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CC SR 20180619 05 - Charter City Subcommittee RecommendationsRANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 06/19/2018 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA DESCRIPTION: Consideration and possible action to review the Charter City Council Subcommittee’s recommendations. RECOMMENDED COUNCIL ACTION: (1) Review the Charter City Council Subcommittee’s recommendations; (2) Direct Staff to return with revisions to the Charter wording at the July 17, 2018, meeting. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Gabriella Yap, Deputy City Manager REVIEWED BY: Same as above APPROVED BY: Doug Willmore, City Manager ATTACHED SUPPORTING DOCUMENTS: A. Charter City Crosswalk (page A-1) BACKGROUND AND DISCUSSION: On May 21, 2018, a local citizens’ committee presented a draft Charter to the City Council that encompassed a wide range of topics, as listed in the Charter City Crosswalk (Attachment A). Significant discussion ensued regarding the potential impacts of the inclusion of all these sections in the Charter. The City Council voted to review the proposed Charter and its scope, and created a subcommittee, comprised of Councilmembers John Cruikshank and Ken Dyda. The City Council agreed to individually relay the sections that they believed should be included to the City Manager for compilation. The Subcommittee would then review the sections that had been compiled by the City Manager and form a recommendation. The Subcommittee met and is recommending the creation of a charter that essentially retains most of the provisions of a general law city with a focus on retaining local control over zoning and land use. Specifically, the Subcommittee is recommending that the draft Charter be revised to include only the following sections: 1 Charter Section Change from Current Law? Effect 200 – Powers Yes Grants the City all legal authority and powers to govern “municipal affairs” except as limited by the charter or by the State Constitution 206 – General Land Use Authority; Goals and Objectives Yes Grants the City full charter powers to regulate local land use measures. Requires the zoning ordinance to be consistent with the General Plan 305 – Limitation of Terms Yes The Council members would still be limited to 2 consecutive terms, as provided in RPVMC Section 2.04.060. However, once termed out, a person would not be eligible to run again for at least 6 years (currently 6 months) 906 – Municipal Finance Authority Yes Grants the City full charter powers to regulate municipal finances and allows the City Council the discretion to avoid State laws contrary to the City’s authority 907 – Tax Authority No Yes New or increases to general, special and property taxes would continue to require approval by the city’s voters As a charter city, the city could propose a property transfer tax, which is a general tax, subject to voter approval. 1002 – Term of Franchise Yes Except for the water franchise which is evergreen, the City currently has no maximum franchise term. The charter would establish a 10-year franchise term with 2 optional extensions of 5 years each. Any existing franchise with a term extending beyond 20 years of the effective date of the charter would only continue to be in effect for 15 years. The City Council would be able to grant franchises for more than 10 years under certain circumstances. There were other draft changes that the citizens’ committee proposed that the Council subcommittee and individual Council members believed could be successfully addressed by policy or ordinance changes. Those proposed policy or ordinance changes can be taken up at a later meeting. The Subcommittee also considered whether the issue should be on the November 2018 ballot or the November 2019 ballot and recommends placing the Charter on the November 2018 ballot. Furthermore, in order to avoid the citizen skepticism and suspicions regarding the Charter that was presented to voters in 2011, the 2 Subcommittee recommends including in the preamble a simple statement of intent such as: “This charter is proposed to embody all of the controls and limitations of a general law city, which has served the City and its residents very well over the past 45 years, and to focus on functions such as financing, the city manager’s role and City Council authority. It will add those elements designed to protect the founding principles of the City, primarily local control over zoning, which the State is currently usurping.” If the City Council is in agreement with moving forward with the Charter on the November 2018 ballot, and with the identified scope of the proposed Charter above, staff would need to prepare the draft language and resolutions for presentation and consideration at the July 17, 2018, City Council meeting. Final approval of the Charter City Initiative would need to take place at the July 31, 2018, City Council meeting. ALTERNATIVES: In addition to the Staff recommendation, the following alternative actions are available for the City Council’s consideration: 1. Direct Staff to revise the sections included the proposed Charter Initiative. 2. Do not move forward with the Charter City Initiative. 3. Delay the Charter City initiative to November 2019 or later. 