to the three establishments and what kind of engagement the people show up and as well 3783 05:35:21,520 --> 05:35:23,540 as the other tobacco retailers in the city. 3784 05:35:23,540 --> 05:35:32,260 Yeah, the hookah retailers, understandably, were very invested in helping us understand 3785 05:35:32,260 --> 05:35:34,720 their perspective and their needs. 3786 05:35:35,420 --> 05:35:41,460 So when we would meet with them, they would come and bring their perspective and ask for 3787 05:35:41,460 --> 05:35:42,500 what we would want. 3788 05:35:43,100 --> 05:35:48,800 A number of times we sought compromise, for example, with the non-tobacco hookah and 3789 05:35:48,800 --> 05:35:59,980 heard that they were not interested in on tobacco hookah and I can understand that if your demand is for tobacco hookah. 3790 05:36:00,000 --> 05:36:03,860 I can understand that there's probably not a lot of demand for non-tobacco hookah, but we 3791 05:36:03,860 --> 05:36:09,620 were looking for a way of figuring out how to regulate the tobacco retailers, and we're 3792 05:36:09,620 --> 05:36:14,120 looking for a compromise on what that looked like. As far as the other tobacco retailer 3793 05:36:14,120 --> 05:36:21,960 outreach meetings, we had probably about 10, so we have 55 retailers. We had about 10 3794 05:36:21,960 --> 05:36:29,060 folks attend, so about 20% of the retailers. Those were mixed across smoke shops, gas 3795 05:36:29,060 --> 05:36:33,660 stations and convenience stores and so they they brought up a lot of thoughts as 3796 05:36:33,660 --> 05:36:41,160 well they you know I think would like to have less regulation themselves but 3797 05:36:41,160 --> 05:36:47,780 also recognize that you know it is normal to have regulation and that they 3798 05:36:47,780 --> 05:36:51,460 would prefer to pay less for regulation than more. 3799 05:36:56,450 --> 05:36:57,630 Thank you for that 3800 05:36:57,630 --> 05:36:58,070 history. 3801 05:37:00,000 --> 05:37:05,380 It's, you know, thank you all for being here at 11.30 and getting later at night. 3802 05:37:06,080 --> 05:37:14,320 You know, we have two speakers offer, I guess, a self-funded solution, but it feels like they 3803 05:37:14,320 --> 05:37:21,100 just showed up. Is my perception inaccurate? I mean, given the history and the timeline 3804 05:37:21,100 --> 05:37:26,700 you just shared, the conversation could have and should have probably began in the beginning, 3805 05:37:26,700 --> 05:37:30,180 not when this matter comes before council tonight. 3806 05:37:31,420 --> 05:37:34,020 The businesses did propose earlier 3807 05:37:34,020 --> 05:37:36,000 that they would be willing to pay more 3808 05:37:36,000 --> 05:37:38,920 for a tobacco retailer permit for themselves. 3809 05:37:39,760 --> 05:37:42,960 My understanding is that there wouldn't be 3810 05:37:42,960 --> 05:37:46,820 a significant difference in that our proposition 26, 3811 05:37:47,000 --> 05:37:49,720 which is about fair fees and paying for the cost 3812 05:37:49,720 --> 05:37:51,480 of service, the cost of service 3813 05:37:51,480 --> 05:37:52,920 wouldn't be significantly different 3814 05:37:52,920 --> 05:37:59,760 for issuing a permit and doing inspections and that for these businesses. 3815 05:38:01,260 --> 05:38:15,820 And so, we wouldn't be able to charge them more. That's one thing. The other thing is, is that it did feel like there was a lot of organization here at this moment. 3816 05:38:16,860 --> 05:38:21,820 And that did surprise me, but I'm glad that people are using their voice. 3817 05:38:22,740 --> 05:38:26,400 You're going to demand a thank you, so I'm going to pivot to our city attorney. 3818 05:38:27,700 --> 05:38:32,860 And this is a question similar to earlier this evening, which seems like forever ago. 3819 05:38:33,600 --> 05:38:40,220 But because of Prop 218 or whatever that number is, are we allowed to disproportionately 3820 05:38:42,440 --> 05:38:45,840 charge fees for permits that may subsidize others? 3821 05:38:47,300 --> 05:38:56,020 No, as we spoke about this earlier, Prop 26 does not allow for one subgroup, two subsidized 3822 05:38:56,020 --> 05:38:59,900 and other subgroups responsibilities and so the city does have 3823 05:39:00,000 --> 05:39:04,940 We have to determine what the proper fee is based on the services that are being provided 3824 05:39:04,940 --> 05:39:07,580 and charge that fee across the board. 3825 05:39:10,380 --> 05:39:14,400 Thank you, City Attorney Amanda, thank you for answering some clarifying questions. 3826 05:39:15,100 --> 05:39:15,260 Thank you. 3827 05:39:15,460 --> 05:39:15,900 Thank 3828 05:39:18,100 --> 05:39:18,980 you, Council Member Gee. 3829 05:39:20,440 --> 05:39:21,480 Will's has questions. 3830 05:39:30,860 --> 05:39:32,480 Council Member Strickland, we'll go to you. 3831 05:39:32,680 --> 05:39:33,320 Thank you, Mayor. 3832 05:39:34,020 --> 05:39:35,680 Thank you to everyone who made public comments. 3833 05:39:35,980 --> 05:39:38,140 I very much appreciate both online and in person. 3834 05:39:38,640 --> 05:39:42,060 And thank you, Amanda, as well for all your hard work on this over the course of 3835 05:39:42,060 --> 05:39:43,320 couple years at this point. 3836 05:39:45,640 --> 05:39:51,320 So looking at the staff report, at the very bottom there is an alternative. 3837 05:39:52,160 --> 05:39:59,960 And I would just like to ask, I think I already know the answer to this question because we were presented with an alternative back in the 3838 05:40:00,000 --> 05:40:07,740 April. But if we were to entertain the idea of doing our own program, what would that look 3839 05:40:07,740 --> 05:40:13,860 like? What's the timeline? What resources can we leverage from the county or otherwise 3840 05:40:13,860 --> 05:40:21,480 to meet the needs of the entire community, you know, to enforce our regulations, protect 3841 05:40:21,480 --> 05:40:30,480 youth while also supporting our local businesses and local cultures. 3842 05:40:31,320 --> 05:40:41,180 Sure. If we did not adopt the ordinance tonight and we came back and you directed staff to come back with our own ordinance, 3843 05:40:42,100 --> 05:40:48,800 we wouldn't be able to rely on the county for much. Their policy is that either you adopt it by reference or verbatim, 3844 05:40:48,800 --> 05:40:50,920 or they don't really get involved. 3845 05:40:51,520 --> 05:40:55,020 So we wouldn't be able to rely on them for anything. 3846 05:40:55,780 --> 05:40:58,060 They might be so kind as to give their time 3847 05:40:58,060 --> 05:40:59,980 to train us on all of this. 3848 05:41:00,000 --> 05:41:05,360 Unflavored tobacco and how to regulate tobacco, but I don't know that that's a given. 3849 05:41:07,160 --> 05:41:14,680 You know, I say this very carefully because I love what I do, but you guys have a lot of my plate, 3850 05:41:15,040 --> 05:41:22,060 and if you direct me to also bring back other stuff that either pushes street vending and mobile vending 3851 05:41:22,060 --> 05:41:30,860 and entertainment zones and small business supports, there's just a lot of things that will get pushed. 3852 05:41:30,860 --> 05:41:36,160 So either it will take me several months to develop this ordinance and we'll bring it back in 2027. 3853 05:41:36,880 --> 05:41:46,480 Or we'll prioritize that and we can maybe do that in three or four months if Veronica has some time to really dig into this. 3854 05:41:46,900 --> 05:41:52,080 We would probably need to come back and have a study session with you to understand what your priorities are. 3855 05:41:52,220 --> 05:41:58,120 Do you want to follow something that's very similar to the county or do you want to have other parameters before we go back? 3856 05:41:58,120 --> 05:41:59,980 So there's a lot of steps that what it would do. 3857 05:42:00,000 --> 05:42:06,840 What do we take to develop that ordinance? And it's also figuring out what is the priority. 3858 05:42:07,660 --> 05:42:10,440 We are priorities, right? What do we want to include in that ordinance? 3859 05:42:11,080 --> 05:42:18,120 And so, you know, I think minimally, most likely, it would be six to nine months just to develop the ordinance. 3860 05:42:18,500 --> 05:42:26,160 We have to train staff on the work, on who is doing the work, how to regulate what is this. 3861 05:42:26,160 --> 05:42:31,420 I attend a quarterly meeting right now from the Alameda County Tobacco Regulation Enforcement 3862 05:42:31,420 --> 05:42:37,240 Network and there are new flavored tobacco products coming out literally every month 3863 05:42:37,800 --> 05:42:43,060 and we sit on that call and we learn all about these new regulated products, but I'm not 3864 05:42:43,060 --> 05:42:43,980 the regulator, right? 3865 05:42:44,120 --> 05:42:45,100 I'm the policymaker. 