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HomeMy WebLinkAboutcc min 1976/12/09 MINUTES OF ~Jq ADJOUrnED REGULAR MEETING OF THE CITY COUNCIL OF CHULA VISTA CALIFORNIA Held Thursday - 7:30 p.m. December 9, 1976 The adjourned regular meeting scheduled for the City Council Chamber was moved to the Council Conference Room, City Hall, 276 Fourth Avenue, at the request of Mr. Bob Green, President of the Chula Vista Taxpayers Association. The meeting which was scheduled for 7:30 p.m. began at 7:50 p.m. with the following Councilmen present: Mayor Hamilton, Councilmen Hyde, Cox, Egdahl, Hobel Councilmen absent: None Staff present: City Manager Cole, City Attorney Lindberg, Assistant City ~ianager Asmus Also present: Mr. Bob Green, President, Chula Vista Taxpayers Association, Mr. Will Johnstone, President-Elect, and Mr. Tom Marshall, Legal Counsel DISCUSSION OF VOTERS' On October 25, 1976, the Taxpayers Association filed TAX RIGHT INITIATIVE with the City Clerk a publication of their Initiative which stated: "..,request that the proposed o~nsndment to the Gharter . . . be submitted to the registered and qualified electors of the City for adop- tion or rejection at the election on April 12~ 1977 . . . that the electors of the City may submit a referendum petition any time after the effective date of an ordinance. The powers of initiative and referendum shall apply to all taxes whenever enacted~ which are author- ized by this Charter." Mayor's Opening Remarks Mayor Hamilton discussed the Council's awareness of the increase in taxes and the concern of the taxpayer. He stated that only 12% of the total property tax goes to the City and the utility users tax is one means of pro- viding an effective means of holding down the property tax while at the same time, give the City a sound cash flow without creating any undue hardship, tie asked that the Taxpayers join the Council in a meaningful dialogue to resolve the matter of their initiative. If it passed and was upheld by the Courts, it could cost the taxpayers approximately $20,000 every time an election is needed to be called on any measure. Mr. Bob ~reen Mr. Green declared that the Taxpayers Association is not President interested in "tax relief" but in "tax reduction." Since Chula Vista Taxpayers Association the Council invited the members of the Association here tonight, Hr. Green asked what the Council is offering: will they be willing to drop the tax from the rolls if they (Taxpayers Association) dropped the initiative? Mr. Will Johnstone ~{r. Johnstone related how he appeared before Council two President-Elect years ago at which time he made a recommendation that Chula Vista Taxpayers Association because of the vast increase in tMs tax, ($300,000 ini- tially to now over a million), the Association felt that when the tax went up, the "multiplier" of the utility tax should have gone down. l~hen a petition was discussed Adjourned Regular Meeting -2- December 9, 1976 to repeal the tax, the City Attorney deemed it illegal as the money of the tax was going to the ordinary ex- pense of the government. Therefore, this initiative is the next step. Hr. Johnstone added that the City is "hiding" this utility tax -- if it is necessary to collect this money, it should be put on the property tax. Reason for tax Mayor Hamilton explained the reason for the utility tax - it was one means of generating a tax that was paid by a broader base of the citizens to support City services. Declaration of Mr. Green Mr. Green declared that the basic thrust behind the initiative was strictly the utility tax and this is the only way they can get to it. Councilman Hyde's comments Councilman Hyde discussed the cost of government and the Taxpayers concern in reducing this cost. This should start at the budget reviewing process. City's operating budget ~. Johnstone indicated that the City is doing a good job. In going over the budget "meticulously," his main argu- ment is the "frills" -- money received from the federal government which he feels the City should not be getting. Mr. Johnstone made note of the "shocking" increase in the school rates - as much as 35¢ last year. Initiative Circulation Mr. Green referred to their initiative stating they are "90% there to put it on the ballot and have no intention of stopping it" unless the Council will remove the tax. Councilman Hobel's comments CouncilmanHobel remarked that the Council has demonstrated it's concern regarding taxes and government-spending by reducing the property taxes in the City for the past five years. Suggestion for limit Councilman Hyde reiterated that the proper time for dis- on utility tax cussion of reducing taxes is at budget time. The utility tax is an additional form of revenue for the City and to repeal it would mean going someplace else for it. Councilman ttyde added that one of the proposals at last budget time was to determine a level for the utility tax and when that amount was reached, tile tax would be sus- pended for the rest of the year. Ceiling on utility tax Mr. Green said the Taxpayers would be amenable to having the Council put a limit of $380,000 - the original amount - on the utility tax. Attorney Marshall's Mr. Marshall offered the following alternative: Last comments year, the City of National City had a referendum on the Bonita Plaza Shopping Center. ~ey didn't bare to do that - it was a "straw vote." [Ir. ~larshall suggested the City of Chula Vista have a "straw vote" without admitting that the people have the right to challenge the utility tax by referendum. Adjourned Regular Meeting -3- December 9, 1976 Mr. Johnstone declared that their proposal affects any tax but they are aiming at the utility tax. The Asso- ciation "might compromise" if the Council went along with this alternative. Question of circulating Councilman Hobel expressed his concern that when people the petitions circulate petitions, they do