3 1 DRAFT CITY OF RANCHO PALOS VERDES CITY CHARTER CROSSWALK AS OF MAY 11, 2018 CHARTER SECTION CHANGE EFFECT Article I – Incorporation and Succession 100 – Names and Boundaries No The city’s name and boundaries would remain the same. 101 – Succession, Rights and Liabilities No The city would continue to own, possess and control all rights and property currently existing. 102 – Ordinances No All existing ordinances, resolutions, rules and regulations would continue. 103 – Continuance of Present Officers and Employee No All existing city officers and employees would continue in their current capacities. 104 – Continuance of Contracts No All existing contracts would continue in full force. 105 – Pending Actions and Proceedings No All pending actions, civil or criminal, would not be impacted by the charter. 106 – Seal No The city’s seal would remain the same. 107 – Severability N/A If any portion of the charter is found invalid, the remainder of the charter would not be impacted. 108 – Effective Date of Charter N/A States how the charter’s effective date would be established. 109 – Amendment N/A Provides the procedure to amend the charter in the future. Article II – Powers of the City 200 – Powers Yes Grants the city all legal authority and powers to govern “municipal affairs” except as limited by the charter or by the State Constitution. 201 – Procedures Yes Grants the city power to follow any procedures established in state law, unless limited by the charter. 202 – Form of Government No Maintains the existing council- manager form of government. 203 – Intergovernmental Relations No Maintains the city’s ability to enter into joint powers agreements. A-1 2 204 – Establishment of Specialized Agencies or Authorities No Maintains the city’s ability to establish specialized agencies to provide public services and would allow all existing such agencies to continue to exist. 205 – Enterprise Funds No Limits collection and use of enterprise funds as currently required in general law cities. 206 – General Land Use Authority; Goals and Objectives Yes No Grants the city full charter powers to regulate local land use measures. Requires the zoning ordinance to be consistent with the general plan. 206 – Preservation of Parkland Yes Requires a majority vote of council and a ballot measure approved by the city’s voters to sell, lease or exchange parkland, with certain exceptions. Article III – City Council 300 – Powers Vested in the City Council No The powers of the city would remain vested with the city council. 301 – Elective Office No Yes Maintains a 5-member council elected at large with 4 year terms (except for the 3 year terms commencing in 2017 and 2019). Ties among council candidates would be settled by special municipal election, rather than by coin toss. 302 – Mayor; Mayor Pro Tempore No The mayor and mayor pro tem would be selected in the same manner and continue to have the same duties. 303 – Eligibility No The same eligibility requirements to run for council would continue. 304 – Compensation and Expenses No Council members would continue to receive the same compensation as general law cities, or less if established by city ordinance, and would continue to be reimbursed for actual travel and related expenses. Council members would continue to receive no additional compensation for attendance at other city or city- affiliated meetings. 305 – Limitation of Terms Yes The council members would still be limited to 2 consecutive terms, as provided in RPVMC Section 2.04.060. A-2 3 305 – Limitation of Terms (continued) However, once termed out, a person would not be eligible to run again for at least 6 years (currently 6 months). 306 – Vacancies Yes Council vacancies would be declared and filled in the same manner, but persons eligible to fill a vacancy must have lived in the city for at least 1 year immediately prior to appointment and cannot have served on council within the prior 6 years. If a vacancy is declared 90 days before or after a council election, the next runner-up would fill the vacancy. 307 – Interference with Administrative Service No Similar to existing RPVMC Section 2.08.080, neither council nor individual members would be allowed to interfere with the execution of the city manager’s duties and responsibilities. 308 – Meetings No The city would continue to comply with the open meeting requirements of the Brown Act. The frequency, notice and place of regular meetings would remain the same. 309 – Special Meetings No The calling and noticing of special meeting would remain the same. 310 – Quorum; Proceedings No A quorum of 3 council members and the method of adjournment due to lack of quorum would remain the same. 311 – Oaths; Subpoenas No The council’s ability to administer oaths and issue subpoenas would remain the same. 312 – Citizen Participation No The public’s right to participate in public meetings would remain the same. 313 – Adoption of Ordinances and Resolutions Yes The time between when a regular ordinance is introduced and when it’s adopted would increase from 5 to 14 days. An urgency ordinance would still require 4 affirmative votes, but would be in effect no more than 6 months, A-3 4 unless reintroduced and passed in the normal manner. 314 – Ordinances; Publication No Adopted ordinances would be published and posted in the current manner. 315 – Codification of Ordinances No Ordinances would be codified in the current manner. 