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RPVCCA_SR_2010_07_06_11_Benefits_to_CharterCITY OF MEMORANDUM RANCHO PALOS VERDES TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL DATE: FROM:CAROLW.LYNCH,CITY ATTORNEY JULY 6,2010 SUBJECT:BENEFITS OF BECOMING A CHARTER CITY REVIEWED:CAROLYN LEHR,CITY MANAGER Cl9-- RECOMMENDATIONS (1)Receive and file this staff report;(2)determine whether the City should initiate the process of drafting a charter and,if so,(3)appoint a Council Subcommittee to lead the process of having the charter adopted by the City's voters at a consolidated election that would be held on March 8,2011. BACKGROUND At the last City Council meeting,which was held on June 29,2010,the City Council received an extensive report about the advantages and disadvantages of a general law city becoming a charter city.For ease of reference,that staff report is attached to this report.Because Mayor Pro Tem Long and Councilmember Stern were unable to attend the meeting on June 29,2010,the City Council continued the item so all five members of the City Council could participate in determining whether to initiate the process of having the City adopt a charter. DISCUSSION There are two means by which a city may adopt a charter.On its own motion,the City Council may propose a charter and submit it to the voters for adoption.Gov't Code § 34458.In this approach,the City Council is responsible to draft the charter. Alternatively,the voters may elect a charter commission,which has the responsibility of debating over the provisions and drafting the charter.Staff does not recommend the charter commission option due to the additional time and costs that would be required. In either case,the charter does not become effective unless it is adopted by a majority of the city's voters. If the City Council chooses to draft a proposed charter to submit to the voters,the City Council may then call a special election or allow the charter to be voted on at any 11-1 established election date,as long as that election date is at least 88 days after the proposed charter was filed with the city clerk.Gov't Code §34458;see also Elec.Code §9255. Once an election date is set,the charter must be prepared for the ballot.The city council must then direct the city attorney's office to prepare an impartial analysis of the charter according to Elections Code section 9280.1 Arguments for and against the charter may also be filed.Elec.Code §§9281,9282. Once the voters vote in favor of the charter proposal,it will be deemed adopted.After a charter is approved by a majority 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.Gov't Code §34460.The charter will not go into effect,however,until it has been filed and accepted by the Secretary of State.Gov't Code §34459. TIMING AND COST OF THE ELECTION 2 The City of Los Angeles gave the City Clerk a cost estimate of $70,000-$90,000 to conduct the Rancho Palos Verdes charter election along with the election that will be conducted by the City of Los Angeles on March 8,2011,since Los Angeles will have the Community College contest on the ballot in Rancho Palos Verdes. The LA County Registrar-Recorder/County Clerk's Office considered the City's request to conduct a spring or summer 2011 election,but it is their Board's policy to consolidate such municipal elections with the Countywide or Statewide Elections,which are held primarily during the month of November. A stand-alone election in the City of Rancho Palos Verdes also would be an option. The City Clerk estimates that the cost of a stand-alone election would be at least $100,000-$110,000,which would include the cost of having Martin and Chapman,the municipal election consulting firm,provide pre-election and election supplies, translations,and so forth;the assistance of an experienced election consultant,as needed,at $95/hour;the hiring of four temporary City workers for 3 weeks prior to the election;and the cost for approximately 16 employees to work the night of the election. Other unknown costs that have not been included in that estimate (estimated by Martin &Chapman at "several more thousand dollars")are the following:poll worker costs (depends on number of precincts and polling locations);County fees for signature verification;and return reply postage for vote-by-mail ballots (if the City chooses to provide those ballots).Other issues to consider are workstations for the temporary employees and the impact on the regular workload of the City Clerk's Office. Due to the additional cost to the City of conducting a stand-alone election,Staff recommends that if the City Council wishes to pursue adopting a charter,the City 1 If the charter affects the organization or salaries of the City Attorney's office,then the City Council may direct the City's elections official to prepare the analysis instead.Elec.Code §9280. 2 This discussion is duplicated from the Staff Report that was presented on June 29th • 2 R6876-0001\1240402v1.doc 11-2 Council should direct City efforts towards a consolidated election held along with the election that is to be conducted by the City of Los Angeles on March 8,2011.Because this date is less than a year from now,pointing towards this election will require an intense public education effort by the Council,the Subcommittee and any other interested individuals.Alternatively,the City Council could choose a different election date during 2011 to conduct the election,or an election on a charter could be deferred to a subsequent year. FISCAL IMPACT The City would incur costs in the process of becoming a charter city.First,formulating a charter will require an expenditure of funds,which may be significant,depending on the extensiveness of the charter and the time and efforts used to draft it.Second,there will be costs associated with public education efforts.Third,the City will need to pay to conduct an election to consider adoption of the charter.As discussed above,the cost to the City of conducting a stand-alone election is considerably more than the cost of an election that is consolidated with the election of another entity.The least expensive election would be if the election on the charter were held in November 2011 ,along with the election for Members of the City Council.However,if the election on the charter were held at that time,there is a risk that one or more candidates would politicize the issue of chartering. CONCLUSION Adopting a charter preserves local control for a city,to the extent allowed by the Legislature and judicial decisions.Given these times of greater financial uncertainty, the preservation of local control can provide significant benefits to a city.Accordingly, Staff recommends that the City Council form a Council Subcommittee made up of two Members of the City Council.Mayor Wolowicz recommends that he and Mayor Pro Tem Long be the two Councilmembers that would serve on the Subcommittee.The two Subcommittee Members then could recommend to the City Council three to five City residents to serve along with them on the Subcommittee to lead the City towards the process of adopting a charter. The City of Buena Park conducted twenty-one public outreach meetings over a one- year period prior to the election to adopt its charter.Accordingly,leadership to provide the education of the City's residents is an essential component of a successful effort to become a charter city and would require a significant commitment of time by the City Council and the Subcommittee,especially if the election will occur in March 2011. ATTACHMENTS •June 29,2010 Staff Report and Attachments •Exhibit 1:League of California Cities'General Law City v.Charter City chart •Exhibit 2:California Statutes regarding Enactment of a City Charter •Exhibit 3:List of Charter Cities in the State of California 3 R68 76-000 1\1240402v1.doc 11-3 •Exhibit 4:The City of Buena Park's Charter •Exhibit 5:Brochure regarding Charter versus General Law Cities (from Buena Park) •Exhibit 6:Talking Points regarding Characteristics of Charter Cities (from Buena Park) •Exhibit 7:Charter Exploratory Committee Work Plan (from Buena Park) •Exhibit 8:Actions Taken by the City Charter Exploratory Project (from Buena Park) •Exhibit 9:Resolution Establishing and Defining the Scope ofthe Charter Exploratory Committee (from Buena Park) •Exhibit 10:Charter Study Session Agenda Report to City Council (from Buena Park) •Exhibit 11:Charter Exploratory Committee's Final Report (from Buena Park) 4 R6876-0001\1240402v1.doc 11-4 CITY OF MEMORANDUM TO: FROM: DATE: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL CAROL W.LYNCH,CITY ATTORNEY, STEVE DORSEY,FORMER CITY ATTORNEY,and SHIRl KLIMA,ASSISTANT CITY ATTORNEY JUNE 29,2010 SUBJECT:BENEFITS OF BECOMING A CHARTER CITY REVIEWED:CAROLYN LEHR,CITY MANAGER ~. RECOMMENDATIONS (1)Receive and file this staff report;(2)determine whether the City should initiate the process of drafting a charter and,if so,(3)appoint a Council Subcommittee to lead the process of having the charter adopted by the City's voters at a consolidated election that would be held on March 8,2011. BACKGROUND In California,there are two types of cities:general law cities and charter cities.The authority of a general law city is derived from the powers granted to it by the general laws adopted by the California Legislature and from the police power granted to it by the California Constitution.On the other hand,a charter city's powers are not defined or limited by the state's general laws.Instead,with respect to municipal affairs,a charter city's powers are defined by the city's own charter,subject only to the limitations of the state and federal constitutions,laws of statewide concern,and any limitations set forth in the charter.This is the primary advantage of becoming a charter city -as a charter city,a city would have the ability to adopt charter provisions or ordinances concerning its own municipal affairs without constraint by state statutes. Article XI,section 5(a)of the California Constitution,provides: "It shall be competent in any city charter to provide that the city governed thereunder may make and enforce all ordinances and regulations in respect to municipal affairs,subject only to restrictions and limitations provided in their several charters and in respect to other matters they shall be subject to general laws." This is known as the "home rule"doctrine,which reserves to a charter city the right to 11-5 adopt and enforce its own laws,subject only to the conflicting provisions in the state or federal constitutions or preemptive state law on matters of statewide concern.Harman v.City and County of San Francisco,7 Cal.3d 150,161 (1972).1 Thus,a charter acts as an instrument of limitation on the broad power of a charter city over matters of municipal affairs.City of Glendale v.Tronsden,48 Cal.2d 93,98 (1957). The California Constitution does not define the term "municipal affair."For this reason, whether a particular subject is a "municipal affair,"over which a charter city has authority,or is a matter of "statewide concern,"over which the Legislature has authority, is a matter for the courts to decide on a case-by-case basis.Although the Legislature is neither empowered to determine what is a municipal affair nor to transform a municipal affair into one of statewide concern,the courts give the Legislature's intentions in this regard great weight.Bishop