Biddle Contract Approved, 9 Months Pay Perk Added

Worried About Termination, Biddle Nets Ballot Initiative Severance Pay 

Emeryville city attorney Mike Biddle changed his employment contract with the city to blunt the effects of a possible termination of his employment by voters in the scheduled November ballot initiative.  Mr Biddle however lost his bid to receive the 18 months ballot initiative severance pay he requested, garnering instead nine months by city council fiat last Tuesday.
The council voted 4-1 to grant nine months severance pay with council member Ken Bukowski dissenting, claiming Mr Biddle should receive no special severance in the event the people vote him (Biddle) out of office.  Mr Bukowski is the progenitor of the autumn ballot initiative that would remove the city attorney position as a regular employee of the city adding instead subcontractor attorneys for the city's legal work.

18 months of aggregate salary for Mr Biddle would total at least $431,000 based on the city attorney's 2010 salary according to the Public Employees Salary Database.   Council member Jennifer West offered instead 9 months of salary totaling about $216,000, a savings of approximately $216,000 for the city.

The negotiation of Mr Biddle's employment contract was regularly scheduled by the city council and the looming ballot initiative against the city attorney's employment is unconnected to it.

Kitty's Cabaret License Extended

February Bar Fight Put License In Question

Kitty's Nightclub Is Granted A Reprieve

Kitty's, the popular bar and dance venue on Hollis Street, was granted a reprieve Tuesday night when their cabaret license was conditionally extended by the Emeryville city council, a move that surprised many in town.  The council voted to allow Kitty's to provide disc jockey and live entertainment on the weekends to 8 pm until the bar changes owners in July.

Happier times at Kitty's

Kitty's had been in hot water since the much publicized bar brawl fracas last February when 150 agitated revelers spilled out into the street in a bottle smashing and fisticuffs brandishing melee, overwhelming Emeryville police.  Chief of Police Ken James indicated the EPD ultimately required back-up police services from neighboring towns and even the California Highway Patrol, to quell the tumult.

Mayor Nora Davis raised up a stack of police reports to the City Hall Tuesday night crowd; a litany of calls for service to Kitty's over the last year and exclaimed her patience was being tested before the council vote.  Ms Davis' concerns were mollified by the conditions hammered out,  enough for her to join her colleagues in the 5-0 vote.

Police Chief James testified there have been 58 Kitty's generated calls for service this year including 12 arrest incidents and firearm charges.  Mr James told the Tattler in April last year that Kitty's has been a major source of police over-time adding substantially to the current budget crisis. 

Council OK's Ballot Initiative Against City Attorney

Voters Will Decide In November

Attorney Biddle Fails Attempt To Block Voter Referendum

The ongoing battle between Emeryville city councilman Ken Bukowski and city attorney Mike Biddle over the future of the attorney's position as city employee entered the electorate signature gathering phase Tuesday night as the city council blocked Mr Biddle's attempt to thwart a November ballot initiative on the issue.   The council refused a recommendation by Mr Biddle to stop councilman Bukowski's ballot initiative to subcontract out the city attorney position at City Hall, after hearing testimony from attorney Stuart Flashman, representing Mr Bukowski.

Mr Biddle implored the council to not let the voters decide about whether we keep a city attorney stating the ballot initiative, slated for November, is illegal.  The city attorney maintains the issue must not appear before the voters because it is an "administrative rather than a legislative item".  He quoted the California constitution to support his decision.
Mr Flashman told the council they don't need to rule on the legality of the proposed ballot initiative but they should first allow the voters to have their say noting that courts are generally reluctant to decide before the people do.  "Courts don't like pre-election changes" he said.

Mr Flashman noted there is no case law to cite in this case and it is unknown as to the legality of it.  He warned the council that if they were to move to stop the ballot initiative before the voters get a chance to have their say, a legal challenge will cost the city "at least the $15,000 the ballot initiative is slated to cost", likely more he intoned.

Both Stuart Flashman and mayor Nora Davis chastised the city attorney for his involvement in trying to quell the voter initiative, effectively saving his own job, "I'm a little puzzled and concerned that the city attorney is involved in this" Mr Flashman said adding it's a "conflict of interest".  Council member Davis told the city attorney, "We need to get some distance here because of the allegations of conflict of interest".

After some discussion, no council member offered up a motion to satisfy Mr Biddle so Ms Davis turned to the city attorney, "Well Mr Biddle it looks like we're going to proceed ahead".  The signature drive will begin in a few days according to council member Bukowski.

Business License Tax: Fortnight of Back Room Deals

Residents Must Wait Two Weeks For A Decision

Will The Council Let The Citizens Decide On Taxes?  