316 – Ordinances; When Effective No Ordinances would still be effective 30 days after adoption, unless it is one of the current exceptions that takes effect immediately. 317 – Ordinances; Violation; Penalty No Council would retain the authority to determine if code violations are misdemeanors or infractions, and set the fine amounts. 318 – Publishing of Legal Notices No Legal notices would continue to be published in the current manner. 319 – Contracts; Execution No Contracts would continue to be approved and signed in the current manner. Article IV – City Manager and City Attorney 400 – City Manager No The city manager would continue to be appointed by and serve at the pleasure of the city council. 401 - Eligibility Yes No city council member could be appointed city manager until out of office at least 6 years (currently 2 years per RPVMC 2.08.030) 402- Compensation and Bond No The city manager’s salary would continue to be set by resolution or contract. The city manager would continue to provide a surety bond, with the premium paid by the city. 403 – City Manager; Powers and Duties No The city manager’s duties and responsibilities would remain functionally the same. 404 – Removal No The city manager would continue to serve at the pleasure of the city council, but could not be removed from office for 90 days following a council election, except for cause (same as RPVMC Section 2.08.140). A-4 5 405 – Acting City Manager No The same procedure would continue for designating an acting city manager in the city manager’s absence. 406 – City Attorney No The city attorney would continue to be appointed by and serve at the pleasure of the city council. 407 – City Attorney; Powers and Duties No The city attorney’s duties and responsibilities would remain the same, and would now be listed in the charter. Article V - Employees 500 – Administrative Departments No The city council would retain the authority to determine the number, type and organization of the various city departments and staffing levels. 501 – City Clerk; Powers and Duties No The city clerk’s duties and responsibilities would remain the same, but would now be listed in the charter. 502 – Director of Finance and Treasurer Yes The finance director’s duties would remain functionally the same, but the city manager’s appointment to the position would be subject to the consent of the city council. RPVCA 2.08.095 currently gives the council an advisory role in the review and selection of all department heads, the city clerk and deputy city manager. 503 – Department Heads No The duties and responsibilities of department heads would remain the same. 504 – Compensation No The city council would continue to set employee compensation by ordinance or resolution. 505 – Indemnification of Employees No The city would continue to indemnify and defend current and former employees in claims and actions, if they were acting within the scope of their duties, without fraud and cooperate in good faith. Article VI – Appointive Advisory Boards, Committees and Commissions 600 – In General No The city would continue to have a planning commission and council A-5 6 would retain the ability to appoint other advisory boards at its discretion. 601 – Appropriations No The city council would continue to budget annually to support the functions of its advisory boards. 602 – Appointments; Terms Yes No In order to be eligible, applicants would now be required to have lived in the city a minimum of 1 year immediately prior to appointment. The city council would have the ability to waive this requirement in individual cases, such as the Geotechnical Board of Appeals. The methods for notice, appointment and term of service would remain the same. The membership and unexpired terms of all existing boards would also remain intact. 603 – Meetings; Chairs No The methods for appointing chairs and vice chairs, conducting meetings, preparing minutes and adopting rules of procedure would remain the same. 604 – Compensation No Advisory board members would continue to receive no compensation, unless otherwise provided by council ordinance or resolution, and would continue to be reimbursed for travel and related expenses. 605 – Removal; Vacancies No Advisory board members would continue to serve at the pleasure of the city council. The methods for determining and filling a vacancy would remain the same. 606 – Indemnification of Members No The city would continue to indemnify and defend current and former advisory board members in claims and actions, if they were acting within the scope of their duties, without fraud and cooperate in good faith. 607 – Planning Commission; Powers and Duties No The planning commission could be no less than 5 members (currently 7). Its powers and duties would remain A-6 7 functionally the same, unless modified by council ordinance. Article VII – Personnel System 700 – Personnel Rules and Policies No The city council would retain the authority to establish employee personnel rules and policies. 701 – Contracts with Employees; State Employees Retirement System No The city council could continue enter into contracts and collective bargaining agreements with city employees. Enables the city to continue to contract with CalPERS, or terminate the contract in accordance with state law. 702 – Eligibility for Appointed Office Yes The charter would prohibit elected and appointed officials from being appointed city manager or city attorney and would establish anti- nepotism criteria for appointments to staff and advisory board positions. 