June 29 2010 staff report on RPV becoming a charter city

8/8/2019 June 29 2010 staff report on RPV becoming a charter city

1/41


2/41

adopt and enforce its own laws, subject only to the confl icting provisions in the state orfederal constitutions or preemptive state law on matters of statewide concern. Harmanv. City and County of San Francisco, 7 Cal. 3d 150, 161 (1972).1 Thus, a charter actsas an instrument of l imitation on the broad power of a charter city over matters ofmunicipal affairs. City of Glendale v. Tronsden, 48 Cal. 2d 93, 98 (1957).The California Constitut ion does not define the term "municipal affair." For this reason,whether a particular subject is a "municipal affair," over which a charter city hasauthority, 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 isneither empowered to determine what is a municipal affair nor to transform a municipalaffair into one of statewide concern, the courts give the Legislature's intentions in thisregard 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 certainsubjects as municipal affairs. The more recent trend, however, is to avoid"'compartmentalization,' that is, of cordoning off an entire area of government activity aseither a 'municipal affair' or one of statewide concern." California Fed. Savings & LoanAssn. v. City of Los Angeles, 54 Cal. 3d 1, 17 (1991). Accordingly, the concept of whatis a municipal af fa ir is fluid and changes over time, as local issues may becomestatewide concerns, and vice versa. The task of determining whether a given activity isa municipal affair or one of statewide concern is an ad hoc inquiry in light of the factsand circumstances surrounding each case. Id. at 16.In California Fed. Savings & Loan, the California Supreme Court developed a four-stepanalysis to determining what is a municipal affair. First, the court must determinewhether an actual conf lict exists between the local law and the state statute. If i t doesnot, a choice between the legal conclusions "municipal affair" and "statewide concern"is not required. Id. at 16. If a genuine confl ict between the local and state legislation isfound, then the court takes the second step of determining whether the local lawimplicates a municipal affair. Id. at 17. If the local law impl icates a municipal affair,then the court must take the third step of examining whether the state statute involvesextramural concerns that require paramount state control. Id. at 18. Finally, inevaluating the statewide concern under the Cal Fed case, the court must determinewhether the state statute is reasonably related and narrowly tailored to the resolution ofthe statewide concern. Id. at 24. If a court finds that the state law posing the conflictfai ls to regulate an area of statewide concern, the charter city measure is a municipalaffair and beyond the reach of state legislative enactment.Although not an exhaustive list, all of the fol lowing issues have been held to be ofgeneral 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 withthese statutes, such as the Voting Rights Act (42 U.S.C. 1973 et seq.).

2R68l6-0001\1238446v1a.doc

6-2


3/41

B. The regulation of traffic and vehicles (see California Vehicle Code section21);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 ofSan Francisco v. Boss, 83 Cal. App. 2d 445, 449 (1948;E. Tort claims against a governmental entity (see Helbach v. City of LongBeach, 50 Cal. App. 2d 242,247 (1942;F. The taxation of financial corporations such as savings banks (seeCalifornia Fed. Savings & Loan);G. The Ralph M. Brown Act open meetings law (see California GovernmentCode sections 54951 and 54953(a;H. The Meyers-Milias-Brown Act regarding employee organization (seeGovernment Code sections 3500 and 3501 (c;I. The California Environmental Quality Act ("CEQA") (see California PublicResources Code 21 OOO(a) et seq.); andJ. The exercise of the power of eminent domain (see Wilson v. Beville, 47Cal. 2d 852, 856 (1957.

Accordingly, the adoption of a charter and subsequent ordinances by the City ofRancho Palos Verdes would generally not affect these or other matters that aredetermined to be of statewide concern.DISCUSSIONI. Advantages to a CharterThe main advantage to a becoming a charter city is that a charter city has more localcontrol 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 nonmunicipal affairs that are of statewide concern and to the limitations of the federal andstate constitutions.Typically, a city charter will reserve for the city the greatest amount of power it can. Todo so, the charter must include a declaration that the city intends to avail itself of the fullpower provided to charter cities by the California Constitution. (See the attached BuenaPark Charter.) If a city does not want to extend its power to the fullest extent granted bythe California Constitution, that city may determine the breadth of its power by placinglimitations within its charter.

3R6876-0001\1238446v1O.doc

6-3


4/41

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 aremunicipal affairs. Cal. Const. Article XI, 5(b). City charters mayestablish election dates or the number of signatures required on an

initiative or referendum. Charters may require a majority number of votesin order to win a council seat at an election2 and set forth procedures forselecting officers.3 A charter may state city council member qualificationsthat do not violate the constitutions and provide criteria for vacating andterminating city offices. A charter city may also opt to fund public officersand candidates' campaigns. See Johnson v. Bradley, 4 Cal. 4th 389(1992). Alternatively, a charter city may conduct its elections under thegeneral election laws. These municipal affairs are, as always, restrictedby the federal and state constitutions, and thus may not restrictreservations of power to the people, such as the right to vote and powersof initiative or referendum.

B. Finance. The imposition of taxes for municipal purposes is a municipalaffair. California Fed. Savings & Loan.4 Specifically, a charter city mayimpose a license tax on local businesses and occupations, with approvalby the voters. West Coast Advertising Co. v. City and County of SanFrancisco, 14 Cal. 2d 516 (1939); City of Glendale v. Trondsen, 48 Cal.2d 93 (1957). Courts have also held that the subject of property transfertaxes is a municipal affair "which lies 'beyond the reach of legislativeenactment' 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 doesnot 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 andCouncil of San Francisco, 43 Cal. 2d 190, 197 (1954); Mullins v.Henderson, 75 Cal. App. 2d 117 (1946). For example, charter cities mayrender financial assistance to schools. Berkeley Sch. Dist. v. City of

2The candidate with the plurality of the votes, meaning the highest number, wins the election in a generallaw city. Cal. Elec. Code 15450, 15452. Alternatively, a charter city may choose to require a majorityof votes to win, thus requiring a "run-off" election between the two candidates with the highest number ofvotes 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: theelection of members of the city council by voters of particular areas of the city; the candidates by requiringthat they reside in the particular district; or both. Please note that the power to opt for term limits or createvoting 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 maybe levied by any charter city, subject to the voters' approval. Thus, there is not a significant advantage toa 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 increaseof general taxes, as well as special taxes, to the voters for approval. Charter cities are preempted fromestablishing different vote requirements than established by the Constitution. Howard Jarvis TaxpayersAssn. v. City ofSan Diego (2004) 120 Cal. App. 4th 374.

4R6876-0001 \1238446v1 O.doc6-4


5/41

Berkeley, 141 Cal. App. 2d 841,846-847 (1956); Madsen v. OaklandUnified Sch. Dist., 45 Cal. App. 3d 574, 579-80 (1975).D. Planning and Land Use. The State Planning and Land Use Law, ascodified in Government Code section 65700 et seq., generally does not

apply to charter cities except to the extent that a charter city adopts theseprovisions. Gov't Code 65700. The same is true of zoning regulations. 65803. However, the Legislature and the courts have made certain otherland use and zoning provisions applicable to charter cities, some of whichare listed below:1. A charter city's general plan must contain all mandatory elements.Gov't Code 65700(a), 65300, 65302.1. However, charter citiesneed not comply with the zoning consistency provisions inGovernment Code section 65860. Verdugo WoodlandHomeowners Assn. v. City ofGlendale, 179 Cal. App. 3d 696(1986).2. Charter cities must follow the minimum procedural standards inconducting zoning hearings provided in Government Code section65804, including developing and pUblishing procedural rules forconducting the hearings, preserving a record of all hearings, andallowing public access to planning staff reports. However, Section65804 does not include noticing requirements, which presumablyare left to the discretion of the charter city, provided they satisfyconstitutional due process requirements. See Brougher v. Board ofPublic 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 moderateincome housing within coastal zones. Gov't Code 65700(b),65590.4. Charter cities are prohibited from enacting ordinances thatdiscriminate against residential development because of themethod of financing, the race, sex, color, religion, national origin,ancestry, age, or economic statute of a tenant occupant. Gov'tCode 65008(g).5. Charter cities are subject to and protected by time limitations onactions to attack, review, amend, set aside, void, or invalidate landuse planning and zoning decisions. Gov't Code 65009(f).6. Charter cities must comply with standards for approving housingdevelopments. Gov't Code 65913.9. They must designatesufficient vacant land for residential use with appropriate standards

5R6876-0001 \1238446v1O.doc6-5


6/41

as described in Government Code section 65913.1, refrain fromimposing design criteria that inhibit the development of affordablehousing, and refrain from imposing certain fees for public capitalfacility 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-incomehousing development. Gov't Code 65918.8. Charter cities are subject to the provisions of the PermitStreamlining Act (Government Code section 65920 et seq.), whichgoverns the review and approval of development projects. 65921.9. Charter cities are subject to limits and procedures regarding theadoption of interim zoning ordinances. Gov't Code 65858.10. The Subdivision Map Act (Government Code section 66410 etseq.) has been found applicable to charter cities. See Santa ClaraCounty Contractors Ass'n v. City ofSanta Clara, 232 Cal. App. 2d564,575-78 (1965).11. Charter cities are subject to the provisions of the CaliforniaEnvironmental Quality Act.

