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Political Climate with Mark Simon: Redwood City’s budget woes are real

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Extremely Low Income Housing Takes Center Stage at Redwood City Planning Commission The Planning Commission and Housing and Human Concerns Committee express concerns about deeply affordable housing at Housing Element study session

We are at a point, it seems and to paraphrase Isaac Newton, that for every action, there is an opposite and cynical reaction.

No sooner did Redwood City mail out a report detailing the city’s fiscal woes, then it was labeled by critics as an expensive marketing piece, the implication, if not outright assertion, being that the city wasted public funds to tout an eventual sales tax measure.

For the sake of the permanent record, the “expensive” piece cost $16,000 to produce and mail to all 38,500 households in Redwood City, according to City Manager Melissa Stevenson Diaz.

That works out to 41.5 cents per household.

Not that actual information carries anywhere near the force of an opinion. Those intent on viewing any action by city government with suspicion cannot be deterred, unencumbered, as they often are, by what we used to call facts.

It’s quite likely that had the city proceeded with budget cuts and tax proposals and skipped the mailer, the same critics would have protested that there was too little communication to residents.

The mail piece is an understandable attempt by the city to inform its residents of some unpleasant choices ahead – millions of dollars in budget cuts and fee increases, or a possible sales tax increase to cover the shortfall.

Every city in California is facing the same problem as Redwood City in the form of pension obligations that exceed anyone’s expectations.

Widely disclosed investment losses and overly optimistic predictions of investment gains by the California Public Employees’ Retirement System (CalPERS) has forced cities to account for drastic increases in pension costs for retirees now and in the future.

This is not a function of mismanagement by the cities, but by the wizards of CalPERS, who were able to overestimate the longest sustained economic boom in recent American history. Where everybody else worried the boom might end one of these days, CalPERS saw only more good times.

For Redwood City, that means $12 million a year in additional costs for the next five years.

Public employee pensions are an ever-growing weight on city budgets, but they are also a promise made to current and past employees that cannot be dismissed or diminished. At that, current employees are working under a new system where they make a significant contribution to their retirement plans.

It’s not the same as the 100 percent private sector employees typically pay, but the days are gone of public employee pensions that are 100 percent funded by government. In the interests of full disclosure, I retired last year from public employment and receive a CalPERS pension.

The mail piece lays out the problem in a pretty straightforward manner and then provides a means by which residents can vote on a series of unappetizing cuts to the budget. The problem is that public safety makes up 60 percent of the city budget, park and recreation nearly 15 percent, the public libraries 7.5 percent and community planning and development another 7.3 percent.

Meanwhile, in a June 11 budget presentation to the City Council, Diaz offered $3 million in immediate cuts for the 2018-19 budget, including $1.2 million from the Police Department, $820,000 from the Fire Department, $487,000 from Parks and Recreation and $310,000 for Community Development, where, it should be noted, approvals of housing will be processed.

She held off eliminating positions for now, while the council considers its options, the most prominent being a half-cent sales tax on the November ballot.

That would generate about $8 million a year in new revenues and “none of (the cuts) would be on the table,” Diaz said.

What Redwood City is doing has been done or will have to be done at every other city government in the state.

Of course, the ever-eager cynic would say essential services are being held hostage to a greedy city staff intent on getting more money from taxpayers.

It’s an assertion that resonates in these unusually bitter times. Remember, then-candidate and eventual Gov. Arnold Schwarzenegger was elected having promised he would eliminate “waste, fraud and corruption.”

Unfortunately, he discovered there was no Department of Fraud he could simply slice from the budget. When he was done with his second term, state government actually was larger than when he started.

Similarly, there is no easy and obvious place to cut a city budget. What’s left is stuff most of us think cities actually ought to do.

It is said people get the government they deserve. It’s hard to stand by that remark, given some of the government we’re getting at the national level these days. A case could be made no one deserves that. Or, as another saying goes, even the wicked get worse than they deserve.

In either case, it is certainly safe to say people get the government they’re willing to pay for.

Contact Mark Simon at mark@climaterwc.com.

*The opinions expressed in this column are the author’s own and do not necessarily reflect the views of Climate Online.

1 home built for every 19 jobs created in San Mateo County

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http://hlcsmc.org/wp-content/uploads/2018/06/HLC2018-MovingReport-v7web-1.pdf

Only one home was built for every 19 jobs created in San Mateo County between 2010 and 2015, a new report states.

During that period, the county saw over 72,800 new jobs but just 3,844 new homes built, according to the report from the San Mateo Housing Leadership Council, citing figures provided by the California Economic Development Department (EDD) and U.S. Census.