3866 05:42:46,380 --> 05:42:49,040 We would have to get code enforcement to understand that. 3867 05:42:49,160 --> 05:42:53,020 We'd have to figure out where code enforcement is going to have time to go and do a proactive 3868 05:42:53,680 --> 05:42:54,200 program. 3869 05:42:54,200 --> 05:42:58,380 So, I mean, minimum six to nine months, quite a bit of staff effort. 3870 05:42:59,360 --> 05:42:59,960 Not important. 3871 05:43:00,000 --> 05:43:06,560 It's possible, right? I mean, it's anything's possible. I do want to be honest about that, but there are trade-offs. 3872 05:43:09,300 --> 05:43:13,200 Thank you very much. It's very helpful just to wrap up my comments. 3873 05:43:17,140 --> 05:43:21,360 Councilmember, sorry, I didn't want to rush you to wrap up. It's just our city attorney. 3874 05:43:24,380 --> 05:43:33,020 And thank you to Ms. Anthony for answering that question. I just wanted to point out, and she made a reference to it, 3875 05:43:33,020 --> 05:43:41,040 but just wanted the council to be aware that the city doesn't currently have a permit process 3876 05:43:41,040 --> 05:43:50,140 for this. We don't have any program to regulate. Ms. Anthony spoke a lot about the enforcement 3877 05:43:50,140 --> 05:43:54,560 part after the ordinance gets adopted, but the very first thing is creating a permit 3878 05:43:54,560 --> 05:43:57,860 its system for this and understanding how to process that. 3879 05:43:58,180 --> 05:43:59,980 So, and once that's 3880 05:44:00,000 --> 05:44:06,000 If the system is put together, then it's implementing it and getting the applications out and helping 3881 05:44:06,000 --> 05:44:12,040 all of the tobacco businesses, and we have 55 currently, to understand what that means. 3882 05:44:12,400 --> 05:44:19,720 So there's a big process after adoption and before enforcement as well that will take 3883 05:44:19,720 --> 05:44:25,640 some ramp up. And I want the council to understand that so that we don't get surprised a year 3884 05:44:25,640 --> 05:44:29,540 later when we're still trying to figure it out. 3885 05:44:33,260 --> 05:44:35,320 Thank you, City Attorney. We'll bring it back to, 3886 05:44:35,480 --> 05:44:44,380 okay, thank you. Any other questions? Member Howard? I don't have questions, but I'm ready to make 3887 05:44:44,380 --> 05:44:51,580 my comments if that's okay. Okay, thank you. I just wanted to say that I received, 3888 05:44:58,920 --> 05:44:58,920 I think 3889 05:44:58,920 --> 05:44:59,780 just at Stanford. 3890 05:45:00,000 --> 05:45:07,740 University and she does research on tobacco prevention and the damages that it causes nicotine 3891 05:45:07,740 --> 05:45:16,640 and tobacco. And it was a very moving and very impressive letter talking about the dangers 3892 05:45:16,640 --> 05:45:24,520 of flavored tobacco products because continued use, it makes it easier and it masks the harshness 3893 05:45:24,520 --> 05:45:31,060 of the tobacco in the nicotine. It makes smoke and aerosol easier to inhale. It's easier 3894 05:45:31,060 --> 05:45:38,520 on the throat. And it creates the misperception that these products are less harmful than 3895 05:45:38,520 --> 05:45:45,940 traditional cigarettes. And she states, that is just not true, that tobacco and the 3896 05:45:45,940 --> 05:45:52,080 toxic chemicals that are in flavored tobacco as well as cigarettes are very harmful. 3897 05:45:52,080 --> 05:45:59,380 and people exposed to it can develop lung disease as well as the person smoking it. 3898 05:46:00,000 --> 05:46:07,140 And she said a one-hour hookah session, which is the typical timeframe use that she says is 3899 05:46:07,140 --> 05:46:13,400 equivalent, if I'm exposed to it, not smoking, if I'm exposed to it, it's the equivalent of 3900 05:46:13,400 --> 05:46:22,180 smoking 100 cigarettes a day. Now, I'm a nurse. People know that I'm a nurse and I cannot 3901 05:46:22,180 --> 05:46:31,440 take any other stand on this other than my desire to do what's best for our whole community. 3902 05:46:32,740 --> 05:46:38,580 And I find tobacco and its products, when I was teaching nursing, I always spoke to young 3903 05:46:38,580 --> 05:46:42,880 people because I thought if we get to them young, then maybe you prevent them from smoking 3904 05:46:42,880 --> 05:46:43,900 into their old age. 3905 05:46:44,360 --> 05:46:45,420 It's a tough one. 3906 05:46:45,520 --> 05:46:48,360 Once they become addicted, it's very hard to quit. 3907 05:46:48,360 --> 05:46:59,860 Now I know we're talking about young people and it's really important, but I'm also very, very worried about the adult population who smoke nicotine products. 3908 05:47:00,560 --> 05:47:15,380 And being exposed to it. So back when COVID was, when we had COVID, we made an agreement that we would try to help our three businesses in Redwood City who did serve hookah. 3909 05:47:15,860 --> 05:47:27,780 And we made it possible for them to do it. And then we even gave an extension of a year while we studied the information that we were giving about the state and the county. 3910 05:47:29,240 --> 05:47:34,800 During that time, I made it clear that I could not guarantee this was a permanent solution. 3911 05:47:35,640 --> 05:47:36,560 I made it clear. 3912 05:47:36,680 --> 05:47:41,120 I don't know about anyone else, but I always felt sooner or later the state's going to 3913 05:47:41,120 --> 05:47:45,960 step in and then the county, and we were going to have to make some tough decisions. 3914 05:47:46,500 --> 05:47:48,080 And that's where we are right now. 3915 05:47:48,080 --> 05:47:58,640 So I can only say, as a nurse, my responsibility is the health and well-being of our community. 3916 05:48:00,000 --> 05:48:08,500 And our community needs to eliminate as much as possible exposure to nicotine and smoking 3917 05:48:08,500 --> 05:48:17,120 products. I know that's going to hurt our friends in business. I know this is going to have an 3918 05:48:17,120 --> 05:48:24,380 impact on your business as well as the social and cultural practices that you do. But my 3919 05:48:24,380 --> 05:48:29,520 responsibility has to be the public health and safety of the community of 3920 05:48:29,520 --> 05:48:36,940 Redwood City and that's why I will support this. I'm sorry but I don't feel I 3921 05:48:36,940 --> 05:48:42,600 have a choice in this matter if I'm going to be true to my profession so I'll 3922 05:48:42,600 --> 05:48:43,880 just leave it at that. Thank 3923 05:48:46,090 --> 05:48:48,050 you, Council Member Howard. Who else has 3924 05:48:48,050 --> 05:48:48,370 comments? 3925 05:48:53,890 --> 05:48:54,470 Council Member Shurken. 3926 05:48:56,680 --> 05:48:59,660 I feel like I've been presented that I am 3927 05:48:59,660 --> 05:48:59,920 consider. 3928 05:49:00,000 --> 05:49:10,420 We're considering just a false choice. And there, I think we can address each of the issues 3929 05:49:10,420 --> 05:49:22,740 and needs presented tonight, enforcing our smoking regulations, allowing communities to continue 3930 05:49:22,740 --> 05:49:34,600 expressing their culture while also supporting our local economy. So both ordinances that we were 3931 05:49:34,600 --> 05:49:42,360 presented with back in April accomplish those things. The largest difference that I recall 3932 05:49:42,360 --> 05:49:46,320 us discussing was the cost. And I 3933 05:49:48,720 --> 05:49:51,940 understand that based on our previous conversation we don't 3934 05:49:51,940 --> 05:49:56,040 have very much wiggle room to accommodate said cost. 3935 05:49:56,640 --> 05:49:57,060 But. 3936 05:50:00,530 --> 05:50:08,710 As we did with the business license tax, when we received feedback from the business community, 3937 05:50:08,990 --> 05:50:16,790 we pivoted and made accommodations. And I think it's important for us to, 3938 05:50:20,590 --> 05:50:23,230 when we realize 3939 05:50:23,230 --> 05:50:28,250 maybe there were folks that we didn't get the chance to talk to, or maybe that we should 3940 05:50:28,250 --> 05:50:31,430 that have engaged the first go-around, 3941 05:50:31,930 --> 05:50:35,390 that we accommodate them and continue the conversation 3942 05:50:35,390 --> 05:50:37,750 until we can find the right solution 3943 05:50:37,750 --> 05:50:40,130 that meets all of our needs. 3944 05:50:40,870 --> 05:50:44,450 So I will leave it there. 3945 05:50:44,650 --> 05:50:45,890 I would like to make a motion, 3946 05:50:46,010 --> 05:50:49,270 but I will wait until I've heard from my other colleagues 3947 05:50:49,270 --> 05:50:51,570 should anyone else like to contribute. 3948 05:50:52,090 --> 05:50:52,770 Thank you, Mayor. 3949 05:50:54,640 --> 05:50:55,600 Thank you, Council Member. 3950 05:50:55,840 --> 05:50:56,660 We'll go to Council Member Pideo. 3951 05:50:57,020 --> 05:50:57,800 Thank you. 3952 05:50:57,800 --> 05:50:59,980 So, um, I've given... 