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Park,for the Council's consideration and approval at the August 3,2010 City Council
meeting.Due to the recent publicity regarding the City of Bell,the Council
Subcommittee requested that the restrictions on Council salaries and reimbursement of
expenditures that apply to general law cities continue to be applicable in Rancho Palos
Verdes by expressly including them in the City Charter.
On August 3,2010,a proposed City Charter was presented to the City Council.
Councilmember Misetich requested language be added to the City Charter regarding
preserving the transparent process of compensating City staff.Additionally,the City
Attorney's office reviewed the Bell City Charter in light of the recent controversy and
has proposed additional language regarding the Councilmember compensation issue.
Finally,when the Council Subcommittee met on August 20,2010,it requested
proposed language be added to the City Charter regarding retaining the Council-
Manager form of government,continuing to not allow gifts of public funds,and
preserving the requirement that the City's Zoning Ordinance be consistent with the
General Plan.
DISCUSSION
The proposed City Charter of the City of Rancho Palos Verdes ("City Charter")is
substantially similar to the one presented to the City Council on August 3,2010,with
the following five (5)exceptions:
1.Transparency in Process of Providing Staff Compensation
Currently,there is no statutory regulation on staff compensation for general law cities.
However,the City has a history of transparency in the process of providing its staff with
compensation,and Councilmember Misetich has articulated an important request to
preserve that transparency.Thus,proposed Article IV now not only limits
Council member compensation and expenses but also states in Section 300 that the
compensation provided to City staff shall continue to be approved in a transparent
manner at duly noticed City Council meetings.
2.Prohibiting City Council member Additional Compensation
The draft City Charter presented on August 3,2010 already included a provision that
would continue to restrict City Councilmember compensation,including that of the
Mayor,to the limitations in the Government Code regarding the salaries that are paid to
council members of general law cities,which for a City with approximately 40,000
residents is a monthly salary of $400.00 per Councilmember.The former proposed City
Charter also already included a provision that would continue to restrict City
reimbursement of expenses incurred by City Council Members,including the Mayor,in
the performance of their official duties on behalf of the City to the limitations specified in
the Government Code for city council members in general law cities.However,the City
Attorney's office suggests additional language to restrict the City Council,including the
Mayor,from earning additional compensation for attendance at other meetings of City
or City-affiliated commissions,committees,subcommittees,and boards of directors,
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including the Rancho Palos Verdes Redevelopment Agency and the Rancho Palos
Verdes Improvement Authority.
Compensation and reimbursement changes are not motivating factors for the City
Council in proposing that the City become a charter city.Rather,the City Council is
interested in providing the many economic benefits to the City that derive from being a
charter city,such as not being required to pay prevailing wages in connection with City
projects and the ability to protect,to the extent feasible,City revenues from incursion by
the State.
Because of the situation in the City of Bell,the City Council wants to assure the public
that the City Council does not wish to create a similar opportunity for malfeasance in
the City of Rancho Palos Verdes.Thus,the draft City Charter provides that the
restrictions on Council salaries and reimbursement of expenditures that apply to
general law cities will continue to be applicable in Rancho Palos Verdes,and that the
City Council will not be paid additionally for its attendance at other City or City-affiliated
commissions,committees,subcommittees,and boards of directors.Because these
provisions would be included in the City Charter,any amendments to,or repeal of,
these provisions would require a majority vote of the City's voters.
3.Continuing a Council-Manager Form of Government
The City currently has a Council-Manager form of government,which was established
under the legal parameters of California Government Code section 34851 et seq.Under
this form of government,the City Council establishes the policy of the City,and the City
Manager,with the assistance of the rest of the staff,carries out that policy.The City
Manager's specific powers and duties are defined by ordinance in Municipal Code
section 2.08.070,and they include:enforcing the laws of the City;controlling,appointing
and dismissing City staff;recommending ordinances and an annual budget;purchasing
all supplies;investigating City affairs and complaints;and exercising supervision over all
City property.
A charter city may establish its form of government within its charter.Recognized forms
of government include the Council-Manager form,the Council-Administrator form,or
the Strong Mayor form.The Council-Manager form for a charter city is the same as for
a general law city,as described above.The Council-Administrator form is similar to the
Council-Manager form but limits the city manager to only administrative duties.The
Strong Mayor form of government gives the mayor the authority to hire and fire the city
manager and many of the department heads and may include the authority to present a
budget to the city council much like the Governor of the State presents a budget to the
State Legislature.Political power in the Strong Mayor form of government is
concentrated in the mayor,and thus he or she is much more involved in the day-to-day
management of the city than in the other two forms of government.