703 – Illegal Contracts; Financial Interest; Incompatible Employment No State law regarding conflicts of interest would continue to apply to elected, appointed and staff members. Article VIII – Elections 800 – General Municipal Elections No Consistent with RPVMC Chapter 2.28, general municipal elections would be held on the 2nd Tuesday in November in even number years, except for the election scheduled in November 2019. 801 – Special Municipal Elections No Any municipal election that is not a general election would continue to be a special election. 802 – Procedure for Holding Elections No The city would continue to follow the state Elections Code. 803 – Initiative, Referendum and Recall No The city would continue to follow the state Elections Code. Article IX – Fiscal Administration 900 – Fiscal Year No The city council would continue to determine the fiscal year by ordinance. 901 – Annual Budget No The city council would continue to determine the procedures for preparing the budget and set budget polices. A-7 8 902 – Proposed Budget; Submission to City Council Yes The charter would require the city manager to submit the draft budget to city council 60 days prior to the start of the fiscal year. Although this is consistent with current practice, RPVMC Section 3.32.030 requires submission on or before June 5th. 903 – Budget; Public Hearing No The city council would continue to hold a public hearing before adopting the annual budget. 904 – Budget; Adoption Yes The city would continue to be required to adopt the budget before the start of the new fiscal year (RPVMC Section 3.32.080), but the charter would add a procedure for continuing operations if the budget is not adopted on time due to an emergency. 905 – Budget; Appropriations Yes The charter would specify that any appropriations not spent or encumbered by the end of the fiscal year shall lapse. 906 – Municipal Finance Authority Yes Grants the city full charter powers to regulate municipal finances and allows the city council the discretion to avoid state laws contrary to the city’s authority. 907 – Tax Authority No Yes New or increases to general, special and property taxes would continue to require approval by the city’s voters. As a charter city, the city could propose a property transfer tax, which is a general tax, subject to voter approval. 908 – Tax Procedure No The procedures to assess, levy and collect local taxes would continue to be required to comply with the state constitution. 909 – Bonded Debt No The city would continue to be able to incur bonded debt, subject to approval by the city’s voters. 910 – Election for Major Capital Projects Yes Currently, voter approval is not required for major capital projects. 910 would require voter approval for A-8 9 net city expenditures exceeding $20m, with certain exceptions. In cases of urgency, city council would be able to approve expenditures over $20m with at least 4 members voting in favor. 911 – Presentation of Demands No Submittal of claims for damage would continue to comply with state general law: 6 months after the occurrence for death or personal injury claims and 1 year after the occurrence for real property damage claims. The charter would require any claims not otherwise subject to state general law to be submitted to the city within 1 year of the occurrence. 912 – Independent Audit Yes The charter would require the annual financial audit to be submitted no more than 180 days after the end of the fiscal year; the auditor’s management letter and the city manager’s written response must be presented to city council with the annual audit; and the auditor must be present at said council meeting. 913 – Purchasing Ordinance Yes Consistent with current practice, the charter would require 3 informal bids for professional contract services. In addition, the charter would require staff to prepare a written report stating the reasons for selection of the chosen provider. 914 – Contracts; Execution No The requirements for the execution of contracts would remain the same. 915 – Outsourcing No The city would continue to be able to contract for services. Article X – Franchises 1000 – Granting of Franchises No The city would continue to be able to approve franchises for public or private utilities, transportation, communication and similar services. 1001 – Resolution of Intention; Notice and Public Hearing Yes The charter would add requirements for the city council to adopt and the city clerk to publish a resolution of A-9 10 intention prior to considering a franchise request. 1002 – Term of Franchise Yes Except for the water franchise which is evergreen, the city currently has no maximum franchise term. The charter would establish a 10-year franchise term with 2 optional extensions of 5 years each. Any existing franchise with a term extending beyond 20 years of the effective date of the charter would only continue to be in effect for 15 years. The city council would be able to grant franchises for more than 10 years under certain circumstances. 1003 – Franchise Inapplicable to City No Franchise requirements would continue to not apply to the city itself. 1004 – Eminent Domain No The city would continue to have the ability to obtain franchise property through purchase or eminent domain. A-10