not have to tell the truth to the citizens - they can tell the citizen that his taxes will be raised if he does not sign the petition - in this way, there would not be one person who would not sign these papers. Level of government service Councilman Hyde commented that if the utility tax is repealed, the level of service provided the citizens is going to decline. ~. Green remarked that the people don't want the same level of services they have been getting. Discussion ensued as to the services which may have to be cut down if the tax is repealed. Mr. Jim Fergus Mr. Fergus said that the only thing under discussion is Member the referendum- which is to get rid of the 30-day limit Chula Vista Taxpayers Association period, tlc asked if the State would preempt the people for this same tax if it was repealed. Hayer Hamilton answered that it was a possibility and one of the reasons the Council enacted it in the first place. At the time Chula Vista put in this tax, 60 other cities in the State did the same thing. Mr. Fergus commented that, in the future, in order to retain this authority within this community, they should be talking about putting a ceiling on the tax rather than eliminating it altogether. Council Compromise ~r. Green declared that step one is not jest the 30-day limit. The second section of step one is the right of the people to retain the right to vote on any other tax the City might put up - whether it be a bedroom, garage tax, or any other tax. If this is of the Council's con- cern, they would be willing to stop the initiative if the Council gives the people the right to question the utility tax. Mr. Fergus disagreed stating they sould pursue the referendum because the people "deserve that right" and in no way can they determine in some cases in 30 days, whether this tax was something the people can live with or not. Lois Richards Hs. Richards asked how many people the Taxpayers Asso- 738 Monserate Avenue ciation is representing and where is the extra money Chula Vista collected from this utility tax. Adjourned Regular Meeting -4- December 9, 1976 Mr. Johnstone said the Association represents 60 people. Councilman Hyde remarked that the money goes into the General Fund, identified as the money collected from the utility tax. If, at the end of the year, there is a surplus, then when the Council calculates the budget for the forthcoming year, this money is taken into account Ernest Arnold ~lr. Arnold stated that the money should be more readily 897 Beech Avenue identified in the budget. Chula Vista Mayor's remarks [{ayor Hamilton discussed the General Fund reserve and the present services provided the citizens of Chula Vista. He indicated that the Council would not be able to state tonight that they would be willing to put this on as a voluntary referendum on the April 12 election - or whether there would be a lid on it for "X" number of dollars. This cannot be answered until the Council considers the budget and determines the amount of money needed to run the City. There is, however, an interest of the Council to put a ceiling on the utility tax at budget time. City Attorney's statement Mr. L±ndberg referred to his former opinion which he gave in 1970 at which time he stated that a tax which was being collected to pay the current and necessary expenses of the City was not subject to referendum. Attorney Lindberg pointed out that in the present Ini- tiative, as written, any citizen would have the ability to challenge by referendum any ordinance of the City at amy time ~fter it ~as happened. Herb Lathan Mr. Lathan remarked that the group of 60 people represen- 631 Carla Street ting the Taxpayers Association do not represent him as Chula Vista a taxpayer. Councilman Egdahl's comment Councilman Egdahl noted that the main concern as expressed by the Taxpayers Association was to get at the utility tax. It is the Council's contention that the process of getting at the utility tax opens up problems that will have to do with every decision in the City including the land on which each citizen lives. The Council cannot make any decision tonight as that would have to be done at the budget process in considering the Ievel of services that might have to be reduced, or a means of offsetting that income (utility tax). Council could propose to put a limit on the utility tax - a ceiling on the amount of money to be raised, or a voluntary referendum. The Council will have to consider all these possibilities and come back with a response. Ernest Arnold Mr. Arnold spoke of the increase in his taxes for the past few years stating that the public is "shocked" each year by their tax bills. The tax bills are one part of the Taxpayers' concern - the other part is that the Council must consider, at budget time, the impact on ail the citizens. Adjourned Regular Meeting -5- December 9, 1976 Mayor Hamilton reminded Hr. Arnold that he came before the Council at the last meeting and recommended spending $70,000 for traffic lights on "L" Street. Representatives of the Mr. Green and Mr. Johnstone left the meeting at this time Taxpayers Association leave indicating that Mr. Egdahl had expressed their views. Walter }toysa. Mr. [H~ysa declared that the whole thrust of the Taxpayers 280 "K" Street. #13 initiative is a threat and blackmail. If they are Chula Vista successful in getting this referendum adopted, there is no telling what they will do next year, two years from now~ or at any time in the future. Lois Richards Ms. Richards said that the entire nine members of the Charter Review Committee Committee discussed this petition at length. They felt it would be defeating the practical management of the City if it was passed. As a citizen, Hs. Richards said the utility tax is not an exorbitant tax and reaches every segment of the community. Mayor Hamilton discussed the purchase of an 80 foot ladder fire truck which was needed to serve a