v.City of San Jose,1 Cal.3d 56,64 (1969). The traditional approach by courts in defining a municipal affair is to categorize certain subjects as municipal affairs.The more recent trend,however,is to avoid "'compartmentalization,'that is,of cordoning off an entire area of government activity as either a 'municipal affair'or one of statewide concern."California Fed.Savings &Loan Assn.v.City of Los Angeles,54 Cal.3d 1,17 (1991).Accordingly,the concept of what is a municipal affair is fluid and changes over time,as local issues may become statewide concerns,and vice versa.The task of determining whether a given activity is a municipal affair or one of statewide concern is an ad hoc inquiry in light of the facts and circumstances surrounding each case.Id.at 16. In California Fed.Savings &Loan,the California Supreme Court developed a four-step analysis to determining what is a municipal affair.First,the court must determine whether an actual conflict exists between the local law and the state statute.If it does not,a choice between the legal conclusions "municipal affair"and "statewide concern" is not required.Id.at 16.If a genuine conflict between the local and state legislation is found,then the court takes the second step of determining whether the local law implicates a municipal affair.Id.at 17.If the local law implicates a municipal affair, then the court must take the third step of examining whether the state statute involves extramural concerns that require paramount state control.Id.at 18.Finally,in evaluating the statewide concern under the Cal Fed case,the court must determine whether the state statute is reasonably related and narrowly tailored to the resolution of the statewide concern.Id.at 24.If a court finds that the state law posing the conflict fails to regulate an area of statewide concern,the charter city measure is a municipal affair and beyond the reach of state legislative enactment. Although not an exhaustive list,all of the following issues have been held to be of general or statewide concern,over which the Legislature has full authority: A.School systems (see Whisman v.San Francisco Unified School District, 86 Cal.App.3d 782,789 (1978)); 1 Please note that federal statutes still apply to charter cities.Thus,a charter city needs to comply with these statutes,such as the Voting Rights Act (42 U.S.C.1973 et seq.). 2 R68l6-000 1\1238446v1 a.doc 11-6 B.The regulation of traffic and vehicles (see California Vehicle Code section 21); C.Franchises for telephone or telegraph lines (see Pacific Tel.&Tel.Co.v. City of Los Angeles,44 Cal.2d 272,280 (1955»; D.Licensing of members of a trade or profession (see City and County of San Francisco v.Boss,83 Cal.App.2d 445,449 (1948»; E.Tort claims against a governmental entity (see Helbach v.City of Long Beach,50 Cal.App.2d 242,247 (1942»; F.The taxation of financial corporations such as savings banks (see California Fed.Savings &Loan); G.The Ralph M.Brown Act open meetings law (see California Government Code sections 54951 and 54953(a»; H.The Meyers-Milias-Brown Act regarding employee organization (see Government Code sections 3500 and 3501 (c»; I.The California Environmental Quality Act ("CEQA")(see California Public Resources Code §21 OOO(a)et seq.);and J.The exercise of the power of eminent domain (see Wilson v.Beville,47 Cal.2d 852,856 (1957». Accordingly,the adoption of a charter and subsequent ordinances by the City of Rancho Palos Verdes would generally not affect these or other matters that are determined to be of statewide concern. DISCUSSION I.Advantages to a Charter The main advantage to a becoming a charter city is that a charter city has more local control over its municipal affairs than a general law city.However,as discussed above, a charter city is still subject to the general laws as passed by the Legislature on non- municipal affairs that are of statewide concern and to the limitations of the federal and state constitutions. Typically,a city charter will reserve for the city the greatest amount of power it can.To do so,the charter must include a declaration that the city intends to avail itself of the full power provided to charter cities by the California Constitution.(See the attached Buena Park Charter.)If a city does not want to extend its power to the fullest extent granted by the California Constitution,that city may determine the breadth of its power by placing limitations within its charter. 3 R6876-0001\1238446v1 O.doc 11-7 A charter city may legislate in a variety of areas,including but not limited to: A.City Elections.The conduct of city elections and elections procedures are municipal affairs.Cal.Const.Article XI,§5(b).City charters may establish election dates or the number of signatures required on an initiative or referendum.Charters may require a majority number of votes in order to win a council seat at an election2 and set forth procedures for selecting officers.3 A charter may state city council member qualifications that do not violate the constitutions and provide criteria for vacating and terminating city offices.A charter city may also opt to fund public officers and candidates'campaigns.See Johnson v.Bradley,4 Cal.4th 389 (1992).Alternatively,a charter city may conduct its elections under the general election laws.These municipal affairs are,as always,restricted by the federal and state constitutions,and thus may not restrict reservations of power to the people,such as the right to vote and powers of initiative or referendum. B.Finance.The imposition of taxes for municipal purposes is a municipal affair.California Fed.Savings &Loan.4 Specifically,a charter city may impose a license tax on local businesses and occupations,with approval by the voters.West Coast Advertising Co.v.City and County of San Francisco,14 Cal.2d 516 (1939);City of Glendale v.Trondsen,48 Cal. 2d 93 (1957).Courts have also held that the subject of property transfer taxes is a municipal affair "which lies 'beyond the reach of legislative enactment'in the case of charter cities."Fielder v.City of Los Angeles, 14 Cal.App.4th 137,146 (1993). C.Gifts of Public Funds.The constitutional ban on gifts of public funds does not apply to charter cities.See,e.g.Sturgeon v.County of Los Angeles, 167 Cal.App.4th 630,637 n.5 (Cal.App.4 Dist.,2008);Tevis v.City and Council of San Francisco,43 Cal.2d 190,197 (1954);Mullins v. Henderson,75 Cal.App.2d 117 (1946).For example,charter cities may render financial assistance to schools.Berkeley Sch.Dist.v.City of 2 The candidate with the plurality of the votes,meaning the highest number,wins the election in a general law city.Cal.Elec.Code §§15450,15452.Alternatively,a charter city may choose to require a majority of votes to win,thus requiring a "run-off"election between the two candidates with the highest number of votes in situations when no candidate obtained a majority of the votes cast.§15452(a). 3 Charter cities may also opt for term limits or create voting districts.The creation of districts may limit:the election of members of the city council by voters of particular areas of the city;the candidates by requiring that they reside in the particular district;or both.Please note that the power to opt for term limits or create voting districts is not unique to charter cities;general law cities have equivalent power in these two areas. 4 Government Code section 37100.5 authorizes a city council of a general law city to levy any tax that may be levied by any charter city,subject to the voters'approval.Thus,there is not a significant advantage to a charter city's ability to impose taxes.Additionally,Proposition 218 applies to charter cities.Cal.Const., art.XIIIC,§1(b);art.XIIID,§2(a).Thus,charter cities must sUbject the imposition,extension or increase of general taxes,as well as special taxes,to the voters for approval.Charter cities are preempted from establishing different vote requirements than established by the Constitution.Howard Jarvis Taxpayers Assn.v.City of San Diego (2004)120 Cal.App.4th 374. 4 R6876-0001 \1238446v1 O.doc 11-8 Berkeley,141 Cal.App.2d 841,846-847 (1956);Madsen v.Oakland Unified Sch.Dist.,45 Cal.App.3d 574,579-80 (1975). D.Planning and Land Use.The State Planning and Land Use Law,as codified in Government Code section 65700 et seq.,generally does not apply to charter cities except to the extent that a charter city adopts these provisions.Gov't Code §65700.The same is true of zoning regulations.§ 65803.However,the Legislature and the courts have made certain other land use and zoning provisions applicable to charter cities,some of which are listed below: 1.A charter city's general plan must contain all mandatory elements. Gov't Code §§65700(a),65300,65302.1.However,charter cities need not comply with the zoning consistency provisions in Government Code section 65860.Verdugo Woodland Homeowners Assn.v.City of Glendale,179 Cal.App.3d 696 (1986). 2.Charter cities must follow the minimum procedural standards in conducting zoning hearings provided in Government Code section 65804,including developing and pUblishing procedural rules for conducting the hearings,preserving a record of all hearings,and allowing public access to planning staff reports.However,Section 65804 does not include noticing requirements,which presumably are left to the discretion of the charter city,provided they satisfy constitutional due process requirements.See Brougher v.Board of Public Works,205 Cal.426 (1928);Fletcher v.Porter,203 Cal. App.2d 313,320 (1962);O'Loane v.O'Rourke,213 Cal.App.2d 774,783 (1965). 3.Charter cities must comply with requirements for low and moderate income housing within coastal zones.Gov't Code §§65700(b), 65590. 4.Charter cities are prohibited from enacting ordinances that discriminate against residential development because of the method of financing,the race,sex,color,religion,national origin, ancestry,age,or economic statute of a tenant occupant.Gov't Code §65008(g). 5.Charter cities are subject to and protected by time limitations on actions to attack,review,amend,set aside,void,or invalidate land use planning and zoning decisions.Gov't Code §65009(f). 6.Charter cities must comply with standards for approving housing developments.Gov't Code §65913.9.They must designate sufficient vacant land for residential use with appropriate standards 5 R6876-0001 \1238446v1 O.doc 11-9 as described in Government Code section 65913.1,refrain from imposing design criteria that inhibit the development of affordable housing,and refrain from imposing certain fees for public capital facility improvements related to a development project.§§65913.1, 65913.2,65913.8. 7.Like general law cities,charter cities must provide density bonuses, incentives,and other concessions for low and moderate-income housing development.Gov't Code §65918. 8.Charter cities are subject to the provisions of the Permit Streamlining Act (Government Code section 65920 et seq.),which governs the review and approval of development projects.§65921. 9.Charter cities are subject to limits and procedures regarding the adoption of interim zoning ordinances.Gov't Code §65858. 10.The Subdivision Map Act (Government Code section 66410 et seq.)has been found applicable to charter cities.See Santa Clara County Contractors Ass'n v.City of Santa Clara,232 Cal.App.2d 564,575-78 (1965). 