The housing supply shortage is driving up prices to levels unaffordable to even high-wage workers and is forcing many to commute from long distances, worsening traffic, according to the study.

“Far too few homes are being built,” the report states. “With each year that passes, we are digging ourselves into a bigger hole, forcing more and more workers to commute long distances.”

And while it’s increasingly difficult for high salaried workers to find housing, it’s become “almost impossible for lower-income workers.”

“The result is that the greatest burden falls on those with the fewest resources: those who make the least have to travel the most, to jobs that are the least likely to be flexible,” according to the report.

With job growth projections for San Mateo County growing, more places to live will be required. About 48,000 jobs are expected to be added by 2024, nearly half of which are projected to pay less than $65,000 per year, the report says.

But as the ongoing housing supply shortage drives up prices, the cost to buy or rent a home is becoming increasingly out of reach for most San Mateo County workers, of whom nearly half make less than $50,000 annually.

“In San Mateo County, as of April 2018, the median cost of a single-family home was $1.6 million,” the report said. “Using the typical standard of housing affordability at 30-percent of income, a family (or an individual) would need to earn $383,000 per year to buy that home. Buying a median condo would require earning $225,000 per year.”

Almost 60,000 people in San Mateo County can only afford renting apartments under $1,000 per month, but just 9,000 of those apartments exist, the report added.

The exorbitant costs of living is contributing to worsening traffic as it has increased displacement. Between 2012 to 2015, evictions for failure to pay rent on time when up by nearly 60 percent, while “no-cause” evictions, which are no fault of the tenant, went up by 300-percent, the report states.

“As the cost of living rises in San Mateo County, and not enough new homes are built, families are being pushed out of the county entirely,” the report states. “San Mateo County commuters are not just causing traffic in San Mateo County. They are causing a ripple effect throughout the region: low-income workers in Alameda and Contra Costa County are being displaced by San Mateo County workers, causing long drive times even to communities that have not benefited from the recent tech boom.”

Moving forward, the report recommends adding housing to public transit corridors.

“Building transit-oriented development – new homes, jobs, shops and services close to public transit – enables new residents to take the train or bus, and shop nearby as well, for all their daily necessities,” the report states.

Historic District status considered for Mt. Carmel neighborhood

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Mt. Carmel building restrictions mulled to maintain neighborhood's character

Should the Mt. Carmel neighborhood be designated as a Historic District?

The city is looking into that question, and you’re invited to help them answer it.

A public hearing has been set for the July 23 City Council meeting about the proposal to give Historic District status for Mt. Carmel, which is located across El Camino from downtown.

As the city explained, “…community members have shared that there have been several ‘teardowns’ of older homes throughout Redwood City, some of which have been in the Mt. Carmel neighborhood. … Neighborhood residents have expressed concern that tear down of older homes, plus the building new, larger homes, could negatively affect the historical charm of the Mt. Carmel neighborhood.  While making the neighborhood a historic district cannot prevent teardowns completely, it would provide greater context for the review of proposals.”

Janel and the Heist set to perform at Stafford Park Wednesday

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Janel and the Heist set to perform at Stafford Park Wednesday

Just a reminder, Redwood City — the Music in the Park series at Stafford Park, which began last week and runs weekly through Aug. 22 except for July 4, continues Wednesday with a performance by Redwood City-based Janel and the Heist.

From 6 p.m. to 8 p.m., the band is set to perform dance, rock, pop and soul music from across the decades at the park at King Street and Hopkins Avenue.

“Frontwoman Janel Tan is also a season 13 American Idol top 75 finalist and power-singer with a versatile vocal range, innovative style, and dynamic presence,” organizers said. This lady can belt.

All proceeds from the concert series benefit the Save the Music program in Redwood City schools. The series is sponsored by Port of Redwood CityWAVE Broadband, Kaiser PermanenteKARE DentalCounty Consumer Plumbing and Joyce & Tatum, Dwell Realtors.

The full summer schedule follows:

  • June 13 – Johnny Vegas and the High Rollers
  • June 20 – Janel and the Heist
  • June 27 – The Klippnotes
  • July 4 – No show
  • July 11 – The Gator Nation Band
  • July 18 – Tortilla Soup
  • July 25 – Kyle Rowland Blues Band
  • August 1 – Rock the Heat
  • August 8 – Sinister Dexter
  • August 15 – Pacific Soul
  • August 22 – Top Shelf

All proceeds benefit the Save the Music program in Redwood City Schools.

Kennedy Middle School’s library gets makeover

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The library at Kennedy Middle School at 2521 Goodwin Ave. in Redwood City received a makeover thanks to a big volunteer effort.

