City Attorney Relents on Council's Charter City Directive

City Now Has Proposed Charter 

At the June 3rd City Council meeting, Mike Biddle, the city attorney, finally relented and produced a "short and focused" charter for the City of Emeryville as he had been expressly directed to do on three separate occasions by the Council, a growing source of friction publicly played out in dramatic fashion at City Hall and covered by the Tattler.  The two page document presented Tuesday by Mr Biddle spells out a new municipal governance model, a 'charter city', that will be voted on by the Council and then taken to Emeryville voters in November for their consideration.
Mr Biddle had previously resisted doing the two page work tasked to him by the Council repeatedly since April, insisting that only a 12 page document would suffice despite evidence of numerous other California city's one and two page charters.
The City Attorney had come under increasing fire from the Council for his obstinacy on the issue, eventually alienating all five members  even Councilwoman Nora Davis, his biggest supporter at City Hall.
The City Council had explained that a lengthy charter, filled with legalese, would only serve to confuse voters, leading to an unnecessary defeat for the proposal in November.

The Council has collectively expressed desire to include in the charter provisions to levy a real estate transfer tax as neighboring cities have done in order to make up for lost revenue after the demise of the Emeryville Redevelopment Agency.  Emeryville's current governing model, 'general law', a model orchestrated by Sacramento, does not permit such a tax to be implemented.  The legal provisions of charter cities, sometimes referred to as 'home rule' or 'local control' cities however, allow for local voters to decide such things.

The City Attorney in Emeryville serves at the pleasure of the City Council.

Council Moves Charter City Concept Towards Voter Approval

Tonight the City Council voted unanimously to hire a polling company to collect data about resident's views on the idea of Emeryville becoming a Charter City.  The polling data will be used by the Council to craft language that can appear on the ballot in November for Emeryville voters to consider.

From the City's E-Newsletter:

There are several steps before the City Council can place a proposed city charter on the November ballot, including public noticing of the proposed city charter and two public hearings – tentatively scheduled for June and July -  with a final decision on whether to place a city charter on the ballot occurring in late July/early August. A majority of voters must vote YES in order for Emeryville to become a charter city.
 
Charter cities, unlike cities that are incorporated under the State’s general law provisions (as Emeryville is now) have “home rule” on issues relating to municipal affairs.  So charter cities can maximize local control and pass legislation (by City Council or by citizen initiative) on municipal issues such as self-governance, contracting, adoption of certain taxes (subject to voter approval), and municipal elections for which general law cities must follow State law.  About half of the cities in Alameda County are charter cities, including Albany, Berkeley, and Oakland. For more information about city charters and/or to watch the City Council meeting discussion on becoming a charter city, click here. To download a copy of the draft city charters that the City Council will be discussing at the April 22 City Council meeting, click here.

City Hall Releases Charter City Revenue Numbers

Emeryville Left $21 Million on the Table

News Analysis
A  debate has begun at City Hall about an Emeryville 'charter city' ballot initiative that would enable the City to capture real estate transfer fees, a "leaking" of revenue says Mayor Jac Asher.  If it were a charter city and charged what the City of Alameda charges, Emeryville would have net some $21 million more than it did between 2009 and February 2014 according to the City.

The idea, first floated by Mayor Asher in her State of the City address last January proposes to change the governing system of Emeryville from what it is now, a 'general law city'; a form of governance dictated by laws ensconced at Sacramento, to a charter city; more of a local control governance system.  The main reason Ms Asher sees value in becoming a charter city is that legal designation allows for the people of Emeryville to decide by a ballot initiative, about imposing a real estate transfer tax, like neighboring cities do.  The tax, would impose a percentage fee for real estate transfers based on the selling price per $1000 dollars of value.