11.Charter cities are subject to the provisions of the California Environmental Quality Act. E.Park Properties.The acquisition,disposition and use of municipal parks is another municipal affair over which a charter governs,except for in the case of the acquisition by a private dedication that proscribes a particular use for the park.Simons v.City of Los Angeles,63 Cal.App.3d 455,468 (1976);Wiley v.City of Berkeley,136 Cal.App.2d 10 (1955);but see Slavich v.Hamilton,201 Cal.299,303 (1927). F.Public Works.A charter city may create its own procedures for granting a franchise,such as the right to use city streets to distribute electricity,gas, or water to the city and its inhabitants.City of Santa Cruz v.Pacific Gas & Elec.Co.,82 Cal.App.4th 1167 (2000).It may provide for methods of improvements of city streets.Blake v.City of Eureka,201 Cal.643,657- 58 (1927)(overruled in part on other grounds);Wilson v.Beville,47 Cal. 2d 852,864 (1957).A charter city may provide for the establishment and maintenance of sewers and storm drains within the city's boundaries. Loop Lumber Co.v.Van Loben Sels,173 Cal.228,232 (1916);Smith v. City of Riverside,34 Cal.App.3d 529 (1973);Mallon v.City of Long Beach,44 Cal.2d 199,211 (1955).The charter may also create and govern operation of a municipally-owned utility.Mefford v.City of Tulare, 102 Cal.App.2d 919 (1951);Oneto v.City of Fresno,136 Cal.App.3d 460 (1982).Additionally,the following two matters are of particular relevance to charter cities: 6 R6876-0001 \1238446v1 O.doc 11-10 1.Public Contracts.Charter cities may expressly provide in the charter or by ordinance that the Public Contract Code does not apply.Cal.Pub.Cont.Code §1100.7.If a charter city opts to exempt itself from the Public Contract Code,one consequence is that the city is no longer required to follow the bidding statutes.This permits a charter city to select particular vendors from which it elicits bids or opt to work with someone other than the lowest bidder on a contract,unless the city obtains funding from a source that requires adherence to state bidding procedures. 2.Prevailing Wages.Charter cities are not currently subject to the prevailing wage laws unless they elect to be subject to such laws,if the project involves work outside of the city limits,or if the project is otherwise of significant state interest.However,this exemption is not completely free from doubt.The Legislature has made a few attempts to require charter cities to be subject to prevailing wages. Additionally,in December 2004,the California Supreme Court issued its decision in City of Long Beach v.Department of Industrial Relations,34 Cal.4th 942 (2004),a case in which it had the opportunity to reaffirm the long-standing rule that charter cities are sUbstantially free from the requirement of paying prevailing wages on "public works"projects.In that case,the court of appeal held that the state's prevailing wage laws addressed matters of "statewide concern"and therefore applied to projects funded or subsidized by all public agencies,including charter cities.Upon review,the California Supreme Court reversed the decision of the court of appeal on an alternative ground.Unfortunately,the Court avoided the issue of whether the prevailing wage law is a matter of "statewide concern"such that it would override a charter city's interests in conducting its municipal affairs. Please note that even if a charter city is exempt from paying prevailing wages,a redevelopment agency,as a separate legal entity,is not exempt from this requirement. G.City Council Procedures.The mode and manner of passing ordinances, such as requiring a second reading,is a municipal affair.Adler v.City Council of City of Culver City,184 Cal.App.2d 763,768 (1960).The same is true of the procedures for adopting,amending or repealing resolutions.Brougher v.Board of Public Works,205 Cal.426.Various other city council procedural matters are municipal affairs,such as quorum requirements.However,there are supermajority requirements that do apply to charter cities.See,e.g.,Cal.Code Civ.Proc.§1245.240. Charter cities,therefore,are able to adopt certain procedures that allow for more efficient and cost-effective city operations. H.Employment and Compensation.The appointment,qualifications, 7 R6876-000 1\1238446v1 O.doc 11-11 compensation and removal of city employees are generally municipal affairs.Cal.Const.Art.XI,§5(b).Additionally,a city charter may set salaries,expense reimbursements,and benefits for its council members. However,the health and welfare benefits of any city council member, including in a charter city,shall be no greater than those received by non- safety employees of that public agency.Gov't Code §53208.5. Furthermore,if a charter city provides any type of compensation to members of its legislative body,then these officials must receive at least two hours of ethics training,just like their general law city counterparts.§§ 53234,53235. I.Municipal Contracting.Municipal contracting procedures are municipal affairs.First Street Plaza Partners v.City of Los Angeles,65 Cal.App.4th 650,661 (1998). II.Disadvantages to a Charter Along with the advantages,there are also perceived disadvantages to converting from a general law city to a charter city.First,formulating a charter,educating the public,and conducting an election may require a significant expenditure of time and effort. However,this may not be the case if the City adopts a simple charter and does not expend too much time or money in the chartering process.Second,there is a transition period from the many years of municipal operation under the general law,and this may require procedural changes and staff training.Third,uncertainties may arise as to whether specific matters are municipal concerns governed by the charter or statewide concerns governed by statutes.This could result in exposure to legal challenges if an issue should arise in a "gray"area where the charter and general law may differ.There is also limited case law from which to evaluate legal exposure to interpret charter language and charter city ordinances.Finally,charter amendments require a vote of city residents,thus they are time-consuming and costly.However,amendments are rare where a charter is kept simple. Often times,a charter is supported if there is a particular prdblem that can be solved by adopting the charter city form of government.The adoption of a charter,however,can be divisive in a community.Charter provisions can be used by some in the community to limit the role of the city or to pursue a particular viewpoint that may not be similar to that of the city.Also,as the courts review the powers of a charter city (as demonstrated by the Long Beach decision),there is the possibility of the "erosion"of those powers. Many of the differences or perceived advantages of a charter city may ultimately disappear. PROCEDURE FOR BECOMING A CHARTER CITY There are two means by which a city may adopt a charter.The city council may draft the charter.Alternatively,the voters may elect a charter commission,which has the responsibility of debating over the provisions and drafting the charter.Staff does not recommend the charter commission option due to the additional time and costs that 8 R6876-0001 \1238446v1 O.doc 11-12 would be required.In either case,the charter does not become effective unless it is adopted by a majority of the city's voters. I.CHARTER DRAFTED BY CITY COUNCIL On its own motion,the city council may propose a charter and submit it to the voters for adoption.Gov't Code §34458.In this approach,it becomes the responsibility of the city council to draft the charter. The city council may then 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.Gov't Code §34458;see also Elec.Code §9255. II.CHARTER DRAFTED BY ELECTED CHARTER COMMISSION Alternatively,a city may opt to elect a charter commission.The election for choosing charter commissioners may be called either by a majority vote of the city councilor by a petition signed b~not less than fifteen percent (15%)of the registered voters within the city.§34452(a).5 Once it has been decided that a charter commission election will take place,candidates for commissioners must be nominated either in the same manner as officers of the city or by petition.Gov't Code §34454.A candidate for charter commissioner must be a registered voter of the city.§34451. At the election for charter commission members,the voters will vote first on the question of whether a charter commission should be elected,and then for the charter commission candidates.§34453.If a majority of the voters vote for the formation of a charter commission,then the top fifteen (15)candidates for the office of charter commissioner will be organized as the city's charter commission.§34453.6 Once formed,the charter commission will have the responsibility of developing the city's charter.After a majority of commissioners has decided that the proposed charter is appropriate,the members of that majority must sign and file the charter with the city clerk's office.Gov't Code §34455.7 After the charter has been filed with the city clerk,the city council must decide whether to call a special election or to wait until the next established municipal election to submit the charter to the voters.Gov't Code §34457.The charter must be sent to the voters Sif a petition requests the formation of a charter commission,the authority in charge of the city's registration records must verify the signatures on the petition.§34452(a).The city must pay the expense of this verification.§34452(a).If the petition is verified,the city council must call an election pursuant to California Elections Code sections 1000 and 10403.§34452(a). 6 No commission will be formed if less than a majority of voters votes for the election of a charter commission.§34453. 7 The charter commission does,however,have the option of submitting portions of the charter to the city's voters periodically instead of sending the whole charter at once.§34462(b). 9 R6876-0001 \1238446v1 a.doc 11-13 within two years of the vote that formed the charter commission.§34462. III.THE ELECTION In either case (i.e.,the charter is drafted by the city councilor by a charter commission), the majority of voters must vote in favor of the proposed charter for the charter to be adopted.See Cal.Gov't Code §34459.Once an election date is set,the charter must be prepared for the ballot.The city council must then direct the city attorney's office to prepare an impartial analysis of the charter according to Elections Code section 9280.8 Arguments for and against the charter may also be filed.Elec.Code §§9281,9282. Once the voters vote in favor of the charter proposal,it will be deemed adopted.After a charter is approved by a majority 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.