3953 05:51:00,000 --> 05:51:04,980 And this is a lot of thought. I've talked to many people and I've read, if I haven't 3954 05:51:04,980 --> 05:51:07,960 responded, I've read every e-mail, I've listened to voicemails, 3955 05:51:10,140 --> 05:51:14,280 and I come from many perspectives. 3956 05:51:14,860 --> 05:51:21,280 I also value community health. I'm a parent, I'm a resident. I care about all the same 3957 05:51:21,280 --> 05:51:26,840 things. I care about our businesses. I care about the diversity in valuing everything 3958 05:51:26,840 --> 05:51:29,300 thing that makes us such a special place. 3959 05:51:30,920 --> 05:51:32,540 And I just want to share something. 3960 05:51:32,960 --> 05:51:35,140 From our last meeting, I had mentioned with a neighbor, 3961 05:51:35,580 --> 05:51:37,460 and I was just mentioning some things. 3962 05:51:37,540 --> 05:51:40,220 And she said to me, oh, I go to the sandwich spot. 3963 05:51:40,280 --> 05:51:41,680 And she said, they have hookah? 3964 05:51:42,580 --> 05:51:46,020 And I thought, wow, what a compliment 3965 05:51:46,020 --> 05:51:48,080 to that business and that establishment 3966 05:51:48,500 --> 05:51:52,020 that I had a neighbor who has been buying sandwiches there 3967 05:51:52,020 --> 05:51:56,660 and did not even know that the establishment sold hookah. 3968 05:51:57,540 --> 05:51:59,840 And then I thought to myself, in a world 3969 05:52:00,000 --> 05:52:04,640 That's where I thought our city manager mentioned just how we should be cautious of regulation 3970 05:52:04,640 --> 05:52:12,200 and unintended consequences. I don't smoke cigarettes and I don't do hookah, so I don't go to those 3971 05:52:12,200 --> 05:52:19,960 establishments. That's a personal choice that I make. And so often, more increasingly I find 3972 05:52:19,960 --> 05:52:25,160 in society and in our times, we're being told how to live our lives and what to do. 3973 05:52:26,480 --> 05:52:32,840 And I want to still believe that we raise our families, we teach them, no, I don't want 3974 05:52:32,840 --> 05:52:33,440 children smoking. 3975 05:52:33,640 --> 05:52:38,220 I remember being little and ice cream man coming and there were bubblegum cigarettes. 3976 05:52:38,660 --> 05:52:41,020 And that was a really popular thing to get. 3977 05:52:41,140 --> 05:52:45,280 And we didn't even know, but you wanted to blow them and see the powdered sugar come 3978 05:52:45,280 --> 05:52:45,460 out. 3979 05:52:45,840 --> 05:52:51,620 And it added some sort of glamour as a little kid, and you didn't. 3980 05:52:51,900 --> 05:52:54,420 And so I think about that, that impact you have on children. 3981 05:52:54,420 --> 05:52:59,980 But then I also think, you know, what is the role of the family? 3982 05:53:00,000 --> 05:53:05,040 Family unit. You know, when it comes down to us legislating when, how old someone can be 3983 05:53:05,040 --> 05:53:10,260 when they have a cell phone, who can go on Facebook, what decisions should be made in our own home. 3984 05:53:10,700 --> 05:53:15,520 If I don't like the way that hookah smells or I don't want my child exposed to it, then 3985 05:53:15,520 --> 05:53:22,320 I won't go to Pasha or Rock and Raps or if that's my concern. So that's where I'm struggling 3986 05:53:22,320 --> 05:53:27,680 right now. I want to balance our public health, but I also want to value the budget 3987 05:53:27,680 --> 05:53:32,560 situation we're in, we have businesses that are contributing to the vibrancy of our community. 3988 05:53:33,440 --> 05:53:39,280 And also, it is connection. We had a person call and there is an epidemic of loneliness. 3989 05:53:40,520 --> 05:53:46,800 Smoking, you know, passing a pipe, it's connection. It's connecting with people. It's dialogue 3990 05:53:46,800 --> 05:53:52,180 in a world where we increasingly don't know how to talk to each other. There are fewer 3991 05:53:52,180 --> 05:53:57,040 in fewer spaces for people. We don't, you know, not everyone fits. This isn't 3992 05:53:57,040 --> 05:53:59,740 Sweden. We don't all look the same. So cultural 3993 05:54:00,000 --> 05:54:05,600 Safe spaces for certain communities are more than just a place to work, so you're not lonely. 3994 05:54:05,720 --> 05:54:10,560 It's somewhere where you feel seen, somewhere where you don't have to wear a mask, somewhere 3995 05:54:10,560 --> 05:54:17,080 where you don't have to explain. It's hard to put a value on that, but it is valuable. 3996 05:54:17,440 --> 05:54:22,180 I just want us to make sure that we're considering these things because I don't always feel 3997 05:54:22,180 --> 05:54:28,360 good about regulating people's freedom of choice and free will. I know that there is 3998 05:54:28,360 --> 05:54:35,060 a state law but it seems like what we're doing is superseding the state law and it's hard 3999 05:54:35,060 --> 05:54:39,900 for me to reconcile this when we're talking about a budget where all I see are red going 4000 05:54:39,900 --> 05:54:45,460 into the red and the red and I see businesses that are employing workers that are adding 4001 05:54:45,460 --> 05:54:45,900 to things. 4002 05:54:46,140 --> 05:54:53,240 So I just, I'm struggling at the moment because I will say that I have always been 4003 05:54:53,240 --> 05:54:53,640 a proponent. 4004 05:54:53,640 --> 05:54:59,280 And I don't think it's fair, as Council Member Sirken says, that we're given that it's this 4005 05:54:59,280 --> 05:54:59,760 or that. 4006 05:55:00,000 --> 05:55:01,920 I don't know if it has to be that way. 4007 05:55:05,240 --> 05:55:11,360 I heard that caller. I don't want to, you know, it's hard to hear to think that we're lazy when we're here at, you know, 11.59. 4008 05:55:11,600 --> 05:55:21,060 I don't think anyone on our staff or council is lazy, but I think we are working with limited resources financially and from a staff perspective. 4009 05:55:21,400 --> 05:55:24,300 But I don't want that to be the excuse not to do what's right. 4010 05:55:25,220 --> 05:55:26,860 So I'll leave it at that for now. Thank you. 4011 05:55:28,840 --> 05:55:31,160 Thank you, Council Member Padeo. We'll go to the Vice Mayor. 4012 05:55:31,800 --> 05:55:38,800 So I want to thank everyone who came out here tonight, and especially at this late hour. 4013 05:55:39,760 --> 05:55:45,160 When we studied this two years ago, and Council Member Gee, thanks for asking, and Amanda, 4014 05:55:45,520 --> 05:55:54,700 thank you for reminding us of that. We, and you as well, you know, a hookah had 4015 05:55:54,700 --> 05:55:59,980 been grandfathered in. And at that time, two years ago, we 4016 05:56:00,000 --> 05:56:06,140 We directed staff to go back to the county and see if they would do that grandfathering 4017 05:56:06,140 --> 05:56:15,420 for us. Because we do, I just speak for myself, I do value the culture and I do like this culture 4018 05:56:15,420 --> 05:56:23,780 in Redwood City. I like the diversity. I do see it as a fun recreational cultural thing. 4019 05:56:23,780 --> 05:56:31,780 And so we did, we asked, we directed the then city manager, Melissa, Steven, 4020 05:56:31,940 --> 05:56:33,920 and Diaz to go back to the county and say, 4021 05:56:34,020 --> 05:56:39,940 look, please grandfather us in, please grandfather this in. 4022 05:56:40,520 --> 05:56:49,280 And I really was hoping they would, but the county will not. 4023 05:56:49,740 --> 05:56:52,280 And we have no control over that. 4024 05:56:52,280 --> 05:56:59,260 And meanwhile we have 55 tobacco retailers 4025 05:57:00,000 --> 05:57:08,880 This woman here who just three days ago or one day ago was able to buy all sorts of illegal 4026 05:57:12,340 --> 05:57:23,700 tobacco products. Subsequent again to two years ago, I also discovered that there is flavorless 4027 05:57:23,700 --> 05:57:30,140 tobacco. There is hookah that's, you know, tobacco-free, and that other jurisdictions, 4028 05:57:30,580 --> 05:57:37,860 the reference was to San Francisco, are doing that. So the fact that San Mateo will not compromise, 4029 05:57:38,180 --> 05:57:43,080 the fact that there is an alternative, the fact that our staff has been bending over 4030 05:57:43,080 --> 05:57:54,200 backward for a year to try to craft some kind of a compromise. I am really sorry, but we 4031 05:57:54,200 --> 05:57:59,920 have to have the enforcement of the county. The county has a health department. We do 4032 05:58:00,000 --> 05:58:13,780 And so it's just untenable. It's not the tobacco-less product, the flavorless product. 4033 05:58:14,600 --> 05:58:22,340 These tobacco purveyors, these 55 purveyors, what really struck me was the mom from Menlo 4034 05:58:22,340 --> 05:58:32,020 Park a month ago who said, all the kids know, oh yeah, just come to Redwood City and you're 4035 05:58:32,020 --> 05:58:34,280 14 years old, you can get whatever you want. 4036 05:58:34,880 --> 05:58:37,760 These businesses are very profitable. 4037 05:58:39,620 --> 05:58:45,720 Sometimes doing a legal activity is extraordinarily profitable and we're behind. 