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CITY OF_
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Agenda Subject: Resolution No. 4639 Date: September 1, 2010
Department: Attachments: Resolution No. 4639 Budgetlmpact:
Le al
Administrative Recommendation:
City Council adopt Resolution No. 4639.
Background Summary:
There are two initiatives, both relating to liquor sales in state run liquor stores that are going to be
before the voters this fall, namely initiative 1106 and inifiative 1100, both of which would close fhe
state liquor stores and allow hard liquor sales in private stores.
The ballot titles for both initiatives sound very similar, although their effects have some differences.
Initiative 1100 favors big retailers, and was backed by Costco stores, and would for the first time
allow retailers to purchase hard liquor, beer and wine directly from manufacturers. On the other
hand, Initiative 1105 was the distributors' proposal, and it preserves a business monopoly for liquor
distributors. There are differences in the taxation structures imposed by the finro initiatives. But they have one big
point in common. Both would repeal the state's markup on alcoholic beverages.
Because both initiatives will be on the ballot, if both are approved, by the voters, it will raise the
question of which initiative language will control. The secretary of state's office, has been frying to
answer that one ever since campaigns were mounted to support the two initiatives. lnitiative 1105
would modify the existing language of the statutes, while Initiative 1100 would, eliminate existing
statutes and replace them with new ones. The _language of the initiatives may be sufficiently unclear so that the courts may ultimately haVe to
decide which will control. -
A09U7-1 A3.4
Reviewed by'Council 8 Committees: Reviewed by Departrnents & Divisions:
~ Arts Commission COUNCIL COMMITTEES: ❑ Building p M&0
❑ Airport ❑ Finance ❑ Cemetery ❑ Mayor
❑ Hearing.Examiner ❑ Municipal Serv. ❑ Finance ❑ Parks
❑ Human SerVices ❑ Planning & CD ❑ Fire ❑ Planning
❑ Park Board ❑Public Works ❑ Legal ❑ Police
❑ Planning Comm. ❑ Other ❑ Public Works ❑ Human Resources _
Action:
Committee ApprovaL OYes ❑No .
Council Approval: ❑Yes ❑No Call for Public Hearing
Referred to Until
Tabled Until
Councilmember: Backus _ Staff: Heid
Meetin Date: Se -tember 7, 2010 Item Number:, VII1.B.3
AU$jJM ~k MORE THAN YOU IMAGINED
Agenda Subject: Resolution No. 4639 Date: September 1, 2010
There are two ways to interpret conflicting initiatives when they both pass. The courts might decide
that where the finro initiatives conflict, the initiative that got the most votes prevails. Alternatively, the
courts may decide that the voters intended to pass both measures and that both cacry equal weight,
in which case it might come down fo the actual wording and interpretation of the measures.
More critical to cities, including Auburn, is the fact that these initiatives, if passed, would reduce
monies received by the city that if uses fo fund police and law enforcement activities. The effect of
these initiatives, if passed, would be to reduce taxes and liquor sales revenues to the city of Aubum
in an amount of over $800,000 per year.
While alcohol may be a legal commodity for certain members of the population, #here are significant
impacts to law enforcement and the community that result from its misuse and excess use. It
appears that some of the revenue that has been directed to local communities thafi affords some
measure of funding for the law enforcement would be eliminated. if the initiatives were passed.
Per state law, the City Council may, but is not required to, express support for or opposition to ballot
propositions so long as certain requirements are met. The statutory requiremenfs are found in RCW
42.17.130, the text of which is sef forth below. These requirements include making sure that the
balloY proposition is sufficiently referenced and that members of the City Council and/or public are
afforded an opportunity of approximately equal time to express opposing views.
42.17.130. Forbids use of public office or agency facilities in campaigns. '
. No elective official nor any employee of his office nor any person appointed to or employed
by any public office or agency may use or authorize the use of any of the facilities of a public oifice
or agency, directly or indirectly, for the putpose of assisting a campaign for election of any person to
any offce or for the promotion of or opposition to any ballot proposition. Facilities of public office or
agency include, but are nofi limited to, use of stationery, postage, machines, and equipment, use of
employees of the office or agency during working hours, vehicles, office space, publications of the
office or agency, and clienfele lists of persons served by the office or agency: PROVIDED, That the
foregoing provisions of this section shall not apply to the following activities:
(1) Action taken at an open public meeting by members of an elected legislative body fo
express a collective decision, or to actually vote upon a motion, proposal, resolution, order, or
ordinance, or to support or oppose a ballot proposition so long as (a) any required notice of the
meeting includes the title and number of the ballot proposition, and (b) members of ttie legislative
body or members of the public are afforded an approximately equal opportunity for the expression of
an opposing view;
(2) A statement by an elected official in support of or in opposition to any ballot proposition at
an open press conference or in response to a speciflc inquiry;
(3) Activities which are part of#he normal and regular conduct of the office or agency
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RESOLUTION NO. 4 6 3 9
A RESOLUTION OF THE CIN COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, EXPRESSING
ITS COLLECTIVE POSITION, OPPOSING
INITIATIVES 1100 AND 1105
WHEREAS,; Initiatives 1100 and 1105 are being presented to the voters
this fall, both of which seek to close down the state run liquor stores; and
WHEREAS, if passed, the Secretary of State would have to grapple with,
the question of how to determine what the finro initiatives mean, and
WHEREAS, aside from the practical questions to be addressed by the
state; financial questions that would need to be addressed by the City of Auburn
and the other cities across tfie state are how they can continue to fund law
enforcement activities in light of the revenue losses that would result from these
initiatives, or either one of them; and
WHEREAS, although alcoholic beverages may be a legal commodity for
certain members of the population, there are significant impacts to law
enforcement and the community that result from its misuse and excess use; and
WHEREAS, it appears; that some of the revenue that has been directed to
local communities that affords some measure of fundi.ng for the law enforcement
would be eliminated if the initiafives were passed; and
WHEREAS, for #he City of Auburn, if these initiatives passed, the City will
see a reduction in liquor tax and fee revenues in the amount of:$800,000 per
~
year, which monies have traditionally been delegated to help defray the costs of
police and law enforcement. '
Resolution No. 4639
September 1, 2010
Page 1 of 2 '
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
HEREBY RESOLVES as follows:
Section 1. The City Council expresses its collective position and.
opposes Initiatives 1100 and 1105 for the reasons set forth above.
Section 2. That . the Mayor is authorized to implement such
administrative procedures as may be necessary fo carry out the directives of this.
legislation.
Section 3. That this Resolution shall take effect and be in full . force
upon passage and signatures hereon. Dated and Signed this day of , 2009. CITY OF AUBURN
PETER B. LEWIS MAYOR
ATfEST:
Danielle E. Daskam, City Clerk
AP f VE .
D iel 'B. ' , City Attorney
Resolution No. 4639
September 1, 2010
Page 2 of 2