§34460.The charter will not go into effect,however,until it has been filed and accepted by the Secretary of State.Gov't Code §34459. Three copies of the adopted charter must be certified and authenticated by the mayor and the city clerk.One copy of the approved charter shall be filed with the county recorder's office and a second copy shall be kept in the city's archives.These two copies shall include:(1)certified copies of all publications and notices in connection with the calling of the election to propose the charter;(2)certified copies of any arguments for or against the charter proposal which were mailed to the voters;and (3) certified abstracts of the vote at the election on the charter proposal.A third copy of the charter must be submitted to the Secretary of State.Gov't Code §34460. TIMING OF THE ELECTION The City of Los Angeles gave the City Clerk a cost estimate of $70,000-$90,000 to conduct the Rancho Palos Verdes charter election along with the election that will be conducted by the City of Los Angeles on March 8,2011,since Los Angeles will have the Community College contest on the ballot in Rancho Palos Verdes. The LA County Registrar-Recorder/County Clerk's Office considered the City's request to conduct a spring or summer 2011 election,but it is their Board's policy to consolidate such municipal elections with the Countywide or Statewide Elections,which are held primarily during the month of November. A stand-alone election in the City of Rancho Palos Verdes also would be an option. The City Clerk estimates that the cost of a stand-alone election would be at least $100,000-$110,000,which would include the cost of having Martin and Chapman,the municipal election consulting firm,provide pre-election and election supplies, translations,and so forth;the assistance of an experienced election consultant,as needed,at $95/hour;the hiring of four temporary City workers for 3 weeks prior to the election;and the cost for approximately 16 employees to work the night of the election. B If the charter affects the organization or salaries of the City Attorney's office,then the City Council may direct the City's elections official to prepare the analysis instead.Elec.Code §9280. 10 R6876-0001 \1238446v1 O.doc 11-14 Other unknown costs that have not been included in that estimate (estimated by Martin &Chapman at "several more thousand dollars")are the following:poll worker costs (depends on number of precincts and polling locations);County fees for signature verification;and return reply postage for vote-by-mail ballots (if the City chooses to provide those ballots).Other issues to consider are workstations for the temporary employees and the impact on the regular workload of the City Clerk's Office. Due to the additional cost to the City of conducting a stand-alone election,Staff recommends that if the City Council wishes to pursue adopting a charter,the City Council should direct City efforts towards a consolidated election held along with the election that is to be conducted by the City of Los Angeles on March 8,2011.Because this date is less than a year from now,pointing towards this election will require an intense public education effort by the Council,the Subcommittee and any other interested individuals. FISCAL IMPACT The City would incur costs in the process of becoming a charter city.First,formulating a charter will require an expenditure of funds,which may be significant,depending on the extensiveness of the charter and the time and efforts used to draft it.Second,there will be costs associated with public education efforts.Third,the City will need to pay to conduct an election to consider adoption of the charter. The fiscal impact of being a charter city,as opposed to remaining a general law city,are contingent on the precise charter language and subsequent ordinances that are adopted by the City.For example,if the City opts to not pay prevailing wages,and this practice continues to be permissible,the City could save money on future contracts. Incorporating changes to elections procedures may likewise have fiscal impacts,but whether those impacts are positive or negative depends on the particular changes adopted.Charter amendments could be costly due to a required vote each time,but that expenditure would be not be significant if a simple charter is drafted,because the legislation implementing the charter would be by ordinance.Also,with more local control,the City will have more authority than it currently possesses to determine its own expenditures in many areas.Thus,it is likely that there will be a positive fiscal impact of being a charter city;however,the degree of that impact cannot be predicted with certainty. CONCLUSION Adopting a charter preserves local control for a city,to the extent allowed by the Legislature and judicial decisions.Given these times of greater financial uncertainty, the preservation of local control can provide significant benefits to a city.Accordingly, Staff recommends that the City Council form a Council Subcommittee made up of two Members of the City Council.Mayor Wolowicz recommends that he and Mayor Pro Tem Long be the two Councilmembers that would serve on the Subcommittee.The two Subcommittee Members or the Council as a whole then could choose three to five City residents to serve along with them on the Subcommittee and lead the City towards 11 R6876-000 1\1238446v1 a.doc 11-15 the process of adopting a charter. The City of Buena Park conducted twenty-one public outreach meetings over a one- year period prior to the election to adopt that its charter.Accordingly,leadership to provide the education of the City's residents is an essential component of a successful effort to become a charter city and would require a significant commitment of time by the City Council and the Subcommittee,especially if the election will occur in March 2011. ATTACHMENTS •Exhibit 1:League of California Cities'General Law City v.Charter City chart •Exhibit 2:California Statutes regarding Enactment of a City Charter •Exhibit 3:List of Charter Cities in the State of California •Exhibit 4:The City of Buena Park's Charter •Exhibit 5:Brochure regarding Charter versus General Law Cities (from Buena Park) •Exhibit 6:Talking Points regarding Characteristics of Charter Cities (from Buena Park) •Exhibit 7:Charter Exploratory Committee Work Plan (from Buena Park) •Exhibit 8:Actions Taken by the City Charter Exploratory Project (from Buena Park) •Exhibit 9:Resolution Establishing and Defining the Scope of the Charter Exploratory Committee (from Buena Park) •Exhibit 10:Charter Study Session Agenda Report to City Council (from Buena Park) •Exhibit 11:Charter Exploratory Committee's Final Report (from Buena Park) 12 R6876-0001\1238446v1 O.doc 11-16 Exhibit 1:General Law City v.Charter City Ability to Govern Municipal Affairs Form of Government Elections Generally Methods of Elections R6876-0001 \1214913vl.doc Bound by the state's general law,regardless of whether the subject concerns a municipal affair. State law describes the city's form of government For example,Government Code section 36501 authorizes general law cities be governed by a city council of five members,a city clerk,a city treasurer,a 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. Municipal elections conducted in accordance with the California Elections Code.Cal.Elec. Code §§10101 et seq.. Generally holds at-large elections whereby voters vote for any candidate on the ballot. Cities may also choose to elect the city 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 councilor by vote of the people. Cal.Gov't Code §§34902. Has supreme authority over "municipal affairs."Cal.Const.art.XI,§5(b). Charter can provide for any form of government including the "strong mayor," and "city manager"forms.See Cal.Const. art.XI,§5(b);Cal.Gov't Code §34450 et seq. Not bound by the California Elections Code. May establish own election dates,rules,and procedures.See Cal.Const.art.XI,§5(b); Cal.Elec.Code §§10101 et seq.. May establish procedures for selecting officers.May hold at-large or district elections.See Cal.Const.art.XI,§5(b). 11-17 City Council Member Qualifications Public Funds for Candidate in Municipal Elections Term Limits Vacancies and Termination of Office Council Member Compensation and Expense Reimbursement R6876-0001 \1214913vl.doc Minimum qualifications are: 1.United States citizen 2.At least 18 years old 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). No public officer shall expend and no candidate shall accept public money for the purpose of seeking elected office.Cal.Gov't Code §85300. May provide for term limits.Cal.Gov't Code §36502(b). An office becomes vacant in several instances including death,resignation, removal for failure to perform official duties, electorate irregularities,absence from meetings without permission,and upon non- residency.Cal.Gov't Code §§1770,36502, 36513. Salary-ceiling is set by city population and salary increases set by state law except for compensation established by city electors. See Cal.Gov't Code §36516.If a city provides any type of compensation or payment of expenses to council members, then all council members are required to have two hours of ethics training.See Cal. Gov't Code §§53234 -53235. Can establish own criteria for city office provided it does not violate the U.S. Constitution.Cal.Const.art.XI,§5(b),82 Cal.Op.Att'y Gen.6,8 (1999). Public financing of election campaigns is lawful.Johnson v.Bradley,4 Cal.4th 389 (1992). May provide for term limits.Cal.Const.art. XI,§5(b);Cal Gov't Code Section 36502 (b). May establish criteria for vacating and terminating city offices so long as it does not violate the state and federal constitutions. Cal.Const.art.XI,§5(b). May establish council members'salaries. See Cal.Const.art.XI,§5(b).If a city provides any type of compensation or payment of expenses to council members, then all council members are required to have two hours of ethics training.See Cal. Gov't Code §§53234 -53235. 11-18 Legislative Authority Resolutions Quorum and Voting Requirements Rules Governing Procedure and Decorum R6876-0001 \1214913vl.doc Ordinances may not be passed within five days of introduction unless they are urgency ordinances.Cal.Gov't Code §36934. 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. May establish rules regarding the procedures for adopting,amending or repealing resolutions. A majority of the city council constitutes a quorum for transaction of business.Cal. Gov't Code §36810. All ordinances,resolutions,and orders for the payment of money require a recorded majority vote of the total membership of the city council.Cal.Gov't Code §36936. Specific legislation requires supermajority votes for certain actions. 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 procedures for enacting local ordinances.Brougher v.Bd.of Public Works, 205 Cal.426 (1928). May establish procedures for adopting, amending or repealing resolutions.Brougher v.Bd.of Public Works,205 Cal.426 (1928). May establish own procedures and quorum requirements.However,certain legislation requiring supermajority votes is applicable to charter cities.For example,see California Code of Civil Procedure section 1245.240 requiring a vote of two-thirds of all the members of the governing body unless a greater vote is required by charter. 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. 11-19 Personnel Matters Contracting Services Public Contracts R6876-0001 \1214913vl.doc 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). 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. May establish standards,requirements,and procedures,including compensation,terms and conditions of employment for personnel. See Cal.Const.art.XI,§5(b). 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, section 1O(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. 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). 