1991-08-15 Special CC MinutesSPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF ALAMEDA,
AUGUST 15, 1991
The meeting convened at 6:54 p.m. with President Withrow presiding.
ROLL CALL - Present: Councilmembers Arnerich, Camicia, Roth, and
and President Withrow - 4.
[Councilman Arnerich took his seat on dais
following the Roll Call.]
Absent: Councilmember Lucas - 1.
91-566 Report from City Manager recommending Council authorize the
collection of existing Utility Users Tax on Cable Television
pursuant to Ordinance 2502, N.S. (Held over from June 25, 1991,
Special Council Meeting.)
The City Manager reviewed the background of the matter.
President Withrow commented it appears Alameda citizens do not
understand the degree of financial crunch the City is in, cost of
City services, where revenue comes from; noted the average income
per household in Alameda is $35,000, which is the Section 8 subsidy
level for the area; stated City services are at a low cost compared
to other cities in the area; until citizens understand if taxes are
not raised, services must be cut back, laws and policies on the
books cannot be enforced without appropriate staff and resources,
and until citizens begin to feel the affects, he does not believe
Council has any choice but to continue to cut and not try and raise
revenue from the citizenry.
Councilman Arnerich stated he would be prepared to vote on the
issues, but will be abstaining from both [items] because he believes
lengthier [public] notice should have been given.
Councilmember Camicia inquired if the meeting was adequately
noticed.
President Withrow replied it was legal and adequate.
Councilmember Camicia requested confirmation from staff, and the
City Clerk replied the Special Council Meeting was appropriately
noticed.
Councilman Arnerich stated it was morally done right; twenty-four
hours notice was given, the newspapers published the meeting today
but people deserve more time; not enough people are present to
speak and that is why he is abstaining.
Steve Skinner, Alameda, discussed the price of Police and Fire
services noting 60 cents per dollar is more expensive than other
cities.
President Withrow explained 60 cents per dollar is lower than e.g.,
August 15, 1991
San Leandro, which is comparable in size; San Leandro's 34 cents
per dollar is more, within its $64,000,000 budget than Alameda's 60
cents within its $34,000,000.
Mr. Skinner commented on the City Manager's salary; stated he [Mr.
Skinner] owns a business and fees/taxes/permits in small amounts add
up to a lot.
To President Withrow's request for a comparison of business license
and electricity costs with other communities, the City Manager
replied that Alamedans costs for services are lower.
Councilman Arnerich stated, in response to Mr. Skinner's comments,
that the City Manager does not make $100,000 a year and has opted
not to have a pay raise in the last 22 months.
Shirley Cummins, Alameda, stated she sympathizes with employees
whose jobs are on the line, no Councilmember should go to Arizona to
check the cost of contracting out fire services; discussed
privatization of services; inquired if Board/Commission Members are
paid.
President Withrow stated surrounding cities reimburse Board and
Commission Members but Alameda does not.
Ms. Cummins stated she is against Cable rates being raised.
John Barni, Sr., Alameda, stated Alameda has been too generous with
Waste Management, Inc.; City of Chico has lower rates; and
Alameda's elected officials should not have City-paid benefits.
Verna Marsh, Alameda, noted her recycling has not been picked up on
time; and protested tax on Cable.
John Paul Gutieben, Alameda, stated a parking structure is being
discussed [by the City], a motel purchased [by the City], a library
is being discussed, and a ferry station built; noted federal, state
and City taxes; all are spending money that should not be spent,
and spending must stop somewhere.
President Withrow requested the City Manager to address motel, fire
station, ferry subsidization, and fire inspection fees issues.
The City Manager noted the Linoaks Motel was purchased, is returning
nine percent on investment; fire inspection fee was approved by
Council for fire inspection of businesses and to fund equipment;
the ferry building was subsidized by Metropolitan Transportation
Commission and no General Fund nor local monies go into the ferry
subsidy or terminal construction; an urban development action grant
and Library Construction Fund (from Library Tax) paid for the motel.
Ronda Cohn, Manager, United Artists, Alameda, stated she received
3100 responses from customers to a direct mail piece sent out to
customers asking them to oppose the tax; and urged Council vote
against the tax because it is discriminatory and regressive and
affects everyone equally and the low-income harder.
August 15, 1991
Councilmember Camicia stated if action is not taken, people will be
laid off, and he will second the motion if the Cable assessment is
added and United Artists is requested to pull its fair share.
President Withrow stated Council is trying to raise money, and if
people do not understand why the money is being raised, something
must be done about that; he inquired how many firefighters would be
retained if Cable tax is assessed; to which the City Manager stated
approximately five this year.
Councilmember Roth stated the motion dies because there is no
second; Council cannot do anything; and the matter is constantly
being put off.
President Withrow stated to consciously not make a decision will
reduce five firefighters, and that is a decision.
Councilmember Roth inquired if a tax on everything above the basic
rate could be charged.
President Withrow inquired how many firefighters could be retained
if that is done; the City Manager replied he cannot answer because
he does not know the revenue generated from premium services.
President Withrow inquired if the percentage increase was passed on
and 10% of current subscribers dropped, what would happen; and Ms.
Cohn replied franchise fees would drop.
President Withrow stated, with the reputation Cable has in the
business community of being astute business people, Cable is
charging all that the market will bear.
Discussion ensued between Council and Ms. Cohn regarding pricing,
the Cable market, and services.
Councilman Arnerich stated cable television has made billions of
dollars and Congress will be looking at possible regulation of cable
in the future, and inquired of Councilmember Camicia who will pay
the tax if imposed.
Councilmember Camicia stated the point he is trying to make is that
the City has no control over the rates; his guess is that United
Artists will not raise rates because rates are at the maximum level
and subscribers would be lost.
Councilman Arnerich stated he has heard proposals for raising money
by cutting hours until the City is out of the crisis.
President Withrow stated Council is at a stalemate; he is not in a
position to vote for a tax increase; there is no second to a motion
to hold forums; four Councilmembers are present with one
abstaining, therefore Council is at an impasse.
Councilman Arnerich inquired if the matter could be agendized for
the first meeting in September [September 3, 1991].
August 15, 1991
President Withrow stated he finds the poll sent out by United
Artists interesting, because when a circular is sent asking people
if they support a tax, he would be amazed if anyone ever returned
one favoring tax.
Councilmember Roth asked what the cost of basic service was when
Cable first started, to which Ms. Cohn replied approximately $7.95.
Councilmember Roth inquired why the rate doubled, to which Ms. Cohn
replied cost of programming, new programs and upgrades to the
system; and rates were kept too low by Congress' regulations, and
are now stabilizing.
Councilmember Roth agreed rates were probably kept low so poorer
people could have basic services and premium [service] should have
been higher to help cover costs; but she [Ms. Cohn] stated Council
should not price out someone, yet had no qualms about doubling the
price on a very basic service and United Artists did exactly what
she [Ms. Cohn] is asking Council not to do.
Ms. Cohn stated it is a good bargain for the money.
Don Roberts, Alameda, stated the tax is regressive; if Council
approves the tax, only premium aspects of the service should be
taxed; the City's reserves, in times of economic emergency for e
year or two, would be a more appropriate source than adding
permanent taxes.
Councilmember Camicia stated taxes, paid to Federal government,
returned to local government 25% in 1980 compared to 16% in 1990;
also, State and Federal mandated programs by local government have
been added; employees work hard; of all fees presented, the only
ones presented that he plans to vote for, is Cable tax; Council has
no control over Cable rates, will not mandate an increase in Cable
bills, and United Artists is under no obligation to raise the rates.
The City Attorney concurred with Councilmember Camicia's comments,
noted in the above paragraph, related to Cable television rates.
Councilmember Camicia stated he would like to save firefighters'
jobs [by approving Users Tax on Cable].
Councilmember Roth stated he has a problem with the meeting because
Councilman Arnerich states he will not vote and President Withrow
stated he will not raise taxes, therefore the two remaining
Councilmembers cannot take action.
President Withrow stated he is not prepared to raise taxes; is
concerned citizens do not understand; and proposed six forums
throughout the City to provide briefing, explaining cost of
government; then [Council] convene and decide whether to raise
money or cut services; and moved Council schedule six forums
throughout the City over the next two months, then reconvene as a
Council and make its decision.
August 15, 1991
President Withrow moved for a forum for educational purposes over
the next two months; and if the Council is not desirous [of holding
the forums], he will.
Councilmember Roth stated he is concerned about the staff time and
the money involved; and noted there was no second.
91-567 Resolution No. . "Establishing fees for various City
services and permits." (Held over from June 25, 1991, Special
Council Meeting.) Not heard.
ADJOURNMENT
President Withrow adjourned the meeting at 8:28 p.m.
Respectfully submitted,
DIANE B. FELSCH, CMC
City Clerk
The agenda for this meeting was posted in advance in accordance with
the Brown Act.
August 15, 1991