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CC - Item 7D - Discussion on Establishing a Charter for the CityROSEMEAD CITY COUNCIL STAFF REPORT TO: HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: SEPTEMBER 26, 2023 SUBJECT: DISCUSSION ON ESTABLISHING A CHARTER FOR THE CITY SUMMARY The City Council has had discussions related to creating a charter for the City upon which the residents could then vote on to approve or deny. As a part of the discussion a committee was established which included Mayor Ly and Councilmember Armenta. The Committee conducted two meetings with the City Attorney and the City Clerk and reviewed and discussed charter provisions as well as the information provided by the League of Cities on the various items that could be included in a new city charter. The Committee presented questions that were looked into by the City Attorney to allow for further discussion as well. At the conclusion of those meetings, it was determined that before taking further review and consideration on the overall Charter, there were items which the Committee wanted to have a discussion with the full Council on to see if they wanted to include certain provisions in the Charter different than what State law provides, where so authorized. In addition, the Committee wanted to share with the Council its thoughts on other various subject matters and to hear from the full Council. DISCUSSION To assist the Committee, it followed the League's chart on items to consider in a charter. The Council had been provided a copy of this chart previously. A new chart is attached to the staff report. This chart now includes an additional column where there where responses provided to the Committee based on questions asked. There is also information on the Committee's position on an item. For example did they want to defer to state law on the topic and include provision to that effect or not or if they wanted full Council input on an item. The Chart is attached with the additional column of information as well as noting the sections the Committee wanted to discuss in more detail which are highlighted as well as noted with """. These items include: AGENDA ITEM 7.1) City Council Meeting September 26, 2023 Page 2 of 2 • Elections • Term Limits • Contracting Services (want to see what consultant recommends) • Power to create an office of city prosecutor to prosecute misdemeanor violations of state law As it relates to the timing of a potential election on the charter, the Election Code has limitations on when an initiative to become charter law city can be considered by the voters. As confirmed by the County Elections office, Elections Code Section 1415 and 9255, provide that a new charter proposal measure has to be voted on at a statewide general election which occurs in November 2024. The cutoff date to submit the matter to the County is 88 days before election, which would be August 9, 2024. STAFF RECOMMENDATION That the City Council discuss the Charter and provide direction to Staff on any next steps it would like to take. FISCAL IMPACT There is no fiscal impact associated with the recommendation of this report. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Rachet,X c na n Rachel Richman, City Attorney Attachment: Committee Updated Chart with Comments Attachment A Committee Updated Chart with Comments General Law City v. Charter City Rosemead Charter Committee Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Ability to Bound by the state's general law, Has supreme authority over Direction to include broad enabling Govern regardless of whether the subject 'municipal affairs." Cal. Const. charter language that would be able to Municipal concerns a municipal affair. art. A, § 5(b). adopt any and all ordinances governing "municipal p affairs." Affairs Specifically call out that economic development is a Rosemead municipal affair to allow for economic development activities with use of general funds. Form of State law describes the city's form of Charter can provide for any form of Direction: No changes to include in the Government government. For example, Government Code government including the "strong charter. Follow state law and keep section 36501 authorizes general law cities be mayor," and "city manager" forms. current system under General Law for governed by a city council of five members, a See Cal. Const. art. A, § 5(b); Cal. City Manager -City Council form of city clerk, a city treasurer, a police chief, a fire Gov't Code § 34450 et seq. government. 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. 