1993-08-19 Special CC MinutesSPECIAL MEETING OF THE ALAMEDA CITY COUNCIL
AUGUST 19, 1993
The Meeting convened at 7:45 p.m., following a Special Council
Meeting (Closed Session) at 7:00 p.m. Councilmember Appezzato led
the Pledge of Allegiance.
ROLL CALL -
Present: Councilmembers Appezzato, Lucas, Roth and
President Withrow - 4.
Absent: Councilman Arnerich - 1.
93-502 Public Hearing to Consider Revenue Options.
The Finance Director gave a brief history of Fiscal Year 1992-93,
noting budget cuts due to the recession, and further cuts due to
County charges and monies retained by the State.
The City Manager noted efforts of Departments and employees to save
funds; stated three areas could provide a reduction in the deficit:
first, revenues; second, negotiating with ACEA and other affected
unions to reduce hours one day a week for the rest of the year, and
four days between Christmas and New Year's Day; and [third], one-
half cent Sales Tax to be voted on at November 2nd Election called
by the Governor; the only action Council may consider tonight would
be on fees, taxes and special assessments.
Mayor Withrow stated he would like a cost per equivalent dwelling
units (EDU) for the costs of unfunded mandates and state budget
impacts; and commented, taking monies from the local level and
spending it on Statewide budgets, is a tax increase.
The City Manager reviewed proposed fee increases, including:
Planning fees; False Alarm Fees, to charge following third false
alarm responded to by Police; Scofflaw, a fee charged people who
have excessive number of uncleared parking citations; recreation
fees set by Recreation Commission, which requires no action if
Council wishes the fees to remain as set by Commission; Fire Clean
Up Charge, a fee for on-site clean up following fire; Franchise
Taxi Program, approved by Council August 17th; Personnel Fees for
oral examinations and application processing; Business License fee
on single family rentals; Payment in Lieu of Taxes, at one percent
of fixed assets, on City Enterprise Funds: Sewer Service Fund, Golf
Enterprise Fund, and Electric Enterprise Fund from Bureau of
Electricity, commenting that one percent would produce $396,632
this year; and that Council received letters from Public Works
Director noting impact on sewer service fund may require increase
in the future, Chair of Golf Commission which indicates no
objection to this charge; President of Public Utilities Board who
indicated impact together with closing of Naval Air Station may
require Bureau to adjust rates; Utility Users' Tax, raises Cable TV
tax to 5 and 1/2% which is same rate as other utilities; Property
August 19, 1993
3
Transfer Tax increase from $4.40 to $6.40, per $1000 transferred,
is a tax on all real estate: residential, commercial, industrial,
sold in Alameda; he reviewed rates of other cities; and stated
Council has already taken action on Golf surcharges and they will
take effect January 1, 1994.
Raye Lee Thieman, Alameda, stated citizens should oppose State and
County, and work toward keeping funds in the community; Transfer
Tax is lower than in surrounding communities, however, Alameda
imposes sewer lateral ordinance and that is a tax.
The City Manager explained the State Environmental Protection
Agency ordered City and private property owners to repair sewer
laterals on public right-of-ways and private property due to
contamination of soils and United States waters.
Richard Rudloff, Alameda, supported Revenue Options A, Increase in
Fee for multiple units; B, Fee for Single Family Rental Units; C,
PILOT; and E, Property Transfer Tax; and gave reasons for support.
Stanford Shane, Alameda, commented on new taxes; noted items he
does not believe were wise City expenditures, and City of
Sunnyvale's success in reducing budget.
Mabel Wong, Alameda, stated she is having trouble keeping her five
apartment units filled; and business license fee increase on units
would be a hardship.
Don Roberts, Alameda, stated Cable tax passes to consumers; revenue
increases or reductions in services should nut be discussed in
special meetings; and commended Mayor Withrow for representing City
at Kofman Auditorium Tenth Ahniversary celebration.
E. Greigo, Alameda, stated $40 [Business License Fee) is too much
to pay for multiple units, particularly for persons on fixed
income.
President Withrow questioned charging the same fee for units
rented, for example, at $350 a month, as units rented for $2000 per
month.
The City Manager stated that could be changed to a gross receipts
basis.