E. Park Properties. The acquisition, disposition and use of municipal parksis another municipal affair over which a charter governs, except for in thecase of the acquisition by a private dedication that proscribes a particularuse for the park. Simons v. City of Los Angeles, 63 Cal. App. 3d 455, 468(1976); Wiley v. City ofBerkeley, 136 Cal. App. 2d 10 (1955); but seeSlavich v. Hamilton, 201 Cal. 299, 303 (1927).

F. Public Works. A charter city may create its own procedures for granting afranchise, such as the right to use city streets to distribute electricity, gas,or water to the city and its inhabitants. City ofSanta Cruz v. Pacific Gas &Elec. Co., 82 Cal. App. 4th 1167 (2000). It may provide for methods ofimprovements of city streets. Blake v. City of Eureka, 201 Cal. 643, 65758 (1927)(overruled in part on other grounds); Wilson v. Beville, 47 Cal.2d 852, 864 (1957). A charter city may provide for the establishment andmaintenance of sewers and storm drains within the city's boundaries.Loop LumberCo. v. Van Loben Sels, 173 Cal. 228, 232 (1916); Smith v.City ofRiverside, 34 Cal. App. 3d 529 (1973); Mallon v. City of LongBeach, 44 Cal. 2d 199,211 (1955). The charter may also create andgovern 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. 3d460 (1982). Additionally, the following two matters are of particularrelevance to charter cities:6R6876-0001 \1238446v1 O.doc

6-6


7/41

1. Public Contracts. Charter cities may expressly provide in thecharter or by ordinance that the Public Contract Code does notapply. Cal. Pub. Cont. Code 1100.7. If a charter city opts toexempt itself from the Public Contract Code, one consequence isthat the city is no longer required to follow the bidding statutes. Thispermits a charter city to select particular vendors from which itelicits bids or opt to work with someone other than the lowestbidder on a contract, unless the city obtains funding from a sourcethat requires adherence to state bidding procedures.

2. Prevailing Wages. Charter cities are not currently subject to theprevailing wage laws unless they elect to be subject to such laws, ifthe project involves work outside of the city limits, or if the project isotherwise of significant state interest. However, this exemption isnot completely free from doubt. The Legislature has made a fewattempts to require charter cities to be subject to prevailing wages.Additionally, in December 2004, the California Supreme Courtissued its decision in City of Long Beach v. Department ofIndustrial Relations, 34 Cal. 4th 942 (2004), a case in which it hadthe opportunity to reaffirm the long-standing rule that charter citiesare sUbstantially free from the requirement of paying prevailingwages on "public works" projects. In that case, the court of appealheld that the state's prevailing wage laws addressed matters of"statewide concern" and therefore applied to projects funded orsubsidized by all public agencies, including charter cities. Uponreview, the California Supreme Court reversed the decision of thecourt of appeal on an alternative ground. Unfortunately, the Courtavoided the issue of whether the prevailing wage law is a matter of"statewide concern" such that it would override a charter city'sinterests in conducting its municipal affairs.Please note that even if a charter city is exempt from payingprevailing wages, a redevelopment agency, as a separate legalentity, 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. CityCouncil of City of Culver City, 184 Cal. App. 2d 763, 768 (1960). Thesame is true of the procedures for adopting, amending or repealingresolutions. Brougher v. Board of Public Works, 205 Cal. 426. Variousother city council procedural matters are municipal affairs, such asquorum requirements. However, there are supermajority requirementsthat do apply to charter cities. See, e.g., Cal. Code Civ. Proc. 1245.240.Charter cities, therefore, are able to adopt certain procedures that allowfor more efficient and cost-effective city operations.

H. Employment and Compensation. The appointment, qualifications,7R6876-0001\1238446v1O.doc

6-7


8/41

compensation and removal of city employees are generally municipalaffairs. Cal. Const. Art. XI, 5(b). Additionally, a city charter may setsalaries, 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 nonsafety employees of that public agency. Gov't Code 53208.5.Furthermore, if a charter city provides any type of compensation tomembers of its legislative body, then these officials must receive at leasttwo hours of ethics training, just like their general law city counterparts. 53234,53235.

I. Municipal Contracting. Municipal contracting procedures are municipalaffairs. First Street Plaza Partners v. City of Los Angeles, 65 Cal. App. 4th650, 661 (1998).II. Disadvantages to a CharterAlong with the advantages, there are also perceived disadvantages to converting from ageneral law city to a charter city. First, formulating a charter, educating the public, andconducting 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 notexpend too much time or money in the chartering process. Second, there is a transitionperiod from the many years of municipal operation under the general law, and this mayrequire procedural changes and staff training. Third, uncertainties may arise as towhether specific matters are municipal concerns governed by the charter or statewideconcerns governed by statutes. This could result in exposure to legal challenges if anissue should arise in a "gray" area where the charter and general law may differ. Thereis also limited case law from which to evaluate legal exposure to interpret charterlanguage and charter city ordinances. Finally, charter amendments require a vote ofcity residents, thus they are time-consuming and costly. However, amendments arerare where a charter is kept simple.Often times, a charter is supported if there is a particular prdblem that can be solved byadopting the charter city form of government. The adoption of a charter, however, canbe divisive in a community. Charter provisions can be used by some in the communityto limit the role of the city or to pursue a particular viewpoint that may not be similar tothat of the city. Also, as the courts review the powers of a charter city (as demonstratedby 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 ultimatelydisappear.PROCEDURE FOR BECOMING A CHARTER CITYThere are two means by which a city may adopt a charter. The city council may draftthe charter. Alternatively, the voters may elect a charter commission, which has theresponsibility of debating over the provisions and drafting the charter. Staff does notrecommend the charter commission option due to the additional time and costs that

8R6876-0001 \1238446v1O.doc

6-8


9/41

would be required. In either case, the charter does not become effective unless it isadopted by a majority of the city's voters.I. CHARTER DRAFTED BY CITY COUNCILOn its own motion, the city council may propose a charter and submit it to the voters foradoption. Gov't Code 34458. In this approach, it becomes the responsibility of thecity council to draft the charter.The city council may then call a special election or allow the charter to be voted on atany established election date, as long as that election date is at least 88 days after theproposed charter was filed with the city clerk. Gov't Code 34458; see also Elec. Code 9255.II. CHARTER DRAFTED BY ELECTED CHARTER COMMISSIONAlternatively, a city may opt to elect a charter commission. The election for choosingcharter commissioners may be called either by a majority vote of the city councilor by apetition signed b not less than fifteen percent (15%) of the registered voters within thecity. 34452(a).5Once it has been decided that a charter commission election will take place, candidatesfor commissioners must be nominated either in the same manner as officers of the cityor by petition. Gov't Code 34454. A candidate for charter commissioner must be aregistered voter of the city. 34451.At the election for charter commission members, the voters will vote first on thequestion of whether a charter commission should be elected, and then for the chartercommission candidates. 34453. If a majority of the voters vote for the formation of acharter commission, then the top fifteen (15) candidates for the office of chartercommissioner will be organized as the city's charter commission. 34453.6Once formed, the charter commission will have the responsibility of developing the city'scharter. After a majority of commissioners has decided that the proposed charter isappropriate, the members of that majority must sign and file the charter with the cityclerk's office. Gov't Code 34455.7After the charter has been filed with the city clerk, the city council must decide whetherto call a special election or to wait until the next established municipal election to submitthe charter to the voters. Gov't Code 34457. The charter must be sent to the votersSif a petition requests the formation of a charter commission, the authority in charge of the city'sregistration records must verify the signatures on the petition. 34452(a). The city must pay the expenseof this verification. 34452(a). If the petition is verified, the city council must call an election pursuant toCalifornia 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 chartercommission. 34453.7 The charter commission does, however, have the option of submitting portions of the charter to the city'svoters periodically instead of sending the whole charter at once. 34462(b).

