RPVCCA_SR_2011_02_01_15_FAC_Report_To_Council_Financial_Aspects_Of_Charter_CityCrrvOF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
KATHRYN DOWNS,DEPUTY DIRECTOR OF FINANC17""
&INFORMATION TECHNOLOGYI Ivv
BILL JAMES,CHAIR OF THE FINANCE ADVISORY
COMMITTEE
FEBRUARY 1,2011
SUBJECT:REPORT TO CITY COUNCIL FROM FINANCE
ADVISORY COMMITTEE REGARDING ASSIGNMENT
TO CONSIDER FINANCIAL ASPECTS OF THE
CHARTER CITY PROPOSAL
REVIEWED:CAROLYN LEHR,CITY MANAGER W-.
RECOMMENDATION
Receive and file.
DISCUSSION
On December 18,2010,the City Council approved an amendment to the Finance Advisory
Committee (FAC)FY1 0-11 Work Plan to include a review of the benefits and detriments of
Charter Cities vs.General Law Cities.
The FAC met on January 26,2011 to complete its assignment.Staff provided the following
information to the FAC prior to the meeting:
~Proposed Charter;
~City Attorney's Impartial Analysis;
~Frequently Asked Questions;
~A summary chart comparing the characteristics of general law cities vs.charter
cities prepared by the League of California Cities;
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REPORT TO CITY COUNCIL FROM FINANCE ADVISORY COMMITTEE
REGARDING ASSIGNMENT TO CONSIDER FINANCIAL ASPECTS OF THE
CHARTER CITY PROPOSAL
February 1,2011
Page 2 of 2
~Staff reports dated April 6,2010,July 6,2010,August 3,2010,September?,2010,
October 5,2010;
~Staff prepared memo regarding potential capital project savings;and
~Media articles regarding other charter city examples.
At the January 26th meeting,both the City Attorney and Staff presented information to the
FAC and answered questions.After a discussion of financial aspects of becoming a
Charter City,the FAC prepared the following statement to the City Council.
After a thorough review of the financial aspects ofbecoming a charter city,and after
hearing a detailed presentation by Staffand the City Attorney,the Finance Advisory
Committee has unanimously concluded that the City ofRancho Palos Verdes would
likely realize significant financial benefits from the passage of Measure C.These
benefits include but would not necessarily be limited to the following:
~The ability to enter into design-build contracts;
~The City's ability to exempt itself from the current requirement of paying
prevailing wages on many projects,including capital improvement projects and
routine maintenance;
~The ability to enter into mixed-labor contracts;and
~The ability to protect local taxes,including transient occupancy tax and utility
users'tax,from potential future state raids.
Based on the City's 2010 Five-Year Capital Improvement Plan,staff has estimated
that prevailing wage savings alone could be in the range of $1.3 million to $2.6
million.The Finance Advisory Committee believes that savings in areas other than
prevailing wages could also be significant.
The Finance Advisory Committee is not aware of any significant financial
disadvantages to becoming a charter city.
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