At a March 18th City Council meeting power point presentation prepared by the City Clerk's office, the Council heard about how Emeryville neighbor cities have been receiving millions of dollars, mostly paid by businesses, because they are charter cities and they impose transfer fees.   Emeryville does receive a small pittance for transfers (the most it can charge as a general law city); now pegged at $.55 per $1000 of value.  Neighbor Alameda, a charter city, charges $12 per $1000.  Other neighbors, all charter cities, charge similar amounts; Berkeley and Oakland both charge $15 per $1000 on the high side while Hayward charges $4.50, the lowest of neighboring cities.  The fees draw money these cities use to make up for the loss of revenue provided by their respective redevelopment agencies after Sacramento shut the agencies down state wide two years ago.

The numbers for comparison, Emeryville vs neighboring cities:
Property transfer revenue 2009-Feb 2014

• Alameda     $29,219,563
• Berkeley & Oakland   $36,555,112
• Hayward   $10,849,190
• Emeryville  1,178,867

Here's a breakdown of recent major property sales in Emeryville. The first number is what the City received at $.55 and what we would have received if we charged $12 per $1000 value (the same as Alameda and less than Berkeley or Oakland).

Recent major property sales, what was paid to City Hall vs what would be paid:

• 1900-2200 Powell:  at $.55 is $75,000...at $12 would be $1.638 million
• East Bay Bridge Center:    $69,000... would be  $833,000
• Bay Street Mall:   $35,000...would be $771,000
• 6529 Hollis (Clif Bar):   $34,000....would be $749,000 
• 1800 Powell:   $18,000.... would be $394,000
• Woodfin Suites:   $18,000... would be $394,000
• Novartis:   $61,000...would be $1.352 million

Between 2009 and February 2014, Emeryville had $1.838 billion in property sales which net $1.1 million in revenue.  If Emeryville charged in transfer fees what Alameda charges, that same $1.838 billion in sales would have net more than $22 million.... a loss of almost $21 million for the people of Emeryville.

City Council Moves 'Charter City' Idea Forward

Tonight the City Council voted unanimously to start a process that could lead to a November ballot initiative permitting voters to decide if Emeryville should become a charter city; an alternate style of municipal governance that increases local control at the expense of Sacramento.  The idea was first broached in January at the State of the City annual address by Mayor Jac Asher.  Mayor Asher says by becoming a charter city, Emeryville voters could decide if a real estate transfer tax should be imposed, offsetting the major loss of funds Emeryville has experienced in the wake of Sacramento rescinding the Emeryville Redevelopment Agency.

Even though all five Council members ultimately voted to instruct the City Staff to bring a specific charter city proposal for their consideration at a future meeting, Councilman Kurt Brinkman struggled with the idea at first, "The City has been run well with the current structure" he lamented.  Further, he added, if real estate transfer taxes are increased it would cause inequity, "It's not fair that renters don't have to pay this fee" he said.  Such a tax would be on the backs of residents Mr Brinkman said, albeit homeowners and only those selling their homes and leaving Emeryville.  The City Clerk noted home sales are a small percentage of real estate transfers in Emeryville (businesses being the lion's share) and if the people decide to raise the tax, it could be possible to craft a ballot initiative to carve out most homeowners by exempting properties less than a set amount.  The Council instructed the staff to present several specific proposals for their consideration at the future meeting.

Mayor Asher stressed the importance of getting our fiscal house in order after the demise of the Redevelopment Agency.   She stressed the fact that neighboring cities have become charter cities,  imposing transfer taxes to fill voids in their budgets after their redevelopment agencies were taken away.  Ms Asher called a transfer tax a "new economic tool" to help Emeryville move forward as our neighbors have done.

Emeryville Residents Warned of Mass Exodus of Business

Businesses: "Unless We Get Everything We Want We're Taking Our Marbles and Leaving"

City Hall: "We Have to Do What Business Says or All Will Be Lost"

Opinion/News Analysis
The record is stuck.  Can somebody move the needle forward?  It keeps repeating itself.
What we refer to is the oft repeated mantra heard year in and year out at City Hall; the call and response followed by the familiar hijacking of public policy for private gain.  It's the old stand-by warning from developers and businesses that they'll....wait for it....pack up and leave unless they get everything they want on whatever relevant proposal is being discussed at City Hall.  The conciliatory reaction always comes from Councilwoman Nora Davis with a second from Councilman Kurt Brinkman; we have to do what developer X says is their response.  Emeryville is in no position to ask for anything good they remind us.  With Councilwoman Ruth Atkin as their third vote, it's been a highly effective formula for delivering the goods to developers and business in Emeryville.  This reputation of ours is earned.