4038 05:58:45,720 --> 05:58:46,420 We're behind. 4039 05:58:47,400 --> 05:58:54,320 We've been spending two years to try to accommodate, to try to recognize the cultural aspect. 4040 05:58:55,360 --> 05:58:58,680 But now we don't have an option. 4041 05:59:00,000 --> 05:59:07,040 The option is flavorless tobacco. Who can still exist? We have to have the county in force. 4042 05:59:07,780 --> 05:59:15,340 We don't have the time and we do not have the money. And we don't. So I am going to be supporting, 4043 05:59:15,620 --> 05:59:18,800 as I did in April, I am going to be supporting this ordinance. 4044 05:59:21,320 --> 05:59:23,580 Thank you, Vice Mayor. We'll go to Council Member G. 4045 05:59:25,670 --> 05:59:31,790 Thank you, Mayor. You know, this is sort of a Sophie's choice. The way we have it right here. 4046 05:59:33,810 --> 05:59:38,330 And I want to pick up, Vice Mayor, a comment you just made and that we heard in April. 4047 05:59:38,590 --> 05:59:45,950 I went home and I try not to talk about politics at home, but I was talking to my daughter about this specific subject. 4048 05:59:46,250 --> 05:59:49,350 And she said the same thing you just shared that the woman that spoke in April. 4049 05:59:49,830 --> 05:59:54,910 All the youth know they want to buy tobacco or flavored tobacco or paraphernalia. 4050 05:59:55,390 --> 05:59:59,030 They just come to River City. The young people know that. 4051 05:59:59,030 --> 05:59:59,310 Thank you for watching. 4052 05:59:59,310 --> 05:59:59,990 I'll see you in the next video. 4053 06:00:00,000 --> 06:00:01,500 And that's because we don't have enforcement. 4054 06:00:02,240 --> 06:00:10,600 And so let's not forget the amount of time that we've been trying to do something here and work a compromise. 4055 06:00:10,960 --> 06:00:20,020 And if we do say, let's take the time to study, we're looking at two to three years of no enforcement. 4056 06:00:21,500 --> 06:00:26,360 The year and a half behind us and maybe a year in front of us, whatever, two to three years. 4057 06:00:26,360 --> 06:00:32,650 When I look at resources, it's not just money. Time is resource. 4058 06:00:33,850 --> 06:00:42,930 But more importantly, that's two years where youth have had an opportunity to come and buy product here in Redwood City. 4059 06:00:46,160 --> 06:00:51,640 And whether they get addicted, whether they tell their friends, that is a cost too. 4060 06:00:54,160 --> 06:00:58,840 We can't quantify it from a dollar standpoint. We can't quantify it from a general fund standpoint. 4061 06:00:58,840 --> 06:00:59,080 point. 4062 06:01:00,000 --> 06:01:02,180 But we know that they can buy it here. 4063 06:01:03,400 --> 06:01:06,020 They told us. It's easy. They all know. 4064 06:01:06,440 --> 06:01:09,120 The young people in the region know they just come to Redwood City. 4065 06:01:10,720 --> 06:01:15,780 So, you know, it's not easy being here at the desk at this late hour, 4066 06:01:15,780 --> 06:01:19,560 but it's not easy trying to figure out what's more important. 4067 06:01:21,890 --> 06:01:25,610 The community at large, as councilmember Howard stated, 4068 06:01:26,910 --> 06:01:29,430 or some of our businesses here. 4069 06:01:30,570 --> 06:01:33,210 And that is the kind of Sophie's choice we have. 4070 06:01:35,430 --> 06:01:41,850 At the end of the day, as I said in April, we've been very clear at Council and previous Councils 4071 06:01:41,850 --> 06:01:43,330 what our importance are. 4072 06:01:43,970 --> 06:01:47,170 And one of our strategic principles is youth and children. 4073 06:01:47,830 --> 06:01:49,070 That has been consistent. 4074 06:01:50,090 --> 06:01:52,850 Council Member Howard, I think that's gone back at least 10 years. 4075 06:01:52,850 --> 06:01:58,250 And that's been a guiding principle along with housing and transportation. 4076 06:01:59,050 --> 06:01:59,970 And that's not a mystery. 4077 06:02:01,280 --> 06:02:06,700 That's reported in every year budget at this time, what our strategic guiding principles 4078 06:02:06,700 --> 06:02:13,780 are. And so, unfortunately, if I have to make a Sophie's choice, I have to pick our young 4079 06:02:13,780 --> 06:02:16,780 people and our community's health. 4080 06:02:19,030 --> 06:02:22,330 I wish there were more choices, but when we look at a year 4081 06:02:22,330 --> 06:02:26,890 and a half gone or whatever that number is and another nine months forward, that's two 4082 06:02:26,890 --> 06:02:32,350 years of our young people being able to come to Redwood City and buy whatever they want, 4083 06:02:32,790 --> 06:02:39,370 whatever they want, irregardless of law at the state level and at the county level. 4084 06:02:40,450 --> 06:02:43,370 And that's a terrible choice to have to be made here at the council. 4085 06:02:44,330 --> 06:02:46,790 But that's what we have to do this evening. 4086 06:02:52,640 --> 06:02:53,640 Thank you, council members. 4087 06:02:54,720 --> 06:02:55,820 Not seeing any other lights. 4088 06:02:56,240 --> 06:02:57,680 I'll jump into my remarks. 4089 06:02:57,880 --> 06:02:59,460 Thank you again to the members of the public. 4090 06:03:00,000 --> 06:03:03,580 In person and online, it's almost Tuesday, and we're still here. 4091 06:03:06,700 --> 06:03:14,740 I want to just first say, I know that there has been an incredible amount of community time, staff time to get us to this point. 4092 06:03:17,380 --> 06:03:24,280 And I know this isn't an easy decision, and, you know, I said this in April that I would be, 4093 06:03:24,280 --> 06:03:31,880 And I said this in the previous fall that I would be open to coming up with the city 4094 06:03:31,880 --> 06:03:32,820 ordinance, right? 4095 06:03:32,960 --> 06:03:36,580 And as we got more information, it made it harder and harder to see that as a viable 4096 06:03:36,580 --> 06:03:36,980 path. 4097 06:03:37,060 --> 06:03:44,640 But I'm curious, if we went down this path and I heard some comments around enforcement, 4098 06:03:45,660 --> 06:03:49,480 what level of enforcement could we offer in the meantime if we gave this another 4099 06:03:49,480 --> 06:03:59,980 two years and knowing the cost recovery issues or complexities there what would be a, I guess 4100 06:04:00,000 --> 06:04:05,960 It's a potential solution for cost recovery, knowing that Prop 26 won't let us get full recovery 4101 06:04:05,960 --> 06:04:06,600 through the fees. 4102 06:04:11,020 --> 06:04:18,380 I'll take a shot at this. I think, keep in mind, when we first looked at this about a 4103 06:04:18,380 --> 06:04:23,060 year and a half ago, we looked at PD having a heavy role. If we were going to do something 4104 06:04:23,060 --> 06:04:27,900 to enter them, I would probably lean on the police chief to implement. I don't know 4105 06:04:27,900 --> 06:04:30,920 how folks feel about that. The reason why I say that is because they do work closely 4106 06:04:30,920 --> 06:04:36,720 with the county now, they are involved in many task force that are in this space, that 4107 06:04:36,720 --> 06:04:41,520 would come at a considerable cost in the interim while we would put a program together. 4108 06:04:42,600 --> 06:04:48,320 So I'd say, because I agree with the sentiment, a lot of folks here is, my concern isn't the 4109 06:04:48,320 --> 06:04:48,840 three hookah business. 4110 06:04:48,980 --> 06:04:50,280 I think they're standout businesses. 4111 06:04:50,760 --> 06:04:54,260 I've gotten to know David well and I've really tried to learn the business. 4112 06:04:55,060 --> 06:04:58,040 I'm not saying all 52 of the other businesses are bad actors. 4113 06:04:58,740 --> 06:04:59,640 I think we know 15. 4114 06:05:00,460 --> 06:05:06,120 That's a lot. And so if we were to consider something in the short term, I think we would 4115 06:05:06,120 --> 06:05:10,040 have to make some decision to have some level enforcement that would probably be led by our 4116 06:05:10,040 --> 06:05:15,500 police department. Now the chief isn't here, but I think they're the only one. Our co-enforcement 4117 06:05:15,500 --> 06:05:23,420 has no idea how to implement this. Our co-enforcement right now has 300 cases per person. I wouldn't 4118 06:05:23,420 --> 06:05:27,300 feel comfortable giving them this right now in the interim why we figured it out. So 4119 06:05:27,300 --> 06:05:30,540 So I think we could put a plan together, but it'd probably be led by the police department. 4120 06:05:33,310 --> 06:05:33,770 Thank you, Patrick. 4121 06:05:33,930 --> 06:05:36,250 And the second question was just around cost recovery. 4122 06:05:38,730 --> 06:05:40,130 Are you talking near term or long term? 4123 06:05:41,110 --> 06:05:41,330 Both. 4124 06:05:41,750 --> 06:05:42,370 Yeah, I'm just curious. 