Last night the Emeryville city council voted to postpone for two weeks, a decision over the idea of a business license tax ballot initiative so Pixar/Disney and other large corporations can have time to negotiate more advantageous back room deals with the city staff.  At Pixar's request, the 4-1 (Nora Davis dissenting) council vote gives Emeryville's largest corporations two weeks longer, after more than a year of wrangling about the issue, to lobby the staff regarding the tax raising plan.

At issue is whether the residents should be allowed to vote in November on the infamous business license tax cap; whether it should be done away with and whether the tax rate should be raised.  The tax as it is now puts a cap on taxes owed for any gross income over $146 million and is unique in the entire Bay Area.  Formerly, the city had estimated a revenue enhancement of millions of dollars annually if the cap were to be raised.
The cap now effects only three businesses in town , including Pixar.  The highly regressive tax cap has the net effect of making the small businesses in town pay much more in taxes than the largest businesses.  The existing tax rate, above and beyond the cap, is .08%; also lower than what the neighboring cities charge.

Pixar Threatens City

Should Emeryville's taxes be similar to
other Bay Area cities?
Should the people decide?

Pixar's attorney last night warned the council to "slow down" and urged them not to make a decision yet, raising concerns that the whole tax increase ballot initiative is rash and needs to be more though out, regardless of the previous year of debate about the issue in the council chambers.  Further, the specter of litigation was raised by Pixar when council members were warned that they should take a step back "before this thing becomes divisive".

'Oops, We Made A Mistake!'
Eyebrows were raised when Karan Reid, the city's chief financial officer revised the previous estimations for the city's take from a license cap lifting from millions of dollars annually to now only $152,000 per year.  This is a result of the largest businesses revisions in their reports to the city.  Apparently, now Pixar has found many exemptions and deductions to their gross income, lowering dramatically the amount they would owe in the event that the residents vote to lift the cap.  Pixar, being one of three businesses effected by the tax cap lift would presumably only owe some $50,000 according to the newly revised numbers.  One resident noted last night however if the amount Pixar would owe is now so small, why are they fighting lifting the cap so vigorously?

The Chamber of Commerce announced they are not supportive of allowing the residents to vote on the issue.  Chamber president Bob Canter told the council not to let the rabble put Emeryville at risk.  Emeryville needs to keep everything just as it is to keep and attract business to Emeryville, he said.

The issue is now to be voted on May 17th by the council so Pixar has time to push their interests in the back rooms at City Hall.

City Attorney Tells Council To Create Phony Housing Authority

Cynical Gaming Of Government Services:

City Attorney Recommends City Set Up Sham Housing Authority 

Emeryville's city attorney, Mike Biddle has recommended the city council set up a new governmental agency in Emeryville; a housing authority, who's sole purpose is not to administer housing but instead to enable certain managers at City Hall avoid paying 6.2% of their salaries to the Social Security Administration.

Mr Biddle, in a pre-dated May 3rd letter, reminded the city council that Governor Brown could terminate the Redevelopment Agency and that would trigger the end of the other half of a coupled Emeryville joint powers authority known as Management of Emeryville Services Authority (MESA).
Mesa as it turns out, is a major employer at City Hall; except for Police, Fire, and SEIU employees, everyone else (mostly managers) don't actually work for the city of Emeryville but for MESA.

MESA employment is different than city of Emeryville employment in that city workers must pay 6.2% of their income to Social Security (SSI) but as MESA employees, there is no deduction for SSI owing to an alternate retirement program.

MESA, being a joint powers authority, must exist with another government entity (as it now exists in conjunction with the Redevelopment Agency) so in the event of a Redevelopment Agency shut down, the only way for managers at City Hall to get their desired MESA retirement package is if another government agency can be brought forth for MESA to couple with.

Mr Biddle's solution is to create a sham entity to become part of MESA to fulfill the requirement of two distinct entities needed to keep MESA alive.  Mr Biddle recommends forming a phony Housing Authority to accomplish this.

In his letter, Mr Biddle assures a skittish council the new housing agency won't have to actually transact any business; there would be "no requirement that the Authority provide for section 8 housing, nor is there any requirement that the Agency own and operate any housing as a landlord" or anything else that housing authorities do to create affordable housing.  Instead, Mr Biddle says in the letter, the new Housing Authority could just sit there and serve its real purpose: bumping up the pay of city managers by 6.2%.

The city council will discuss the issue on Tuesday night.

