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CC - Item 7C - Continued Discussion of Forming a Subcomittee to Evaluate the Potential as a Charter Law CityROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER Ar DATE: FEBRUARY 14, 2023 SUBJECT: CONTINUED DISCUSSION OF FORMING A SUBCOMMITTEE TO EVALUATE THE POTENTIAL AS A CHARTER LAW CITY SUMMARY Mayor Pro Tem Ly requested the City Council discuss forming a subcommittee to evaluate the potential of becoming a Charter law city. At the January 24, 2023 meeting, the City Council directed City staff and City Attorney to return with additional information on charter cities, including when a charter measure could be taken before the voters for consideration and the cost of holding a standalone election. The City Council began discussion on forming a subcommittee to evaluate the potential of transitioning from a general law city to a charter law city. During the discussion, the City Council directed city staff to bring back additional information on how many San Gabriel Valley Cities are charter law cities, when a charter measure could be placed on a ballot for voters' consideration, and the cost of holding a standalone election. City staff conducted a survey and found that seven (7) cities are Charter cities out of thirty (30) cities in the San Gabriel Valley. Charter Cities in the San Gabriel Valley City Estimated Population Charter Established Alhambra 81,211 1915 Arcadia 57,500 1951 Industry 440 1976 Irwindale 1,466 1976 Pasadena 139,255 1901 Pomona 151,000 1911 Temple Ci 36,494 1971 7 cities are Charter, out of 30 cities in San Gabriel Valley. AGENDA ITEM 7.0 City Council Meeting February 14, 2023 Page 2 of 3 Charter Measure Election Timing California Election Code §§ 9255, 1200 and 1415, provides when the City Council can place a charter proposal measure before the voters. The statutes provide it must be held during a statewide general election. City staff checked with the Los Angeles Registrar-Recorder/County Clerk's office and confirmed that an initial charter proposal under Election Code §1415 states: (a) (1) Except as provided in paragraph (2), a city or city and county charter proposal proposed by the governing body of a city or city and county on its own motion that qualifies pursuant to Section 9255, shall be submitted to the voters at the next established statewide general election pursuant to Elections Code § 1200, occurring not less than 88 days after the date of the order of election. If the initial charter proposal measure is recommended to be placed on a ballot, the next statewide general election is November 2024. Furthermore, the City Council will have to call for a special election on the charter measure to be held in November, since the City's next general municipal election is scheduled for March 2024. Standalone Elections In addition, the City Council directed City staff to provide cost information on holding a standalone election. To conduct a standalone election, City staff found that no vendor offers all the necessary election services like our previous vendor, Martin and Chapman, who went out of business after the passage of Assembly Bill 415. City staff reached out to three cities that conduct standalone elections to better understand how the election landscape has changed. City staff found the City would have to contract with various vendors to provide the necessary services to conduct a standalone election. Services that would require entering into separate agreements with multiple vendors include ballot tabulation services and equipment, ballot printing and Vote by Mail services, purchasing software for vote by mail processing and tracking, consulting services, and hiring temporary staff. In general, a standalone election could cost the City over $200,000 or more, depending on the city's choices to conduct a standalone election. For comparison, Temple City indicated that it spent $222,100 on its March 2022 stand-alone election. Staff was also informed that Temple City intends to consolidate with the County for its next election cycle. Additionally, in speaking to the Los Angeles County Registrar-Recorder/County Clerk, it was mentioned that if the County is holding a statewide election on a date the City is holding a standalone election, there will be separate ballots for voters and separate vote centers or polling locations. STAFF RECOMMENDATION It is recommended that the City Council discuss and provide further direction to City staff. City Council Meeting February 14, 2023 Page 3 of 3 FISCAL IMPACT None. ENVIRONMENTAL ANALYSIS This agenda item does not constitute a project under the California Environmental Quality Act ("CEQA"), and it can be seen with certainty that it will have no impact on the environment. As such, this matter is exempt under CEQA. STRATEGIC PLAN IMPACT None. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: -5w= Ericka Hernandez City Clerk Attachment A: General Law City v. Charter City Attachment B: Information from the nonpartisan California League if Cities Attachment A General Law City v. Charter City General Law City v. Charter City Characteristic' General Law City Charter City Ability to Govern Bound by the state's general law, Has supreme authority over "municipal Municipal Affairs regardless of whether the subject concerns affairs." Cal. Const. art. XI, § 5(b). a municipal affair. Form of Government State law describes the city's form of Charter can provide for any form of government. For example, Government government including the "strong mayor," Code section 36501 authorizes general law and "city manager' forms. See Cal. Const. cities be governed by a city council of five art. XI, § 5(b); Cal. Gov't Code § 34450 et members, a city clerk, a city treasurer, a seq. police chief, a fire chief and any subordinate officers or employees as required by law. City electors may adopt ordinance which provides for a different number of council members. Cal. Gov't section 34871. The Government Code also authorizes the "city manager' form of government. Cal. Gov't Code § 34851. Elections Generally Municipal elections conducted in Not bound by the California Elections Code. accordance with the California Elections May establish own election dates, rules, and Code. Cal. Elec. Code §§ 10101 et seq. procedures. See Cal. Const. art. XI, § 5(b); Cal. Elec. Code §§ 10101 et seq. Methods of Elections Generally holds at -large elections whereby May establish procedures for selecting voters vote for any candidate on the ballot. officers. May hold at -large or district Cities may also choose to elect the city elections. See Cal. Const. art. XI, § 5(b). council "by" or "from" districts, so long as the election system has been established by ordinance and approved by the voters. Cal. Gov't Code § 34871. Mayor may be elected by the city council or by vote of the people. Cal. Gov't Code §§ 34902. In cities of 100,000 or less, a vote of the people is not required to switch to electing council by districts. Cal. Gov't Code § 34886. City Council Member Minimum qualifications are: Can establish own criteria for city office Qualifications provided it does not violate the U.S. 1. United States citizen Constitution. Cal. Const. art. XI, § 5(b), 2. At least 18 years old 82 Cal. Op. Att'y Gen. 6, 8 (1999). 