4125 06:05:42,530 --> 06:05:43,830 In the interim, I guess, before we came up with. 4126 06:05:43,830 --> 06:05:45,250 In the interim, I think, yeah. 4127 06:05:45,490 --> 06:05:49,590 I mean, it was not in the budget, but I think the general fund would have to bear 4128 06:05:50,290 --> 06:05:54,670 it right now until we went through a process and we, you know, just because we have 4129 06:05:54,670 --> 06:05:59,050 a handful of businesses that said, we're willing to pay this, there's 52 businesses 4130 06:05:59,050 --> 06:05:59,830 is to have no pie. 4131 06:06:01,300 --> 06:06:06,660 We just got the proposal on Friday. That's the first I saw it. So it's almost like starting 4132 06:06:06,660 --> 06:06:12,680 over, right? You know, I mean, those fees that were being proposed are a lot higher than what 4133 06:06:12,680 --> 06:06:16,500 the county's program would be. So I think, and who's leading the effort, is that, you 4134 06:06:16,500 --> 06:06:19,160 know, so I think there's a lot to think through on that process. 4135 06:06:20,860 --> 06:06:24,640 Thank you. And did you have something to add? 4136 06:06:24,640 --> 06:06:34,500 I just had a clarifying question, because the assumption of your question, we can't just 4137 06:06:34,500 --> 06:06:39,100 start enforcing we first have to write a regulation. 4138 06:06:39,460 --> 06:06:47,280 So it's not like just tomorrow, like in 15 minutes we could go bust the 15 bad actors 4139 06:06:47,280 --> 06:06:49,400 even if the police could, right? 4140 06:06:49,560 --> 06:06:51,560 We would still need a year. 4141 06:06:51,700 --> 06:06:53,000 There is no short term. 4142 06:06:53,000 --> 06:06:58,000 We would still need a year or more to craft an ordinance. 4143 06:06:58,320 --> 06:06:59,660 Is that not correct? 4144 06:07:00,000 --> 06:07:06,620 So that's correct. We don't currently have anything regulating our tobacco retailers. 4145 06:07:06,960 --> 06:07:16,100 And so we cannot enforce the tobacco retailers and their selling of, you know, kind of tobacco product. 4146 06:07:16,700 --> 06:07:24,780 What we can do in the interim is we do have prohibitions in our code, and to the extent 4147 06:07:24,780 --> 06:07:29,760 And any of our retailers, whether they're tobacco retailers or not, because there is 4148 06:07:29,760 --> 06:07:35,540 no such thing right now, Redwood City doesn't have a program, and the county stopped issuing 4149 06:07:36,080 --> 06:07:38,680 any tobacco permits to anyone. 4150 06:07:39,800 --> 06:07:46,520 But anyone who is selling products that are not allowed, we can enforce. 4151 06:07:46,520 --> 06:07:56,000 So, any illicit activity, any flavored tobacco that's prohibited under our code, any paraphernalia 4152 06:07:56,000 --> 06:07:58,680 that's prohibited under our code, we can... 4153 06:08:11,330 --> 06:08:22,750 I don't understand your answer. You're saying we can, but we can't. I don't understand the difference. You're saying we can't do it without an ordinance, but if there's a prohibition, we can. I don't understand. 4154 06:08:22,750 --> 06:08:24,950 Okay, let me try again. 4155 06:08:25,630 --> 06:08:34,070 So right now, the city has code, has ordinances that prohibit certain products and prohibit 4156 06:08:34,070 --> 06:08:35,690 the sale of certain products. 4157 06:08:36,570 --> 06:08:40,730 And so we can enforce those, any violations of those. 4158 06:08:42,730 --> 06:08:49,250 What we don't have is any, well, we have an ordinance that regulates tobacco retailers 4159 06:08:49,250 --> 06:08:54,430 but it points to the county and so there's no effect to that. That's what we can't enforce. 4160 06:08:55,230 --> 06:08:59,810 We cannot go against any tobacco retailers for not having a 4161 06:09:11,160 --> 06:09:19,460 And then I have a question. So if I'm understanding correctly, then if there are stores, I won't 4162 06:09:19,460 --> 06:09:24,160 even call them tobacco retailers because they don't have permits at this time. So if there 4163 06:09:24,160 --> 06:09:30,960 are stores that are selling flavored vapes, e-cigs, which are currently illegal in the 4164 06:09:30,960 --> 06:09:35,980 of California and we have so that is a prohibition then by what you're saying 4165 06:09:35,980 --> 06:09:43,300 could we not now, could we not now, then could we not now be allowing our PD to go 4166 06:09:43,300 --> 06:09:45,080 in and enforce that now? 4167 06:09:47,600 --> 06:09:50,540 Would someone speak to that? I'm happy to speak to that. 4168 06:09:52,200 --> 06:09:55,880 So vapes and e-cigarettes are not banned at the state only flavored tobacco 4169 06:09:55,880 --> 06:09:59,960 was banned at the state so that's one thing. But yeah, 4170 06:10:00,000 --> 06:10:08,780 Yes, we could. We have not traditionally done a proactive code enforcement or proactive seeking 4171 06:10:08,780 --> 06:10:16,220 out of this. So that would be a change in practice. If we did do it, we could do it. Our current 4172 06:10:17,310 --> 06:10:23,560 administrative citation for having a prohibited product is $100 for the first violation, $200 4173 06:10:23,560 --> 06:10:29,380 for the second violation and $500 for the third violation. So I don't think we can issue 4174 06:10:29,380 --> 06:10:30,600 do that on every single one. 4175 06:10:31,400 --> 06:10:33,540 I think it's just you have it or you don't. 4176 06:10:34,160 --> 06:10:37,420 So it's not a great stick. 4177 06:10:38,680 --> 06:10:39,600 What do you mean? 4178 06:10:39,660 --> 06:10:41,640 Do you mean per violation, per visit? 4179 06:10:43,020 --> 06:10:45,720 It's not like you get to give $100 violation 4180 06:10:45,720 --> 06:10:49,160 for every single flavored tobacco product that 4181 06:10:49,160 --> 06:10:49,840 is in the store. 4182 06:10:49,920 --> 06:10:50,800 OK, it's for the store. 4183 06:10:51,240 --> 06:10:53,320 Yeah, one flavored tobacco citation. 4184 06:10:53,960 --> 06:10:55,400 But then are they then confiscated? 4185 06:10:55,540 --> 06:10:56,300 Can someone just explain? 4186 06:10:56,480 --> 06:10:58,540 The California Department of Public Health 4187 06:10:58,540 --> 06:10:59,600 doesn't force. 4188 06:11:00,000 --> 06:11:04,760 And they can confiscate. You would have to report that. We wouldn't be involved in that. 4189 06:11:05,000 --> 06:11:11,860 And so that would be within their own enforcement actions, and we wouldn't have anything to do with that. 4190 06:11:12,000 --> 06:11:12,820 But you could report it. 4191 06:11:13,800 --> 06:11:14,460 Thank you. 4192 06:11:17,310 --> 06:11:19,470 Thank you, Amanda. Councilmember Gee. 4193 06:11:20,870 --> 06:11:24,850 Unfortunately, having to make a motion to extend the meeting to 1230. 4194 06:11:27,360 --> 06:11:27,860 Is there a second? 4195 06:11:28,740 --> 06:11:31,880 Thank you. That was Gee and Sturkin. Could we get a quick vote, please? 4196 06:11:31,880 --> 06:11:32,860 Motion 4197 06:11:44,540 --> 06:11:47,040 passes with six votes. Councilmember Chiu is absent. 4198 06:11:49,640 --> 06:11:50,500 Thank you for the motion. 4199 06:11:50,860 --> 06:11:56,820 Councilmember Serkin, your light's still on. That's one final comment from myself. 4200 06:11:57,440 --> 06:11:59,980 That's really helpful clarification because I think I 4201 06:12:00,000 --> 06:12:04,700 That was under the impression that we could not enforce, period, currently. And that's not 4202 06:12:04,700 --> 06:12:11,680 the case with specifically flavored tobacco products. And so to Councilmember Gee's concern and our 4203 06:12:11,680 --> 06:12:19,140 shared concern about prioritizing youth and families and protecting them from the danger 4204 06:12:19,140 --> 06:12:24,760 of tobacco, we could do something about that right now in answer him while we explore 4205 06:12:24,760 --> 06:12:26,360 or our alternative option. 4206 06:12:26,480 --> 06:12:29,080 So I just wanted to clarify that that is an option 4207 06:12:30,120 --> 06:12:34,000 that we are choosing either to pursue or not. 4208 06:12:34,440 --> 06:12:38,580 And that's all I wanted to say. 4209 06:12:38,780 --> 06:12:38,980 Thank you. 4210 06:12:40,580 --> 06:12:41,700 Thank you, Council Member Serkin. 4211 06:12:41,920 --> 06:12:44,580 And I just wanted to clarify, 4212 06:12:46,500 --> 06:12:48,200 wasn't it our understanding 4213 06:12:48,200 --> 06:12:50,320 that some of these problem actors 4214 06:12:50,320 --> 06:12:52,640 were getting targeted enforcement 4215 06:12:52,640 --> 06:12:56,140 and were just able to address these fines 4216 06:12:56,140 --> 06:12:58,380 with their income that they're already receiving. 4217 06:13:02,480 --> 06:13:13,140 Yes, and so, you know, Ms. Anthony kind of identified what those fines are, and some of the businesses just see that as the cost of doing business. 4218 06:13:13,500 --> 06:13:16,300 And so it's why it hasn't been very effective. 