City Attorney Fires Back Against Bukowski Ballot Initiative

City Attorney Hires His Own Attorney

Biddle Says Ballot Initiative Is Illegal

City Attorney Mike Biddle has notified the city council that a ballot initiative measure calling for Mr Biddle's ouster and started by councilman Ken Bukowski is illegal.  Mr Bukowski is calling for a vote of the people to decide if Emeryville's city attorney position should be replaced with attorneys to be hired as sub-contractors and used by the city on an 'as needed' basis, mostly to save money.
In a April 29th letter to council member Bukowski, obtained by the Tattler, the city attorney says he hired his own attorney that maintains such an initiative is "beyond the scope" of the initiative process and the resident citizens may not make such a change, only the city council wields that power.

Lawsuit Threatened
Mr Biddle indicated in a separate Friday evening e-mail to Mr Bukowski and cc'ed to the entire council that he will seek "declaratory relief" from the council, relieving him (Biddle) of his duty as city attorney to prepare the ballot initiative for citizens signature unless Mr Bukowski withdraws his ballot measure.  He ended by threatening the councilman and the city as a whole, "I ask that you give careful consideration of the opinion and withdraw the Measure so that the City can avoid the time, cost and expense of unnecessary and avoidable litigation".
Council member Bukowski is calling Mr Biddle's direct involvement in the handling of the case a conflict of interest and has characterized his action as an act of "gross misconduct".  Says Mr Bukowski, "I don't think it is ethical or proper [for the city attorney] to handle any aspect of this ballot measure since it affects [him] personally".

Mr Biddle has sought legal opinion from Manuela Albuquerque of the high powered law firm of Burke, Williams & Sorensen LLP, a Los Angeles based company.  Ms Albuquerque, a former Berkeley city attorney, flatly stated in a letter to Mr Biddle that the people of Emeryville are not allowed to decide about the issue since, "The subject of the Measure is an administrative act and not a legislative one".
Presumably, the taxpayers of Emeryville are paying for the services of Burke, Williams & Sorensen.

The city attorney will ask for the declaratory relief from his duty to forward the ballot measure to the voters on Tuesday night before the city council.  The city council will vote on Mr Biddle's contract and whether to extend it or not also on Tuesday but that vote is incidental to the question of the ballot measure since the terms of Mr Biddle's existing employment contract are up for consideration regardless.

Bukowski Petitions To Fire City Attorney

Council Member Bukowski Starts Petition Drive Against City Attorney

"He [Biddle] is the single largest, unnecessary expense 

the City is paying for." - Ken Bukowski

Emeryville council member Ken Bukowski has called city attorney Mike Biddle out for the final showdown in his long simmering battle over Mr Biddle's employment contract, the Tattler has learned.
As of late, it's mostly been a war of words between the two men but now councilman Bukowski has brought out the big guns in the form of a city-wide petition drive to force out the head attorney and eliminate the paid employee position in favor of an attorney sub-contractor position to be used in an 'as needed' basis.

Beyond his questions of competence on the part of the city attorney, councilman Bukowsi says Mr Biddle's contract is too expensive and taxpayers could save money by sub-contracting out attorney services as most small cities do.  "The city of Pittsburg has a redevelopment agency ten times the size of Emeryville", council member Bukowski told the Tattler, "They use outside legal counsel...they have over a 100 attorneys on staff as a retainer for the same money we pay to only one individual [Biddle]".  He added that our city attorney earns more than the Oakland city attorney, "and we're only a fraction the size of Oakland".

Mike Biddle made $287,448 in total compensation last year according to the Public Employee Salaries Database.

The matter of the city attorney will go before Emeryville voters in November if Mr Bukowski can garner the required signatures from residents before the first week of August.   The councilman has filed the ballot measure with the city and the signature gathering processes should begin "in about ten days" he says.  A total of about 590 signatures will be required to place the item on the ballot.

In a possible conflict of interest, Mr Biddle himself could process the ballot measure against him, including writing the 'objective' voter summation for the ballot measure according to Mr Bukowski.  The councilman expressed displeasure at this prospect and indicated the process should be handled by an disinterested and unbiased outside attorney.

Mr Bukowski has obviously been preparing for the move against Mr Biddle; a table will be set up in neighborhoods throughout the city where he will be soliciting signatures and residents will be able to track the location of the table in real time on a Twitter account Mr Buklowski plans on setting up expressly for the signature drive.  A web page will also be set up so residents can follow the progress, Mr Bukowski says.  The councilman said he will devote four hours a day gathering signatures, informing Emeryville residents about the problems with the city attorney and registering new voters.