9R6876-0001\ 1238446v1a.doc6-9


10/41

within two years of the vote that formed the charter commission. 34462.III. THE ELECTIONIn 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 beadopted. See Cal. Gov't Code 34459. Once an election date is set, the charter mustbe prepared for the ballot. The city council must then direct the city attorney's office toprepare an impartial analysis of the charter according to Elections Code section 9280.8Arguments 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 acharter is approved by a majority of the voters, the mayor and city clerk shall certify thatthe charter was submitted to the voters of the city and that it was approved by amajority vote. 34460. The charter will not go into effect, however, until it has beenfiled and accepted by the Secretary of State. Gov't Code 34459.Three copies of the adopted charter must be certified and authenticated by the mayorand the city clerk. One copy of the approved charter shall be filed with the countyrecorder's office and a second copy shall be kept in the city's archives. These twocopies shall include: (1) certified copies of all publications and notices in connectionwith the calling of the election to propose the charter; (2) certified copies of anyarguments 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 thecharter 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 toconduct the Rancho Palos Verdes charter election along with the election that will beconducted by the City of Los Angeles on March 8, 2011, since Los Angeles will havethe Community College contest on the ballot in Rancho Palos Verdes.The LA County Registrar-Recorder/County Clerk's Office considered the City's requestto conduct a spring or summer 2011 election, but it is their Board's policy to consolidatesuch municipal elections with the Countywide or Statewide Elections, which are heldprimarily 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, themunicipal election consulting firm, provide pre-election and election supplies,translations, and so forth; the assistance of an experienced election consultant, asneeded, at $95/hour; the hiring of four temporary City workers for 3 weeks prior to theelection; 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 maydirect the City's elections official to prepare the analysis instead. Elec. Code 9280.

10R6876-0001 \1238446v1O.doc6-10


11/41

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 signatureverification; and return reply postage for vote-by-mail ballots (if the City chooses toprovide those ballots). Other issues to consider are workstations for the temporaryemployees 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, Staffrecommends that if the City Council wishes to pursue adopting a charter, the CityCouncil should direct City efforts towards a consolidated election held along with theelection that is to be conducted by the City of Los Angeles on March 8, 2011. Becausethis date is less than a year from now, pointing towards this election will require anintense public education effort by the Council, the Subcommittee and any otherinterested individuals.FISCAL IMPACTThe City would incur costs in the process of becoming a charter city. First, formulating acharter will require an expenditure of funds, which may be significant, depending on theextensiveness of the charter and the time and efforts used to draft it. Second, there willbe costs associated with public education efforts. Third, the City will need to pay toconduct an election to consider adoption of the charter.The fiscal impact of being a charter city, as opposed to remaining a general law city, arecontingent on the precise charter language and subsequent ordinances that areadopted by the City. For example, if the City opts to not pay prevailing wages, and thispractice continues to be permissible, the City could save money on future contracts.Incorporating changes to elections procedures may likewise have fiscal impacts, butwhether those impacts are positive or negative depends on the particular changesadopted. Charter amendments could be costly due to a required vote each time, butthat expenditure would be not be significant if a simple charter is drafted, because thelegislation implementing the charter would be by ordinance. Also, with more localcontrol, the City will have more authority than it currently possesses to determine itsown expenditures in many areas. Thus, it is likely that there will be a positive fiscalimpact of being a charter city; however, the degree of that impact cannot be predictedwith certainty.CONCLUSION

Adopting a charter preserves local control for a city, to the extent allowed by theLegislature 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 twoMembers of the City Council. MayorWolowicz recommends that he and Mayor ProTem Long be the two Councilmembers that would serve on the Subcommittee. Thetwo Subcommittee Members or the Council as a whole then could choose three to fiveCity residents to serve along with them on the Subcommittee and lead the City towards11R6876-0001\1238446v1a.doc

6-11


12/41

the process of adopting a charter.The City of Buena Park conducted twenty-one public outreach meetings over a oneyear period prior to the election to adopt that its charter. Accordingly, leadership toprovide the education of the City's residents is an essential component of a successfuleffort to become a charter city and would require a significant commitment of time bythe City Council and the Subcommittee, especially if the election will occur in March2011.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 CharterversusGeneral Law Cities (from Buena Park) Exhibit 6: Talking Points regarding Characteristics of Charter Cities (from BuenaPark) 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 ExploratoryCommittee (from Buena Park) Exhibit 10: CharterStudy Session Agenda Report to CityCouncil (from Buena Park) Exhibit 11: Charter Exploratory Committee's Final Report (from Buena Park)

12R6876-0001\1238446v1O.doc

6-12


13/41

Exhibit 1: General Law City v. Charter City

Ability to GovernMunicipal Affairs

Form of Government

Elections Generally

Methods of Elections

R6876-0001\1214913vl.doc

Bound by the state's general law, regardlessof whether the subject concerns a municipalaffair.

State law describes the city's form ofgovernment For example, GovernmentCode section 36501 authorizes general lawcities be governed by a city council of fivemembers, a city clerk, a city treasurer, apolice chief, a fire chief and any subordinateofficers or employees as required by law.City electors may adopt ordinance whichprovides for a different number of councilmembers. Cal. Gov't section 34871. TheGovernment Code also authorizes the "citymanager" form of government. Cal. Gov'tCode 34851.

Municipal elections conducted in accordancewith the California Elections Code. Cal. Elec.Code 10101 et seq..

Generally holds at-large elections wherebyvoters vote for any candidate on the ballot.Cities may also choose to elect the citycouncil "by" or "from" districts, so long as theelection system has been established byordinance and approved by the voters. Cal.Gov't Code 34871. Mayor may be electedby the city councilor by vote of the people.Cal. Gov't Code 34902.

Has supreme authority over "municipalaffairs." Cal. Const. art. XI, 5(b).

Charter can provide for any form ofgovernment including the "strong mayor,"and "city manager" forms. See Cal. Constart. XI, 5(b); Cal. Gov't Code 34450 etseq.

Not bound by the California Elections CodMay establish own election dates, rules, aprocedures. See Cal. Const. art. XI, 5(bCal. Elec. Code 10101 et seq..

May establish procedures for selectingofficers. May hold at-large or districtelections. See Cal. Const. art. XI, 5(b).

6A-1


14/41


15/41

Legislative Authority

Resolutions

Quorum and VotingRequirements

Rules GoverningProcedure and Decorum

R6876-0001\1214913vl.doc

Ordinances may not be passed within fivedays of introduction unless they are urgencyordinances. Cal. Gov't Code 36934.Ordinances may only be passed at a regularmeeting, and must be read in full at t ime ofintroduction and passage except when, afterreading the title, further reading is waived.Cal. Gov't Code 36934.

May establish rules regarding theprocedures for adopting, amending orrepealing resolutions.

A majority of the city council constitutes aquorum for transaction of business. Cal.Gov't Code 36810.All ordinances, resolutions, and orders forthe payment of money require a recordedmajority vote of the total membership of thecity council. Cal. Gov't Code 36936.Specific legislation requires supermajorityvotes for certain actions.

Ralph Brown Act is applicable. Cal. Gov'tCode 54951, 54953(a).Conflict of interest laws are applicable. SeeCal. Gov't Code 87300 et seq..

May establish procedures for enacting locordinances. Brougher v. Bd. ofPublic Wor205 Cal. 426 (1928).

May establish procedures for adopting,amending or repealing resolutions. Broughv. Bd. ofPublic Works, 205 Cal. 426 (1928

May establish own procedures and quorumrequirements. However, certain legislationrequiring supermajority votes is applicablecharter cities. For example, see CaliforniaCode of Civil Procedure section 1245.240requiring a vote of two-thirds of all themembers of the governing body unless agreater vote is required by charter.

Ralph Brown Act is applicable. Cal. Gov'tCode 54951, 54953(a).Conflict of interest laws are applicable. SeCal. Gov't Code 87300 et seq..May provide provisions related to ethics,conflicts, campaign financing andincompatibility of office.

6A-3


16/41

Personnel Matters

Contracting Services

Public Contracts

R6876-0001\1214913vl.doc

May establish standards, requirements andprocedures for hiring personnel consistentwith Government Code requirements.May have "civil service" system, whichincludes comprehensive procedures forrecruitment, hiring, testing and promotion.See Cal. Gov't Code 45000 et seq.Meyers-Milias-Brown Act applies. Cal. Gov'tCode 3500.Cannot require employees be residents ofthe city, but can require them to reside withina reasonable and specific distance of theirplace of employment. Cal. Const. art. XI, 10(b).

Authority to enter into contracts to carry outnecessary functions, including thoseexpressly granted and those implied bynecessity. See Cal. Gov't Code 37103;Carruth v. City ofMadera, 233 Cal. App. 2d688 (1965).

Competitive bidding required for public workscontracts over $5,000. Cal. Pub. Cont. Code 20162. Such contracts must be awarded tothe lowest responsible bidder. Pub. Cont.Code 20162. If city elects subject itself touniform construction accounting procedures,less formal procedures may be available forcontracts less than $100,000. See Cal. Pub.Cont. Code 22000, 22032.Contracts for professional services such asprivate architectural, landscape architectural,engineering, environmental, land surveying,or construction management firms need notbe competitively bid, but must be awardedon basis of demonstrated competence andprofessional qualifications necessary for thesatisfactory performance of services. Cal.Gov't Code 4526.

May establish standards, requirements, anprocedures, including compensation, termand conditions of employment for personnSee Cal. Const. art. XI, 5(b).

Meyers-Milias-Brown Act applies. Cal. GoCode 3500.Cannot require employees be residents ofthe city, but can require them to reside wita reasonable and specific distance of theirplace of employment. Cal. Const. art. XI,section 1O(b).

Full authority to contract consistent withcharter.May transfer some of its functions to thecounty including tax collection, assessmencollection and sale of property for nonpayment of taxes and assessments. Cal.Gov't Code 51330, 51334, 51335.

Not required to comply with bidding statuteprovided the city charter or a city ordinancexempts the city from such statutes, and tsubject matter of the bid constitutes amunicipal affair. Pub. Cont. Code 1100.7see R & A Vending Services, Inc. v. City oLos Angeles, 172 Cal. App. 3d 1188 (1985Howard Contracting, Inc. v. G.A. MacDonConstr. Co., 71 Cal. App. 4th 38 (1998).

6A-4


17/41

Payment of PrevailingWages

Finance and Taxing Power

R6876-0001\1214913vl.doc

In general, prevailing wages must be paid onpublic works projects over $1,000. Cal. Lab.Code 1771. Higher thresholds apply($15,000 or $25,000) if the public entity hasadopted a special labor compliance program.See Cal. Labor Code 1771.5(a)-(c).

May impose the same kinds of taxes andassessment as charter cities. See Cal. Gov'tCode 37100.5.Imposition of taxes and assessments subjectto Proposition 218. Cal. Const. art.xIlIC.Examples of common forms used inassessment 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 of1972. Cal. Sts. &High. Code 22500 et seq.. Benefit Assessment Act of 1982.Cal. Gov't Code 54703 et seq..

May impose business license taxes forregulatory purposes, revenue purposes, orboth. See Cal. Gov't Code 37101.May not impose real property transfer tax.See Cal. Const. art. XIIIA, 4; Cal. Gov'tCode 53725; but see authority to imposedocumentary transfer taxes under certaincircumstances. Cal. Rev. &Tax. Code 11911 (a), (c).

Historically, charter cities have not beenbound by state law prevailing-wagerequirements so long as the project is amunicipal affair, and not one funded by staor federal grants. Vial v. City ofSan Diego122 Cal. App. 3d 346,348 (1981). Howevthere is a growing trend on the part of thecourts and the Legislature to expand theapplicability of prevailing wages to chartercities under an analysis that argues that thpayment of prevailing wages is a matter ostatewide concern. The California SupremCourt declined an opportunity to resolve thissue. See City of Long Beach v. Dept.ofIndus. Relations, 34 Cal. 4th 942 (2004).

Have the power to tax.Have broader assessment powers than ageneral law city, as well as taxation powerdetermined on a case-by case basis.Imposition of taxes and assessments SUbto Proposition 218, Cal. Const. art. XIIIC, 2, and own charter limitationsMay proceed under a general assessmenlaw, or enact local assessment laws andthen elect to proceed under the local law.See J. W. Jones Companies v. City of SanDiego, 157 Cal. App. 3d 745 (1984).May impose business license taxes for anpurpose unless limited by state or federalconstitutions, or city charter. See Cal. Conart. XI, 5.May impose real property transfer tax; doenot violate either Cal. Const art. XIIIA orCalifornia Government Code section 5372See Cohn v. City ofOakland, 223 Cal. App3d 261 (1990); Fielder v. City ofLosAngeles, 14 Cal. App. 4th 137 (1993).

6A-5


18/41

Streets &Sidewalks State has preempted entire field of trafficcontrol. Cal. Veh. Code 21.

Penalties &Cost Recovery May impose fines, penalties and forfeitures,with a fine not exceeding $1,000. Cal. Gov'tCode 36901.

Public Utilities/Franchises May establish, purchase, and operate publicworks to furnish its inhabitants with electricpower. See Cal. Const. art. XI, 9(a); Cal.Gov't Code 39732; Cal. Pub. Util. Code 10002.May grant franchises to persons orcorporations seeking to furnish light, water,power, heat, transportation orcommunication services in the city to allowuse of city streets for such purposes. Thegrant of franchises can be done through abidding process, under the Broughton Act,Cal. Pub. UtiI. Code 6001-6092, orwithout a bidding process under theFranchise Act of 1937, Cal. Pub. Util. Code 6201-6302.

State has preempted entire field of trafficcontrol. Cal. Veh. Code 21.

May enact ordinances providing for varioupenalt ies so long as such penalties do notexceed any maximum limits set by thecharter. County of Los Ange/es v. City of LAngeles, 219 Cal. App. 2d 838, 844 (1963

May establish, purchase, and operate pubworks to furnish its inhabitants with electripower. See Cal. Const. art. XI, 9(a); CalApartmentAss'n v. City ofStockton, 80 CApp. 4th 699 (2000).May establish conditions and regulations othe granting of franchises to use city streeto persons or corporations seeking to furnlight, water, power, heat, transportation orcommunication services in the city.Franchise Act of 1937 is not applicable ifcharter provides. Cal. Pub. Util. Code 6205.

Zoning

R6876-0001\1214913vl.doc

Zoning ordinances must be consistent withgeneral plan. Cal. Gov't Code 65860. Zoning ordinances are not required to beconsistent with general plan unless the cithas adopted a consistency requirement bycharter or ordinance. Cal. Gov't. Code 65803.