3. Registered voter 4. Resident of the city at least 15 days prior to the election and throughout his or her term 5. If elected by or from a district, be a resident of the geographical area comprising the district from which he or she is elected. Cal. Elec. Code § 321, Cal. Gov't Code §§ 34882, 36502; 87 Cal. Op. Att'y Gen. 30 (2004). RIV 44814-2902-0717 v I Characteristic General Law City Charter City Public Funds for Candidate No public officer shall expend and no Public financing of election campaigns is in Municipal Elections candidate shall accept public money for the lawful. Johnson v. Bradley, 4 Cal. 4th purpose of seeking elected office. Cal. Gov't 389 (1992). Code § 85300. Term Limits May provide for term limits. Cal. Gov't May provide for term limits. Cal. Const. art. Code § 36502(b). XI, § 5(b); Cal Gov't Code Section 36502(b). Vacancies and Termination An office becomes vacant in several May establish criteria for vacating and of Office instances including death, resignation, terminating city offices so long as it does removal for failure to perform official duties, not violate the state and federal electorate irregularities, absence from constitutions. Cal. Const. art. XI, § 5(b). meetings without permission, and upon non -residency. Cal. Gov't Code §§ 1770, 36502, 36513. Council Member Salary -ceiling is set by city population and May establish council members' salaries. Compensation and salary increases set by state law except for See Cal. Const. art. XI, § 5(b). If a city Expense Reimbursement compensation established by city electors. provides any type of compensation or See Cal. Gov't Code § 36516. If a city payment of expenses to council members, provides any type of compensation or then all council members are required to payment of expenses to council members, have two hours of ethics training. See Cal. then all council members are required to Gov't Code §§ 53234 - 53235. have two hours of ethics training. See Cal. Gov't Code §§ 53234 - 53235. Legislative Authority Ordinances may not be passed within five May establish procedures for enacting local days of introduction unless they are urgency ordinances. Brougher v. So. of Public ordinances. Cal. Gov't Code § 36934. Works, 205 Cal. 426 (1928). Ordinances may only be passed at a regular meeting, and must be read in full at time of introduction and passage except when, after reading the title, further reading is waived. Cal. Gov't Code § 36934. Resolutions May establish rules regarding the May establish procedures for adopting, procedures for adopting, amending or amending or repealing resolutions. Brougher repealing resolutions. v. Bd. of Public Works, 205 Cal. 426 (1928). Quorum and Voting A majority of the city council constitutes a May establish own procedures and quorum Requirements quorum for transaction of business. Cal. requirements. However, certain legislation Gov't Code § 36810. requiring supermajority votes is applicable to charter cities. For example, see California All ordinances, resolutions, and orders for Code of Civil Procedure section 1245.240 the payment of money require a recorded requiring a vote of two-thirds of all the majority vote of the total membership of the members of the governing body unless a city council. Cal. Gov't Code § 36936. greater vote is required by charter. Specific legislation requires supermajority votes for certain actions. RIV #4814-2902-0717 VI RIV #4814-2902-0717 v Rules Governing Ralph Brown Act is applicable. Cal. Ralph Brown Act is applicable. Procedure and Decorum Gov't Code §§ 54951, 54953(a). 49 3( jt Code §§ 54951, Conflict of interest laws are applicable. See Cal. Gov't Code § 87300 et seq. Conflict of interest laws are applicable. See Cal. Gov't Code § 87300 at seq. May provide provisions related to ethics, conflicts, campaign financing and incompatibility of office. Personnel Matters May establish standards, May establish standards, requirements and procedures for requirements, and procedures, hiring personnel consistent with including compensation, terms and Government Code requirements. conditions of employment for personnel. See Cal. Const. art. XI, § May have "civil service" system, 5(b). which includes comprehensive procedures for recruitment, hiring, Procedures set forth in Meyers - testing and promotion. See Cal. Milias-Brown Act (Cal. Gov't Code § Gov't Code § 45000 at seq. 3500) apply, but note, '[fjhere is a clear distinction between the Meyers-Milias-Brown Act applies. substance of a public employee labor Cal. Gov't Code § 3500. issue and the procedure by which it is resolved. Thus there is no question Cannot require employees be that'salaries of local employees of a residents of the city, but can require charter city constitute municipal them to reside within a reasonable affairs and are not subject to general and specific distance of their place laws."' Voters for Responsible of employment. Cal. Const. art. XI, § Retirement v. Board of Supervisors, 8 10(b). CalAth 765, 781 (1994). Cannot require employees be residents of the city, but can require them to reside within a reasonable and specific distance of their place of employment. Cal. Const. art. XI, section 10(b). Contracting Services Authority to enter into contracts for Full authority to contract services as expressly authorized by consistent with charter. statute. See Costa Mesa City Employees Assn v. City of Costa Mesa, May transfer some of its 209 Cal. App. 4th 298 (2012). functions to the county including tax collection, assessment collection and sale of property for nonpayment of taxes and assessments. Cal. Gov't Code §§ 51330, 51334, 51335. RIV #4814-2902-0717 v Public Contracts Payment of Prevailing Wages RIV #4814-2902-0717 v Competitive bidding required for public works contracts over $5,000. Cal. Pub. Cont. Code § 20162. Such contracts must be awarded to the lowest responsible bidder. Pub. Cont. Code § 20162. If city elects subject itself to uniform construction accounting procedures, less formal procedures may be available for contracts less than $175,000. See Cal. Pub. Cont. Code §§ 22000,22032. Contracts for professional services such as private architectural, landscape architectural, engineering, environmental, land surveying, or construction management firms need not be competitively bid, but must be awarded on basis of demonstrated competence and professional qualifications necessary for the satisfactory performance