4887-4709-3350 v1 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction **Elections Municipal elections conducted in accordance Not bound by the California Direction to have a different date that Generally with the California Elections Code. Cal. Elec. Elections Code. May establish own currently required. Code §§ 10101 at seq. election dates, rules, and procedures. See Cal. Const. art. Question as to whether the date must be XI, § 5(b); Cal. Elec. Code §§ in the Charter or if can be delegated to be 10101 et seq. After Bell scandal, in an ordinance. Research indicated it charter cities subject to some can be delegated to be in an Ordinance. statewide elections laws. Issue to consider if the public will want to know and have the right to vote on that date as a part of the charter process. Direction that discussion on elections to be had with full Council. Methods of Generally holds at -large elections whereby May establish procedures for Direction: No changes to include in the Elections voters vote for any candidate on the ballot. Cities selecting officers. May hold at- charter. Follow state law continue with at - may also choose to elect the city council "by" or large or district elections. See Cal. large elections "from" districts, so long as the election system Const. art. Xl, § 5(b). 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. Govt. Code § 34886 4887-4709-3350 v1 Subject Rosemead Subcommittee General City Law Charter City Law Comments/Direction Matter City Council Minimum qualifications are: Can establish own criteria for Question as to whether a Charter Law city Member 1. United States citizen city office provided it does not can have additional standards for city office Qualifications years 2. At least 18 ears old violate the U.S. Constitution. such as certain felony convictions. 3. Registered voter Cal. Const. art. XI, § 5(b), 82 4. Resident of the city at least days Cal. Op. Att'y Gen. 6, 8 prior to the election and throughout his (1999). Currently convicted felons for specific crimes or her term as well as felonies that violate the public trust are barred from running for office. A 5. If elected by or from a district, be a felony involving accepting or giving, or resident of the geographical area offering to give, any bribe, the comprising the district from which embezzlement of public money, extortion or he or she is elected. theft of public money, perjury, or conspiracy Cal. Elec. Code § 321; Cal. Gov't Code §§ to commit any of those crimes. Elections 34882, 36502; 87 Cal. Op. Att'y Gen. 30 code 20 2004. Public Funds No public officer shall expend and no Public financing of election Direction: No changes to include in the for Candidate candidate shall accept public money for the campaigns is lawful. Johnson v charter. Follow state law. in Municipal purpose of seeking elected office. Cal. Gov't Bradley, 4 Cal. 4th 389 (1992). Code § 85300. Elections "Term Limits May provide for term limits. Cal. Gov't May provide for term limits. Cal. Direction: No changes to include in the Code § 36502(b). Const. art. XI, § 5(b); Cal Gov't charter. But to be discussed with the full Code Section 36502 (b). Council. 4887-4709-3350 v1 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Vacancies An office becomes vacant in several May establish criteria for Direction: include same provisions in state and instances including death, resignation, vacating and terminating city law into the charter. Termination removal for failure to perform official duties, offices so long as it does not electorate irregularities, absence from violate the state and federal of Office meetings without permission, and upon constitutions. Cal. Const. art. non -residency. Cal. Gov't Code §§ 1770, XI, § 5(b). 36502, 36513. Council May establish council Direction: No changes to include in the Member members'salaries. See Cal. charter. Follow state law. Compensatio Const. art. XI, § 5(b). If a city any type of Also discussed it has been several years n and eiling is set by city population and Salary -ceiling compensation or payment of since any changes and council may want to Expense salary increases set by state law except expenses to council members, consider an adjustment. City Clerk to check Reimburseme for compensation established by city electors. See Cal. Gov't Code § 36516. If then all council members are last time an adjustment was approved by the Council. nt a city provides any type of compensation required to have two hours of or payment of expenses to council ethics training. See Cal. Gov't members, then all council members are Code §§ 53234 - 53235. Post - required to have two hours of ethics Bell reforms require charter training. See Cal. Gov't Code §§ 53234 - proposals to disclose whether 53235. council members will have power to increase their own salary. 4887-4709-3350 v1 4 Subject Law Rosemead Subcommittee Matter General City Law Charter City Comments/Direction Legislative Ordinances may not be passed within five May establish procedures for Direction: No changes to include in the Authority days of introduction unless they are enacting local ordinances. charter. Follow state law urgency ordinances. Cal. Gov't Code § Brougher v. Bd. of Public 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 May establish procedures for Direction: No changes to include in the the procedures for adopting, adopting, amending or charter. Follow state law amending or repealing repealing resolutions. resolutions. Brougher v. Bd. of Public Works, 205 Cal. 426 (1928). Quorum and A majority of the city council May establish own procedures Voting constitutes a quorum for transaction of and quorum requirements. Can City provide for the charter to allow for business. Cal. Gov't Code § 36810. However, certain legislation a quorum with a teleconferencing in Requirements q requiring supermajority votes situations not consistent with the Brown Act All ordinances, resolutions, and orders is applicable to charter cities. teleconferencing rules? for the payment of money require a For example, see California recorded majority vote of the total Code of Civil Procedure membership of the city council. Cal. Gov't section 1245.240 requiring a See below Code § 36936. Specific legislation vote of two-thirds of all the requires supermajority votes for certain members of the governing actions. body to adopt an eminent domain resolution unless a greater vote is required by charter. 48874709-3350 v1 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Rules Ralph Brown Act is applicable. Cal. Gov't Ralph Brown Act is applicable. A City Charter cannot adopt a provision that Governing Code §§ 54951, 54953(a). Cal. Gov't Code §§ 54951, allows for practices different than the Brown 54953(a). Act. The Brown Act is of statewide concern Procedure P Conflict of interest laws are applicable. and applies to "local agencies' and that and Decorum See Cal. Gov't Code 87300 et se § 4 Conflict of interest laws are term means the City, whether general law applicable. See Cal. Gov't or chartered. Code § 87300 et seq. May provide provisions related to ethics, conflicts, campaign All meetings of the legislative body of a financing and incompatibility local agency shall be open and public, and of office. all persons shall be permitted to attend any meeting of the legislative body of a local agency, except as otherwise provided in this chapter. Gov't Code § 54953 4887-4709-3350 v1 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Personnel May establish standards, requirements May establish standards, Direction: No changes to include in the Matters and procedures for hiring personnel requirements, and charter. Follow state law consistent with Government Code procedures, including requirements. compensation, terms and conditions of employment for May have "civil service" system, which personnel. See Cal. Const. includes comprehensive procedures for art. Xl, § 5(b). recruitment, hiring, testing and promotion. See Cal. Gov't Code § 45000 Procedures set forth in et seq. Meyers-Milias-Brown Act (Cal. Gov't Code § 3500) apply, but Meyers-Milias-Brown Act applies. Cal. note, "[Tlhere is a clear Gov't Code § 3500. distinction between the Cannot require employees be residents substance of a public of the city, but can require them to reside employee labor issue and the within a reasonable and specific distance procedure by which it is of their place of employment. Cal. Const. resolved. Thus there is no art. XI, § 10(b). 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 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. Xl, section 10(b). Evolving area, but more latitude to "out source" certain obs. 48874709-3350 vi Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction "Contracting Authority to enter into contracts to carry Full authority to contract Direction: Wait to see what the City's Services out necessary functions, including those consistent with charter. contracting and procurement consultant expressly granted and those implied by May transfer some of its recommends ad whether they may be items necessity. See Cal. Gov't Code § 37103; functions to the county including to include in charter. Carruth v. City of Madera, 233 Cal.App.2d 688 (1965). tax collection, assessment Discussed increasing City Manager collection and sale of property authority for the process of letting bids and for non-payment of taxes and RFP's as an option with city council assessments. Cal. Gov't Code oversight §§ 51330, 51334, 51335. See below on veterans preference. 4887-4709-3350 v1 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Public Competitive bidding required for public works Not required to comply with Direction generally follow state law but Contracts contracts over $5,000. Cal. Pub. Cont. Code § 20162. Such contracts must be awarded to the bidding statutes provided the city charter or a city ordinance questions as to whether could have veterans preference greater than state law lowest responsible bidder. Pub. Cont. Code § exempts the city from such permits. 20162. If city elects subject itself to uniform statutes, and the subject It would appear a city charter can provide a construction accounting procedures, less formal matter of the bid constitutes a preference for veterans. There is a strong procedures may be available for contracts less municipal affair. Pub. Cont. argument that this is only one criterial that than $100,000. See Cal. Pub. Cont. Code §§ Code § 1100.7; see R & A the City considers in awarding a contract 22000, 22032. Vending Services, Inc. v. City for a public project. Stated differently, the Contracts for professional services such as of Los Angeles, 172 Cal3d 1188 (1985); Howard .App. veteran's preference relates to the mode private architectural, landscape Contracting, Inc. v. G.A. that the City choose to contract. See Smith architectural, engineering, environmental, MacDonald Constr. Co., 71 v. City of Riverside. land surveying, or construction Cal. App. 4th 38 (1998). But there is not case law on point so the management firms need not be competitively bid, but must be awarded on R & A Vending Services, Inc. question would be an issue of first impression if challenged. basis of demonstrated competence and v. City of Los Angeles, (1985) professional qualifications necessary for the 172 Cal. App. 3d 1188 "The mode in which a city chooses to satisfactory performance of services. Cal. ("[d]eciding who will be contract is a municipal affair." Smith v. City Gov't Code § 4526. awarded the contract for of Riverside, (1973) 34 Cal.App.3d 529, refreshment stands in a city 534-35 (charter city's decision to carry out park is unquestionably a work for the extension or development of matter of municipal concern"). city public utility facilities was a municipal Howard Contracting, Inc. v. concern) (Citing Loop Lumber Co. v. Can Loben Sels., (1916) 173 Cal.228, 232-34 G.A MacDonald Construction G.A ("That street and sewer work in a Inc., (nald 71 Ca., Inc., (1th 38, 49-51 (State municipality, and the making of contracts Public Resource Code therefor on the part of the municipality are municipal affairs' within the meaning of the applied to City when city constitutional provision cannot be charter did not address delay doubted")) damages and, therefore, did not conflict with the State Public Resource Code). 4887-4709-3350 vt Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Payment of In general, prevailing wages must be paid on Historically, charter cities were Direction: No changes for the charter. Prevailing public works projects over $1,000. Cal. Lab. exempt from prevailing wage Follow state law for prevailing wages and Wages Code § 1771. Higher thresholds apply ($15,000 requirements. Effective put that in the charter or $25,000) if the public entity has adopted a January 1, 2015, state law special labor compliance program. See Cal. requires charter cities to pay Labor Code § 1771.5(a) -(c). prevailing wages on any public works project or else the city will not be eligible to receive state financial assistance for public works. Cal. Gov't Code § 1782 4887-4709-3350 v1 10 4887-4709-3350 v1 11 Subcommittee SubjectRosemead General City Law Charter City Law Comments/Direction Matter Finance and May impose the same kinds of taxes and Have the power to tax. Direction: No changes to include in the charter. Follow state law Taxing Polder assessment as charter cities. See Cal. Gov't Have broader assessment Code § 37100.5. powers than a general law city, Imposition of taxes and assessments subject to as well as taxation power as Proposition 218. Cal. Const. art.XIIIC. determined on a case -by case basis. Examples of common forms used in assessment district financing include: Imposition of taxes and • Improvement Act of 1911. Cal. Sts. & High assessments subject to Code § 22500 et seq. Proposition 218, Cal. Const. art. XIIIC, §2, and own charter • Municipal Improvements Act of 1913. See limitations. Cal. Sts. & High. Code §§ 10000 et seq. May proceed under a general assessment law, or enact local • Improvement Bond Act of 1915. Cal. Sts. & assessment laws and then High. Code §§ 8500 et seq. elect to proceed under the local law. See J.W Jones • Landscaping and Lighting Act of 1972. Cal. Companies v. City of San Sts. & High. Code §§ 22500 et seq. Diego, 157 Cal. App. 3d 745 (1984). • Benefit Assessment Act of 1982. Cal. gov't May impose business license Code §§ 54703 et seq. taxes for any purpose unless limited by state or federal May impose business license taxes for constitutions, or city charter. regulatory purposes, revenue purposes, or See Cal. Const. art. XI, § 5. both. See Cal. Gov't Code § 37101. May impose real property May not impose real property transfer tax. See transfer tax; does not violate Cal. Const. art. XIIIA, §4; Cal. Gov't Code § either Cal. Const art. XIIIA or 53725; but see authority to impose California Government Code documentary transfer taxes under certain section 53725. See Cohn v. circumstances. Cal. Rev. & Tax. Code § City of Oakland, 223 Cal. App. 11911(a), (c). 3d 261 (1990), Fielder v. City of Los Angeles, 14 Cal. App. 4th 137 (1993). Streets and State has preempted entire field of traffic control. State has preempted entire Direction: No changes to include in the Sidewalks Cal. Veh. Code §21. field of traffic control. Cal. Veh. charter. Follow state law Code § 21. 4887-4709-3350 v1 11 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Penalties & May impose fines, penalties and forfeitures, with May enact ordinances Discussed wanted to have higher fine for Cost a fine not exceeding $1,000. Cal. Gov't Code § providing for various penalties fireworks. That is permitted. Recovery ry 36901. so long as such penalties do not exceed any maximum limits set by the charter. County of Los Angeles v. City of Los County of Los Angeles v. City Angeles, (1963) 219 Cal.App.2d 838 allows of Los Angeles, 219 Cal. App. a City Charter to establish increased 2d 838, 844 (1963). penalties related to fireworks. • City of Sacramento firework penalty - $1 k for first violation; $2.5k for second violation within same year; $5k for third violation within same year (SMC 8.48.180) • City of Stockton - $1 k for first violation; $2k if within one year; $3k if within one year of two or more previous violations (SMC 8.92.090) • Carson - $2k for first violation; $3k for the second violation if within one year; and $5k for each additional violation within one year. 4887-4709-3350 v1 12 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction Public May establish, purchase, and operate public May establish, purchase, and Direction: No changes to include in the Utilities/Franc works to furnish its inhabitants with electric operate public works to furnish charter. Follow state law but still retain in hires power. See Cal. Const. art. XI, § 9(a); Cal. Gov't its inhabitants with electric the charter all authority it may choose to Code § 39732; Cal. Pub. Util. Code § 10002. power. See Cal. Const. art. XI, adopt for franchises allowed under the law. § 9(a); Cal. Apartment Ass'n v. (part of the broad statement at the May grant franchises to persons or corporations City of Stockton, 80 Cal. App. beginning of the charter) seeking to furnish light, water, power, heat, 4th 699 (2000). transportation or communication services in the city to allow use of city streets for such purposes. May establish conditions and The grant of franchises can be done through a regulations on the granting of bidding process, under the Broughton Act, Cal. franchises to use city streets to Pub. Util. Code §§ 6001-6092, or without a persons or corporations bidding process under the Franchise Act of seeking to furnish light, water, 1937, Cal. Pub. Util. Code §§ 62016302. power, heat, transportation or communication services in the city. Franchise Act of 1937 is not applicable if charter provides. Cal. Pub. Util. Code § 6205. Zoning Zoning ordinances must be consistent with Zoning ordinances are not required Recentjudicial trend to expand issues of general plan. Cal. Gov't Code § 65860. to be consistent with general plan statewide concern in this area. Similarly, unless the city has adopted a State legislature is expanding reach to consistency requirement by charter charter cities requiring litigation to assert or ordinance. Cal. Gov't. Code § local control. While pendulum may shift in 65803. future, the gap between general law and Exemptions from certain charter cities continues to narrow. procedural requirements of Government Code. 48874709-3350 v1 13 Subject Matter General City Law Charter City Law Rosemead Subcommittee Comments/Direction **City City only has the authority to enforce its Charter law cities can create an Discussion that this is an item to share with Prosecution municipal code unless it receives consent from office of city prosecutor or the full council to consider. of State Law County District Attorney. Gov't Code § 41803.5 authorize city attorney to prosecute misdemeanor violations of state Violations law. Gov't Code § 72193 When the provisions of Government Code section 72193 are implemented by a charter city, the city attorney has the primary duty of prosecuting state misdemeanors within the city, with the district attorney acting in a subsidiary or "backup" role. (See Menveg v. Municipal Court (1964) 226 Cal.App.2d 569, 571-572.) ** Subcommittee requested Full Council discussion 4887-4709-3350 A 14