6A-6


19/41

Exhibit 2: Relevant California StatutesGovernment Code 34450. AuthorizationAny city or city and county may enact, amend, or repeal a charter for its owngovernment according to this article or Article 3 (commencing with Section 9255) ofChapter 3 of Division 9 of the Elections Code.Government Code 34451. Charter commission; proposals; eligibility ofcandidatesThe charter may be proposed by a charter commission chosen by the voters of the cityor city and county, at any general or special election, but no person shall be eligible asa candidate for the commission unless he or she is a registered voter of the city or cityand county.Government Code 34452. Election of charter commissioners; vacancies(a) An election for choosing charter commissioners may be called by a majority vote ofthe governing body of a city or city and county, or on presentation of a petition signedby not less than 15 percent of the registered voters of the city or city and county. Thepetition shall be verified by the authority having charge of the registration records of thecity or city and county and the expenses of the verification shall be provided by thegoverning body thereof. The governing body shall call an election pursuant to Sections1000 and 10403 of the Elections Code.(b) If any vacancy arises in a charter commission established for a city or city andcounty pursuant to this chapter, the vacancy shall be filled by an appointment by themayor of the city or city and county.Government Code 34453. Questions submitted; effect of voteAt an election the voters shall vote first on the question "Shall a charter commission beelected to propose a new charter?" and, secondly, for the candidates of the office ofcharter commissioner. If the first question receives a majority of the votes of thequalified voters voting thereon at the election, the 15 candidates for the office of chartercommissioner receiving the highest number of votes shall forthwith organize as acharter commission. However, if the first question receives less than a majority of thevotes of the qualified voters voting thereon at the election no charter commission shallbe deemed to have been elected.Government Code 34454. Nomination of candidates for charter commissionCandidates for the office of charter commissioner shall be nominated either in the samemanner provided for the nomination of officers of the municipal or city and countygovernment, or by petition substantially in the same manner provided by general laws

R6876-0001\1215667vl.doc

6A-7


20/41

for the nomination by petition of candidates for public offices to be voted for at generalelections.Government Code 34455. Proposed or amended charter; signatures; filingThe charter commissioners shall propose a charter and may propose amendments to acharter, for the government of the city or city and county. The charter so prepared shallbe signed by a majority of the charter commissioners and shall be filed in the office ofthe clerk of the governing body of the city or city and county.Government Code 34456. Printing and mailing of copies of charter; type stylesIn any city or city and county, the governing body shall cause copies of the charter tobe printed in type of not less than 10-point. If the governing body causes copies of theproposed charter to be mailed to the voters, the text of the proposed charter may showthe difference from existing provisions of law by the use of distinguishing type styles.Government Code 34457. Proposed charter; submission to the votersAfter the charter prepared by the charter commission has been filed in the office of theclerk of the governing body of the city or city and county pursuant to Section 34455, theproposed charter shall be submitted to the voters of the city or city and county at eithera special election called within 14 days by the governing body for that purpose to beconducted at least 95 days after the date the special election is called, or at the nextestablished municipal election date or at the next established election date pursuant toSection 1000 of the Elections Code, provided there are at least 95 days before theelection.Government Code 34458. Proposal of governing body; electionAs 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 orcause to be proposed, amend or cause to be amended, or repeal or cause to berepealed, a charter and may submit the proposal for the adoption, or the amendmentsor repeal thereof, to the voters at either a special election called for that purpose or atany established municipal election date or at any established election date pursuant toSection 1000 of the Elections Code, provided there are at least 88 days before theelection.Government Code 34459. Charter proposal, amendment or repeal; ratification;acceptance and filingIf the voters vote in favor of the charter proposal, amendment, or repeal, it shall bedeemed to be ratified, but shall not take effect until accepted and filed by the Secretaryof State pursuant to Section 34460.

R6876-0001\1215667vl.doc

6A-8


21/41

Government Code 34460. Certification; authentication; filing; contentsThree copies of the complete text of a charter proposal or of any amended or repealedsection ratified by the voters of a city or city and county shall be certified andauthenticated by the chairperson and the clerk of the governing body and attested bythe city clerk, setting forth the submission of the charter to the voters of the city, and itsratification by them. One copy shall be filed with the recorder of the county in which thecity is located, and one in the archives of the city. In the case of a city and county, onecopy shall be filed with the recorder thereof, and one in the archives of the city andcounty. The third copy shall be filed with the Secretary of State. Each copy filed with therecorder of the county or city and county and in the archives of the city or city andcounty shall be filed with the following:(a) Certified copies of all publications and notices required of the city by this chapter orby 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 theElections 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 noticeA charter proposal, amendment, or repeal by the voters of a city or city and county andsubmitted to the Secretary of State in compliance with this chapter shall be acceptedand filed by the Secretary of State. The charter proposal, amendment, or repeal shallbe published in the statutes in a charter chapter series under the designation "Statutesof (year), Charter Chapter ." Under the chapter number, thedate of the ratification election and the date of filing with the Secretary of State shall beindicated.After a charter proposal, amendment, or repeal is accepted and filed by the Secretaryof State, the courts shall take judicial notice thereof.Government Code 34461.5. Repealed by Stats.1988, c. 357, 9Government 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 shallcomplete a proposed or amended charter and submit the charter to the voters of thecity and county within two years of the date of the election of the chartercommissioners, and at the expiration of that period is abolished.

R6876-0001\1215667vl.doc

6A-9


22/41

(b) A charter commission may submit portions of the proposed or amended charter tothe voters periodically.Elections Code 9255. Charter proposals; submission to voters(a) The following city or city and county charter proposals shall be submitted to thevoters at either a special election called for that purpose, at any established municipalelection date, or at any established election date pursuant to Section 1000, providedthat there are at least 88 days before the election:(1) A charter proposed by a charter commission, whether elected or appointed by agoverning body. A charter commission may also submit a charter pursuant to Section34455 of the Government Code.(2) An amendment or repeal of a charter proposed by the governing body of a city or acity and county on its own motion.(3) An amendment or repeal of a city charter proposed by a petition signed by 15percent of the registered voters of the city.(4) An amendment or repeal of a city and county charter proposed by a petition signedby 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 theprovisions of the charter.(b) Charter proposals by the governing body and charter proposals by petition of thevoters may be submitted at the same election.(c) The total number of registered voters of the city or city and county shall bedetermined according to the county elections official's last official report of registrationto the Secretary of State that was effective at the time the notice required pursuant toSection 9256 was given.

R6876-0001\1215667vl.doc

6A-10


23/41

AdelantoAlamedaAlbanyAlhambraAnaheimArcadiaBakersfieldBerkeleyBig Bear LakeBuena ParkBurbankCarlsbadCerritosChicoChula VistaComptonCulver CityCypressDel MarDesert Hot SpringsDinubaDowneyEurekaEI CentroExeterFolsomFortunaFresnoGilroyGlendaleGrass ValleyHaywardHuntington BeachIndian WellsIndustryInglewoodIrvineIrwindaleKingsburgLa QuintaLemooreLindsayLoma LindaLong BeachR6876-0001\1214921vl.doc

Exhibit 3: California Charter CitiesLos AlamitosLos AngelesMarinaMarysvilleMercedModestoMontereyMountain ViewNapaNeedlesNewport BeachNorcoOaklandOceansideOrovillePacific GrovePalm DesertPalm SpringsPalmdalePalo AltoPasadenaPetalumaPiedmontPlacentiaPomonaPort HuenemePortervilleRancho MirageRedondo BeachRedwood CityRichmondRiversideRosevilleSacramentoSalinasSan BernardinoSan DiegoSan FranciscoSan JoseSan LeandroSan Luis ObispoSan MarcosSan MateoSan Rafael

San RamonSand CitySanta AnaSanta BarbaraSanta ClaraSanta CruzSanta MariaSanta MonicaSanta RosaSanteeSeal BeachShafterSignal HillSolvangStocktonSunnyvaleTemple CityTorranceTruckeeTulareVallejoVenturaVernonVictorvilleVisaliaVistaWatsonvilleWhittierWoodlake