of services. Cal. Gov't Code § 4526. In general, prevailing wages must be paid on public works projects over $1,000. Cal. Lab. Code § 1771. Higher thresholds apply ($15,000 or $25,000) if the public entity has adopted a special labor compliance program. See Cal. Labor Code § 1771.5(a) -(c). Charter Gita Not required to comply with bidding statutes provided the city charter or a city ordinance exempts the city from such statutes, and the subject matter of the bid constitutes a municipal affair. Pub. Cont. Code § 1100.7; see R & A Vending Services, Inc. v. City of Los Angeles, 172 Cal. App. 3d 1188 (1985); Howard Contracting, Inc. v. G.A. MacDonald Constr. Co., 71 Cal. App. 4th 38 (1998). Historically, charter cities were exempt from prevailing wage requirements. Effective January 1, 2015, state law requires charter cities to pay prevailing wages on any public works project or else the city will not be eligible to receive state financial assistance for public works projects. Cal. Gov't Code § 1782. Characteristic General Law City Charter City Finance and Taxing Power May impose the same kinds of taxes and Have the power to tax. assessment as charter cities. See Cal. Gov't Code § 37100.5. Imposition of taxes and assessments subject to Propositions 218 and 26, Cal. Const. art. Imposition of taxes and assessments subject XIIIC, § 2, and own charter limitations to Propositions 218 and 26. Cal. Const. art.XIIIC. Have broader assessment powers than a general law city, as well as taxation power as Examples of common forms used in determined on a case -by case basis. assessment district financing include: May proceed under a general assessment • Improvement Act of 1911. Cal. Sts. law, or enact local assessment laws and & High. Code § 22500 et seq. then elect to proceed under the local law. See J. W. Jones Companies v. City of San • Municipal Improvement Act of 1913. Diego, 157 Cal. App. 3d 745 (1984). See Cal. Sts. & High. Code §§ 10000 at seq. May impose business license taxes for any purpose unless limited by state or federal • Improvement Bond Act of 1915. Cal. constitutions, or city charter. See Cal. Const. Sts. & High. Code §§ 8500 at seq. art. XI, § 5. • Landscaping and Lighting Act of May impose real property transfer tax; does 1972. Cal. Sts. & High. Code §§ not violate either Cal. Const art. XIIIA or 22500 et seq. California Government Code section 53725. See Cohn v. City of Oakland, 223 • Benefit Assessment Act of 1982. Cal. App. 3d 261 (1990); Fielder v. City of Cal. Gov't Code §§ 54703 at seq. Los Angeles, 14 Cal. App. 4th 137 (1993). May impose business license taxes for regulatory purposes, revenue purposes, or both. See Cal. Gov't Code § 37101. May not impose real property transfer tax. See Cal. Const. art. XIIIA, § 4; Cal. Gov't Code § 53725, but see authority to impose documentary transfer taxes under certain circumstances. Cal. Rev. & Tax. Code § 11911(a), (c). Streets & Sidewalks State has preempted entire field of State has preempted entire field of traffic control. Cal. Veh. Code § 21. traffic control. Cal. Veh. Code § 21. Penalties & Cost Recovery May impose fines, penalties and May enact ordinances providing for various forfeitures, with a fine not exceeding penalties so long as such penalties do not $1,000. Cal. Gov't Code § 36901. exceed any maximum limits set by the charter. County of Los Angeles v. City of Los Angeles, 219 Cal. App. 2d 838, 844 (1963). RIV #4814-2902-0717 VI r Public Utilities/Franchises May establish, purchase, and operate May establish, purchase, and public works to furnish its inhabitants operate public works to furnish its with electric power. See Cal. Const. art. inhabitants with electric power. See XI, § 9(a); Cal. Gov't Code § 39732; Cal. Cal. Const. art. XI, § 9(a); Cal. Pub. Util. Code § 10002. Apartment Assn v. City of Stockton, 80 Cal. App. 4th 699 (2000). May grant franchises to persons or corporations seeking to furnish light, May establish conditions and water, power, heat, transportation or regulations on the granting of communication services in the city to franchises to use city streets to allow use of city streets for such persons or corporations seeking to purposes. The grant of franchises can be furnish light, water, power, heat, done through a bidding process, under transportation or communication the Broughton Act, Cal. Pub. Util. Code services in the city. §§ 6001-6092, or without a bidding process under the Franchise Act of Franchise Act of 1937 is not 1937, Cal. Pub. Util. Code §§ 6201- applicable if charter provides. Cal. 6302. Pub. Util. Code § 6205. Zoning Zoning ordinances must be consistent Zoning ordinances are not required with general plan. Cal. Gov't Code § to be consistent with general plan 65860. unless the city has adopted a consistency requirement by charter or ordinance. Cal. Gov't. Code § 65803. Rtv #48 14-2902-0717 v I Attachment B Information from the nonpartisan California League of Cities Information from the nonpartisan California League of Cities: http://www. cacities. org/chartercities Introduction Charter Cities Did you know that, under certain home rule provisions in California's state constitution, voters can exercise a greater degree of local control than that provided by the California Legislature? Becoming a charter city allows voters to determine how their city government is organized and, with respect to municipal affairs, enact legislation different than that adopted by the state. In 2001, the Institute for Local Government, the League's research arm, teamed up with the Hastings Public Law Research Institute to create an informational resource for those interested in understanding more about this special form of local control. The League is grateful to everyone who helped with this project including Phillip Hall of UC Hastings and the Hastings Public Law Research Institute; Karl Berger of Jenkins & Hogin LLP; Betsy Strauss (Attorney at Law); John Cook (Former City Attorney, Indian Wells); and Harvey Levine (City Attorney, Fremont). In 2007, the League updated these resources and the new documents can be found below. The League would like to thank Hilda Cantu Montoy (Attorney at Law) for her help with the update. Charter Cities: A Quick Summary for the Press and Researchers The following summary was drafted by the League of California Cities' legal staff, in an attempt to give the press and research communities a primer on some frequently asked questions regarding charter cities. Charter Cities vs. General Law Cities - The Basics The California Constitution gives cities the power to become charter cities.1 The benefit of becoming a charter city is that charter cities have supreme authority over "municipal affairs."2 In other words, a charter city's law concerning a municipal affair will trump a state law governing the same topica Cities that have not adopted a charter