President Withrow stated that would be more fair.
John Barni, Sr., Alameda, stated $40.00 per unit is an exorbitant
amount to pay; owners' expenses have increased; and commented the
government should look to cutting its expense.
Linda Grant, Alameda, opposed increasing property owners' costs in
these economically difficult times; and encouraged Council to look
at a different way to raise revenues.
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324
Hadi Monsef, Alameda, stated he is speaking for his clients; income
is decreasing due to vacancies, expenses are increasing, and
doubling unit fees is unjustified and unfair, and in today's
market, is unreasonable.
* * * *
President Withrow announced Council would recess to 9:15 p.m.
* * * *
President Withrow stated the public portion of the hearing was
closed.
Vice Mayor Roth stated he would like to take each item in order.
Councilmember Appezzato stated he would like to make a statement
concerning his position, and submitted a list of his figures to
Council, and explained his proposal. He would like: one or both
expense reductions pertaining to City employees, the 4-day winter
holiday and the 1-day per week City Hall closure, negotiated;
Payment In Lieu of Taxes [PILOT], and later, he would be willing to
consider for the Bureau, a tax Council would impose instead of
PILOT; Utility Tax for Cable; Planning Fees; False Alarm Fees;
Scofflaw; Golf Surcharge for out-of-towners; Fire Clean Up Charges;
Franchise Taxi Fees; Personnel Services Application and Exam Fees;
Property Transfer Tax, $1.00 increase instead of $2.00; he will not
support the Business License Fee increases in today's economy;
urged the City Manager negotiate with the unions on working
conditions, believes layoffs c.an be avoided if everyone cooperates,
and he cannot support an increase in the recreation fees, $25,000,
as these fees hit families who cannot afford them; if additional
monies above $250,000 from sales tax are acquired, Council should
reconsider and not impose the Property Transfer Tax increase.
The City Manager stated his caveat is that Revenue Option figures
in staff reports submitted, are annualized; and commented the
Public Utilities Board asked in an open meeting that he remind
Council that the Board requested, in a memo, that Council consider
increasing Utility Users Tax by a half-percent rather than levying
the Payment In Lieu of Taxes.
Councilmember Appezzato stated he could support that.
Councilmember Lucas stated she could support Councilmember
Appezzato's proposal; the City Manager is correct that figures are
annualized but there is some leeway; and she is pleased Business
License Fees are omitted as they do not make sense in this economy.
Councilmember Appezzato stated he would also consider a sunset law
on the property transfer tax, that if the $1.00 increase is imposed
and later found to be unnecessary, that Council look at terminating
it.
In response to Vice Mayor Roth, the City Manager stated the amount
the State will take from the City is firm at this moment, however,
the State did not balance last year and borrowed money against this
year, so they could come in at any time and try to take more money
August 19, 1993
from cities.
Vice Mayor Roth stated he believes single-family [rental] units
should be charged a Business License Fee, he would support a $20
fee for single-family units, and Mayor Withrow's comment on the
matter; working out an equitable rate would take time, and should
be looked at as a long-term goal and brought back to Council.
Vice Mayor Roth stated he would like to vote on each item.
President Withrow stated Council has Councilmember Appezzato's
proposal.
The City Manager stated he reviewed Councilmember Appezzato's
figures, and excluding the issue on expenditures which would be the
City facility's closure, this [Appezzato's proposal] would balance
the budget for this year; and requested, if Council decides to vote
on this as a package, that Council exclude any discussion, or
exclude from its vote, the 4-day winter holiday or the City Hall
closure because that has not been negotiated and cannot be voted
on; however, Council can request stafi negotiate.
Councilmember Lucas moved to approve Councilmember Appezzato's
budget proposal with the caveats stated by the City Manager.
Councilmember Appezzato seconded the motion.
President Withrow stated he would prefer that Council go along with
the recommendation of the Public Utilities Board [PUB].
Councilmember Appezzato agreed.
Councilmember Lucas agreed to modify her mocior. accordingly.
Following discussion concerning PILOT, and the possibility, pros
and cons of raising utility taxes, Councilmember Lucas stated the
amendment would be eliminated and the original motion retained.