The Council Subcommittee requested proposed language in the City Charter preserving
the current form of government.Thus,the proposed language in Article III states that
the municipal government established is a Council-Manager form of government
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whereby the City Council shall establish the policies of the City,and the City Manager
shall carry out those policies.
4.Continuing to Prohibit Gifts of Public Funds
California Constitution Article XVI,Section 6 prohibits State and local governments from
making gifts of public funds or property.This includes any transfer of City assets without
payor other consideration,unless it is transferred for a "public purpose."The prohibition
on gifts of public funds does not apply to charter cities except to the extent that the
same prohibition may be adopted by a charter or an ordinance.
The Council Subcommittee indicated that it would like to preserve the prohibition on
gifts of public funds.Thus,the proposed language in Article V of the City Charter states
that the City shall comply with the laws of the State that are applicable to general law
cities with respect to the prohibition against gifts of public funds.
5.Requiring Zoning Ordinance Consistency with General Plan
Pursuant to Government Code section 65860,a general law city's zoning ordinance
must be consistent with the general plan of that city,which means that the various land
uses authorized by the zoning ordinance must be compatible with the objectives,
policies,general land uses,and programs specified in the general plan.Government
Code section 65803 expressly provides that many zoning statutes,including this
consistency requirement,do not apply to a charter city except to the extent that the
same consistency requirement may be adopted by a charter or an ordinance.
The City's residents took great care to draft the General Plan to reflect the objectives,
policies and goals of the City.Former Councilmember Dyda suggested at a City
Council meeting that the General Plan must be preserved as the foremost City land use
document,and the Charter Subcommittee would like to preserve the consistency of the
Zoning Ordinance with the General Plan.The proposed language in Article VI of the
City Charter thus states that the General Plan is the paramount City land use docu,ment
and that the City shall be governed by State law as it applies to general law cities with
respect to the requirement that the Zoning Ordinance must be consistent with the
General Plan.
CONCLUSION
The City Attorney recommends that the City Council approve the proposed revised City
Charter of the City of Rancho Palos Verdes,which is attached to this report,and move
forward with public education and outreach efforts about chartering so that the City
Charter can be presented at an upcoming election.
Attachment:Proposed City Charter of the City of Rancho Palos Verdes (with proposed
changes italicized)
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17-4
City Charter of the City of Rancho Palos Verdes
PREAMBLE
We the people of the City of Rancho Palos Verdes 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
Rancho Palos Verdes.
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 that may be lawfully adopted,made,exercised,taken or
enforced under the Constitution of the State of Cal.ifornia,without limitation except as
othelWise provided in this Charter.
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 11/-Form of Government
Section 100.Council-Manager Form of Government.The municipal government
established by this Charter shall be known as the "Council-Manager"form of
government.The City Council shall establish the policies of the City,and the City
Manager shall carry out those policies.
Article IV -Compensation and Expenses
Section 100.Councilmember Compensation.All of the members of the City Council,
including the Mayor,shall continue to receive as compensation for their services a
monthly salary in an amount established in accordance with,and limited by,the
provisions of law applicable to the salaries of City Council members in general law cities
as set forth in Section 36516 of the Government Code of the State of California or any
successor provision thereto.The City shall not provide any additional compensation for
attendance at other meetings of City or City-affiliated commissions,committees,
R6876-0001 \1244773.3
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subcommittees,and boards of directors,including the Rancho Palos Verdes
Redevelopment Agency and the Rancho Palos Verdes Improvement Authority.
Section 200.Councilmember Expenses.All of the members of the City Council,
including the Mayor,shall continue to be entitled to reimbursement for their actual and
necessary expenses incurred in the performance of their official duties as stated in,and
limited by,the provisions of law applicable to the reimbursement for expenses of City
Council members in general law cities as set forth in Sections 36514.5,53232.2 and
53232.3 of the Government Code of the State of California or any successor provisions
thereto.
Section 300.Staff Compensation.The compensation provided to City staff shall
continue to be approved in a transparent manner at duly noticed City Council meetings.
Article V -Gifts of Public Funds
Section 100.Gifts of Public Funds.The City shall comply with the laws of the State of
California that are applicable to general law cities with respect to the prohibition against
gifts of public funds.
Article VI-General Plan
Section 100.General Plan.The General Plan is the paramount City land use
document.The City shall be governed by State law as it applies to general law cities
with respect to the requirement that the zoning ordinance must be consistent with the
General Plan.
Article VII -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 Rancho Palos Verdes,by a majority of the votes cast,
adopted this Charter of the City of Rancho Palos Verdes at the general municipal
election held .The results of such election were certified by the City
Council of the City of Rancho Palos Verdes through adoption of its Resolution No.
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