11-20 Payment of Prevailing Wages Finance and Taxing Power R6876-0001 \1214913vl.doc 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). May impose the same kinds of taxes and assessment as charter cities.See Cal.Gov't Code §37100.5. Imposition of taxes and assessments subject to Proposition 218.Cal.Const.art.xIlIC. Examples of common forms used in assessment district financing include: •Improvement Act of 1911.Cal.Sts. &High.Code §22500 et seq.. •Municipal Improvement Act of 1913. See Cal.Sts.&High.Code §§ 10000 et seq.. •Improvement Bond Act of 1915.Cal. Sts.&High.Code §§8500 et seq.. •Landscaping and Lighting Act of 1972.Cal.Sts.&High.Code §§ 22500 et seq.. •Benefit Assessment Act of 1982. Cal.Gov't Code §§54703 et seq.. 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). 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 declined an opportunity to resolve the issue.See City of Long Beach v.Dept.of Indus.Relations,34 Cal.4th 942 (2004). Have the power to tax. Have broader assessment powers than a general law city,as well as taxation power as determined on a case-by case basis. Imposition of taxes and assessments SUbject to Proposition 218,Cal.Const.art.XIIIC,§ 2,and own charter limitations May proceed under a general assessment law,or enact local assessment laws and then elect to proceed under the local law. See J.W.Jones Companies v.City of San Diego,157 Cal.App.3d 745 (1984). May impose business license taxes for any purpose unless limited by state or federal constitutions,or city charter.See Cal.Const. art.XI,§5. May impose real property transfer tax;does not violate either Cal.Const art.XIIIA or California Government Code section 53725. See Cohn v.City of Oakland,223 Cal.App. 3d 261 (1990);Fielder v.City of Los Angeles,14 Cal.App.4th 137 (1993). 11-21 Streets &Sidewalks State has preempted entire field of traffic control.Cal.Veh.Code §21. Penalties &Cost Recovery May impose fines,penalties and forfeitures, with a fine not exceeding $1,000.Cal.Gov't Code §36901. Public Utilities/Franchises May establish,purchase,and operate public works to furnish its inhabitants with electric power.See Cal.Const.art.XI,§9(a);Cal. Gov't Code §39732;Cal.Pub.Util.Code § 10002. May grant franchises to persons or corporations seeking to furnish light,water, power,heat,transportation or communication services in the city to allow use of city streets for such purposes.The grant of franchises can be done through a bidding process,under the Broughton Act, Cal.Pub.Uti I.Code §§6001-6092,or without a bidding process under the Franchise Act of 1937,Cal.Pub.Util.Code §§6201-6302. State has preempted entire field of traffic control.Cal.Veh.Code §21. May enact ordinances providing for various penalties so long as such penalties do not exceed any maximum limits set by the charter.County of Los Ange/es v.City of Los Angeles,219 Cal.App.2d 838,844 (1963). May establish,purchase,and operate public works to furnish its inhabitants with electric power.See Cal.Const.art.XI,§9(a);Cal. Apartment Ass'n v.City of Stockton,80 Cal. App.4th 699 (2000). May establish conditions and regulations on the granting of franchises to use city streets to persons or corporations seeking to furnish light,water,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 R6876-0001 \1214913vl.doc Zoning ordinances must be consistent with general plan.Cal.Gov't Code §65860. Zoning ordinances are not required to be consistent with general plan unless the city has adopted a consistency requirement by charter or ordinance.Cal.Gov't.Code § 65803. 11-22 Exhibit 2:Relevant California Statutes Government Code §34450.Authorization Any city or city and county may enact,amend,or repeal a charter for its own government according to this article or Article 3 (commencing with Section 9255)of Chapter 3 of Division 9 of the Elections Code. Government Code §34451.Charter commission;proposals;eligibility of candidates The charter may be proposed by a charter commission chosen by the voters of the city or city and county,at any general or special election,but no person shall be eligible as a candidate for the commission unless he or she is a registered voter of the city or city and county. Government Code §34452.Election of charter commissioners;vacancies (a)An election for choosing charter commissioners may be called by a majority vote of the governing body of a city or city and county,or on presentation of a petition signed by not less than 15 percent of the registered voters of the city or city and county.The petition shall be verified by the authority having charge of the registration records of the city or city and county and the expenses of the verification shall be provided by the governing body thereof.The governing body shall call an election pursuant to Sections 1000 and 10403 of the Elections Code. (b)If any vacancy arises in a charter commission established for a city or city and county pursuant to this chapter,the vacancy shall be filled by an appointment by the mayor of the city or city and county. Government Code §34453.Questions submitted;effect of vote At an election the voters shall vote first on the question "Shall a charter commission be elected to propose a new charter?"and,secondly,for the candidates of the office of charter commissioner.If the first question receives a majority of the votes of the qualified voters voting thereon at the election,the 15 candidates for the office of charter commissioner receiving the highest number of votes shall forthwith organize as a charter commission.However,if the first question receives less than a majority of the votes of the qualified voters voting thereon at the election no charter commission shall be deemed to have been elected. Government Code §34454.Nomination of candidates for charter commission Candidates for the office of charter commissioner shall be nominated either in the same manner provided for the nomination of officers of the municipal or city and county government,or by petition substantially in the same manner provided by general laws R6876-0001 \1215667vl.doc 11-23 for the nomination by petition of candidates for public offices to be voted for at general elections. Government Code §34455.Proposed or amended charter;signatures;filing The charter commissioners shall propose a charter and may propose amendments to a charter,for the government of the city or city and county.The charter so prepared shall be signed by a majority of the charter commissioners and shall be filed in the office of the clerk of the governing body of the city or city and county. Government Code §34456.Printing and mailing of copies of charter;type styles In any city or city and county,the governing body shall cause copies of the charter to be printed in type of not less than 10-point.If the governing body causes copies of the proposed charter to be mailed to the voters,the text of the proposed charter may show the difference from existing provisions of law by the use of distinguishing type styles. Government Code §34457.Proposed charter;submission to the voters After the charter prepared by the charter commission has been filed in the office of the clerk of the governing body of the city or city and county pursuant to Section 34455,the proposed charter shall be submitted to the voters of the city or city and county at either a special election called within 14 days by the governing body for that purpose to be conducted at least 95 days after the date the special election is called,or at the next established municipal election date or at the next established election date pursuant to Section 1000 of the Elections Code,provided there are at least 95 days before the election. Government Code §34458.Proposal of governing body;election As an alternative to the procedure provided for in Sections 34450 to 34457,inclusive, the governing body of any city or city and county,on its own motion may propose or cause to be proposed,amend or cause to be amended,or repeal or cause to be repealed,a charter and may submit the proposal for the adoption,or the amendments or repeal thereof,to the voters at either a special election called for that purpose or at any established municipal election date or at any established election date pursuant to Section 1000 of the Elections Code,provided there are at least 88 days before the election. Government Code §34459.Charter proposal,amendment or repeal;ratification; acceptance and filing If the voters vote in favor of the charter proposal,amendment,or repeal,it shall be deemed to be ratified,but shall not take effect until accepted and filed by the Secretary of State pursuant to Section 34460. R6876-0001 \1215667vl.doc 11-24 Government Code §34460.Certification;authentication;filing;contents Three copies of the complete text of a charter proposal or of any amended or repealed section ratified by the voters of a city or city and county shall be certified and authenticated by the chairperson and the clerk of the governing body and attested by the city clerk,setting forth the submission of the charter to the voters of the city,and its ratification by them.One copy shall be filed with the recorder of the county in which the city is located,and one in the archives of the city.In the case of a city and county,one copy shall be filed with the recorder thereof,and one in the archives of the city and county.The third copy shall be filed with the Secretary of State.Each copy filed with the recorder of the county or city and county and in the archives of the city or city and county shall be filed with the following: (a)Certified copies of all publications and notices required of the city by this chapter or by the laws of this state in connection with the calling of an election to propose,amend, or repeal a city charter. (b)Certified copies of any arguments for or against the charter proposal,amendment, or repeal which were mailed to voters pursuant to Sections 9281 and 13303 of the Elections Code. (c)A certified abstract of the vote at the election at which the charter proposal, amendment,or repeal was approved by the voters. Government Code §34461.Secretary of state;acceptance and filing;publication; judicial notice A charter proposal,amendment,or repeal by the voters of a city or city and county and submitted to the Secretary of State in compliance with this chapter shall be accepted and filed by the Secretary of State.The charter proposal,amendment,or repeal shall be published in the statutes in a charter chapter series under the designation "Statutes of (year),Charter Chapter ."Under the chapter number,the date of the ratification election and the date of filing with the Secretary of State shall be indicated. After a charter proposal,amendment,or repeal is accepted and filed by the Secretary of State,the courts shall take judicial notice thereof. Government Code §34461.5.Repealed by Stats.1988,c.357,§9 Government Code §34462.Cities and counties;proposed or amended charters; submission to voters (a)A charter commission established for a city and county pursuant to this chapter shall complete a proposed or amended charter and submit the charter to the voters of the city and county within two years of the date of the election of the charter commissioners,and at the expiration of that period is abolished. R6876-0001 \1215667vl.doc 11-25 (b)A charter commission may submit portions of the proposed or amended charter to the voters periodically. Elections Code §9255.Charter proposals;submission to voters (a)The following