The Redwood City School District shared photos Monday from the completed work accomplished by dozens of volunteers. They were part of Abbvie “Week of Possibilities,” where more than 8,000 employees from the global biopharmaceutical company, which includes an office in Redwood City, volunteer on projects throughout the world.

The project was a community effort, involving partnerships with the school district, The Heart of America Foundation, Redwood City-based general contractor W.L. Butler, Knock Inc., and Redwood City-based Paterson Floor Coverings.

“The new design consists of a large meeting space that can be used for staff, district meetings, and for classes such as the school’s Robotics elective when they need more space for creation,” according to the Redwood City School District’s Facebook post. “There also is 80 inch high resolution screens for collaboration between student groups and/or teacher groups. They will be able to project their computers to the screens in order to better collaborate. The students will have fiction, nonfiction, and STEAM books to take home in the fall when they return.”

Redwood Shores Library Interpretive Center upgrade in the works

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Redwood Shores Library Interpretive Center upgrade in the works

A fundraising effort has been launched to upgrade the Redwood Shores Library Interpretive Center.

Gordon and Betty Moore provided a $50,000 grant to start kick start the renovation process for the 10-year-old center that receives regular visits from local elementary schools.

The Redwood City Library Foundation is spearheading the fundraising effort. To donate toward upgrades, visit rclfdn.org.

“Some displays have faded; others have missing or broken pieces,” the Foundation reported in its latest newsletter. “The wetlands itself has evolved due to climate change and rising sea levels, which has changed the associated wildlife and plants, and the center’s displays and data need to be updated accordingly.”

The Foundation wants to update the Interpretive Center “with modern technology that allows more interactivity with the flexibility to change information.”

Library staff has worked with students from Design Tech High School to design the planned upgrade. Ten students from the Oracle-supported public charter high school conducted interviews with library users to determine what improvements are needed.

The Interpretive Center currently features windows overlooking the wetlands; outdoor displays depicting wetland birds; interactive indoor displays showing wetland animals and plants; and a large aquarium housing living native fish and plants. Other exhibits include a Build a Bird activity, bird footprints, a mud sculpture, and a recycling display, according to the Foundation.

Photo courtesy of San Mateo County

Political Climate with Mark Simon: Election update — Magee pulls ahead of Waddell

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Political Climate with Mark Simon: Waddell concedes to Magee in tight schools race

For the first time in the June 5 election vote count, Nancy Magee has pulled ahead of Gary Waddell in the too-close-to-call race for San Mateo County Superintendent of Schools.

The latest vote count released at 4:30 p.m. today by the county elections office shows Magee with a 428-vote lead, 46,242 to 45,814 for Waddell.

Meanwhile, the outcome of the vote on a parcel tax in the Belmont-Redwood Shores School District also remains undecided, but the measure is inching closer to passage. The latest vote count shows the measure with 66.12 percent of the vote. The measure requires two-thirds approval to pass, or one vote more than 66.66 percent.

Based on prior reports from elections officials, as many as another 30,000 ballots remain to be processed, which means the outcome of either race still is undetermined.

Magee, associate superintendent at the County Office of Education, has trailed Waddell, the deputy superintendent, in the vote tallies since the results announcements began at 8 p.m. on election night.

As additional ballots have been processed, she has been steadily gaining. On June 7, she was behind by 501 votes. On Tuesday, the gap had closed to 75 votes.

The ballots being processed now were turned into the county’s drop-off locations throughout the county, and the likelihood is that these ballots were cast by voters who made up their mind late in the campaign.

Evidently, those voters leaned slightly more toward Magee.

Contact Mark Simon at mark@climaterwc.com.

‘Dream on weirdo:’ Atherton’s Tim Draper criticized over Cal 3

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“Dream on weirdo.”

It was one of many “mean Tweets” directed at super-rich venture capitalist and Atherton resident Tim Draper in the past week, particularly after his proposal to split California into three separate states, the Cal 3 plan, obtained enough signatures to qualify for the November ballot.

“The money Tim Draper has spent on Cal3 is a really good demonstration of how rich people need, but often do not have, close confidantes who can tell them when they are lighting money on fire,” Tweeted Josh Barro, senior editor at Business Insider.

Even a former colleague challenged Draper’s plan.

“I’ve known Tim Draper since 2008, when he was on my Board at Increo, and he’s famous for his brilliantly crazy ideas,” entrepreneur and angel investor Jeff Seibert Tweeted. “But I have to say this one is horrifically misguided and inequitable, and I’m bummed it made it to the ballot.”