Emeryville: Charter City
The old formula is going to repeat itself this summer.  As concerned Emeryville citizens begin their signature drive to put the proposal before voters that Emeryville become a Charter City on November's ballot, a new paradigm that will permit us to tax businesses like other Bay Area cities do, the Chamber of Commerce will once again join forces with the deep pockets in the corporate community to try to defeat it.  No new parks for us and sidewalk repair must wait, you understand.

We can hear it now, loudly proclaimed, nay screamed this summer and fall: all will be lost if Emeryville becomes a Charter City.  It's going to be in our mailboxes in torrents of professionally designed glossy color flyers.  It's going to be on our answering machines after we come home from work, warning us of the coming apocalypse.  Our dinners will be interrupted this fall; poorly paid young men and women from places other than Emeryville will be warning us in 7:00 PM phone calls.  You may be able to ignore the phone calls but your door will be incessantly knocked on as well.  Behind the door will be an Oakland resident or a Hayward resident telling you how bad it'll be if the Charter City Initiative passes and Emeryville taxes business like other cities do.  They won't tell you they're not from Emeryville and they won't tell you they're being paid to knock on your door and make phone calls but they will assure you they only have your interests at heart.

These well funded scare campaigns rise up every time business is asked to pay their fair share in Emeryville.

We remember the card room plebiscite of 1997, a tax increase for Emeryville gambling parlors where in the Oaks Club, the only such parlor, would be "driven to bankruptcy" we were told if they were required to pay the Bay Area card room average tax rate.  It passed of course, and the Oaks Club is doing just fine....but now paying Emeryville what other card rooms in the Bay Area pay.

Then there was the recent attempt to remove Emeryville's infamous business tax cap, a mechanism that allows Pixar and other large businesses to pay much less taxes than other smaller businesses in town pay.  That voter drive was sabotaged before it even got to the ballot box thanks to Council members Nora Davis and Kurt Brinkman.  It would be the end of Emeryville they assured us after Pixar threatened to leave town if Emeryville voters were allowed to decide about the tax cap.

Of course there was also Measures T & U, a 2004 campaign to get a Community Benefits Agreement in trade for a planned Pixar campus expansion. A YES vote would negate the CBA, give Pixar millions in Emeryville subsidies in cash and property transfers and negate our General Plan and zoning regulations.  Again Pixar was going to leave Emeryville the Chamber of Commerce assured us (right after they spent tens of millions of dollars on their Phase One campus build out).  The NO on T&U simply asked for a Community Benefits Agreement to be entered into, a standard procedure for City Halls outside Emeryville.  But Pixar told us it was an existential threat.  It was a scare tactic that worked; Emeryville rolled over with prompting from Nora Davis, Kurt Brinkman and the Chamber of Commerce, netting Pixar millions of dollars in City Hall subsidies.
It should be noted Pixar, the multi-billion dollar corporation is now paying us $8000 per year in taxes (thanks to the tax cap) the Tattler found out.

