Note that it says "the actual city in 94062 is REDWOOD CITY." The others are merely "acceptable." For mailing purposes, at least, I understand this to mean that the USPS would prefer you to address mail items to Redwood City, regardless of what administrative entity the recipient is in (e.g. Woodside).
Of course, if you're using the information from this API for purposes other than mailing, such as providing an address for verification along with credit card processing, I suppose your processor won't like seeing Redwood City if the cardholder has Woodside on file.
Of course, if you're using the information from this API for purposes other than mailing, such as providing an address for verification along with credit card processing, I suppose your processor won't like seeing Redwood City if the cardholder has Woodside on file.