4219 06:13:17,400 --> 06:13:22,650 And I know, Amanda, you had mentioned $500 was the top fine. 4220 06:13:22,650 --> 06:13:25,610 then is there within the current framework an ability to, 4221 06:13:26,510 --> 06:13:30,190 there is no permit, so it's not like you could strip them of their license, 4222 06:13:30,510 --> 06:13:34,150 but would it just go back to $100 or how does that work? 4223 06:13:34,530 --> 06:13:38,430 No, the third and subsequent violations would be $500, 4224 06:13:38,990 --> 06:13:42,710 so it would be continuing to go out, and if they 4225 06:13:42,710 --> 06:13:45,770 continued to sell it, then it would be another $500 and another $500. 4226 06:13:46,090 --> 06:13:50,950 The discussion is how often do you visit? I mean, if you had the capacity, 4227 06:13:50,950 --> 06:13:55,430 you could visit every day. But I don't know that we have the capacity to do that. 4228 06:13:56,190 --> 06:13:56,870 Right, okay. 4229 06:13:58,070 --> 06:13:59,010 One last question, Mayor. 4230 06:14:00,000 --> 06:14:09,020 Then, that just gave me an idea. So I'm thinking, if you said, if it's a 500, who sets this fine, 4231 06:14:09,140 --> 06:14:15,420 who determines this fine and is there ability for the fine to be, I mean clearly if it's 4232 06:14:15,420 --> 06:14:20,760 being considered as a cost to play to play, then it's too low, then it's not high enough. 4233 06:14:20,880 --> 06:14:22,040 So who sets this fine? 4234 06:14:24,480 --> 06:14:30,340 I believe right now it is set by resolution. And so we could bring 4235 06:14:30,340 --> 06:14:35,820 a resolution to update that, we would have to do some research on what other cities are 4236 06:14:35,820 --> 06:14:40,120 using as fines, and we could use the county's framework as a possibility. 4237 06:14:40,720 --> 06:14:41,020 Thank you. 4238 06:14:41,400 --> 06:14:46,440 Just to finish then, that actually, that seems like, I don't know why we wouldn't be doing 4239 06:14:46,440 --> 06:14:50,640 that in parallel, because it seems like that there is this fallacy that we've had 4240 06:14:50,640 --> 06:14:56,060 this like either do your own or the county or you can't afford to do it, but it appears 4241 06:14:56,060 --> 06:14:59,780 that we actually have resources to address the need which is of 4242 06:15:00,000 --> 06:15:20,500 I'm concerned to all of us, which is people under 21, youth getting flavored tobacco. So it seems like we have enforcement mechanisms, and then we also have the ability as a council to maybe make a new resolution that has a higher fee where these businesses wouldn't think it's just a slap in the wrist. 4243 06:15:20,720 --> 06:15:26,840 And it could also be revenue generating and address some of the problems we're having in our future. So I would like to put that out there. Thank you. 4244 06:15:28,060 --> 06:15:30,300 Thank you, Council Member Weissmeyer. 4245 06:15:31,280 --> 06:15:35,860 Again, I just want to add that that's that runway of two years. 4246 06:15:36,220 --> 06:15:43,880 It's not like we click our fingers, we have to draft, we have to study, we have to do all that. 4247 06:15:44,260 --> 06:15:53,700 And I don't think we're looking enough at the fact that there is tobacco-less, flavorless hookah. 4248 06:15:53,700 --> 06:15:59,340 And, you know, you're going like, on the one side, 4249 06:16:00,000 --> 06:16:09,180 14-year-olds easily accessing super illegal stuff that's highly profitable, even if we made 4250 06:16:09,180 --> 06:16:18,340 the fine, $2,000. This is highly, highly profitable to do because it's the entire Bay Area that 4251 06:16:18,340 --> 06:16:27,780 comes to Redwood City. None of these tobacco places exist in Atherton, Menlo Park, San Carlos. 4252 06:16:28,380 --> 06:16:35,860 They run out of town on a rail, 50, you know, we have 15 of them in Redwood City and everyone knows that. 4253 06:16:36,500 --> 06:16:43,680 So they're highly profitable. They've got customers from all over the county, 800,000 people. 4254 06:16:43,960 --> 06:16:50,920 So I just don't want us to think that, oh, we have a snap of the finger solution. 4255 06:16:51,700 --> 06:16:59,980 Again, this is like two years away at the soonest, and I don't think we've put 4256 06:17:00,000 --> 06:17:06,480 There's enough on flavorless hookah, tobacco-less hookah, which San Francisco already does. 4257 06:17:10,880 --> 06:17:12,960 Thank you, Vice Mayor, Councilor Schurkin. 4258 06:17:13,040 --> 06:17:21,120 Final, final comment, I swear. So I support Councilor Morrardia's suggestion or line of 4259 06:17:21,120 --> 06:17:26,320 questioning. I think that it sounds like that is a resolution that could be done much 4260 06:17:26,320 --> 06:17:40,780 more quickly in parallel with a city-run program as an interim solution to discourage these 4261 06:17:40,780 --> 06:17:48,180 businesses from continuing to sell flavored tobacco. So I just wanted to throw my support 4262 06:17:48,180 --> 06:17:48,820 behind that. 4263 06:17:48,820 --> 06:17:51,630 Thank you both. 4264 06:17:51,850 --> 06:17:52,470 Council Member Howard. 4265 06:17:53,850 --> 06:17:59,790 I also don't want, I don't want us to forget that we're talking about using our police department. 4266 06:18:00,500 --> 06:18:06,180 That really concerns me. We have so many issues going on in our community. 4267 06:18:08,140 --> 06:18:14,860 I'm sorry. I can't support this because, I mean, from a public health aspect, I've made that clear. 4268 06:18:15,300 --> 06:18:22,800 But to have our police department be doing this job when the county is already offering to do it. 4269 06:18:23,500 --> 06:18:26,680 I can't support that. That doesn't make economic sense. 4270 06:18:26,680 --> 06:18:31,440 I think that would just, well, if we're going to have trouble, we're going to have even more 4271 06:18:31,440 --> 06:18:35,920 trouble because that money is just going to add up and add up. 4272 06:18:36,200 --> 06:18:39,020 I don't think you're going to make it back just by raising the fines. 4273 06:18:39,740 --> 06:18:42,480 I think that's just very naive to think that. 4274 06:18:43,040 --> 06:18:47,360 So I can't support doing this, I just can't. 4275 06:18:48,380 --> 06:18:53,700 Here we are talking about being disciplined and trying to save our money and make sure 4276 06:18:53,700 --> 06:18:59,780 that we run a very sustainable community and we're not doing that if we go down this path. 4277 06:19:00,400 --> 06:19:06,700 I'm sorry, I respect every one of you and you're all entitled to the opinion, but that's how I personally feel. 4278 06:19:09,150 --> 06:19:11,590 Thank you, Council Member Howard. State Manager. 4279 06:19:12,070 --> 06:19:25,730 Yeah, I'd like to clarify my comment earlier on, so about 20 minutes ago when I mentioned the police department, I was just trying to think on the five who in this organization would even have the ability to scratch the surface on this and it would be the police department. 4280 06:19:25,910 --> 06:19:30,130 I didn't want anybody to take that, we absolutely don't have the capacity to do that. 4281 06:19:31,070 --> 06:19:39,050 You know, Chief Bell isn't here to ask, I mean, what I was talking about in so far as we get a lot of complaints from smoke shops, 4282 06:19:39,170 --> 06:19:41,130 not in Hookah Lounge, but from smoke shops. 4283 06:19:41,450 --> 06:19:47,470 And I think we have the right to investigate those complaints outside of a regulatory framework of an ordinance. 4284 06:19:48,090 --> 06:19:54,830 And so that's what I was getting at by saying we could in the event, you know, if there was like an emergency, the police department could step in. 4285 06:19:55,310 --> 06:19:58,410 I too don't think it's the best use of the police department to do it. 4286 06:19:58,410 --> 06:19:59,930 I think it would be, you know. 4287 06:20:00,600 --> 06:20:05,740 Overly expensive. Also, it's very similar to the rent control discussion in that what happens 4288 06:20:05,740 --> 06:20:11,700 if there's five litigations? Wrong hook for that. You know, if there's 55 shops and we're 4289 06:20:11,700 --> 06:20:15,940 going to go proactively code and force, you know, and there's the counties heading towards 4290 06:20:15,940 --> 06:20:19,640 litigation on several fronts right now in some of these shops. Again, not the hook 4291 06:20:19,640 --> 06:20:23,960 or establishments. I'm not mentioning that. It could turn into an open end of check. 4292 06:20:24,140 --> 06:20:27,800 Very similar. One thing that's nice about the county ordinance is they're on the 4293 06:20:27,800 --> 06:20:29,400 hook for the litigation, you know, 4294 06:20:29,480 --> 06:20:31,120 or maybe there's some reason why we have to get involved, 4295 06:20:31,220 --> 06:20:33,420 but for the most part, that's my biggest fear. 4296 06:20:33,700 --> 06:20:36,020 I know a cause is the litigation of enforcement 4297 06:20:36,020 --> 06:20:37,280 on this program. 4298 06:20:38,440 --> 06:20:40,260 Yes, I just wanted to proffer that and clarify. 