are general law cities. General law cities are bound by the state's general law, even with respect to municipal affairs. Of California's 478 cities, 108 of them are charter cities. The charter city provision of the State Constitution, commonly referred to as the "home -rule" provision, is based on the principle that a city, rather than the state, is in the best position to know what it needs and how to satisfy those needs.a The home -rule provision allows charter cities to conduct their own business and control their own affairs.s A charter maximizes local control. A city charter, in effect a city's constitution, need not set out every municipal affair the city would like to govern. So long as the charter contains a declaration that the city intends to avail itself of the full power provided by the California Constitution, any city ordinance that regulates a municipal affair will govern over a general law of the state.e Defining 'Municipal Affairs' Determining what is and is not a "municipal affair' is not always straightforward. The California Constitution does not define "municipal affair." It does, however, set out a nonexclusive list of four "core" Information from the nonpartisan California League of Cities: http://www. cacities. orp/chartercities categories that are, by definition, municipal affairs.r These categories are 1) regulation of the "city police force"; 2) "subgovernment in all or part of a city"; 3) "conduct of city elections"; and 4) "the manner in which ... municipal officers [are] elected."3 Beyond this list, it is up to the courts to determine what is and is not a municipal affair. To determine if a matter is a municipal affair, a court will ask whether there are good reasons, grounded on statewide interests, for the state law to preempt a local law.e In other words, courts will ask whether there is a need for "paramount state control" in the particular area of law.to The Legislature's intent when enacting a specific law is not determinative. +t The concept of "municipal affairs" is Fluid and may change over time.12 Issues that are municipal affairs today could become areas of statewide concern in the future.13 Nonetheless, there are some areas that courts have consistently classified as municipal affairs. These include: • Municipal election matters14 • Land use and zoning decisions (with some exceptions)15 • How a city spends its tax dollarsie • Municipal contracts, provided the charter or a city ordinance exempts the city from the Public Contract Code, and the subject matter of the bid constitutes a municipal affair.l7 Thus, a charter may exempt a city from the State's competitive bidding statutes. Likewise, there are some areas that courts have consistently classified as areas of statewide concern, including: • Traffic and vehicle regulatiome • Tort daims against a governmental entityia • Regulation of school systems2o How to Become a Charter City To become a charter city, a city must adopt a charter. There are two ways to adopt a charter: • The city's voters elect a charter commission.21 The commission has the responsibility of drafting and debating the charter. • The governing board of the city, on its own motion, drafts the charter.22 In either case, the charter is not adopted by the city until it is ratified by a majority vote of the city's voters.23 For more information about charter cities, please visit the "Charter Cities" section of the League's Web site at hffo://www. cacities.om/chartercities. 1 Cal. Const. art. XI, § 3(a). 2 Cal. Const. art. XI, § 5(a). s Johnson v. Emaley, 4 Cal. 4th 389, 399 (1992). Fragley v. Phelan, 126 Cal, 383, 387 (1899). Id. Information from the nonpartisan California League of Cities: htt,o.1 www. cacities. org/chartercities e There are some exceptions to this rule. For example, a charter city is bound by the Public Contract Code unless the city's charter expressly exempts the city from the Code's provisions or a city ordinance conflicts with a provision in the Code. See Cal. Pub. Cont. Code § 1100.7. 7 Cal. Const. art. XI, § 5(b); Johnson, 4 Cal. 4th at 398. e Cal. Const, art. XI, § 5(b). 9 Johnson, 4 Cal. 4th at 405. a Id. at 400. n to. at 405. 12 Cal. Fed, Savings 8 Loan Assn v. City of Los Angeles, 54 Cal. 3d 1, 16 (1991); Isaac v. City of Los Angeles, 66 Cal. App. 4th 586, 599 (1998). 13 Isaac, 66 Cal. App. 4th at 599. +� Mackey V. Thiel, 262 Cal. App. 2d 362, 365 (1968). 1s See Brougher v. Bd. of Pub. Works, 205 Cal. 426, 440 (1928). e Johnson,4 Cal. 4th at 407. n Pub. Cont. Code § 1100.7; R &A Vending Services, Inc. v. City of Los Angeles, 172 Cal. App. 3d 1188, 1191 (1985); Howard Contracting, Inc. v. G.A. MacDonald Constr. Co., 71 Cal. App. 4th 38, 51 (1998). 18 Cal. Veh. Code § 21. +e Halbach v. City of Long Beach, 50 Cal. App. 2d 242, 247 (1942). zo Whisman v. San Francisco Undred Sch. Dist., 86 Cal. App. 3d 782, 789 (1978). 2+ Cal. Govt Code § 34451. n Cal. Gov't Code § 34458. 23 Cal. Gov't Code % 34457, 34462. General Law City v. Charter City Characteristic General Law City Charter City Ability to Govern Bound by the state's general law, regardless Has supreme authority over "municipal Municipal Affairs of whether the subject concerns a municipal affairs." Cal. Const. art. XI, § 5(b). affair. Form of Government State law describes the city's form of Charter can provide for any form of government For example, Government government including the "strong mayor," Code section 36501 authorizes general law and "city manager" forms. See Cal. Const. cities be governed by a city council of five art. XI, § 5(b); Cal. Gov't Code § 34450 et members, a city clerk, a city treasurer, a seq. police chief, a fire chief and any subordinate officers or employees as required by law. City electors may adopt ordinance which provides for a different number of council members. Cal. Gov't section 34871. The Government Code also authorizes the "city manager" form of government. Cal. Gov't Code § 34851. Elections Generally Municipal elections conducted in accordance Not bound by the California Elections Code. with the California Elections Code. Cal. Elec. May establish own election dates, rules, and Code §§ 10101 at seq.. procedures. See Cal. Const. art. XI, § 5(b); Cal. Elec. Code §§ 10101 et seq.. Methods of Elections Generally holds at -large elections whereby May establish procedures for selecting voters vote for any candidate on the ballot. officers. May hold at -large or district Cities may also choose to elect the city elections. See Cal. Const. art. XI, § 5(b). council "by" or "from" districts, so long as the election system has been established by ordinance and approved by the voters. Cal. Gov't Code § 34871. Mayor may be elected by the city council or by vote of the people. Cal. Gov't Code §§ 34902. City Council Member Minimum qualifications are: Can establish own criteria for city office Qualifications provided it does not violate the U.S. 1. United States citizen Constitution. Cal. Const. art. XI, § 5(b), 82 2. At least 18 years old Cal. Op. Att'y Gen. 6, 8 (1999). 3. Registered voter 4. Resident of the city at least 15 days prior to the election and throughout his or her term 5. If elected by or from a district, be a resident of the geographical area comprising the district from which he or she is elected. Cal. Elec. Code § 321; Cal. Gov't Code §§ 34882, 36502; 87 Cal. Op. Att'y Gen. 30 (2004). Characteristic General Law City Charter City Public Funds for Candidate No public officer shall expend and no Public financing of election campaigns is in Municipal Elections candidate shall accept public money for the lawful. Johnson v. Bradley, 4 Cal. 4th 389 purpose of seeking elected office. Cal. Gov't (1992). Code § 85300. Term Limits May provide for term limits. Cal. Gov't Code May provide for term limits. Cal. Const. art. § 36502(b). XI, § 5(b); Cal Gov't Code Section 36502 (b). Vacancies and Termination An office becomes vacant in several May establish criteria for vacating and of Office instances including death, resignation, terminating city offices so long as it does not removal for failure to perform official duties, violate the state and federal constitutions. electorate irregularities, absence from Cal. Const. art. XI, § 5(b). meetings without permission, and upon non- residency. Cal. Gov't Code §§ 1770, 36502, 36513. Council Member Salary -ceiling is set by city population and May establish council members' salaries. Compensation and salary increases set by state law except for See Cal. Const. art. XI, § 5(b). If a city Expense Reimbursement compensation established by city electors. provides any type of compensation or See Cal, Gov't Code § 36516. If a city payment of expenses to council members, provides any type of compensation or then all council members are required to payment of expenses to council members, have two hours of ethics training. See Cal. then all council members are required to Gov't Code §§ 53234 - 53235. have two hours of ethics training. See Cal. Gov't Code §§ 53234 - 53235. Legislative Authority Ordinances may not be passed within five May establish procedures for enacting local days of introduction unless they are urgency ordinances. Brougher v. Bd. of Public Works, ordinances. Cal. Gov't Code § 36934. 205 Cal. 426 (1928). Ordinances may only be passed at a regular meeting, and must be read in full at time of introduction and passage except when, after reading the title, further reading is waived. Cal. Gov't Code § 36934. Resolutions May establish rules regarding the May establish procedures for adopting, procedures for adopting, amending or amending or repealing resolutions. Brougher repealing resolutions. v. Bd. of Public Works, 205 Cal. 426 (1928). Quorum and Voting A majority of the city council constitutes a May establish own procedures and quorum Requirements quorum for transaction of business. Cal. requirements. However, certain legislation Gov't Code § 36810. requiring supermajority votes is applicable to charter cities. For example, see California All ordinances, resolutions, and orders for Code of Civil Procedure section 1245.240 the payment of money require a recorded requiring a vote of two-thirds of all the majority vote of the total membership of the members of the governing body unless a city council. Cal. Govt Code § 36936. greater vote is required by charter. Specific legislation requires supermajority votes for certain actions. Characteristic I General Law City I Charter City Rules Governing Procedure and Decorum Personnel Matters Contracting Services Ralph Brown Act is applicable. Cal. Gov't Code §§ 54951, 54953(a). Conflict of interest laws are applicable. See Cal. Gov't Code § 87300 et seq.. May establish standards, requirements and procedures for hiring personnel consistent with Government Code requirements. May have "civil service" system, which includes comprehensive procedures for recruitment, hiring, testing and promotion See Cal. Gov't Code § 45000 et seq. Meyers-Milias-Brown Act applies. Cal. Gov't Code § 3500. Cannot require employees be residents of the city, but can require them to reside within a reasonable and specific distance of their place of employment. Cal. Const. art. XI, § 10(b). Authority to enter into contracts to carry out necessary functions, including those expressly granted and those implied by necessity. See Cal. Gov't Code § 37103; Carruth v. City of Madera, 233 Cal. App. 2d 688 (1965). Ralph Brown Act is applicable. Cal. Gov't Code §§ 54951, 54953(a). Conflict of interest laws are applicable. See Cal. Gov't Code § 87300 et seq.. May provide provisions related to ethics, conflicts, campaign financing and incompatibility of office. May establish standards, requirements, and procedures, including compensation, terms and conditions of employment for personnel. See Cal. Const. art. XI, § 5(b). Procedures set forth in Meyers-Milias-Brown Act (Cal. Gov't Code § 3500) apply, but note, "[Tjhere is a clear distinction between the substance of a public employee labor issue and the procedure by which it is resolved. Thus there is no question that 'salaries of local employees of a charter city constitute municipal affairs and are not subject to general laws."' Voters for Responsible Retirement v. Board of Supervisors, 8 Cal.4th 765, 781 (1994). Cannot require employees be residents of the city, but can require them to reside within a reasonable and specific distance of their place of employment. Cal. Const. art. XI, section 10(b). Full authority to contract consistent with charter. May transfer some of its functions to the county including tax collection, assessment collection and sale of property for non- payment of taxes and assessments. Cal. Gov't Code §§ 51330, 51334, 51335. Characteristic I General Law City I Charter City Public Contracts Payment of Prevailing Wages Competitive bidding required for public works contracts over $5,000. Cal. Pub. Cont. Code § 20162. Such contracts must be awarded to the lowest responsible bidder. Pub. Cont. Code § 20162. If city elects subject itself to uniform construction accounting procedures, less formal procedures may be available for contracts less than $100,000. See Cal. Pub. Cont. Code §§ 22000, 22032. Contracts for professional services such as private architectural, landscape architectural, engineering, environmental, land surveying, or construction management firms need not be competitively bid, but must be awarded on basis of demonstrated competence and professional qualifications necessary for the satisfactory performance of services. Cal. Gov't Code § 4526. In general, prevailing wages must be paid on public works projects over $1,000. Cal. Lab. Code § 1771. Higher thresholds apply ($15,000 or $25,000) if the public entity has adopted a special labor compliance program. See Cal. Labor Code § 1771.5(a) -(c). Not required to comply with bidding statutes provided the city charter or a city ordinance exempts the city from such statutes, and the subject matter of the bid constitutes a municipal affair. Pub. Cont. Code § 1100.7; see R & A Vending Services, Inc. v. City of Los Angeles, 172 Cal. App. 3d 1188 (1985); Howard Contracting, Inc. v. G.A. MacDonald Constr. Co., 71 Cal. App. 4th 38 (1998). Historically, charter cities have not been bound by state law prevailing -wage requirements so long as the project is a municipal affair, and not one funded by state or federal grants. Vial v. City of San Diego, 122 Cal. App. 3d 346, 348 (1981). However, there is a growing trend on the part of the courts and the Legislature to expand the applicability of prevailing wages to charter cities under an analysis that argues that the payment of prevailing wages is a matter of statewide concern. The California Supreme Court currently has before them a case that will provide the opportunity to decide whether prevailing wage is a municipal affair or whether it has become a matter of statewide concern. Characteristic General Law City Charter City Finance and Taxing Power May impose the same kinds of taxes and Have the power to tax. assessment as charter cities. See Cal. Gov't Code § 37100.5. Have broader assessment powers than a general law city, as well as taxation power as Imposition of taxes and assessments subject determined on a case -by case basis. to Proposition 218. Cal. Const. art.XIIIC. Imposition of taxes and assessments subject Examples of common forms used in to Proposition 218, Cal. Const. art. XIIIC, § assessment district financing include: 2, and own charter limitations • Improvement Act of 1911. Cal. Sts. May proceed under a general assessment & High. Code § 22500 et seq.. law, or enact local assessment laws and then elect to proceed under the local law. • Municipal Improvement Act of 1913. See J. W. Jones Companies v. City of San See Cal. Sts. & High. Code §§ Diego, 157 Cal. App. 3d 745 (1984). 10000 et seq.. May impose business license taxes for any • Improvement Bond Act of 1915. Cal. purpose unless limited by state or federal Sts. & High. Code §§ 8500 et seq.. constitutions, or city charter. See Cal. Const. art. XI, § 5. • Landscaping and Lighting Act of 1972. Cal. Sts. & High. Code §§ May impose real property transfer tax; does 22500 et seq.. not violate either Cal. Const art. XIIIA or California Government Code section 53725. • Benefit Assessment Act of 1982. See Cohn v. City of Oakland, 223 Cal. App. Cal. Gov't Code §§ 54703 et seq.. 3d 261 (1990); Fielder v. City of Los Angeles, 14 Cal. App. 4th 137 (1993). May impose business license taxes for regulatory purposes, revenue purposes, or both. See Cal. Gov't Code § 37101. May not impose real property transfer tax. See Cal. Const. art. XIIIA, § 4; Cal. Gov't Code § 53725; but see authority to impose documentary transfer taxes under certain circumstances. Cal. Rev. & Tax. Code § 11911(a), (c). Streets & Sidewalks State has preempted entire field of traffic State has preempted entire field of traffic control. Cal. Veh. Code § 21. control. Cal. Veh. Code § 21. Penalties & Cost Recovery May impose fines, penalties and forfeitures, May enact ordinances providing for various with a fine not exceeding $1,000. Cal. Gov't penalties so long as such penalties do not Code § 36901. exceed any maximum limits set by the charter. County of Los Angeles v. City of Los Angeles, 219 Cal. App. 2d 838, 844 (1963). Characteristic General Law City Charter City Public Utilities/Franchises May establish, purchase, and operate public May establish, purchase, and operate public works to furnish its inhabitants with electric works to furnish its inhabitants with electric power. See Cal. Const. art. XI, § 9(a); Cal. power. See Cal. Const. art. XI, § 9(a); Cal. Gov't Code § 39732; Cal. Pub. Util. Code § Apartment Ass'n v. City of Stockton, 80 Cal. 10002. App. 4th 699 (2000). May grant franchises to persons or May establish conditions and regulations on corporations seeking to furnish light, water, the granting of franchises to use city streets power, heat, transportation or to persons or corporations seeking to furnish communication services in the city to allow light, water, power, heat, transportation or use of city streets for such purposes. The communication services in the city. grant of franchises can be done through a bidding process, under the Broughton Act, Franchise Act of 1937 is not applicable if Cal. Pub. Util. Code §§ 6001-6092, or charter provides. Cal. Pub. Util. Code § without a bidding process under the 6205. Franchise Act of 1937, Cal. Pub. Util. Code §§ 6201-6302. Zoning Zoning ordinances must be consistent with Zoning ordinances are not required to be general plan. Cal. Gov't Code § 65860. consistent with general plan unless the city has adopted a consistency requirement by charter or ordinance. Cal. Gov't. Code § 65803. Information from the nonpartisan California League of Cities http://www. cacities. org/chartercities Foundational aspects of charter cities What is the Constitutional Framework for Charter Cities? Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides such a charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, affirmatively grants to charter cities supremacy over "municipal affairs." However, the California Constitution does not define the term "municipal affair." What are "Municipal Affairs?" The home rule provision of the California Constitution authorizes a charter city to exercise plenary authority over municipal affairs, free from any constraint imposed by the general law and subject only to constitutional limitations. See Cal. Const. art. XI § 5(a); Ex Parte Braun, 141 Cal. 204, 209 (1903); Bishop v. City of San Jose, 1 Cal. 3d 56, 61 (1969); Comm. of Seven Thousand v. Super. Ct. (City of Irvine), 45 Cal.3d 491 (1988). How Do the Courts Distinguish Between Municipal and Statewide Concerns? Whether a given activity is a municipal affair over which a city has sovereignty, or a statewide concern, over which the legislature has authority, is a legal determination for the courts to resolve. Thus, the determination of whether a given activity is a municipal affair or statewide concern is done on a case-by-case basis. The court's determination will depend on the particular facts and circumstances of each case. See In Re Hubbard, 62 Cal. 2d 119, 128 (1964). Keep in mind that the concept of "municipal affairs" is a fluid one that changes over time as local issues become statewide concerns. See Issac v. City of Los Angeles, 66 Cal. App. 4th 586 (1998). What Activities Have the Courts Classified As Municipal Affairs? There are some areas that the courts have consistently classified as municipal affairs. Examples include the following: • Municipal Election Matters. See Mackey v. Thiel, 262 Cal. App. 2d 362 (1968). • Procedures for Initiative, Referendum and Recall. See Lawing v. Faul, 227 Cal. App. 2d 23, 29 (1964). • Procedures for Adopting Ordinances. See Brougher v. Board of Public Works, 205 Cal. 426 (1928). • Compensation of City Officers and Employees. Cal. Const. art. XI, § 5(b); See Sonoma County Organization of Public Employees v. County of Sonoma, 23 Cal. 3d 296 (1979); but see San Leandro Police Officers Association v. City of San Leandro, 55 Cal. App. 3d 553 (1976) (labor relations is not a municipal affair; Charter cities are subject to the Meyers-Milias Brown Act. Cal. Gov't Code § 3500. • Processes Associated with City Contracts. See First Street Plaza Partners v. City of Los Angeles, 65 Cal. App. 4th 650 (1998); but see Domar Electric, Inc. v. City of Los Angeles, 41 Cal. App. 4th 810 (1995) (state law establishing employment policy may preempt local regulation of bidding criteria). Information from the nonpartisan California League of Cities. http://www. cacities. orglchartercities • Financing Public Improvements. See City of Santa Monica v. Grubb, 245 Cal. App. 2d 718 (1996). • Making Charitable Gifts of Public Funds for Public Purposes. See Cal. Const. art. XVI, § 6; Tevis v. City and County of San Francisco, 43 Cal. 2d 190 (1954). • Term Limits for Council Members. See Cawdrey v. City of Redondo Beach, 15 Cal. App. 4th 1212 (1993); but see Cal. Gov't Code § 36502(b) (regulating term limits). • Land Use and Zoning Decisions (with a few exceptions). See Brougher v. Bd. of Pub. Works, 205 Cal. 426 (1928). What Activities Have the Courts Classified as Statewide Concerns? The following have consistently been classified by the courts as matters of statewide concern: • School Systems. Whisman v. San Francisco Unified Sch. Dist., 86 Cal. App. 3d 782,789 (1978). • Traffic and Vehicle Regulation. Cal. Veh. Code § 21. • Licensing of Members of a Trade or Profession. City and County of San Francisco v. Boss, 83 Cal. App. 2d 445 (1948). • Tort Claims Against a Governmental Entity. Helbach v. City of Long Beach, 50 Cal. App. 2d 242, 247 (1942). • Open and Public Meetings. Ralph M. Brown Act. Cal. Gov't Code §§ 54951, 54953(a). • Exercise of the Power of Eminent Domain. Wilson v Beville, 47 Cal. 2d 852, 856 (1957). Information from the nonpartisan California League of Cities: http://www. ca cities. org/chartercities What is a charter? A city charter is a unique document that, in many ways, acts like a constitution for the city adopting it. It can only be adopted, amended or repealed by a majority vote of a city's voters. The primary advantage of a charter is that it allows greater authority for a city's governance than that provided by state law. For example, a city may tailor its organization and elective offices, taking into account the unique local conditions and needs of the community. A charter transfers the power to adopt legislation affecting municipal affairs from the state legislature to the city adopting it. A city operating under a charter can acquire full control over its municipal affairs. These affairs are unaffected by the general laws passed by the state legislature on the same subject matters. This, in effect, gives the local voters more control over their local government and the affairs of the city. However, a city operating under a charter is still subject to the general laws, as passed by the state legislature, on affairs that are not municipal in nature, and are of statewide concern (e.g., California Vehicle Code). It is the scope of the term "municipal affairs" that provides the opportunity for uncertainty. No easy analytical test exists. The threshold issue is whether there is a conflict between state law and a charter city enactment. The next issue is whether the state regulation addressed an issue of "state wide concern." Courts analyze these conflicts on a case- by-case basis. Information from the nonpartisan California League of Cities http://www. cacities. orp/chartercities What is in a charter? While a city charter is not required to have any particular provisions in it, a city will often reserve for itself the greatest amount of power it can when it adopts a charter. To accomplish this goal, the charter must include a declaration that it is the intention of the city to avail itself of the full power provided by the state constitution to charter cities. However, the city is not required to extend the breadth of its charter any further than it wishes. Some of the common areas that are explicitly regulated in a charter are: • The date and conduct of city elections; • Regulations on the appointment of municipal officials; • The terms and payment of municipal officials; • The process for removal of municipal officials; • Form of government; • Budget adoption; • The number, pay, qualifications, and appointment of deputies, clerks, and other employees that each municipal officer will have; • Sub -government in all or part of the city; • The tenure of office for deputies, clerks, and other employees; The process for removal of such deputies, clerks, and other employees; and • The constitution, regulation, and government of the local police force. A number of California cities' charters are available online. The National Civic League also has a model charter oroiect. Information from the nonpartisan California League of Cities: http://www. cacities. org/chartercities Process used to adopt a charter There are two ways to draft and adopt a city charter. The first is to elect a charter commission. The commission then has the responsibility of debating over the provisions and the drafting of the charter. The other alternative allows the governing board of the city, on its own motion, to draft the charter. In either case, the charter is not adopted by the city until it is ratified by a majority vote of the city's voters. When using the charter commission approach, the first step is to elect the commission. The vote to elect a charter commission is called for by either a majority vote of the city's governing body or by a petition signed by not less than fifteen percent of the registered voters within the city. If the formation of a charter commission is requested by a petition, the authority in charge of the city's registration records must verify the signatures on the petition. The expense of this verification must be paid for by the city's governing board. If the petition is verified, the city's governing board must call for an election in accordance with sections 1000 and 10403 of the California Elections Code. See Cal. Gov't Code section 34452. Once it has been decided that a charter commission election will take place, candidates for commissioners must be nominated. Candidates for the office of charter commissioner are nominated either in the same manner as officers of the city or by petition. A candidate for charter commissioner must be a registered voter of the city. After the election of commissioners, any vacancy on the commission will be filled by a mayoral appointment. See Cal. Gov't Code section 34452. At an election for charter commission members, the voters will vote first on the following question: "Shall a charter commission be elected to propose a new charter?" After voting on this question, the voters will then vote for the charter commission candidates. If a majority of the voters vote for the formation of a charter commission, then the top fifteen candidates for the office of charter commissioner will be organized as the city's charter commission. No commission will be formed if a majority of voters vote against the election of a charter commission. See Cal. Gov't Code section 34453. Once formed, the charter commission will have the responsibility of developing the city's charter. After a simple majority of commissioners have decided that the proposed charter is appropriate, they file the charter with the city's clerk in preparation for a vote by the city's electorate. See Cal. Gov't Code section 34455. However, instead of sending the whole charter at once, periodically the commission may send portions of the charter to the city's electorate for a vote. See Cal. Gov't Code section 34462. After the charter (or portions of it) has been filed, it must be copied in type greater than 10 point and either mailed to all the voters of the city or made available to those citizens who wish to review it before the election. The city may show the difference between existing provisions of law and the new charter through the use of distinguished type styles, but this is not required. See Cal. Gov't Code section 34456. After the charter has been filed with the city clerk, the city's governing board must decide whether to call a special election or to wait until the next established municipal election to submit the charter to the voters. If the city's governing board determines that a Information from the nonpartisan California League of Cities htta://www. cacities. ora/chartercities special election should be held, then they must call for that special election within 14 days of the charter being filed. The special election must be set at least 95 days after the date from which the special election was called. See Cal. Gov't Code section 34457. In any case, the charter commission must send the charter to the voters within two years of the vote that formed the commission. Upon the expiration of the two-year time period, the commission is abolished. See Cal. Gov't Code section 34462. The alternative to electing a charter commission is to have the city's governing board develop and draft the charter. An election to decide on the adoption of a charter may be called by initiative or the city council. See Cal. Const. art. XI, § 3. On its own motion, the city's governing board may propose a charter and submit it to the voters for adoption. See Cal. Gov't Code section 34458. With this option, the governing board can call a special election or allow the charter to be voted on at any established election date, as long as that election date is at least 88 days after the proposed charter was filed with the city clerk. See Cal. Gov't Code section 34458. As a practical matter, an election may have to be called sooner than 88 days before the election in order to meet certain notice and ballot printing deadlines. In either case, the majority of voters must vote in favor of the proposed charter for it to be ratified. The charter will not go into effect until it has been filed and accepted by the Secretary of State. See Cal. Gov't Code section 34459. After a charter is approved by a majority vote of the voters, the mayor and city clerk shall certify that the charter was submitted to the voters of the city and that it was approved by a majority vote. See Cal. Gov't Code section 34460. One copy of the approved charter shall be filed with the County Recorder's office and one shall be kept in the City's archive. See Cal. Gov't Code section 34460. A third copy of the charter must be submitted to the Secretary of State with (1) copies of all publications and notices in connection with the calling of the election; (2) certified copies of any arguments for or against the charter proposal which were mailed to the voters; (3) a certified abstract of the vote at the election on the charter. See Cal. Gov't Code section 34460. Information from the nonpartisan California League of Cities: http://www. cacities. org/chartercities How to amend or repeal a charter If a citizens group, or the city's governing body, wishes to amend or repeal a portion of the city's charter, the steps remain largely the same as they are for drafting a charter. There are, however, two notable exceptions. First, the petition calling for the repeal or amendment needs only ten percent of the electorate's signatures, instead of the previous fifteen percent. See Cal. Elec. Code sections 9215 and 9255. The other notable difference has to do with the charter itself. A city charter may establish different rules for the municipal elections process than those laid out by the state legislature in the Elections Code. If this is the case, the city's charter will govern the elections process used to appeal or amend the city's charter, instead of the general laws laid out in the Elections Code. Information from the nonpartisan California League of Cities: http://www. cacities. org/chartercities Charter Cities Adelanto Lemoore Alameda Lindsay Albany Loma Linda Alhambra Long Beach Anaheim Los Alamitos Arcadia Los Angeles Bakersfield Marina Bell Marysville Berkeley Merced Big Bear Lake Modesto Buena Park Monterey Burbank Mountain View Carlsbad Napa Cerritos Needles Chico Newport Beach Chula Vista Norco Compton Oakland Culver City Oceanside Cypress Oroville Del Mar Pacific Grove Desert Hot Springs Palm Desert Dinuba Palm Springs Downey Palmdale EI Centro Palo Alto Eureka Pasadena Exeter Petaluma Folsom Piedmont Fortuna Placentia Fresno Pomona Gilroy Port Hueneme Glendale Porterville Grass Valley Rancho Mirage Hayward Redondo Beach Huntington Beach Redwood City Indian Wells Richmond Industry Riverside Inglewood Roseville Irvine Sacramento Irwindale Salinas King City San Bernardino Kingsburg San Diego Lancaster San Francisco La Quinta San Jose Information from the nonpartisan California League of Cities: http://www. cacities. org/chartercities San Leandro Signal Hill San Luis Obispo Solvang San Marcos Stockton San Mateo Sunnyvale San Rafael Temple City San Ramon Torrance Sand City Truckee Santa Ana Tulare Santa Barbara Vallejo Santa Clara Ventura Santa Cruz Vernon Santa Maria Victorville Santa Monica Visalia Santa Rosa Vista Santee Watsonville Seal Beach Whittier Shafter Woodlake Total Cities: 120