Total Cities: 117

6A-11


24/41

Exhibit 4: CHARTER OF THE CITY OF BUENA PARKPREAMBLEWe the people of the City of Buena Park declare our intent to restore to our community thehistoric principles of self governance inherent in the doctrine of home-rule. Sincerely committedto the belief that local government has the closest affinity to the people governed, and firm in theconviction that the economic and fiscal independence of our local government will promote thehealth, safety and welfare of all the citizens of this City, we do hereby exercise the express rightgranted by the Constitution of the State of California to enact and adopt this Charter for the Cityof Buena Park.Article I - Municipal Affairs: GenerallySection 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 tomunicipal affairs, without limitation, which may be lawfully adopted, made, exercised, taken orenforced under the Constitution of the State of California.Article II - General LawsSection 100. General Law Powers. In addition to the power and authority granted by the termsof this Charter and the Constitution of the State of California, the City shall have the power andauthority to adopt, make, exercise and enforce all legislation, laws and regulations and to takeall actions and to exercise any and all rights, powers, and privileges heretofore or hereafterestablished, granted or prescribed by any law of the State of California or by any other lawfulauthority. In the event of any conflict between the provisions of this Charter and the provisionsof the general laws of the State of California, the provisions of this Charter shall control.Article III - Public ContractingSection 100. The provisions of California Labor Code Section 1770 et. seq. regarding prevailingwages on public works and related regulations, as now existing and as may be amended, areaccepted and made applicable to the City, its departments, boards, officers, agents andemployees.Article IV - InterpretationSection 100. Construction and Interpretation. The language contained in this Charter isintended to be permissive rather than exclusive or limiting and shall be liberally and broadlyconstrued in favor of the exercise by the City of its power to govern with respect to any matterwhich is a municipal affair.Section 200. Severability. If any provision of this Charter should be held by a court ofcompetent jurisdiction to be invalid, void or otherwise unenforceable, the remaining provisionsshall 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 ofthe City of Buena Park at the general municipal election held November 4, 2008. The results ofsuch election were certified by the City Council of the City of Buena Park through adoption of itsResolution No. 12164.

6A-12


25/41

.- . Exhibit 5.........UH Understanding HomelU Rule.....H::;S The home rule provision in..c: California's state constitutionU allows eharter cities to conduct":LJ their 0,,"11 business and control> their 0,,"11 affairs.

o

Home rule is based on the principle that a city, rather than thestate legislature, knows what itneeds and how to satisfy thoseneeds. Becoming a chartercitylets voters determine how theircity government is organizedand, with respect to municipalaffairs, pass laws different than thosepassed by the state.

for more infonnation regarding generallaw vs. ehartcr city forms of governmentcall (714) 562-3750.

Should it be determined that it is in thebest interest of the City to operate undera citycharter, the question as to whetheror not to adopt a charter would be placedon the November 2008 ballot.

6A-13


26/41

What is a Charter?A city charter is a unique documentthat, inmanyways, actslike a constitutionfor thecity.It can only be adopted, amended or repealedbya majority vote of a city's voters.A chartertransfers the powerto adoptlegislationaffecting municipal affairs from thestate legislature to thecity. A cityoperatingundera chartercan acquire full control overitsmunicipalaffairs.Areas ofstatewide concern, whichcannotbegoverned by a city charter, includetraffic laws,affordable housing obligations, and claimsagainst a publicagency.

MunicipalAffairsA city charter givesresidents more controlovertheir localgovernment and the municipal affairsof thecity Examples are: Methods and procedures for awarding and

constructingpublic projects. Procedures for enacting localordinances. Municipal election matters. Land use and zoning decisions. Howtheci ty spendsi ts tax dollars.

Advantages of aCityCharter Eliminates requirement to award contracts tothe lowestbidder. Contracts can be awarded to

the most qualified. May usec ity employees to construct public

improvements. May use a design-buildprocessfor public

improvements. Eliminates prevailingwage requirement forprojectsthat don't receive federal or statefunding. Ord inancesand city codesmaybe adopted in ashorter time frame. May establish i ts own elect ionproceduressuchas the optionof votingby mailon certain

matters.

Disadvantages of aCity Charter Cost of professionalservices to draft charter. Costs of conducting election.

6A-14


27/41

Exhibit 6: TALKING POINTSCHARACTERISTICS OF CHARTER CITIES

CITY OF BUENA PARK

Charter cit ies are not subject to the competitive bidding requirements of the PublicContract 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 forcompleting work on time, track record for work quality, and financial stability(bankruptcy). This often results in bids being awarded to substandard contractorswho take too long to complete projects, are messy and intrusive, have bad workquality which must be removed and replaced, don't pay subcontractors resulting inliens and stop notices, and require extensive oversight by City engineers andinspectors. Sometimes legal action is required to resolve disputes with substandardcontractors, which is both costly and time consuming. Recent examples ofsubstandard low bidders: the Commonwealth Widening and Median Project and theTraffic Signal Controller Equipment (Sychronex filed bankruptcy). Also, for the CityHall project, the City felt the low bidder was not qualified and legal counsel wasinvolved in defending the City's decision to not award to the low bidder. In mostcases, if the City does not go with the low bidder, the low bidder will challenge thedecision because it jeopardizes the contractor's ability to secure future bonds. TheCity 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: theState does have a process for general law cities to pre-qualify bidders, but it doesnot provide sufficient flexibility and few cities use it.)Advertising for bids is lengthy and costly as the Public Contract Code requires thatthe City publish bid notices in the local newspaper (BP Independent) twice, ten daysbefore the bid opening. This requires that the bid notice be submitted to the CityClerk for publication 20 days before the bid opening. And it is questionable if any ofour bidders even use the BP Independent as their resource. The City findsalternative 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 awaste of time and money.Charter Scenario:By ordinance, the City Council may establish a process by which contractors are prequalified and screened for experience, reputation, and financial stability. Prequalified contractors would be contacted immediately and the requirement to publishin the BP Independent would be eliminated. In awarding contracts, the City couldtake the contractor's reputation into account, not only the bid price, which is currentlythe case. Smaller contracts could also be performed in-house, for exampleremodeling the City Yard offices.

01/08

6A-15


28/41

Talking Points - Charter Exploratory CommitteePage 2

Charter cities are not required to pay "prevail ing wages" for all public works projects.There are exceptions however that include projects of statewide concern or state orfederally-funded projects.Current Scenario:Presently the City is required to pay prevailing wage for all public contracts resultingin higher project costs.Charter Scenario:For city-funded projects such as City Hall, the Senior Center, and certain street andslurry seal projects, the contractor may not be required to pay prevailing wageresulting 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 beawarded, the architectural and engineering plans be prepared, the plans andspecifications be approved by the City Council, the bid notices be advertised, and thecontract awarded. This process can take up to a year to complete for more complexprojects. 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) forthe new police facility; however, state law requires that we still bid each subcontractseparately and award to the low bidder.Charter Scenario:The construction time period for public contracts can be greatly reduced, as acontract is awarded after the plans are 60% to 70% complete. The design-buildmodule is typically used when time is critical, such as correcting a hazardouscondition, meeting a funding deadline, or meeting a mandate. While there may beno significant change in the total project cost, typically there are 50 percent fewerchange orders and fewer project delays due to pending change order approvals.Contracts are awarded to pre-qualified contractors which best meet the projectparameters, as opposed to awarding to the low bidder.

Charter cit ies may establish different methods for enacting local ordinances.Current Scenario: Presently the process for adopting an ordinance is lengthy andcostly as it requires a first reading, a second reading, publication in the localnewspaper (BP Independent) and a 3D-day waiting period.Charter Scenario: The City Council may establish its own method for enactingordinances such as eliminating the publication requirement in lieu of posting on theinternet or reducing the 3D-day waiting period.

6A-16


29/41

Talking Points - Charter Exploratory CommitteePage 3

Charter cities are exempt from the requirement that their zoning be consistent with thegeneral plan.Current Scenario: Presently zoning is required to be consistent with the generalplan, thus changes to a general plan may require changes to zoning. For example, ifthe general plan is amended to state that community gardens should be encouragedon underutilized land, then the zoning code must be amended to include communitygardens as a permitted use in vacant lots.Charter Scenario: Using the above example, community gardens would not need tobe a permitted use in vacant lots even though the general plan may encouragecommunity gardens on underutilized land.Note: The City's obligation to provide affordable housing would remain unchanged ineither 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 fillingunscheduled 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 thestate's four established election days, which shall be no later than 114 days of thecall for election. These stand alone elections can cost approximately $125,000.Charter Scenario: The City Council may establish its own procedure for fill ingvacancies including conducting the election by a mail-in ballot which could save theCity over $100,000 per election.

