At a recent Valley Industry & Commerce Association mixer, Los Angeles Councilman Paul Krekorian, who represents a large swath of the San Fernando Valley, called for the elimination of the city’s gross receipts tax. He stated that it is important to promote the creation of jobs and the tax makes the city less competitive when it comes to attracting new businesses. It is refreshing to hear pro-business proposals coming from a Councilmember who represents a fairly liberal council district. However, it remains to be seen how much headway the Councilmember could make on the subject when the City deficit is growing and perhaps the majority of the Council takes less equitable approach to business issues.

Sacramento Councilmember Kevin McCarty publicly shared his idea to tax soft drinks. He would like to see tax proceeds go to fund city recreational programs in an effort to combat childhood obesity. The proposed tax is part of package which includes removing soft drinks from city facility vending machines and creating community gardens in schools. Details of the proposals have not been developed according to McCarty.

Similar efforts have been tried in New York, San Francisco, and other major jurisdictions throughout the country but have failed. Proposals to tax or fee just one product, in this case soft drinks, claiming it is the primary cause of a greater concern, like obesity, is a difficult policy and political sell.

McCarty is hopeful using the proceeds for a recreation programs, not general fund purposes, will help pass his proposal. However, Proposition 26, which passed last election, limits the ability to implement taxes or fees without a 2/3 vote of the public. It is very likely this idea would trigger Prop. 26 need a vote of the people. Given the policy, legal, and political challenges for a soft drink tax McCarty will have a difficult time convincing his colleagues to support the measure.

CGA is already partnering with industry and local business organizations to lobby against the soda tax.

The Salinas City Council will postpone today’s consideration of a carryout bag ordinance and food packaging ban ordinnace. CGA and member companies, along with other business organizations, have concvinced councilmembers these proposals must be fully vetted before moving forward. The council is likely to reschedule the hearing in the next few months. CGA will continue to discuss industry concerns with councilmebers and staff.

After 3 years of discussion, the San Mateo County Board of Supervisors unanimously passed a ban on the use of polystrene packaging for food service today. The ban applies only to food packaged in-store and does not apply to raw meat, poultry, or fish.

The ban goes into effect on July 1, 2011. Only stores located in the unincorporated portions of San Mateo County are affected.

The Daly City Council erupted in a shouting match tonight with a councilmember abruptly leaving the dais. The argument was over process, respect, and a potential Brown Act violation when a request to consider a bag ban was discussed.

Councilmember Canepa asked for the city’s solid waste committee to consider a bag ordinance that he stated was already drafted. It was no surprise since the San Francisco Examiner reported on his intended introduction two weeks ago.

After his comments, Councilmember Maggie Gomez was recognized to speak and did so forcefully. She began by sharing her extreme displeasure with Canepa for what she felt was a disrespectful way to introduce the subject.

When Gomez continued by discussing Daly City’s previous consideration of a bag ban before Canepa was a Councilmember he had enough. Canepa began interrupting her by speaking over her loudly – very loudly. To address the lack of decorum the remaining councilmembers tried to shout Canepa down but to no avail.

Amongst the shouting about respecting others Councilmember Torres’ warnings of potentially violating California’s open meeting laws were heard. Receiving no comfort from the reassuring yells that no violation had occurred he abruptly walked off the dais.

The ruckus settled down and Torres returned to his seat as quickly as it started. It took the steady hand of a shocked city manager to bring some calm back to the schoolyard. The meeting quickly ended after some mumbling about sending the issue to their solid waste committee.

My reaction is WOW! I have not seen a council meeting argument become this vicious so quick in my career. With no real discussion I have no indication if or when Daly City will engage in another bag ban conversation. My sense is it will be sometime from now when cooler heads prevail.