San Leandro City Council Special Meeting - June 9, 2026: Business License Tax Modernization and Consent Calendar Actions
San Leandro City Council Special Meeting - June 9, 2026: Business License Tax Modernization and Consent Calendar Actions
The San Leandro City Council held a special meeting on June 9, 2026, at 7:06 PM in the City Hall Council Chambers. The meeting included approval of a consent calendar and a presentation and public forum on a potential November 2026 revenue measure to modernize the business license tax by shifting to a gross receipts model. Council also discussed the fiscal challenges, outreach efforts, and potential mitigations for impacted businesses.
Consent Calendar
- Items 4a–4h were approved collectively (7-0), with Item 4c (Heron Bay Maintenance Assessment District) pulled for separate action. Councilmember Fred Simon recused from Item 4c; the vote was 6-0. Approved items included:
- 4a: Acceptance of Q1 2026 OPEB and Pension Trust Investment Report (Reso 2026-070)
- 4b: Amendment No. 2 with Associated Right of Way Services for $220,000 (Reso 2026-071)
- 4c: Two resolutions for Heron Bay Maintenance Assessment District FY 2026-2027 (Reso 2026-076 & Reso 2026-077)
- 4d: Parcel Map 11502 approval (Reso 2026-072)
- 4e: Consulting Services Agreement with DKS Associates for $376,380 for Uncontrolled Crosswalk Enhancements (Reso 2026-073)
- 4f: Purchase of Ford Econoline 350 for $108,762 for Parks Division (Reso 2026-074)
- 4g: Amendment No. 3 with Chaplin & Hill Investigative Services, increase of $150,000, total $400,000, term through June 30, 2028 (Reso 2026-075)
- 4h: Approval of June 1, 2026 City Council Minutes
Public Comments & Testimony
- Thirteen individuals provided public comment on Item 5a (Business License Tax Modernization). Speakers included business owners, representatives from the Chamber of Commerce, the California Apartment Association, and the Bay East Association of Realtors, as well as residents. Key positions:
- James McGear (car dealership): Expressed strong opposition, stating gross receipts tax would penalize high-volume, low-margin industries; urged cap similar to San Jose and Fremont.
- David Stark (Bay East Association of Realtors): Asked council to consider cumulative impact on smaller rental housing providers and clarify treatment of real estate agents/brokers; urged caution and more time.
- Jennifer Rizzo (California Apartment Association): Urged council not to move forward, citing that gross receipts tax does not account for expenses and would layer on top of new rent control/registry costs; requested safeguards.
- Robert Jones (resident): Expressed frustration with anti-business sentiment; noted rising costs for landlords.
- Jeff Kerry (small business owner): Highlighted negative impact on downtown businesses due to parking issues and opposed additional taxes.
- Emily Grego (Chamber of Commerce CEO): Reported that 98% of surveyed members said fees would increase; noted one member halted property purchase; urged pause and more dialogue.
- Jeff Krop (resident): Questioned comparison to only Union City; proposed more even-handed rates; criticized poll design as biased.
- Claire Ibrahim (East Bay Child Development Center): Opposed grouping health/social services with high-margin professions; stated gross receipts tax would be inaccurate.
- Alvaro Ramos (resident): Supported revenue increase but argued tax is regressive; called for focus on workers and consumers.
- Stacey Cooper Dent (Torani, manufacturer): Reported estimated 10x increase for her company; urged balanced approach; stated company chose San Leandro in 2020 and wants to grow.
- Kristen Anderson (business owner and Chamber board member): Requested delay, more outreach, and data; questioned fairness of gross receipts tax.
- Douglas Spaulding (resident): Supported proposal as reasonable and fair; asked council to commit to projects like rebuilding firehouses.
- Tuan No (resident): Raised concerns about lack of outreach, impact on immigrant housing providers, and need for effective policy.
Discussion Items
- Presentation and Forum on Business License Tax Modernization (Item 5a): Deputy City Manager Eric Engelbart presented a detailed overview: the current business license tax, last updated in the 1990s, generates about $6.7 million annually. A shift to a gross receipts model based on Union City’s 2024 structure could generate approximately $8.997 million, a net increase of under $3 million. The model would consolidate categories, exempt the first $25,000 in gross revenue, and apply varied rates by business type. Staff highlighted concerns: some businesses (e.g., manufacturers, dealerships) would see increases of 200–700%, while others (e.g., restaurants) might decrease. Potential mitigations discussed included refining rates for highly impacted sectors, phasing in the tax over time, modifying exemption thresholds, and caps on taxable gross receipts. Staff noted that the deadline to place a measure on the November ballot is July 2026.
- Councilmembers asked clarifying questions about timing, impact on multi-city businesses, treatment of manufacturing and warehousing, and legal constraints. Councilmember Bowen questioned whether the outreach timeline was sufficient; Councilmember Victor Aguilar expressed concern about a 700% increase for manufacturing and equity; Councilmember James Aguilar asked about the drop-dead date for ballot placement (early August). Councilmember Simon asked about profit margins and noted that businesses have no vote. Mayor González raised concerns about general tax vs. specific tax and stated he would not support a general tax and would campaign against it. Councilmember Boldt emphasized need for help from both businesses and residents and suggested earmarking funds for infrastructure (though city attorney confirmed a general tax cannot be earmarked). Councilmember Bowen recommended deferring the proposal to allow more time for balanced analysis.
Key Outcomes
- Consent Calendar approved as detailed above.
- Direction to Staff: Council directed staff to continue analyzing the business license tax modernization, refine rates to mitigate impacts on highly affected businesses, and bring back a draft ordinance for consideration at a July 2026 meeting (likely one of the first two meetings) with a potential placement on the November 2026 ballot. No final decision was made; further questions from councilmembers are to be submitted to the City Manager.
- No vote on placing measure on ballot was taken at this meeting.
Meeting Transcript
All right. All right. Oh. Okay. Okay. Okay. Oh. Well, Thank you for your patience as our closed session ran a little bit long. The current time is 7 06, and I'm calling the meeting of the San Leandro City Council to order. This is a special meeting, meaning it's outside of our standard sequence. It's not the first or the third Monday. It is the second Monday. And we've called a special meeting so we can take at least a small set of actions. Today is Monday, June 8th. Um Madam Clerk, would you please take the roll and then I will lead us in the pledge of allegiance after that? Council member James Aguilar. Present. Councilmember Victor Aguilar. Present. Councilmember Fred Simon. Present. Councilmember Bowen. Present. Vice Mayor. Council Councilmember Bolt. Thanks for the promotion. Present. Vice Mayor Vivero Swalton. Present. And Mayor Gonzalez. Present. Okay, please join me in the Pledge of Allegiance. Stand if you're able to. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands. Indivisible with liberty and justice for all. The City of San Leandro connects orderly meetings to fulfill its mandate. And so discriminatory statements or conduct that would potentially violate the Federal Civil Rights Act of 1964. Or conduct or and or the California Fair Employment and Housing Acts, California Penal Code sections 403 or 415 are per se disruptive to a meeting, our meeting in particular, and will not be tolerated. Please see the city council handbook and city council meeting rules of decorum for more information. Madam Clerk, your announcement, please. If you would like to make a public comment during the meeting, you can do so in person or via Zoom. If you are present at the meeting, please complete a speaker card and submit it to the city clerk before the item is presented. Then wait for public comment on that item to be called. If you wish to participate in public comment via Zoom, you can use the raise your hand tool when the item is called during the public comment session. Speakers will be invited to speak and will have a set time to share their comments. Thank you, Mayor. Um I do not like to move the consent calendar. Okay, so we'll take the motion right after we hear from the public, and I will come to you first on that. Uh no, I'd like to recuse myself from item 4B. Item 4B.
openpublica.com