Vote Will Be June 2

The library at 6510 Stockton Ave.

El Cerrito residents will have the chance to vote on the El Cerrito Library Tax Initiative on June 2, the City Council decided Thursday. The choice between a June 2 or November 3 election was the topic of many public comments at recent council meetings. The council vote was 4-1. Council member William Ktsanes voted no.

Decision Followed Report and Comments

The council’s decision was made after a presentation by City Attorney Sky Woodruff and City Manager Karen Pinkos that summarized a 33-page impact report prepared by the city staff.

The presentation was followed by public comments from about 20 people, many of whom thanked the staff for taking the time to provide information. Many speakers also said they still have questions about the measure’s impacts.

No More ‘Analysis Paralysis’

In casting her vote for a June 2 election, council member Carolyn Wysinger said it was time to put an end to “analysis paralysis.” She said that in politics, there can be a tendency to analyze the same thing over and over.

“The core tenet of organizing is voter education,” Wysinger said. “It’s now time for both sides to organize…I want this to go forward. If that is not what you want, get your information out to the people.”

Council member Lisa Motoyama thanked people for coming to the special meeting at 9 a.m. on a Thursday.

“I can tell that this means a lot to people,” she said.

Failure of Library Measure in 2016

Motoyama noted that a ballot measure to fund a new library lost in 2016 although 63% of voters cast ballots for it. That was because a two-thirds majority was required. She said that outcome means that “4% of people in El Cerrito were able to turn down what most people in El Cerrito wanted.” She said she believes strong support for a library tax still exists.

Because the proposed library tax is a citizens initiative, it can pass with 50% plus one vote.

Attempt to Close 50% Plus One ‘Loophole’

However, it’s not clear whether the 50% plus one vote option will remain open in California.

In public comment, Wally Nowinski said that a statewide initiative campaign by Howard Jarvis and the Business Roundtable to “close the loophole” that allows passing a parcel tax by a 50% plus one vote margin may have gathered enough signatures to qualify for the November 3, 2026 ballot. The measure is intended to apply retroactively to measures on the June ballot. The loophole was created by an appellate court ruling known as the Upland decision.

Potential for Litigation

City Attorney Woodruff said if the statewide measure were to pass in November and be applied to measures passed in June, “there will inevitably be litigation.”

The El Cerrito initiative names “litigation costs” as an authorized use of revenue from the library tax.

Relevance of BART ‘Fiscal Cliff’

Another broader issue is the “fiscal cliff” being faced by BART, which may be alleviated if voters pass a transit tax expected to be on the ballot in November.

Council member Motoyama asked the city attorney whether the worst-case scenario – a BART bankruptcy – would invalidate BART’s ownership of the Plaza Station land. Woodruff said it is very unlikely that BART would lose ownership of the station land, or that any agreements in place to build a library at BART would be “dischargeable.”

Certainty Needed To Grab Opportunity

Motoyama said the city has a limited-time opportunity to have its new library be part of the 743-apartment Transit-Oriented Development approved for Plaza BART parking lots. The library would be on the ground floor of an affordable housing building that is not yet funded.

“The one thing any development entity wants is certainty,” she said. This is a cost-effective way to get a 20,000 square foot library and I don’t think this opportunity will come again.”

New Library Has  ‘Taken Too Long’

Council member Saltzman said she supports a June 2 election because it has already taken too long to move forward with a new library. She takes her daughter there but they don’t stay long because the library is “one big room” that doesn’t allow space for children to move around.

“We need a new library,” she said. “I think the soonest possible moment is the way to go.”

Why Ktsanes Voted No

Ktsanes said he wanted the measure placed on the November ballot to allow for more public engagement and save $80,000. He added that he did not believe a statement that there would be a 6% inflation of costs for the period between June 2 and November 3.

Inflation Would Cost ‘Way More’ Than $80,000

Michael Fischer, El Cerrito’s representative on the Contra Costa Library Commission, had said earlier that construction inflation is running 6% per year so the cost of even one month’s delay in moving forward with a $37 million library “is way more than the cost of an election in June.”

One interesting development during public comment was that two former members of the City Council that renovated the Swim Center in the 1990s both made statements.

‘Our Opportunity to Get a First-Class Library’

Mark Friedman spoke for the library tax proposal, while Gina Brusatori spoke against it.

Friedman said attempts were also made back then to replace or improve the library.

“Now is our opportunity to again try to get a first-class library that reflects where we are as a community,” Friedman said.

Brusatori disagreed.

‘Not Well-Thought-Out and Too Expensive’

Brusatori said that, when she was mayor in 1999, advocates for the Swim Center asked the city for $8 million, but the city was eventually able to do the renovation for half that amount and include work on playing fields.

“What I see today is a repeat,” Brusatori said. “This proposal is not well-thought-out and too expensive. It’s a great deal for the developers, who will get a much lower cost of financing with an A rated tenant like the city of El Cerrito. We need to repair or replace the existing library.”

Panas Explains Bond Fund Protocol

Tom Panas, a former West Contra Costa school board trustee and major contributor to the Committee for a Plaza Station Library, weighed in to allay voter concerns that library tax funds might end up subsidizing general fund expenditures. Panas said funds from a bond issue must go into a separate, earmarked account at a trustee bank and only be used for construction and operating expenses for the first ten years after construction is completed.