Web Site Shows Emeryville's Pat O'Keeffe Pulls In $316,952

Database Compares Municipal Employee Pay:

Contra Costa Times Reveals Emeryville City Manager Among Highest Paid In Bay Area

Emeryville residents finally now have a quick and easy single repository to check on Emeryville's employee compensation and compare them to other Bay Area cities, courtesy of the Contra Costa Times.  A quick search around the newspaper's 'public employee database' site enables viewers to see all base pay and total compensation packages broken down into benefit categories.  Emery Unified School District employees are included in the database.

Viewers should select "Emeryville" in the 'entity' section for all city employees.  To compare with other cities, don't specify an entity.

The database reveals that Emeryville City Manager Pat O'Keeffe is among the highest paid managers in the entire Bay Area with a total compensation listed at $316,952.


The site may be accessed here:
www.ContraCostaTimes.com/salaries

Regressive Business Tax: City Council Is Complicit

City Council's Defacto Claim:

Emeryville Is The Worst City Around, And Now We're Desperate Too

Opinion
We don't rate, we're not worthy, we're terrible, why would anyone want to do business in a city as bad as Emeryville?
This has been the unstated but clear mantra from the city council manifest by the business license tax scheme it has championed for many years.

Business taxes in Emeryville are low...really low.  The low tax rate is further exacerbated by the infamous cap on taxation for all business income over $117,000 the city council has shepherded for the last several years.  No other city in the entire Bay Area has even remotely such a generous tax scheme for business, especially big business.
The only conclusions that can be reached as to why taxes are lower by an order of magnitude are two-fold: 1) The city council believes that Emeryville is so bad that we need to give away the store to have any chance to attract big business here or 2) they are pro-business ideologues. Either conclusion is unacceptable for us, the residents.

If the council only wanted to help attract business to our town, they could have simply offered the lowest tax rate, but to pile on the tax cap, worth millions of lost dollars, is something else altogether.

Now. against this backdrop,  the council would like to raise taxes to offset the terrible financial crisis at City Hall.  The message is that even while we're such a bad place for business to locate that we need to give ridiculously generous tax breaks for big business, also now we're desperate.

As the city council decides whether to place on the November ballot, a change to this irresponsible tax regime, residents would be wise to disregard any attempts to politicize this by any council members running for re-election also in November, as surly they will.  They'll tell us they support business paying their fair share.  But we must remember as we go to the polls, it is they that delivered to us and protected the current tax scheme.  We should bear in mind that the city council has let slip through our hands, hundreds of millions of dollars over the years in service to their absurdly pro-business tax scheme.

Here's your new park

While you read their coming re-election campaign literature, you should think about all the money lost due to this extreme tax code they are responsible for and all the parks they say they want and all the bicycle infrastructure and other amenities and how we now don't have the money for them.

Higher Taxes For Big Business: Finance Committee

Move For Biggest Businesses To Pay More

Infamous Business License Cap Might Be Lifted

Tuesday night the Finance Committee sent a recommendation to the city council to allow Emeryville voters to decide if  the much maligned business license tax cap should finally be rescinded.  The meeting, held at City Hall and well attended by business owners and residents alike, was also intended to decide about whether the actual business tax rate should be increased as well as a possible tax exemption for small businesses.  The committee decided to pass to the council, all three recommendations for their judgement.  If the council  OKs the recommendations, probably at a May meeting, then the residents will have the final say in the form of a November ballot initiative.

At issue is primarily the lifting of the tax cap; long a point of contention for small business owners and residents alike.  The current law places a cap or upper taxable limit on all business income at $117,000.  Any income over that amount is tax free.  Emeryville stands alone in the entire Bay Area with its tax cap law as no other cities have any cap on taxable business income.
The law effectively makes small businesses pay much more than large businesses.
The city council majority has long defended the cap stating Emeryville is such an undesirable place for businesses to locate that the city needs to create extremely generous tax incentives to attract the largest businesses here.  It is noteworthy however that economic conditions are such that those council members, formerly defenders of the tax cap, are now entertaining the idea of lifting it.

As the law is currently written, even for business income below the cap, Emeryville's taxation is far lower than its neighbors at .08% of gross receipts.  Oakland's rate is .12% while Berkeley sets their rate at .18%.  Neither of the two neighbors places a cap on taxable business income.
The committee said the council will decide if the voters will be able to set a higher rate as well as lifting the cap, possibly in two separate ballot initiatives.

The staff recommended the committee reject a proposal to waive tax fees for businesses with less than $100,000 gross receipts.  City finance chief Karen Reid claimed no other cities in the Bay Area past or present waive fees for small business;  however Emeryville itself waived the business license tax for small business as late as 1999.  That law, extant for 12 years, was overturned by the council after its author, former council member Greg Harper left office in 1999.