city or city and county charter proposals shall be submitted to the voters at either a special election called for that purpose,at any established municipal election date,or at any established election date pursuant to Section 1000,provided that there are at least 88 days before the election: (1)A charter proposed by a charter commission,whether elected or appointed by a governing body.A charter commission may also submit a charter pursuant to Section 34455 of the Government Code. (2)An amendment or repeal of a charter proposed by the governing body of a city or a city and county on its own motion. (3)An amendment or repeal of a city charter proposed by a petition signed by 15 percent of the registered voters of the city. (4)An amendment or repeal of a city and county charter proposed by a petition signed by 10 percent of the registered voters of the city and county. (5)A recodification of the charter proposed by the governing body on its own motion, provided that the recodification does not,in any manner,substantially change the provisions of the charter. (b)Charter proposals by the governing body and charter proposals by petition of the voters may be submitted at the same election. (c)The total number of registered voters of the city or city and county shall be determined according to the county elections official's last official report of registration to the Secretary of State that was effective at the time the notice required pursuant to Section 9256 was given. R6876-0001 \1215667vl.doc 11-26 Adelanto Alameda Albany Alhambra Anaheim Arcadia Bakersfield Berkeley Big Bear Lake Buena Park Burbank Carlsbad Cerritos Chico Chula Vista Compton Culver City Cypress Del Mar Desert Hot Springs Dinuba Downey Eureka EI Centro Exeter Folsom Fortuna Fresno Gilroy Glendale Grass Valley Hayward Huntington Beach Indian Wells Industry Inglewood Irvine Irwindale Kingsburg La Quinta Lemoore Lindsay Loma Linda Long Beach R6876-0001 \1214921 vl.doc Exhibit 3:California Charter Cities Los Alamitos Los Angeles Marina Marysville Merced Modesto Monterey Mountain View Napa Needles Newport Beach Norco Oakland Oceanside Oroville Pacific Grove Palm Desert Palm Springs Palmdale Palo Alto Pasadena Petaluma Piedmont Placentia Pomona Port Hueneme Porterville Rancho Mirage Redondo Beach Redwood City Richmond Riverside Roseville Sacramento Salinas San Bernardino San Diego San Francisco San Jose San Leandro San Luis Obispo San Marcos San Mateo San Rafael San Ramon Sand City Santa Ana Santa Barbara Santa Clara Santa Cruz Santa Maria Santa Monica Santa Rosa Santee Seal Beach Shafter Signal Hill Solvang Stockton Sunnyvale Temple City Torrance Truckee Tulare Vallejo Ventura Vernon Victorville Visalia Vista Watsonville Whittier Woodlake Total Cities:117 11-27 Exhibit 4:CHARTER OF THE CITY OF BUENA PARK PREAMBLE We the people of the City of Buena Park declare our intent to restore to our community the historic principles of self governance inherent in the doctrine of home-rule.Sincerely committed to the belief that local government has the closest affinity to the people governed,and firm in the conviction that the economic and fiscal independence of our local government will promote the health,safety and welfare of all the citizens of this City,we do hereby exercise the express right granted by the Constitution of the State of California to enact and adopt this Charter for the City of Buena Park. Article I -Municipal Affairs:Generally Section 100.Municipal Affairs.The City shall have full power and authority to adopt,make, exercise and enforce all legislation,laws,and regulations and to take all actions relating to municipal affairs,without limitation,which may be lawfully adopted,made,exercised,taken or enforced under the Constitution of the State of California. Article II -General Laws Section 100.General Law Powers.In addition to the power and authority granted by the terms of this Charter and the Constitution of the State of California,the City shall have the power and authority to adopt,make,exercise and enforce all legislation,laws and regulations and to take all actions and to exercise any and all rights,powers,and privileges heretofore or hereafter established,granted or prescribed by any law of the State of California or by any other lawful authority.In the event of any conflict between the provisions of this Charter and the provisions of the general laws of the State of California,the provisions of this Charter shall control. Article III -Public Contracting Section 100.The provisions of California Labor Code Section 1770 et.seq.regarding prevailing wages on public works and related regulations,as now existing and as may be amended,are accepted and made applicable to the City,its departments,boards,officers,agents and employees. Article IV -Interpretation Section 100.Construction and Interpretation.The language contained in this Charter is intended to be permissive rather than exclusive or limiting and shall be liberally and broadly construed in favor of the exercise by the City of its power to govern with respect to any matter which is a municipal affair. Section 200.Severability.If any provision of this Charter should be held by a court of competent jurisdiction to be invalid,void or otherwise unenforceable,the remaining provisions shall remain enforceable to the fullest extent permitted by law. The electors of the City of Buena Park,by a majority of the votes cast,adopted this Charter of the City of Buena Park at the general municipal election held November 4,2008.The results of such election were certified by the City Council of the City of Buena Park through adoption of its Resolution No.12164. 11-28 ;>.Exhibit 5.......... U H Understanding Home lU Rule..... H ::;S The home rule provision in ..c:California's state constitution U allows eharter cities to conduct ":LJ their 0,,"11 business and control >their 0,,"11 affairs. Home rule is based on the prin- ciple that a city,rather than the state legislature,knows what it needs and how to satisfy those needs.Becoming a charter city lets voters determine how their city government is organized and,with respect to municipal affairs,pass laws different than those passed by the state. Should it be determined that it is in the best interest ofthe City to operate under a city charter,the question as to whether or not to adopt a charter would be placed on the November 2008 ballot. for more infonnation regarding general law vs.ehartcr city forms of government call (714)562-3750. Contact Info: Shallce Reynoso,City Clerk Office of the City Clerk (j(j50 Beach Boulevard Buena Park,CA 96621 Phone:714.562.3750 Fax:714.562.3506 E-mail:s.reynoso@buenapark.com 11-29 What is a Charter? A city charter is a unique document that,in many ways,acts like a constitution for the city. It can only be adopted,amended or repealed by a majority vote of a city's voters. A charter transfers the power to adopt legislation affecting municipal affairs from the state legislature to the city.A city operating under a charter can acquire full control over its municipal affairs. Areas ofstatewide concern,which cannot be governed by a city charter,include traffic laws, affordable housing obligations,and claims against a public agency. Municipal Affairs A city charter gives residents more control over their local government and the municipal affairs ofthe city Examples are: •Methods and procedures for awarding and constructing public projects. •Procedures for enacting local ordinances. •Municipal election matters. •Land use and zoning decisions. •How the city spends its tax dollars. Advantages of a City Charter •Eliminates requirement to award contracts to the lowest bidder.Contracts can be awarded to the most qualified. •May use city employees to construct public improvements. •May use a design-build process for public improvements. •Eliminates prevailing wagerequirement for projects that don't receive federal or state funding. •Ordinances and city codes may be adopted in a shorter time frame. •May establish its own election procedures such as the option ofvoting by mail on certain matters. Disadvantages of a City Charter •Cost of professional services to draft charter. •Costs ofconducting election. 11-30 Exhibit 6:TALKING POINTS CHARACTERISTICS OF CHARTER CITIES CITY OF BUENA PARK •Charter cities are not subject to the competitive bidding requirements of the Public Contract Code. Current Scenario: Bids must be awarded to the low bidder without regard to contractor's knowledge, experience doing similar work,number of years in business,track record for completing work on time,track record for work quality,and financial stability (bankruptcy).This often results in bids being awarded to substandard contractors who take too long to complete projects,are messy and intrusive,have bad work quality which must be removed and replaced,don't pay subcontractors resulting in liens and stop notices,and require extensive oversight by City engineers and inspectors.Sometimes legal action is required to resolve disputes with substandard contractors,which is both costly and time consuming.Recent examples of substandard low bidders:the Commonwealth Widening and Median Project and the Traffic Signal Controller Equipment (Sychronex filed bankruptcy).Also,for the City Hall project,the City felt the low bidder was not qualified and legal counsel was involved in defending the City's decision to not award to the low bidder.In most cases,if the City does not go with the low bidder,the low bidder will challenge the decision because it jeopardizes the contractor's ability to secure future bonds.The City does have the option to reject all bids and re-bid the project;however, historically when this is done,the second round of bids come in higher.(Note:the State does have a process for general law cities to pre-qualify bidders,but it does not provide sufficient flexibility and few cities use it.) Advertising for bids is lengthy and costly as the Public Contract Code requires that the City publish bid notices in the local newspaper (BP Independent)twice,ten days before the bid opening.This requires that the bid notice be submitted to the City Clerk for publication 20 days before the bid opening.And it is questionable if any of our bidders even use the BP Independent as their resource.The City finds alternative noticing such as the internet,local trade pUblications,the City's website, and email to be more effective,and the expenditures for newspaper advertising is a waste of time and money. Charter Scenario: By ordinance,the City Council may establish a process by which contractors are pre- qualified and screened for experience,reputation,and financial stability.Pre- qualified contractors would be contacted immediately and the requirement to publish in the BP Independent would be eliminated.In awarding contracts,the City could take the contractor's reputation into account,not only the bid price,which is currently the case.Smaller contracts could also be performed in-house,for example remodeling the City Yard offices. 