4299 06:20:40,760 --> 06:20:41,080 Thank you. 4300 06:20:42,240 --> 06:20:43,020 Thank you, Patrick. 4301 06:20:44,140 --> 06:20:45,680 And I'm seeing anyone else's lights on. 4302 06:20:48,320 --> 06:20:53,380 Again, I'll take the mic and I said this 4303 06:20:53,380 --> 06:20:57,040 at our last meeting that there are a few things 4304 06:20:57,040 --> 06:20:57,840 things going on here. 4305 06:21:00,460 --> 06:21:07,580 There aren't words, but how unfortunate it is that hookah lounges who have been good actors, who are great businesses in Robert City, 4306 06:21:07,940 --> 06:21:19,180 are being pulled into this. And that being said, I appreciate my colleagues helping us get creative and think about this, right? 4307 06:21:21,020 --> 06:21:27,360 I was right there with you all when we had this conversation last fall because I see the value of these businesses. 4308 06:21:28,020 --> 06:21:40,380 And I'm stuck on these businesses, these 15 businesses who are knowingly and openly breaking 4309 06:21:40,380 --> 06:21:45,400 the law and selling to a vulnerable population of people who don't know what they're doing. 4310 06:21:45,980 --> 06:21:50,780 I have a hard time imagining that if we raise the fines, that they're not going to keep 4311 06:21:50,780 --> 06:21:52,020 paying those fines, right? 4312 06:21:52,740 --> 06:21:59,960 We need the ability to shut these businesses down and having the permit right is our ability to pull 4313 06:22:00,000 --> 06:22:05,780 Roll that and make sure it doesn't happen again, right? But although, you know, charging these 4314 06:22:05,780 --> 06:22:09,940 folks some fines in the interim could be a revenue driver, we would just, we would be allowing 4315 06:22:10,540 --> 06:22:13,880 a problem to continue going on. So that just, that gives me such heartburn. 4316 06:22:16,380 --> 06:22:17,140 And we've put 4317 06:22:17,140 --> 06:22:20,100 in so much time to get to this point. And so I, 4318 06:22:22,390 --> 06:22:23,590 it's a tough call, but I'm sticking 4319 06:22:23,590 --> 06:22:28,750 with staff's recommendation. And to our hookah lounges, I'll make this commitment 4320 06:22:28,750 --> 06:22:32,650 that with the economic vitality plan, 4321 06:22:32,930 --> 06:22:35,630 I mean, absolutely, I think as council members, 4322 06:22:36,530 --> 06:22:38,310 as policy makers, we could think about 4323 06:22:38,310 --> 06:22:43,410 more creative ways to help support your businesses, right? 4324 06:22:43,730 --> 06:22:47,010 And I'll leave it there. 4325 06:22:47,230 --> 06:22:49,650 I think there are more opportunities. 4326 06:22:50,690 --> 06:22:53,690 I know the non-tobacco hookah 4327 06:22:53,690 --> 06:22:58,090 isn't the hot idea that I think we all would love it to be 4328 06:22:58,090 --> 06:22:59,050 as a replacement. 4329 06:23:00,000 --> 06:23:10,800 But I think we have put in so much time and staff time and council conversations that we've got to make that worth it. 4330 06:23:11,580 --> 06:23:15,960 So I'll stick with staff's recommendation and I'll make that motion. 4331 06:23:17,180 --> 06:23:17,760 Second. 4332 06:23:20,200 --> 06:23:25,740 Thank you. That was a motion for myself, a second from the vice mayor. Could we get an electronic vote please? 4333 06:23:25,740 --> 06:23:26,580 The 4334 06:23:40,120 --> 06:23:45,300 motion passes with four votes. Council Member Sturkin and Council Member Padilla 4335 06:23:45,300 --> 06:23:49,040 Opposed and Council Member Chu with absent. Thank you. 4336 06:23:51,200 --> 06:23:52,120 And thank you to my 4337 06:23:52,120 --> 06:23:55,860 colleagues. Thank you to our public commenters again for being here. 4338 06:23:57,960 --> 06:23:58,500 Thank 4339 06:23:58,500 --> 06:23:59,860 you all the time for public 4340 06:24:00,000 --> 06:24:03,200 Common ended. So we're going to continue with our meeting here. 4341 06:24:05,760 --> 06:24:07,780 Thank you. We're going to get 4342 06:24:07,780 --> 06:24:14,180 back to our item here at the dais. And we're moving right into 11B, our sewer service charges. 4343 06:24:20,620 --> 06:24:23,540 And we will give folks a few minutes to walk out. 4344 06:24:42,530 --> 06:24:46,990 Good evening, Mayor Martinez. Savio's members of city council and members of the public. 4345 06:24:47,430 --> 06:24:54,330 I'm Linda Chang and I'm filling in as the acting superintendent for Wastewater at 4346 06:24:54,330 --> 06:24:54,890 public works. 4347 06:24:55,450 --> 06:24:58,470 Thank you for the opportunity to present a proposal to you 4348 06:24:58,470 --> 06:24:59,970 this evening for continuing to work with us. 4349 06:25:00,000 --> 06:25:04,740 Continuing the collection of sewer service charges on the tax roll for residential customers 4350 06:25:04,740 --> 06:25:06,420 in the upcoming fiscal year. 4351 06:25:10,540 --> 06:25:13,520 As we approach the fifth consecutive year for this initiative, 4352 06:25:13,780 --> 06:25:19,540 this item may be quite familiar. Prior to the public hearing and council discussion, I will 4353 06:25:19,540 --> 06:25:24,220 provide a brief background about the reasons for this initiative and share an update on 4354 06:25:24,220 --> 06:25:26,380 the progress of this five-year pilot program. 4355 06:25:30,740 --> 06:25:33,120 The main question staff is bringing for council 4356 06:25:33,120 --> 06:25:39,040 consideration is if there is support to continue billing sewer service charges on the county tax 4357 06:25:39,040 --> 06:25:46,860 roll for residential customers with one dwelling unit per parcel in the upcoming 2026-27 fiscal year. 4358 06:25:49,560 --> 06:25:55,200 The initiative to collect sewer charges on the property tax roll stemmed from an effort to 4359 06:25:55,200 --> 06:25:59,980 improve efficiencies and reduce costs for the city. The city 4360 06:26:00,000 --> 06:26:04,740 City council first approved the collection of sewer charges on the tax roll for certain 4361 06:26:04,740 --> 06:26:11,500 residential customers beginning with fiscal year 2022-23. The program began as a five-year 4362 06:26:11,500 --> 06:26:20,400 pilot program and next year marks our fifth year. The notable anticipated benefits of this 4363 06:26:20,400 --> 06:26:25,520 initiative first and foremost was revenue reliability. The county guarantees payment 4364 06:26:25,520 --> 06:26:29,780 of the total amount submitted for collection and so in addition to greatly 4365 06:26:29,780 --> 06:26:34,860 aiding and forecasting and budgeting this revenue reliability also aids in 4366 06:26:34,860 --> 06:26:39,400 improving the city's financial position which is particularly beneficial when 4367 06:26:39,400 --> 06:26:45,360 the city is considering pursuing outside financing such as bonds. A dependable 4368 06:26:45,360 --> 06:26:49,740 revenue source has the potential to improve the city's bond rating which 4369 06:26:49,740 --> 06:26:54,020 could lead to lower interest rates and a subsequent benefit of cost 4370 06:26:54,020 --> 06:26:55,780 savings during 4371 06:26:58,470 --> 06:26:59,890 this five-year pilot period. 4372 06:27:00,000 --> 06:27:06,400 Staff is monitoring trends in two areas to ensure this initiative is not having an unintended 4373 06:27:06,400 --> 06:27:12,060 consequence for our customers. One trend we are monitoring is the enrollment rate in our 4374 06:27:12,060 --> 06:27:18,780 utility rate assistance program, which provides utility credits for eligible customers on their 4375 06:27:18,780 --> 06:27:24,360 utility bill and operates on a calendar year basis. The chart graphs the enrollment of 4376 06:27:24,360 --> 06:27:27,160 our sewer utility rate credits over the last six years, 4377 06:27:27,640 --> 06:27:29,800 with 2021 being the year 4378 06:27:29,800 --> 06:27:32,160 before this billing initiative went into effect. 4379 06:27:33,000 --> 06:27:35,080 We have not observed a marked change 4380 06:27:35,080 --> 06:27:37,080 in the rate of enrollment over the course 4381 06:27:37,080 --> 06:27:38,520 of this pilot program period 4382 06:27:38,520 --> 06:27:40,860 to raise concerns about this transition 4383 06:27:40,860 --> 06:27:42,040 and the billing method. 4384 06:27:42,900 --> 06:27:46,060 The number of customers receiving sewer utility credits 4385 06:27:46,060 --> 06:27:48,220 through our utility rate assistance program 4386 06:27:48,960 --> 06:27:50,420 across the last five years 4387 06:27:50,420 --> 06:27:52,620 suggests that many parcel owners 4388 06:27:52,620 --> 06:27:59,140 have adjusted to the new billing method and that there are no significant impacts to vulnerable communities. 4389 06:28:00,000 --> 06:28:02,720 Staff can attribute to the change in sewer billing method. 4390 06:28:03,700 --> 06:28:09,680 Staff will continue to assess the program annually, track trends and fluctuations in default rates, 4391 06:28:10,320 --> 06:28:15,680 and you wrap enrollment numbers and share any learnings and recommendations as appropriate. 