non-profit organization's need in the City indicating that the utility tax reaches these people. Eugene Coleman Mr. Coleman asked how much money this Council has spent 1670 Gotham Street to bring the County Center to Third Avenue and "H" Street. Chula Vista South Bay County Regional Discussion followed regarding the Center and the improve- Center ments necessary. Attorney Lindberg explained that the money (approximately $42S,000) is a loan which will be recouped. The City is working with the County in a joint powers agreement for the development of the Center. Sid Morris Mr. ~torris spoke about the people "getting back the 862 Cedar Avenue government." He cautioned that there will be a day when Chula Vista this City will be going broke because it cannot continue to give people "cradle to grave protection." Marguerite Stein Ms. Stein referred to the Council's recent decision 81S Third Avenue regarding installation of traffic lights on "L" Street Chula Vista and maintained that, before these are put in, that the Council should authorize signals for Orange and Melrose and for Main and Melrose. Ms. Stein added that there are budgeted needs in the City that have to be met - from some source - and it is the function of the Council to decide the particular source. If the Council's decision on the source from which the taxes for a given -year must como ara tO be questioned - year after year or month after ~nth at~20,000 special elections, 1he.City is "going to be in a fine kettle of fish." ~layor Hamilton remarked that this was the concern of Council. Adjourned Regular Meeting -6- December 9, 1976 Recess A recess was called at 9:25 p.m. and the meeting recon- vened at 9:40 p.m. PROCEDURE AND TIME Mayor ttamilton left the Chair at this time and Mayor SCHEDULE FOR SELECTING Pro Tempore ltyde presided over the meeting. AN INTERIM MAYOR Councilman Cox's Councilman Cox noted that at noon on January 3, 1977, recommendation Mayor Hamilton's resignation will become effective. He proposed that, at a separate meeting, the Council submit the names of the people indicating their interest in serv- ing as a Mayor on an interim basis. After that, these people should be invited to come before the Council and subject themselves to questions and in addition make any statements they wish. .Councilman Cox stated that this procedure should get under way before the latter part of next week so that by the end of December, the field will be narrowed down to two individuals. Attorney's comments Mr. Lindberg remarked that the Council has the right to start proceedings for selection at any time prior to January 3 - the appointment to be effective after January 3. The Council must use an open meeting for the selection of candidates - no executive session can be held for this matter. Motion for Council It was moved by Councilman Egdahl, seconded by Council- policy regarding candidates man Hobel and unanimously carried by those present that for interim Mayor one policy which this Council adopts is that it will give consideration only to those individuals who express their intent not to seek the elected office of Mayor in 1977 April election - that this be a policy in the selection of this particular vacancy. Councilman running for Councilman Hobel noted that one of the Councilman will be Mayor's seat running for Mayor. Councilman }Bbel wondered if the policy should contain also the statement that this person appointed as interim Mayor would nog seek~the unexpired term of the Councilman should that Councilman win the election. The Council discussed this issue and concurred that it would be presumptive to anticipate this happening. The Council will make its decision at the time when and if this occurs. Discussion ensued as to the time element involved, the number of Council meetings left in December and the need for interviewing applicants. Motion for decision It was moved by Councilman Hyde and seconded by Council- prior to Christmas man Hobel that the council come to a decision prior to Christmas. Adjourned Regular Heeting -7- December 9, 1976 Discussion of motion The Council concurred that the interviews should start at the December 16 scheduled Conference. Applications of those interested must be in by the 1Sth or sooner. Amendment to motion It was moved by Councilman Hyde that at the Council Conference of December 16, the Council conduct interviews of all known candidates for the interim Hayer position and also interview any other candidates who show up at that time and indicate an interest in serving. Councilman Egdahl asked that the motion be modified to state, that a list of the candidates be finalized by the 14th rather than have a number of candidates waiting to be interviewed. Motion modified Councilman Hyde modified his motion to state that the interviews will be set up for the 16th for those can- didates who, by December 14, have made their interest in this office known - either to the City Clerk or one of the Councilmen. Councilman Egdahl asked that this be a documented item on the agenda for the 14th of December. Motion carried Councilman Hobel agreed to the second and the motion, as modified, carried unanimously. FUNCTION OF COUNCIL City Attorney and Council discussed the function of the WITH FOUR (4) MEMBERS Council with four members - the motions needing a unanimous vote of the Council, and the possibility of a run-off election in June. List of present interim Councilman Hyde noted the following people who have Mayor candidates indicated their interest in serving as interim Hayer: Frederick Drew, Frank Scott, Joseph Rindone, Hargaret Helton, }~es ~arden and Ernest Arnold. WELFARE COUNCIL BASKETS City Manager Cole stated that the Welfare Council has asked permission to place boxes in City Hall for employees' donation of canned goods. The Council concurred with this approval. ADJOUR~{ENT Mayor Pro Tempore Hyde adjourned the meeting at 9:55 p.m.