01/08 11-31 Talking Points -Charter Exploratory Committee Page 2 •Charter cities are not required to pay "prevailing wages"for all public works projects. There are exceptions however that include projects of statewide concern or state or federally-funded projects. Current Scenario: Presently the City is required to pay prevailing wage for all public contracts resulting in higher project costs. Charter Scenario: For city-funded projects such as City Hall,the Senior Center,and certain street and slurry seal projects,the contractor may not be required to pay prevailing wage resulting in lower project costs. •Charter cities may use a design-build process for constructing projects. Current Scenario: The process for public contracts is lengthy,as it requires that a design contract be awarded,the architectural and engineering plans be prepared,the plans and specifications be approved by the City Council,the bid notices be advertised,and the contract awarded.This process can take up to a year to complete for more complex projects.With every month a project is delayed,the project costs increase.(Note: We are using a quasi-design/build process (project manager with multiple primes)for the new police facility;however,state law requires that we still bid each subcontract separately and award to the low bidder. Charter Scenario: The construction time period for public contracts can be greatly reduced,as a contract is awarded after the plans are 60%to 70%complete.The design-build module is typically used when time is critical,such as correcting a hazardous condition,meeting a funding deadline,or meeting a mandate.While there may be no significant change in the total project cost,typically there are 50 percent fewer change orders and fewer project delays due to pending change order approvals. Contracts are awarded to pre-qualified contractors which best meet the project parameters,as opposed to awarding to the low bidder. •Charter cities may establish different methods for enacting local ordinances. Current Scenario:Presently the process for adopting an ordinance is lengthy and costly as it requires a first reading,a second reading,publication in the local newspaper (BP Independent)and a 3D-day waiting period. Charter Scenario:The City Council may establish its own method for enacting ordinances such as eliminating the publication requirement in lieu of posting on the internet or reducing the 3D-day waiting period. 11-32 Talking Points -Charter Exploratory Committee Page 3 •Charter cities are exempt from the requirement that their zoning be consistent with the general plan. Current Scenario:Presently zoning is required to be consistent with the general plan,thus changes to a general plan may require changes to zoning.For example,if the general plan is amended to state that community gardens should be encouraged on underutilized land,then the zoning code must be amended to include community gardens as a permitted use in vacant lots. Charter Scenario:Using the above example,community gardens would not need to be a permitted use in vacant lots even though the general plan may encourage community gardens on underutilized land. Note:The City's obligation to provide affordable housing would remain unchanged in either a general law or charter scenario. •Charter cities may establish their own unique election dates,rules and procedures. Current Scenario:Presently the City must adhere to the Election Code in filling unscheduled council vacancies,which requires that the Council (within 30 days) appoint someone to fill the vacancy or call for an election to be held on one of the state's four established election days,which shall be no later than 114 days of the call for election.These stand alone elections can cost approximately $125,000. Charter Scenario:The City Council may establish its own procedure for filling vacancies including conducting the election by a mail-in ballot which could save the City over $100,000 per election. •Charter cities may enact procedural ordinances for assessment district formation and financing that general law cities cannot do outside the procedures established by state law. Current Scenario:Presently the City may create assessment districts to fund certain facilities such as enhanced lighting or landscaping for high-profile areas.Under the assessment district,the property owners which benefit from the enhancement would pay for the facilities.The property owners would need to vote to approve the assessment district under the provisions of Proposition 218. Charter Scenario:The City would be able to create assessment districts as outlined above;however,the City would be able to create assessment districts for a broader range of reasons,such as for maintenance of high-profile streets or maintenance of city-owned buildings.For example,if the City took ownership of Beach Boulevard, an assessment district could be created for maintenance of the street and for enhanced improvements,such as a pedestrian bridge.With either scenario,the affected property owners would need to vote to approve the assessment under Proposition 218. 11-33 Talking Points -Charter Exploratory Committee Page 4 •Charter cities are not restricted from expending public funds for a private purpose and are not prohibited from providing gifts of public funds. Current Scenario:Presently public funds must be expended for public or municipal purposes,and not for a private purpose.The City is also prohibited from providing public funds to a private party if the City receives no consideration in exchange for the expenditure. Charter Scenario:The City would be able to expend or give public funds for a private purpose.For example,the City would have more authority to assist in disaster relief,such as contributing to the relief fund for Katrina,9-11,and the wild fires.The City could provide City equipment or workforces to assist private parties with rebuilding a private property after a disaster.Additionally,the City could donate old unwanted equipment (such as computers,air conditioning units,vehicles)to local organizations or businesses. 11-34 Exhibit 7:WORK PLAN CHARTER EXPLORATORY COMMITTEE CITY OF BUENA PARK Below is a revised timeline for the Charter Exploratory Committee's work plan. Step 1 City Council appoints two council members to serve on the Charter Completed Exploratory Committee.Marshall I McCay 13-Nov-07 Step 2 The two council members make recommendations for the citizen Completed appointments.Each council member selects one member to appoint to 8-Jan-08 the Committee. Step 3 City Council approves resolution establishing the Charter Exploratory Completed Committee and officially appoints committee members.22-Jan-08 Step 4 Charter Exploratory Committee meets to:1)receive City Attorney Completed explanation and review the function of a City Charter;2)review and make 25-Feb-08 its recommendation on the proposed charter language;3)Develop talking points regarding the advantages and disadvantages of a City Charter. Step 5 Charter Exploratory Committee:1)develops a plan for soliciting citizen Completed input;and 2)meets with service organizations and citizens groups to Mar 08 -May 08 provide information and receive feedback. Step 6 Charter Exploratory Committee meets to summarize input received and to Completed formulate a recommendation for City Council.12-May-08 Step 7 Charter Exploratory Committee presents its recommendation to City Completed Council in study session.27-May-08 Step 8 City Council calls for the General Municipal Election for City Council Completed Members and City Charter Ballot Measure Election 10-Jun-08 Step 9 Charter Exploratory Committee meets to prepare a written argument for Completed the City Charter Ballot Measure 17-Jun-08 01103/08 11-35 Exhibit 8:City of Buena Park Charter City v.General Law Shalice Reynoso,Buena Park City Clerk,served as the Management Team Leader for the Buena Park City Charter Exploratory Project.Following is an overview of the action taken from inception to a General Municipal Election on November 4,2008. ACTIONS TAKEN BY CITY CHARTER EXPLORATORY PROJECT CITY OF BUENA PARK 04-Nov-2008 Election -Measure P to Adopt a City Charter 01-0ct-2008 Publication of Measure P Home Rule Brochure Mailed to Registered Voters 01-Aug-2008 Broadcast of Cable Television Announcement Re:Proposed City Charter 01-Aug-2008 Broadcast of Cable Television Mayor's Show Re:Proposed City Charter 01-Aug-2008 Publication of Buena Park Newsletter to all Residents Re:Proposed Charter 01-Aug-2008 Publication of Web Page Re:Proposed City Charter 01-Aug-2008 Press Release Re:Measure P Proposed City Charter 17-Jun-2008 Charter Exploratory Ad Hoc Committee Prepares Written Argument 10-Jun-2008 Public Meeting to Call for Election on City Charter Ballot Measure 27-MaY-2008 Public Meeting to Receive Charter Recommendation and Provide Direction 12-MaY-2008 Publication of Commonly Asked Questions &Responses Re:City Charter 12-MaY-2008 Public Meeting to Formulate a Recommendation 01-May-2008 Presentation to Traffic and Transportation Commission with Q &A Session 30-Apr-2008 Presentation at the Chamber Networking Breakfast with Q &A Session 16-Apr-2008 Presentation to Elks Lodge with Q &A Session 09-Apr-2008 Presentation to Planning Commission with Q &A Session 01-Apr-2008 Presentation to Optimist Club of Buena Park with Q &A Session 01-Apr-2008 Presentation to CAPs Buena Park Police Volunteers with Q &A Session 01-Apr-2008 Presentation to Buena Park Foundation with Q &A Session 27-Mar-2008 Presentation to Beautification Commission with Q &A Session 27-Mar-2008 Presentation to Buena Park Police Association with Q &A Session 27-Mar-2008 Presentation to Senior Commission with Q &A Session City of Buena Park:Charter City v.General Law by Shalice Reynoso,MMC Page 1 11-36 26-Mar-2008 Presentation to Soroptimist with Q & A Session 20-Mar-2008 Presentation to Park and Recreation Commission with Q & A Session 20-Mar-2008 Presentation to Buena Park Woman's Club with Q & A Session 19-Mar-2008 Presentation to Fine Arts Commission with Q & A Session 19-Mar-2008 Presentation to Rotary Club of Buena Park with Q & A Session 18-Mar-2008 Presentation to Senior Club with Q & A Session 10-Mar-2008 Presentation to BP Historical Society with Q & A Session 07-Mar-2008 Presentation to American Legion with Q & A Session 06-Mar-2008 Presentation to Chamber Legislative Network with Q & A Session 04-Mar-2008 Presentation to Noon Lions Club with Q & A Session 28-Feb-2008 Presentation to Citizens Advisory Committee with Q & A Session 25-Feb-2008 Public Meeting to Review Charter Function &Develop Outreach Strategy 01-Feb-2008 Publication of Charter City v.General Law Tri-Fold Brochure 01-Feb-2008 Preparation of Sample Script for Charter Exploratory Committee Members 28-Jan-2008 Announcement on City of Buena Park Website 28-Jan-2008 Press Release sent to LA Times,OC Register,BP Independent 24-Jan-2008 Article Submitted for Buena Park Today Re:Formation of Committee 22-Jan-2008 Public Meeting to Establish Committee and Officially Appoint Committee 08-Jan-2008 Public Meeting to Discuss Committee Structure and Appointments to Committee 13-Nov-2007 Public Meeting to Appoint Council Members to Committee &Discuss Structure 01-Aug-2007 Preparation of Work Plan for Proposed Charter Exploratory Committee 06-May-2007 Public Meeting to Review Statistics,Election,and Legal Costs 23-Jan-2007 Public Meeting to Review Advantages and Disadvantages of Charter City 01-Sep-2006 Review with Legal Counsel-City Attorney and Labor Attorney 01-Sep-2006 Research Re:Other City Charters and Ballot Measures 26-Aug-2006 Public Meeting to Establish Strategic Goals-City Charter Identified as Goal 01-Jul-2006 Preparation of Talking Points Re:Characteristics