4392 06:28:19,460 --> 06:28:24,960 In addition to the enrollment rate, another metric we track is the county's property tax default rate, 4393 06:28:25,140 --> 06:28:29,180 which is made available following the end of each fiscal year from the county. 4394 06:28:29,180 --> 06:28:35,100 A parcel is considered in default if one or both of the property tax installments payments 4395 06:28:35,100 --> 06:28:36,100 is outstanding. 4396 06:28:37,060 --> 06:28:42,580 Staff receive a list of parcels in default from the county, and this list is refined to 4397 06:28:42,580 --> 06:28:46,520 reflect only our sewer customers, which we compare year to year. 4398 06:28:47,220 --> 06:28:52,140 Even before the introduction of the pilot program to the most current data for fiscal 4399 06:28:52,140 --> 06:28:58,480 year 24-25, the property tax default rate has remained consistently below half a percentage. 4400 06:29:00,000 --> 06:29:06,760 For the current fiscal year 2025-26 is not yet available as the county only considers a 4401 06:29:06,760 --> 06:29:13,300 parcel in default if the entire property tax bill remains unpaid as of June 30th of the 4402 06:29:13,300 --> 06:29:19,700 billing year. So I'm pleased to report for neither of these two metrics that we are currently 4403 06:29:19,700 --> 06:29:25,780 tracking that the utility rate assistance program enrollment nor the rate of default 4404 06:29:25,780 --> 06:29:28,260 out from the county seem to indicate concerns 4405 06:29:28,260 --> 06:29:30,000 with transition of the billing method. 4406 06:29:35,100 --> 06:29:37,080 So in closing staff's recommendation 4407 06:29:37,760 --> 06:29:39,420 is that following the public hearing 4408 06:29:39,420 --> 06:29:42,220 if there is no majority protest for the city council 4409 06:29:42,220 --> 06:29:44,560 to consider adopting a resolution 4410 06:29:44,560 --> 06:29:46,600 to continue the collection of sewer charges 4411 06:29:47,340 --> 06:29:50,140 for one dwelling unit parcels on the tax roll 4412 06:29:50,140 --> 06:29:53,160 for next fiscal year 2026, 27. 4413 06:29:56,510 --> 06:29:58,210 This concludes my presentation 4414 06:29:58,210 --> 06:29:59,970 and I would like to thank you very much. 4415 06:30:00,000 --> 06:30:05,760 Thank you for the opportunity to share the information to you. I'll now turn this back to Mayor Martinez-Savaios. 4416 06:30:07,200 --> 06:30:14,540 Thank you, Linda, for the great presentation and for sticking with us. Let's open the public hearing for any public comment. 4417 06:30:15,280 --> 06:30:22,460 Thank you, Mayor. No comment cards. So last call in person or on Zoom for public comment on this item. 4418 06:30:26,400 --> 06:30:27,820 Seeing none, Mayor, I'll turn it back to you. 4419 06:30:27,820 --> 06:30:28,540 Great. 4420 06:30:31,000 --> 06:30:35,360 Thank you, City Clerk. And I'll bring it back to the City Council. Council Member Howard. 4421 06:30:36,140 --> 06:30:54,320 Great report. Great results. I'd like to make the motion that we, I guess that we support to continue the billing sewer service charges on the county tax roll for residential customers with one dwelling unit per parcel in fiscal year 26-27. 4422 06:30:56,370 --> 06:30:56,890 Second. 4423 06:30:57,670 --> 06:30:58,410 Great, that was a motion. 4424 06:30:58,770 --> 06:30:59,750 Council Member Howard. 4425 06:31:00,000 --> 06:31:02,220 Second from councilmember G. Could we get a vote, please? 4426 06:31:03,640 --> 06:31:10,300 And while we're waiting for the vote, I will confirm that a majority protest was not received for this. Thank you. 4427 06:31:10,740 --> 06:31:11,560 Thank you, City Clerk. 4428 06:31:18,700 --> 06:31:22,180 Motion passes with six votes. Councilmember Chu is absent. Thank you. 4429 06:31:23,240 --> 06:31:26,040 Thank you, colleagues. Thank you again, Linda. Appreciate the presentation. 4430 06:31:26,520 --> 06:31:30,940 And we'll move right into item 12, matters of council interest. 4431 06:31:31,820 --> 06:31:35,660 12A, city council member report of meetings and conferences attended. 4432 06:31:36,480 --> 06:31:43,420 Not seeing anyone, we'll keep going to 12B, and we have an update from our Climate Action Subcommittee, 4433 06:31:44,100 --> 06:31:45,680 and I'll pass things over to Council Member Sturkin. 4434 06:31:46,160 --> 06:31:49,260 Thank you, Mayor. The Climate Action Subcommittee met on Wednesday, May 20th. 4435 06:31:49,520 --> 06:31:53,280 San Mateo County Sustainability Staff presented on compost for climate solutions, 4436 06:31:53,960 --> 06:31:59,420 a program to meet the city's recovered organic product procurement requirements under SB 1383. 4437 06:31:59,420 --> 06:31:59,560 3. 4438 06:32:00,000 --> 06:32:07,200 An economic development staff presented on the Innovate Rebit City Speaker Series inaugural event featuring a 4439 06:32:07,200 --> 06:32:13,200 Rebit City-based heat pump company. And public works staff presented an update on the Bay Area 4440 06:32:13,200 --> 06:32:20,960 Air Districts Regulation 9, Rule 6, which regulates emissions from boilers and water heaters. The 4441 06:32:20,960 --> 06:32:24,840 committee received and discussed these presentations and provided their comments to the presenters. 4442 06:32:25,480 --> 06:32:29,040 Thank you, Council Member. We'll go to Council Member Gee for transportation. 4443 06:32:29,040 --> 06:32:30,040 Thank you, Mayor. 4444 06:32:30,620 --> 06:32:32,280 The Transportation and Mobility Subcommittee 4445 06:32:32,280 --> 06:32:34,000 comprised of Mayor Martina Cevillos, 4446 06:32:34,160 --> 06:32:36,800 Council Member Chu and myself, met on June 2nd. 4447 06:32:36,960 --> 06:32:40,420 Staff and the San Mateo County Transportation Authority, TA, 4448 06:32:41,060 --> 06:32:42,140 provided an update on the development 4449 06:32:42,140 --> 06:32:44,260 of the Peninsula Shuttle Program Optimization 4450 06:32:44,260 --> 06:32:50,500 and Funding Strategy for the years 2028 to 2033 funding cycle. 4451 06:32:51,160 --> 06:32:53,540 The subcommittee suggested modifications to two routes, 4452 06:32:53,680 --> 06:32:56,200 encouraged early discussions with private funding partners 4453 06:32:56,760 --> 06:32:58,620 regarding future local match requirements 4454 06:32:58,620 --> 06:32:59,980 are recommended that the TAU 4455 06:33:00,000 --> 06:33:04,860 Is a data-driven approach when selecting final routes and reconsider the proposed seven-year 4456 06:33:04,860 --> 06:33:10,140 local match commitment. The subcommittee inquired about the Caltrans El Camino Real Shop Bike 4457 06:33:10,140 --> 06:33:17,870 Safety Project and Broadway Pedestrian Mall. Thank you, Council Member, and quickly an 4458 06:33:17,870 --> 06:33:24,630 update on the ad hoc committee on special events. The ad hoc, which is comprised of 4459 06:33:24,630 --> 06:33:30,070 myself, Council Members Chu and Council Member Padilla, met on May 21st to discuss plans 4460 06:33:30,070 --> 06:33:33,010 for the upcoming summer schedule of community events. 4461 06:33:33,570 --> 06:33:35,230 The committee will reconvene in the fall 4462 06:33:35,230 --> 06:33:36,590 to assess the summer events. 4463 06:33:37,370 --> 06:33:40,370 The soccer on the square series is scheduled 4464 06:33:40,370 --> 06:33:43,790 to begin Tuesday, June 23rd and multiple watch parties 4465 06:33:43,790 --> 06:33:45,770 are scheduled throughout the World Cup tournament 4466 06:33:45,770 --> 06:33:49,850 through the final on Sunday, July 19th. 4467 06:33:49,850 --> 06:33:53,370 Fan zone match day events will include big screen viewing, 4468 06:33:53,790 --> 06:33:55,770 beer and wine sales by the Robert City Parks 4469 06:33:55,770 --> 06:33:57,610 and Art Foundation, Cornhole 4470 06:33:57,610 --> 06:33:59,170 and an inflatable play area. 4471 06:34:00,000 --> 06:34:07,260 And a select number of events will include a youth interactive zone with soccer club activations, 4472 06:34:07,740 --> 06:34:14,300 climbing walls, lawn games, and slack lines for kids. In addition, on Saturday, July 18, 4473 06:34:14,820 --> 06:34:19,620 Redwood City will activate its new entertainment zone as a part of the final weekend of playoffs. 4474 06:34:20,360 --> 06:34:25,060 The entertainment zone will allow adults to purchase alcoholic beverages from participating 4475 06:34:25,060 --> 06:34:31,560 businesses and consume them on Broadway between Jefferson and Main Streets from 11.30 a.m. 4476 06:34:31,580 --> 06:34:37,780 to 1 p.m. that day in coordination with the July 18th soccer on the square watch party. 4477 06:34:38,200 --> 06:34:41,700 And I'll turn things over to our city manager for 12 C. 4478 06:34:42,380 --> 06:34:47,180 No report tonight. Thank you. Thank you. And that leads us to adjournment. 4479 06:34:47,340 --> 06:34:52,900 Thank you everybody for joining us this evening and now morning and we'll see you June 22nd.