Happy It’s Moving Forward

Former council member Paul Fadelli, a retired BART legislative manager and strong advocate of a Plaza Station library, also spoke briefly, saying he is happy the library is moving forward.

‘Losing Faith in City Officials’

Betty Buginas, a former local newspaper editor who has written editorials against the library tax, including one published on Livable El Cerrito, said El Cerrito residents are facing a huge tax for a library proposal that many intensely dislike.

Buginas added: “The biggest problem is the growing number of people in the city who are losing faith in their elected and appointed city officials.”

In council discussion, City Attorney Woodruff was asked to address some problems that residents have perceived.

Would City Own BART Library Land?

Council member Motoyama asked Woodruff to address concerns that the city will not own the building or the land where it is built.

The short answer was, the city’s ‘ownership’ of a library on the ground floor of an apartment building at Plaza BART would be similar to the ownership structure for condominiums.

Woodruff said his office has negotiated with BART and developer Related Companies and reached “a deal to be incorporated into a framework” if that library moves forward.

When BART develops its land, it does not sell the land but instead approves ground leases for air rights that allow structures to be built, Woodruff said. Generally, the developer owns the structure built in the air rights while BART retains the land.

If the city moves forward with a Plaza BART library, BART would create two air space projects with “ownership” that is similar to a structure for condominiums. BART would charge $1 per year in rent for the lease rights for 99 years and the developer would notcharge any rent. The city would pay a share of the operating costs for the apartment building, Woodruff said.

(The city would also pay the developer for building out a library on the ground floor. Whether that amount would be the $37 million cost estimated by Griffin Structures for a Plaza Station Library was not stated.)

Council member Motoyama pressed Woodruff to state whether the city would “own” the library under this scenario.

I Would Say ‘Yes’

“I would say yes, in the same sense that anyone owns a condominium,” Woodruff said. “And there is a 99-year lease term.”

A fiscal analysis shown at the meeting said the tax of 17 cents per square foot of improved area and $100 per vacant parcel would be enough to cover debt service for all five scenarios analyzed recently by Griffin Structures and the city. Financial estimates were provided by a consultant, Craig Hill, who was said to be available on Zoom for the meeting.

Estimates included:

·         Annual Revenue: $3.16 million per year

·         Annual Cost: $331 per average single-family home in El Cerrito

·         Amount Left to Cover Annual Library Operations After Debt Service for Construction: $701,470 for the Plaza Station library scenario

Can the Tax Be Increased Every Year?

Yes, based on cost-of-living measures.

However, there is also a second limit. The tax rate cannot be set to generate more than 115% of the costs of indebtedness (or 15% over costs).

Can Increases Go On For 30 Years?

It is not likely that the tax would continue to increase beyond the first 10 years after construction, Woodruff said. This is because after that, the tax revenue cannot be used to pay for library operations. The tax rate (and revenue) should drop.

When Would Tax Collection Start?

It depends on when results are certified. With a June 2 election, it is possible the city could opt to begin collecting it in the 2026-27 tax year.

Can the Tax Be Collected for More Than 30 Years?

This was not answered directly, but the answer appears to be yes.

“It does allow the city to spend and reimburse itself. The tax may be used to fund planning and project delivery costs prior to issuance of bonds for construction,” Woodruff said.

Can Past Library Planning Costs Be Covered?

Probably. “The ordinance is ambiguous,” Woodruff said.

The city council could decide it’s only going to cover expenses after a certain date. Some costs have already been incurred in connection with this initiative, including preparing the impact report presented Thursday. Over the past ten years, many other costs have been incurred.

City Manager Pinkos said, “I would recommend costs from this initiative and beyond would be the only thing I would consider.”

What Happens When Tax Stops Covering Operations?

Pinkos said with construction of a new library building, the city may renegotiate its agreement with the county, which runs the library programs and staff, while the city pays for certain costs like technology, staff hours beyond a county minimum, and building maintenance. Future operations funding could come from the general fund or from other sources like grants or county funding.

Could A Drop In Funds Be ‘Smoothed Out?’

Council member Saltzman asked whether the council could soften the drop in tax revenue by keeping the tax below the maximum permitted and using that money later to cover operating costs.

Woodruff said yes.

“If at the end of 10 years there were additional funds, that revenue could be used for eligible expenses as defined in the ordinance,” Woodruff replied.

What Exemption For Seniors?

The initiative states that only seniors who qualify for one of two state programs can apply for a city exemption to the library tax, and proof of qualifying for the state programs may be required.

One of those state programs is “unfunded” and “unavailable,” according to a Franchise Tax Board spokesperson. To get proof of qualifying for the other, a tax postponement program, an applicant would need to apply for that program. If accepted, the applicant would have a lien placed on his or her home, according to an analyst with the State Controller’s office.

Woodruff said the council could “ultimately decide to provide additional exemptions,” but this could only be done after the initiative passed.

Public Comment Speakers

Speakers during public comment included Greg Lyman, Michael Fischer, Paul Fadelli, Betty Buginas, Tom Panas, Justin Chang, James Porter, Bill Barish, Michael Macdougal, Wally Nowinski, Georgina Edwards, Barbara Chan, Mark Friedman, Iliana Go, Michelle Fadelli, Gina Brusatori, Betsy Bashor, Ira Sharenow, Rebecca Milliken, Pearson Miller, and Waynette Doody.

The full report and a video recording of the meeting are available on the city’s website under City Council Videos and Materials.