Charter cities may enact procedural ordinances for assessment district formation andfinancing that general law cities cannot do outside the procedures established by statelaw.Current Scenario: Presently the City may create assessment districts to fund certainfacilities such as enhanced lighting or landscaping for high-profile areas. Under theassessment district, the property owners which benefit from the enhancement wouldpay for the facilities. The property owners would need to vote to approve theassessment district under the provisions of Proposition 218.Charter Scenario: The City would be able to create assessment districts as outlinedabove; however, the City would be able to create assessment districts for a broaderrange of reasons, such as for maintenance of high-profile streets or maintenance ofcity-owned buildings. For example, if the City took ownership of Beach Boulevard,an assessment district could be created for maintenance of the street and forenhanced improvements, such as a pedestrian bridge. With either scenario, theaffected property owners would need to vote to approve the assessment underProposition 218.

6A-17


30/41

Talking Points - Charter Exploratory CommitteePage 4 Charter cities are not restricted from expending public funds for a private purpose andare not prohibited from providing gifts of public funds.

Current Scenario: Presently public funds must be expended for public or municipalpurposes, and not for a private purpose. The City is also prohibited from providingpublic funds to a private party if the City receives no consideration in exchange forthe expenditure.Charter Scenario: The City would be able to expend or give public funds for aprivate purpose. For example, the City would have more authority to assist indisaster relief, such as contributing to the relief fund for Katrina, 9-11, and the wildfires. The City could provide City equipment or workforces to assist private partieswith rebuilding a private property after a disaster. Additionally, the City could donateold unwanted equipment (such as computers, air conditioning units, vehicles) to localorganizations or businesses.

6A-18


31/41

Exhibit 7: WORK PLANCHARTER 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 CompletedExploratory Committee. Marshall I McCay 13-Nov-07Step 2 The two council members make recommendations for the citizen Completedappointments. Each council member selects one member to appoint to 8-Jan-08the Committee.Step 3 City Council approves resolution establishing the Charter Exploratory CompletedCommittee and officially appoints committee members. 22-Jan-08Step 4 Charter Exploratory Committee meets to: 1) receive City Attorney Completedexplanation and review the function of a City Charter; 2) review and make 25-Feb-08i ts recommendation on the proposed charter language; 3) Develop talkingpoints regarding the advantages and disadvantages of a City Charter.Step 5 Charter Exploratory Committee: 1) develops a plan for soliciting citizen Completedinput; and 2) meets with service organizations and citizens groups to Mar 08 - May 08provide information and receive feedback.Step 6 Charter Exploratory Committee meets to summarize input received and to Completedformulate a recommendation for City Council. 12-May-08Step 7 Charter Exploratory Committee presents its recommendation t o City CompletedCouncil in study session. 27-May-08Step 8 City Council calls for the General Municipal Election for City Council CompletedMembers and City Charter Ballot Measure Election 10-Jun-08Step 9 Charter Exploratory Committee meets to prepare a written argument for Completedthe City Charter Ballot Measure 17-Jun-08

01103/08

6A-19


32/41

Exhibit 8: City of Buena Park Charter City v. General LawShalice Reynoso, Buena Park City Clerk, served as the Management Team Leader for theBuena Park City Charter Exploratory Project. Following is an overview of the action taken frominception to a General Municipal Election on November 4, 2008.

ACTIONS TAKEN BY CITY CHARTER EXPLORATORY PROJECTCITY OF BUENA PARK

04-Nov-2008 Election - Measure P to Adopt a City Charter01-0ct-2008 Publication of Measure P Home Rule Brochure Mailed to Registered Voters01-Aug-2008 Broadcast of Cable Television Announcement Re: Proposed City Charter01-Aug-2008 Broadcast of Cable Television Mayor's Show Re: Proposed City Charter01-Aug-2008 Publication of Buena Park Newsletter to all Residents Re: Proposed Charter01-Aug-2008 Publication ofWeb Page Re: Proposed City Charter01-Aug-2008 Press Release Re: Measure P Proposed City Charter17-Jun-2008 Charter Exploratory Ad Hoc Committee Prepares Written Argument10-Jun-2008 Public Meeting to Call for Election on City Charter Ballot Measure27-MaY-2008 Public Meeting to Receive Charter Recommendation and Provide Direction12-MaY-2008 Publication of Commonly Asked Questions & Responses Re: City Charter12-MaY-2008 Public Meeting to Formulate a Recommendation01-May-2008 Presentation to Traff ic and Transportat ion Commission with Q & A Session30-Apr-2008 Presentation at the Chamber Networking Breakfast with Q & A Session16-Apr-2008 Presentation to Elks Lodge with Q & A Session09-Apr-2008 Presentation to Planning Commission with Q & A Session01-Apr-2008 Presentation to Optimist Club of Buena Park with Q & A Session01-Apr-2008 Presentation to CAPs Buena Park Police Volunteers with Q & A Session01-Apr-2008 Presentation to Buena Park Foundation with Q & A Session27-Mar-2008 Presentation to Beautif ication Commission with Q & A Session27-Mar-2008 Presentation to Buena Park Police Association with Q & A Session27-Mar-2008 Presentation to Senior Commission with Q & A SessionCity of Buena Park: Charter City v. General Lawby Shalice Reynoso, MMC Page 1

6A-20


33/41

26-Mar-2008 Presentation to Soroptimist with Q & A Session20-Mar-2008 Presentation to Park and Recreation Commission with Q & A Session20-Mar-2008 Presentation to Buena ParkWoman's Club with Q & A Session19-Mar-2008 Presentation to Fine Arts Commission with Q & A Session19-Mar-2008 Presentation to Rotary Club of Buena Park with Q & A Session18-Mar-2008 Presentation to Senior Club with Q & A Session10-Mar-2008 Presentation to BP Historical Society with Q & A Session07-Mar-2008 Presentation to American Legion with Q & A Session06-Mar-2008 Presentation to Chamber Legislative Network with Q & A Session04-Mar-2008 Presentation to Noon Lions Club with Q & A Session28-Feb-2008 Presentation to Cit izens Advisory Committee with Q & A Session25-Feb-2008 Public Meeting to Review Charter Function & Develop Outreach Strategy01-Feb-2008 Publication of Charter City v. General Law Tri-Fold Brochure01-Feb-2008 Preparation of Sample Script for Charter Exploratory Committee Members28-Jan-2008 Announcement on City of Buena Park Website28-Jan-2008 Press Release sent to LA Times, OC Register, BP Independent24-Jan-2008 Article Submitted for Buena Park Today Re: Formation of Committee22-Jan-2008 Public Meeting to Establish Committee and Off icially Appoint Committee08-Jan-2008 Public Meeting to Discuss Committee Structure and Appointments to Committee13-Nov-2007 Public Meeting to Appoint Council Members to Committee & Discuss Structure01-Aug-2007 Preparation ofWork Plan for Proposed Charter Exploratory Committee06-May-2007 Public Meeting to Review Statistics, Election, and Legal Costs23-Jan-2007 Public Meeting to Review Advantages and Disadvantages of Charter City01-Sep-2006 Review with Legal Counsel-City Attorney and Labor Attorney01-Sep-2006 Research Re: Other City Charters and Ballot Measures26-Aug-2006 Public Meeting to Establish Strategic Goals-City Charter Identified as Goal01-Jul-2006 Preparation of Talking Points Re: Characteristics of Charter CitiesCity of Buena Park: Charter City v. General Lawby Shalice Reynoso, MMC Page 2

6A-21


34/41

City of Buena Park: Charter City v. General Lawby Shalice Reynoso, MMC Page 3

6A-22


35/41

Exhibit 9:RESOLUTIONNO. 12014

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OFBUENA PARK, CALIFORNIA, ESTABLISHING ANDDEFINING THE SCOPE OF THE CHARTER EXPLORATORYCOMMITTEE

WHEREAS, the City Council has provided direction to establish an exploratorycommittee to consider the Charter City vs. General Law forms ofgovernment;NOW, THEREFORE, the City Council of the City of Buena Park does hereby establishthe scope and characteristics of the Charter ExploratoryCommittee as set forth herein.Section 1: Specific Tasks and Objectives

1. Research and enumerate the advantages and disadvantages of the GeneralLaw vs. the City Charter forms of government;2. Make recommendations on proposed charter language;3. Develop and execute a plan for soliciting citizen input; and4. Make recommendation to City Council on a ballot measure to enact a CityCharter.

Section 2: Committee TypeThe committee type shall be ad hoc.

Section 3: CompositionThe committee shall consist of seven members, two of which are City CouncilMembers and five ofwhich are residents.

Section 4: QualificationsEach member of the Committee must be at least 18 years of age, reside in theCity, and be registered to vote.

Section 5: Appointment and TermEach member of the City Council shall appoint one resident member to theCommittee. Each resident member shall serve at the pleasure of his or her appointing CouncilMember. The Committee will terminate onNovember 4, 2008.

R6876-0001\1239073vl.doc

6A-23


36/41

Section 6: Support to the CommitteeStaffsupport shall be provided to the Committee as determined appropriate by theCity Manager.

Section 7: MeetingsThe Committee shall meet on a date and time selected by the members of theCommittee. The meetings shall be noticed pursuant to the Brown Act.

Section 8: ReportingMinutes of the Committee shall be prepared by staff designated by the CityManager and shall be a public record, filed with the City Clerk.PASSEDAND ADOPTED this 22nd day of January 2008 by the following calledvote:

AYES: COUNCILMEMBERS:NOES: COUNCILMEMBERS:ABSENT: COUNCILMEMBERS:ABSTAIN: COUNCILMEMBERS:

ATTEST:

City Clerk

Marshall, McCay, Berry, DowNoneNoneNone

Mayor

I, Shalice Reynoso, City Clerk of the City of Buena Park, California, hereby certify thatthe foregoing resolution was duly and regularly passed and adopted at a regular meeting of theCity Council of the City ofBuena Park, held this 22nd day of January 2008.

City Clerk

2R6876-0001\1239073vl.doc

6A-24


37/41

Exhibit 10:

Meeting Date:To:Title:

No. _STUDY SESSIONAGENDA REPORT TO CITY COUNCIL

January 23, 2007The Mayor and City CouncilThe Advantages and Disadvantages of Charter vs. General Law Cities

At its strategic planning session, the City Council requested additional information regarding theadvantages and disadvantages of becoming a charter city. A city charter is a unique document that, inmany 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 affairsinclude:

Methods and Procedures for Public ContractsLand Use and Zoning DecisionsMunicipal ElectionsMethod for Enacting Local OrdinancesProcedures for Initiative, Referendum and RecallAppointment, Compensation and Termination of City EmployeesProcedures for Issuing Building PermitsImprovement of Municipal StreetsEstablishment and Maintenance of Sewer DrainsStatewide Concerns. Charter cities are still subject to state law on non-municipal affairs that are ofstatewide concern. Statewide concerns include:

California Vehicle CodeThe Brown ActThe Public Records ActFranchises for TelephoneClaims Against a Public EntityExercise of Power of Eminent DomainAdvantages. City charters allow cities to tailor their organizations based upon the unique localconditions 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.

6A-25


38/41

Page 2Meeting Date:Subject:STUDY SESSION - AGENDA REPORT TO CITY COUNCILJanuary 23, 2007The 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'svoters. Because a city charter is not required to have any particular provision, it would be advisable forthe City to reserve for itself the greatest amount of power it can when it adopts a charter. This allowsthe City to adopt most of its regulations by ordinance or resolution so that charter amendments are notnecessary. 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 becominga charter city and gives general information about the advantages and disadvantages. Also attached isa table which provides a side-by-side comparison of general law vs. charter city characteristics. TheCity Attorney will be present at the study session to answer specific questions as they relate to the Cityof Buena Park.Prepared by: Approved:

City Clerk Rick Warsinski, City Manager

Attachments: Memorandum from Steven L. DorseyTable Re: Characteristics of General Law vs. Charter Cities

6A-26


39/41

"We the people o f the City of Buena Park declare our intent torestore to our community the historic principles of selfgovernance inherent in the doctrine of home-rule. Sincerelycommitted to the belief that local government has the closestaffinity to the people governed, and f irm in the conviction thatthe economic and fiscal independence of our local governmentwill promote the health, safety and welfare ofall the citizens ofthis City, we do hereby exercise the express rightgrantedby theConstitution o f the State of California to enact and adopt thisCharter fo r the City ofBuena Park. "

Preamble of the Charter of the City of Buena Parkadopted Nov. 4. 2008

The people of the City of Buena Park, by a majority of the votes cast, adopted its Charter of theCity of Buena Park at the general municipal election held November 4, 2008. The results ofsuch election were certified by the City Council of the City of Buena Park through adoption of itsResolution No. 12164.

BackgroundIn August 2006, the City Council developed a strategic plan to enhance the quality of life for itsresidents. One of the top ten priorities established in the strategic plan was to study adopting acharter 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 notneed to follow, in areas such as construction contracts, elections, and spending public funds. Acharter transfers the power to adopt legislation affecting municipal affairs from the statelegislature to the city. A city operating under a charter can acquire full control over its municipalaffairs. Areas of statewide concern which cannot be governed by a city charter include trafficlaws, affordable housing obligations, and claims against a public agency.Draft City CharterAt the City Council's direction, the City Clerk and City Attorney drafted a simplified-form citycharter which reserves for the City broad jurisdiction and avails itself of the full power providedto charter cities by the State Constitution. The draft city charter proposed no changes to the

6A-27

EXHIBIT 11


40/41

government structure and no changes to existing city laws or regulations. Any future changesto laws and regulations would be made by ordinances or resolutions by the City Council afteradoption of the charter.Charter Exploratory CommitteeTo facilitate input from the public on the issue, the City Council appointed a Charter ExploratoryCommittee to study the practicability of adopting a charter form of government and to solicitinput from the public. The Charter Exploratory Committee consisted of five Buena Parkresidents 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. theCity Charter forms of government;

2) Make recommendations on proposed charter language;3) Develop and execute a plan for soliciting citizen input; and4) 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 twentycommunity and service organizations. In addition to these community presentations, the publicoutreach campaign also included development and distribution of an informational brochure,press releases, information on the City's website, a cable television show featuring the CharterExploratory Committee's work plan, and announcements on cable television. The Committeereviewed the public input received and discussed specific questions and responses exchanged.Prevailing Wages ConcernAt the May 12 meeting of the Charter Exploratory Committee, approximately 500 members ofvarious building and construction unions attended, and the Committee received public testimonyfrom approximately 30 union members requesting that consideration be given to including thefollowing language in the proposed charter:

The provisions of California Labor Code Section 1770 et. seq. regarding prevailingwages on public works and related regulations, as now existing and as may beamended, 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 publicworks projects and unanimously supported including language in the draft city charter.Recommendation of the Charter Exploratory CommitteeFollowing its review and analyses of public input, the Charter Exploratory Committee made thedetermination that it is in the best interest of the City to operate under a city charter andformulated a recommendation that the City Council place a ballot measure on the ballot for theNovember 2008 general municipal election. The Committee supported a simplified-form charterdocument which reserves for the city the broadest power it has under the California state

2

6A-28


41/41

constitution to implement home rule. On May 27, the City Council received and supported theCommittee's recommendation with inclusion of language making prevailing wages applicable forall City public works projects.Ratification and AdoptionA general municipal election was held November 4, 2008, for the purpose of submitting to theelectorate Measure P - An Initiative to Adopt a Charter City Form of Government. The wholenumber of ballots cast on the measure was 22,436, with 13,129 in favor and 9,307 against. Atits December 9, 2008, meeting, the City Council certified the statement of vote, and the charterwas deemed ratified and adopted.

June 29 2010 staff report on RPV becoming a charter city

Documents

Transcript of June 29 2010 staff report on RPV becoming a charter city