In 2014, Draper, famous for early investments in notable entities such as Hotmail, Skype, Tesla, Theranos and cryptocurrency, spent more than $5 million to promote a plan to split California into six states, a goal he says would provide citizens with better representation in state government. The effort failed after nearly 400,000 of more than 1 million signatures collected for the measure were deemed invalid by elections officials.

Rather than give up on his plan to re-invent the 168-year-old state, Draper has “doubled down.” Which, in this case, means his vision for California is reduced from six states to three.

The new measure would lump land between the Oregon border and Santa Cruz and Merced counties into its own state called “Northern California.” A second state, “Southern California” would encompass counties from the Mexico border to as far north as Madera and Mono counties. A third state along the coast, which would retain the name “California,” would include Los Angeles, Ventura, Santa Barbara, San Luis Obispo, Monterey and San Benito counties. Each state would have about 12.3 million to 13.9 million people under the proposal.

While elections officials on Tuesday estimated the Cal 3 measure has garnered the required number of signatures for the November ballot, the plan remains unpopular.

In the most recent poll in April, just 17-percent supported the idea of dividing the state. Some of Draper’s opponents are not just criticizing Cal 3, but also the amount of money he is spending on an unlikely proposition, funds that could improve the very schools Draper has criticized as failing. Splitting the state would require approval from U.S. Congress and the President and is projected by some to be costly and chaotic.

Others have shifted their criticism of Draper to the state’s popular referendum process, which they say is a way the super rich can wield power with little consequence.

The man with the plan widely panned as arrogant has lashed out at his critics as being, well arrogant.

In the Los Angeles Times this week, Draper accused his detractors of “arrogant dismissiveness.”

“We have failing school systems, broken infrastructure with bad waterways and highways, and we have the highest taxes in the nation,” he told the newspaper. “There is no excuse for people not being open to a new solution … [Critics] offer nothing but kneejerk rejection of discussion around one of the most meaningful initiatives to come through the ballot, ever!”

Redwood City students praised for big impact in school donations drive

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Greta and Taylor, 8th graders from North Star Academy, set up collection bins in each classroom and posted flyers all over school.

Two Redwood City students were praised earlier this month for setting up a clothing and toiletry drive at their school that benefited the Samaritan House of San Mateo, which provides food, shelter, health care and other supportive services for people in need.

Greta and Taylor, 8th graders from North Star Academy, set up collection bins in each classroom and posted flyers all over school.

“In all, nearly a dozen large bags of nearly new clothing for Kids Closet and toiletries for Safe Harbor Shelter” were delivered to the Samaritan House by the young students, who the Samaritan House called on Facebook, “the sweetest visitors.”

This is hardly the first time North Star Academy students have assisted the Samaritan House. As far back as 2007, two 5th graders presented a $182 donation to the nonprofit’s executive director after making and selling candles during recess at the school.

Here’s the Samaritan House’s Facebook post on the donation:

Port of Redwood City announces new executive director

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Port of Redwood City announces new executive director

The Port of Redwood City has appointed a new executive director — 25-year port, maritime and commercial real estate veteran Kristine A. Zortman.

Zortman was most recently the vice president of Civic San Diego, a non-profit economic development corporation. Her appointment follows the retirement announcement of executive director Mike Giari. Zortman will join the Port of Redwood City later this summer. During the transition, Don Snaman, 23-year veteran with the Port of Redwood City and current director of operations, will serve as interim executive director.

Richard Dodge, chair of the Redwood City Port Commission, said the selection of Zortman followed “an extensive recruitment effort.”

“Kristine’s successful collaborations with boards, strong community and business partnerships, and experience managing successful internal teams will elevate the Port’s success as we continue as a leader among California and U.S. ports and focus on economic development, transportation and community building initiatives and priorities,” Dodge said in a statement.

Before serving as vice president with Civic San Diego, Zortman was a principal with the Port of San Diego for eight years focused on commercial real estate, according to the Port of Redwood City. In that capacity, she “negotiated long-term leases focused on cargo and maritime trade growth.”

In the statement, Zortman said she is grateful for the opportunity “to develop strong partnerships with the Redwood City community, and local, national and international business leaders.”

“As an economic engine, the Port’s strategic alliances and business partnerships will facilitate it truly becoming the region’s partner of choice in multi-national maritime trade and industry,” she said.

Zortman holds a Bachelor of Science in Biology from George Mason University and completed graduate studies work from University of Utah and the University of California Los Angeles with a focus in Hazardous Materials Management. She also has memberships with the San Diego Military Advisory Council and the Propeller Club and has held former board member roles with the Boys & Girls Club and with Cares for Kids (Building Industry Association).

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