of Charter Cities City of Buena Park:Charter City v.General Law by Shalice Reynoso,MMC Page 2 11-37 City of Buena Park:Charter City v.General Law by Shalice Reynoso,MMC Page 3 11-38 Exhibit 9: RESOLUTION NO.12014 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BUENA PARK,CALIFORNIA,ESTABLISHING AND DEFINING THE SCOPE OF THE CHARTER EXPLORATORY COMMITTEE WHEREAS,the City Council has provided direction to establish an exploratory committee to consider the Charter City vs.General Law forms of government; NOW,THEREFORE,the City Council of the City of Buena Park does hereby establish the scope and characteristics of the Charter Exploratory Committee as set forth herein. Section 1:Specific Tasks and Objectives 1.Research and enumerate the advantages and disadvantages of the General Law vs.the City Charter forms of government; 2.Make recommendations on proposed charter language; 3.Develop and execute a plan for soliciting citizen input;and 4.Make recommendation to City Council on a ballot measure to enact a City Charter. Section 2:Committee Type The committee type shall be ad hoc. Section 3:Composition The committee shall consist of seven members,two of which are City Council Members and five of which are residents. Section 4:Qualifications Each member of the Committee must be at least 18 years of age,reside in the City,and be registered to vote. Section 5:Appointment and Term Each member of the City Council shall appoint one resident member to the Committee.Each resident member shall serve at the pleasure of his or her appointing Council Member.The Committee will terminate on November 4,2008. R6876-0001 \1239073vl.doc 11-39 Section 6:Support to the Committee Staff support shall be provided to the Committee as determined appropriate by the City Manager. Section 7:Meetings The Committee shall meet on a date and time selected by the members of the Committee.The meetings shall be noticed pursuant to the Brown Act. Section 8:Reporting Minutes of the Committee shall be prepared by staff designated by the City Manager and shall be a public record,filed with the City Clerk. PASSED AND ADOPTED this 22nd day of January 2008 by the following called vote: AYES:COUNCILMEMBERS: NOES:COUNCILMEMBERS: ABSENT:COUNCILMEMBERS: ABSTAIN:COUNCILMEMBERS: ATTEST: City Clerk Marshall,McCay,Berry,Dow None None None Mayor I,Shalice Reynoso,City Clerk of the City of Buena Park,California,hereby certify that the foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Buena Park,held this 22nd day of January 2008. City Clerk 2 R6876-0001\1239073vl.doc 11-40 Exhibit 10: Meeting Date: To: Title: No._ STUDY SESSION AGENDA REPORT TO CITY COUNCIL January 23,2007 The Mayor and City Council The Advantages and Disadvantages of Charter vs.General Law Cities At its strategic planning session,the City Council requested additional information regarding the advantages and disadvantages of becoming a charter city.A city charter is a unique document that,in many ways,acts like a constitution for the city and is adopted by a majority vote of the people. Municipal Affairs.Charter cities may exercise full control over municipal affairs.Municipal affairs include: Methods and Procedures for Public Contracts Land Use and Zoning Decisions Municipal Elections Method for Enacting Local Ordinances Procedures for Initiative,Referendum and Recall Appointment,Compensation and Termination of City Employees Procedures for Issuing Building Permits Improvement of Municipal Streets Establishment and Maintenance of Sewer Drains Statewide Concerns.Charter cities are still subject to state law on non-municipal affairs that are of statewide concern.Statewide concerns include: California Vehicle Code The Brown Act The Public Records Act Franchises for Telephone Claims Against a Public Entity Exercise of Power of Eminent Domain Advantages.City charters allow cities to tailor their organizations based upon the unique local conditions and needs of the community.Some possible advantages to the City of Buena Park include: Eliminates requirement to award to low bidder. May use its own forces for public improvements. May use a design-build process for public improvements. Eliminates prevailing wage requirement for projects not subject to federal or state funding. Ordinances may be adopted in a shorter timeframe. Not limited to four general plan amendments per year. May establish its own election dates and election procedures. Broader assessment powers than a general law city. Zoning ordinances are not required to be consistent with the general plan. 11-41 Page 2 Meeting Date: Subject: STUDY SESSION -AGENDA REPORT TO CITY COUNCIL January 23,2007 The Advantages and Disadvantages of Charter vs.General Law Cities Disadvantages.Charter cities can only be adopted,amended or repealed by a majority vote of a city's voters.Because a city charter is not required to have any particular provision,it would be advisable for the City to reserve for itself the greatest amount of power it can when it adopts a charter.This allows the City to adopt most of its regulations by ordinance or resolution so that charter amendments are not necessary.Other disadvantages include: The cost of professional services to draft the charter. The cost of conducting an election. The cost of future charter amendments. The City Attorney has prepared the attached memorandum which describes the process for becoming a charter city and gives general information about the advantages and disadvantages.Also attached is a table which provides a side-by-side comparison of general law vs.charter city characteristics.The City Attorney will be present at the study session to answer specific questions as they relate to the City of Buena Park. Prepared by:Approved: City Clerk Rick Warsinski,City Manager Attachments:Memorandum from Steven L.Dorsey Table Re:Characteristics of General Law vs.Charter Cities 11-42 "We the people of the City of Buena Park declare our intent to restore to our community the historic principles of self governance inherent in the doctrine of home-rule.Sincerely committed to the belief that local government has the closest affinity to the people governed,and firm in the conviction that the economic and fiscal independence of our local government will promote the health,safety and welfare of all the citizens of this City,we do hereby exercise the express right granted by the Constitution of the State of California to enact and adopt this Charter for the City ofBuena Park." Preamble of the Charter of the City of Buena Park adopted Nov.4.2008 The people of the City of Buena Park,by a majority of the votes cast,adopted its Charter of the City of Buena Park at the general municipal election held November 4,2008.The results of such election were certified by the City Council of the City of Buena Park through adoption of its Resolution No.12164. Background In August 2006,the City Council developed a strategic plan to enhance the quality of life for its residents.One of the top ten priorities established in the strategic plan was to study adopting a charter form of government as opposed to the existing general law form. General law cities rely on the state legislature to pass certain laws,which charter cities do not need to follow,in areas such as construction contracts,elections,and spending public funds.A charter transfers the power to adopt legislation affecting municipal affairs from the state legislature to the city.A city operating under a charter can acquire full control over its municipal affairs.Areas of statewide concern which cannot be governed by a city charter include traffic laws,affordable housing obligations,and claims against a public agency. Draft City Charter At the City Council's direction,the City Clerk and City Attorney drafted a simplified-form city charter which reserves for the City broad jurisdiction and avails itself of the full power provided to charter cities by the State Constitution.The draft city charter proposed no changes to the 11-43 government structure and no changes to existing city laws or regulations.Any future changes to laws and regulations would be made by ordinances or resolutions by the City Council after adoption of the charter. Charter Exploratory Committee To facilitate input from the public on the issue,the City Council appointed a Charter Exploratory Committee to study the practicability of adopting a charter form of government and to solicit input from the public.The Charter Exploratory Committee consisted of five Buena Park residents and two council members,and the main objectives of its work plan were to: 1)Research and enumerate the advantages and disadvantages of the General Law vs.the City Charter forms of government; 2)Make recommendations on proposed charter language; 3)Develop and execute a plan for soliciting citizen input;and 4)Make a recommendation to the City Council on a ballot measure to enact a City Charter. The committee made presentations and held question and answer sessions with over twenty community and service organizations.In addition to these community presentations,the public outreach campaign also included development and distribution of an informational brochure, press releases,information on the City's website,a cable television show featuring the Charter Exploratory Committee's work plan,and announcements on cable television.The Committee reviewed the public input received and discussed specific questions and responses exchanged. Prevailing Wages Concern At the May 12 meeting of the Charter Exploratory Committee,approximately 500 members of various building and construction unions attended,and the Committee received public testimony from approximately 30 union members requesting that consideration be given to including the following language in the proposed charter: The provisions of California Labor Code Section 1770 et.seq.regarding prevailing wages on public works and related regulations,as now existing and as may be amended,are accepted and made applicable to the City,its departments,boards, officers,agents and employees. On May 27,the City Council deliberated the merits of preserving prevailing wages on all public works projects and unanimously supported including language in the draft city charter. Recommendation of the Charter Exploratory Committee Following its review and analyses of public input,the Charter Exploratory Committee made the determination that it is in the best interest of the City to operate under a city charter and formulated a recommendation that the City Council place a ballot measure on the ballot for the November 2008 general municipal election.The Committee supported a simplified-form charter document which reserves for the city the broadest power it has under the California state 2 11-44 constitution to implement home rule.On May 27,the City Council received and supported the Committee's recommendation with inclusion of language making prevailing wages applicable for all City public works projects. Ratification and Adoption A general municipal election was held November 4,2008,for the purpose of submitting to the electorate Measure P -An Initiative to Adopt a Charter City Form of Government.The whole number of ballots cast on the measure was 22,436,with 13,129 in favor and 9,307 against.At its December 9,2008,meeting,the City Council certified the statement of vote,and the charter was deemed ratified and adopted. 3 11-45