We also fondly remember the anti-Measure C campaign of 2005.  It was a lavishly funded campaign to stop Measure C, Emeryville's 'Living Wage for Hotel Workers' ballot initiative.  The campaign, run by Councilwoman Nora Davis and the Chamber of Commerce, assured us all would be lost if Emeryville hotels were forced to pay their workers a couple of dollars more per hour; a living wage. Nora joined with the hotels and scores of other businesses in town to warn us of the dire consequences in store for us.  The Chamber of Commerce even fired up their Political Action Committee (EmPAC) with it's massive war chest of donations from out-of-town businesses to take the fight to the hotel workers.  Hotels would fold up their tents en masse and leave Emeryville we were told.
In the end, Emeryville voters DID pass the living wage for hotel workers, regardless of all the hyperbolic screaming from Nora Davis, the Chamber and their corporate paymasters.
One hotel, Woodfin Suites on Shellmound Street actually did leave town in protest after they lost a bruising court battle to not pay their workers their back wages.  Woodfin was subsequently bought by Hyatt.
The mass exodus of hotels never materialized curiously.  In fact, Emeryville is about to get a brand new hotel, Hyatt Place at Bay Street.  And they're going to pay their workers a living wage.  Tellingly, Nora Davis, her sycophants and the Chamber of Commerce never admitted they were wrong about the consequences of Measure C.
Instead they've begun preparing themselves for the next apocalypse looming this fall for Emeryville.  The Charter City Initiative is coming.  Emeryville voters will be allowed to decide for themselves.  All will be lost people, all will be lost.

Emeryville Mayor Promotes New Governance System to Increase Revenue: Charter City

Post Redevelopment:

Emeryville "Leaking" Millions of Dollars 

Emeryville mayor Jac Asher raised more than a few eyebrows at City Hall at the last January Council meeting when she used the normally business friendly and innocuous mayoral State of the City annual address to promote the notion that the City fundamentally change its governing system to capture millions of dollars in business property tax proceeds that now goes uncollected.  The existing 'General Law' governing model would be replaced with a more democratic governance system called a 'Charter City', a move that would allow residents more say in how the City operates and allow City Hall to capture business property transfer tax money now lost, a "leaking" of proceeds the mayor says.  It's a change we need to make to fund more parks and public infrastructure maintenance such as sidewalks she said in her address to the City.  In the wake of the recent demise of funding from Redevelopment Agencies state-wide, it's a change our neighboring municipalities including Oakland and Berkeley have made, bolstering their general fund coffers.
Transfer taxes are collected by cities when businesses change ownership or merge, a method initially made popular after Proposition 13 stripped California cities of crucial property tax revenues, now increasingly so after Redevelopment funds have also gone dry.

Emeryville Now Loses $3 Million Per Year
To become a Charter City requires a majority vote of the residents and in the case of Emeryville, nothing of substance necessarily need to change at City Hall with the exception of capturing these heretofore unpaid business transfer taxes.
The mayor noted that with the current General Law provisions in place, Emeryville only yielded $157,000 in 2009 to 2014 on business transfers.  That's $.55 for every 1000 dollars of real estate value compared to our charter city neighbors Oakland and Berkeley who yielded $15.00 per 1000 dollars of value.  It has meant a loss of an average of $3 million per year for Emeryville over that time.

Emeryville stands alone in it's retention of the General Law status in the region.  Cities throughout the region have changed over to Charter City status to net these business transfer monies, using them to fund amenities for their residents.  Here's a breakdown of some local cities and their capture of transfer taxes:

• Alameda          $12.00 per thousand on full value
• Albany            $11.50
• Berkeley          $15.00
• Emeryville       $0.55
• Hayward          $4.50
• Oakland           $15.00
• Piedmont          $13.00
• San Leandro     $6.00     

 Mayor Asher said in the address Emeryville would be unable, legally, to increase its business property transfer tax without changing to Charter City status like neighboring cities have done.  To remain competitive, she suggested the tax should be raised to $12; still less than Oakland or Berkeley. Ms Asher also noted should Emeryville vote to become a Charter City the residents would be free to change other things about the city in the future such as voting directly for mayor, something now conducted exclusively by the City Council members.  Or the residents could elect to leave things as they are with the exception of raising the transfer tax to closer to what our neighboring cities charge.  The issue could be placed before Emeryville voters this November either by collecting signatures in a ballot initiative drive or the Council members themselves could, by fiat, elect to put the issue on the ballot for Emeryville voters in November.

Mayor Asher called the Charter City question a "way forward" after the loss of the Redevelopment Agency and all the fiscal woes visited upon Emeryville without that formally copious revenue stream.


Video courtesy of the Emeryville Property Owners Association: