1978-06-13 Regular CC MinutesADJOURNED REGULAR MEETING OF THE COUNCIL OF THE CITY OF ALAMEDA
HELD TUESDAY JUNE 13, 1978
The meeting convened at 7:00 o'clock p.m. with President Corica presiding.
ROLL CALL:
The roll was called and Councilmen Beckam, Diament, Sherratt, Tillman, and
President Corica, (5), were noted present. Absent: None.
REPORTS AND RECOMMENDATIONS:
1. From the City Manager concerning the 1978-1979 Budget.
City Manager Goss summarized materials received by the Council concerning the Budget.
He said the impact of passage of Proposition 13 at the recent election was greater on
Alameda than on any other medium or large city in California. He suggested the proposed
1978-1979 Budget be used as a guideline, and the Contingency Budgets previously
submitted be used as points of reference for making CVtbackS. He reported the State had
not yet determined how the State surplus would be divided, and this division would be of
great importance to the fiscal stability of the City. He noted a number of revenue
measures that had been suggested. The tax measures suggested were to be interim measures
only, he said, until such time as the State acted to distribute the surplus. He said the
staff needed direction from the Council as to any additional revenues they might wish to
enact in order to continue preparation of the budget. He reported the budget was being
prepared with three assumptions: (1) to maintain functions mandated by (2) to
departments as self-supporting as possible; and (3) to fund as fully as ' possible' the
public safety fUOCtion3. He asked the Council (1) if they disagreed with the three
assumptions for preparing the budget; (2) what revenues could be assumed in developing
an expenditure plan; and (3) he recommended a position be taken by Council that the State
Legislature should distribute both property taxes collected and the State surplus on the
basis of the pro-rata share previously used; and (4) he recommended the Council contact
ABAG, the Chamber of Commerce, the League of California Cities and nther3aDd notify
the contracts would probably be cancelled effective July 1. Mr. Goss also reported ' on
actions being taken by other cities in the area to resolve the problem.
There was a brief discussion on revenues possible from the Golf Course and the
Engineering Department.
Councilman Sherratt moved the Council submit a statement to the State Legislators on the
distribution of property taxes and the surplus, to state the position that property
revenue and the State surplus should be distributed on the same pro-rata basis for -each
city as the property tax is now distributed. Also, the State Legislature should consider
the distribution of the State surplus by "need," that is, proportion to a local
jurisdiction's current reliance on property tax r8V8DV8. The motion was seconded by
Councilman Diament and carried on unanimous voice vote.
Councilman Sherratt moved the City Manager notify the Chamber of Commerce, the League of
California Cities, ABAG, the U. 3. Conference of Mayors, the Alameda County Mayor's
Conference, and the East Bay Division of the League of California Cities on the possible
elimination of City funds to these organizations; and that all travel budgets for all
members of the City Staff be cancelled, seconded by Councilman Beckam, and carried on
unanimous voice vote.
Councilman Sherratt moved the complete hiring freeze be continued, regular salary step
increases through an employee's salary range be suspended, and all purchases of
materials and supplies be suspended for the remainder of the fiscal year, seconded by
Councilman Beckam, and carried on unanimous voice vote.
President Corica asked the City Manager for the number of employees who are currently
eligible to retire. He also asked for a report on the effects of removing the
positions that are just under the Department Heads in each department.
Mrs. Alice White, 1528 Pacific, spoke in favor of retaining the Crossing Guards Program
in the budget.
Mr. Gerald Burke, an attorney representing the City Employee's Association and the
Fire Fighters' Association, suggested the City adopt new revenue measures to be in
effect until it is known what the State would do about distributing the surplus, and
to delay making any layoffs for as long as possible.
Councilman Diament suggested the City Employees' Association, the Fire Fighters, and
other employee groups contact their State Legislators to urge them to make a decision on
distribution of the surplus and property taxes in a timely manner.
President Corica stated it was very difficult for a city to enact new taxes or increase
existing ones, and he felt the City should wait until the State made a decision on
distribution of the surplus before making any decisions on new revenues.
Mr. Robert Hudkins, 3319 Central Avenue, President of the Library Board, spoke in
opposition to closing the City's library system.
Mr. Walter Leach, 615 Waterfall Isle, said he had read the State surplus would amount
to $14 million over the next 5 years.
Mr. James Gary, 1617 Encinal Avenue, spoke in favor of cutting expenditures rather than
raising revenues.
Mr. Arch Woodliff, 302 Laguna Vista, spoke in opposition to enacting new revenue measures.
Police Officer Robert Carlson, 1555 Oak Street, objected to any effort which the City
might make to force him to retire from his position.
Mr. Michael Grappo, 1550 Broadway, suggested the City authorize the City Attorney to
instigate legal action to attempt to have Section 2 of Proposition 13 declared
unconstitutional. He alleged property could then be assessed at current market value,
rather than at the 1975-76 figures, and would generate a larger amount of property taxes,
alleviating, he estimated, half the predicted loss in revenue.
Mr. William Smith, 1417 Bay Street, asked several questions relating to savings
proposed by Council, expense accounts for employees, the City automobile fleet, and the
Bureau of Electricity.
UNFINISHED BUSINESS:
2. Discussion of 1978-79 Contingency Budget.
Councilman Diament said she favored the Departments developing fee schedules to make
themselves as self-supporting as possible, rather than adding new taxes.
Mr. Ron Curtis, 902 Regent, asked the City Manager how long the City could operate
before running out of funds. Mr. Goss replied the first week of December was the
probable date, but delay of that length in making expenditure decisions would possibly
force even greater layoffs.
Councilman Sherratt requested from the City Manager a report on the City's liability
with regard to Unemployment Insurance. He also requested a report on taxing commercial
property other than shopping centers.
President Corica requested an ordinance be prepared to transfer a portion of the
Dwelling Unit Tax to the General Fund.
Mrs. Rosalie McPherson, 1128 Marianas Lane, President of the Planning Board, alleged
the use of Dwelling Unit Tax funds for anything but development of Harbor Bay Isle
Shoreline Park might be illegal, due to a contract between the City, Harbor Bay Isle
Associates, and the Bay Conservation and Development Commission. She suggested the
City Attorney investigate the legality of transferring the funds.
Councilman Sherratt agreed with Mrs. McPherson and also requested the City Attorney
research the matter. Councilman Tillman requested the City Attorney to also look into
the possibility of using State tidelands trust funds for general operations purposes.
MrS. McPherson commented briefly on employee benefits. She said she also felt the
proposed Patton Way project should be eliminated, as well as the proposed Senior
Citizens' Center.
President Corica and Councilman Sherratt both said they felt the City should proceed
With the Patton Way project.
Councilman Diament suggested the Council take a strong position against any bills in
the State Legislature that would mandate actions or funding from cities until the
ramifications of passage of Proposition 13 are fully known.
Councilman Sherratt suggested a letter from the Council to the Alameda County Board
of Supervisors informing them the City would prefer to receive payment for any services
rendered to the County, instead of receiving service in return.
Councilman Sherratt asked the City Manager to provide a report on the possibility of
exercising a local option to allow certain types of gambling activities within the
City as a source of revenue.
Mr. Richard Persoff, 1712 Dayton Avenue, said he felt it was necessary to cut
expenditures and services. He suggested the Departments of the City provide reports
on the levels of service they would be able to provide at various levels of reduction
in expenditures.
Mr. James Gary, 1617 Encinal Avenue, said he would like to see a contingency plan
that emphasized retention of services most necessary, such as Police and Fire, the
Library, etc.
City Manager Goss requested direction from the Council relating to the three
assumptions used in preparing the budget, as he had stated them at the beginning of
the meeting. Councilman Diament moved the Council support and concur with the three
assumptions. Councilman Beckam suggested as an amendment to the motion that a
fourth assumption be added: to make each Department as efficient as possible, in
manpower, in equipment, and in operations. He further recommended, as examples,
the use of compact cars in the City fleet and that cars no longer be assigned to
any particular employee, but all cars be combined into a smaller pool to increase
efficiency and cut-costs. Councilman Diament agreed to the amendment; the motion
was seconded by Councilman Beckam, and carried on unanimous voice vote.
Councilman Sherratt moved the ordinances on the agenda for introduction be held over
to the next regular meeting, seconded by Councilman Diament, and carried on unanimous
voice vote.
ADJOURNMENT:
3. Councilman Sherratt moved the Council retire to executive session for a discussion
of personnel and litigation matters, seconded by Councilman Diament, and carried by
unanimous voice vote. At the conclusion of discussion, it was determined no
action would be taken.
4. There being no further business to come before the meeting, the Council adjourned
at 10:45 o'clock p.m., to assemble in regular session on Tuesday, June 20, 1978,
at 7:30 o'clock p.m.
Respectfully submitted,
7:::
City Cl erk