Councilmember Appezzato seconded the motion, which carried by the
following voice vote: Ayes: Councilmembers Appezzato, Lucas and
Withrow - 3. Nayes: Roth - 1. Absent: Councilmall Arnerich - 1.
[Resolution and Introduction of Ordinances noted below.]
93-503 Resolution No. 12445 "Amending Master Fee Resolution
No. 12191 to Establish Users Fees and Charges for: False Alarm
Fees, Scofflaw, Fire Clean Up Charge. Franchise Taxi Program,
Filling and Dredging Fees, Personnel Fees, Firearms and Munitions
Dealer License Fees, and Establishing and Amending Planning Fees."
Adopted. [See paragraph 93-502 for discussion and action.]
93-504 Ordinance No. N.S. "Amending the Alameda Municipal
Code by Adding Subsection 3-28-3(b) to Section 3-28 (Payment of
Taxes), Division IV (Levy and Collection of Taxes, Chapter III
(Finance and Taxation) Thereof, Pertaining to Payment By City
Enterprise Funds of an Annual In-Lieu Tax of 1% of Fixed Assets."
Introduced. [See paragraph 93-502 for discussion and action.]
August 19, 1993
93-505 Ordinance No. , N.S. "Amending the Alameda Municipal
Code by Amending Subsection 3-58.2 (Imposition of Tax) to Section
3-58 (Real Property Transaction Taxes, Part C (Use Tax), Chapter
III (Finance and Taxation) Thereof, Pertaining to Property Transfer
Tax." Introduced.
[Council reduced proposed tax increase from $2.00 to $1.00]
[See paragraph 93-502 for discussion and action.]
93-506 Ordinance No. . N.S. "Amending the Alameda Municipal
Code by Amending Subsection 3-59.8 (Cable Television Users Tax),
Section 3-59 (Utility Users Tax), of Article II (Taxation), Chapter
III (Finance and Taxation) Thereof, Pertaining to Users Tax on
Cable Services." Introduced. [See paragraph 93-502 for discussion
and action.]
93-507 Ordinance No. • N.S. "Amending the Alameda Municipal
Code by Amending Subsection 5-4.1(H) of Section 5-4 (License Fees),
of Article I (Procedures for Licenses), Chapter V (Licenses and
Permits) Thereof, Pertaining to Business License Fees for Multiple
Units and Adding Subsection 5-4.1(1) Pertaining to Business License
Fees for Single Family Rental Units." Not introduced.
[See paragraph 93-502 for discussion and action.]
93-508 Ordinance No. • N.S. "Amending the Alameda Municipal
Code by Deleting Subsection 30-21.13 (Fees) of Subsection 30-21
(Variances, Use Permits: Procedures), Chapter XXX (Development
Regulations) and Amending Section 30-26 (Fees) of Chapter XXX."
Introduced. [See paragraph 93-502 for discussion and action.]
93-509 Ordinance No. N. "Amending the Alameda Municipal
Code by Amending Subsections 13-49.1 (Filling and Dredging Unlawful
Without Permit) and 13-49.2 (Application Form) of Section 13-49
(Filling and Dredging Permit Required), Article XV (Filling and
Dredging), Chapter XIII (Building and Housing) Thereof, Pertaining
to Filling and Dredging." Introduced.
President Withrow stated there were no speakers.
Councilmember Lucas moved introduction of the ordinance.
Councilmember Appezzato seconded the motion which carried by
unanimous voice vote - 4.
Councilmember Lucas moved to accept staff recommendation [to
establish a fee for depositii fill material]. Councilmember
Appezzato seconded the motion which carried by unanimous voice vote
- 4. [See paragraph 93-502, Resolution No. 12445]
NEW AND UNFINISHED BUSINESS
93-510 Councilmember Lucas stated she keeps receiving calls
regarding the property on Eagle Avenue; the noise and apparent drug
use continues.
The City Manager stated more enforcement personnel will be put on
August 19, 1993
the matter.
The Public Works Director stated a joint inspection is scheduled
for September 7th.
ADJOURNMENT
President Withrow adjourned the meeting at 10:02 p.m.
Respectfully submitted,
7/6
Diane B. Felsch, CMC
City Clerk
The agenda for this meeting was posted in accordance with the Brown
Act.
August 19, 1993