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CC 2014-06-24_09.a. Proposed City Charter on November BallotMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER, SUBJECT: CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIED VOTERS DATE: JUNE 24, 2014 RECOMMENDATION: It is recommended the City Council: 1) adopt a Resolution ordering the submission to the qualified voters of the City a measure relating to the adoption of a City Charter at the General Municipal Election to be held on Tuesday, November 4, 2014, as called by Resolution No. 4596; 2) adopt a Resolution setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis; 3) adopt a Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; 4) approve the argument to be submitted in favor of the measure; and 5) appropriate $5,000 from the General Fund unappropriated fund balance for election and public education costs. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost of placing the measure on the November ballot is estimated to be approximately $3,000. It is recommended that an additional $5,000 be appropriated for costs related to preparing, printing and distributing public educations materials. If successful and if the recently adopted statute known as SB7, which is now codified as Labor Code Section 1782 (Chapter 794, Statutes of 2013) is ultimately invalidated, it is estimated that the measure could result in savings of $50,000 to $200,000 annually. Public education activities will require a substantial amount of staff time. However, it was identified in the City's major citywide goals for FY 2013-14. BACKGROUND: In California, there are two types of cities-general law cities and charter cities. The authority of a general law city is derived from the powers granted to it by the general laws adopted by the State Legislature and from the police power granted to it by the State Constitution. A charter city derives its powers directly from the State Item 9.a. - Page 1 CITY COUNCIL CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIED VOTERS JUNE 24, 2014 PAGE2 Constitution, subject to enactments of the legislature on matters of statewide concern. Charter cities maintain authority over matters determined to be municipal affairs. A charter is a set of bylaws, which acts as a local constitution for the city. Pursuant to State Law, a charter may only be adopted, amended or repealed by a majority vote of the City's residents (reference Government Code Sections 34450 et seq.). The City of Arroyo Grande is currently a general law city. There are over 120 charter cities in California, which amounts to more than 25%. This will be the fifth public hearing held to discuss placing a city charter on the ballot beginning in 2012. In 2013, a Citizens Advisory Committee was appointed to increase public input and develop recommendations on the charter, as well as whether to proceed with the process. Seven committee meetings were held. All meetings were open to the public, publicly noticed, and a number of individuals attended the meetings and provided input. The purpose of the makeup of the committee was to provide a broad range of community representation. As a result, the City Charter Advisory Committee included the following individuals and representation: Judith Bean Tom Goss Patricia Hardy Vard Ikeda Kirk Scott Randy Steiger Bob Lund Zachary Hall Andrea Montes Duke Sterling John Keen Chamber of Commerce Representative Arroyo Grande in Bloom Representative Rotary/Kiwanis Representative Agriculture Representative South County Historical Society Representative Village Improvement Association Representative Mayor Ferrara Appointee Council Member Guthrie Appointee Council Member Costello Appointee Council Member Brown Appointee Former Council Member Ray Appointee The City Charter Advisory Committee recommended the City Council proceed to place a measure on the November 4, 2014 ballot to consider the proposed City Charter as drafted. The recommendations were presented to the Council at the January 14, 2014 meeting. The Council made minor modifications and directed staff to proceed with the process by scheduling the second public hearing, which was held on April 8, 2014 following distribution of a public education mailer to all residents and businesses in the City. Two additional minor modifications were made to the draft Charter at that meeting. First, language in the Elections provisions of the Charter (Section 205) was modified Item 9.a. - Page 2 CITY COUNCIL CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIED VOTERS JUNE 24, 2014 PAGE 3 to clarify that while the Council may use a mail-in ballot or electronic voting systems for special elections, the Charter can only be amended by a vote of the people at a Statewide General Election. Second, Prevailing Wage provisions (Section 302) were modified to clarify that criteria and guidelines for determining when payment of prevailing wages will apply would be established by Council by ordinance. Once again, these provisions would only apply if Labor Code Section 1782 (Chapter 794, Statutes of 2013) is invalidated by the courts. Both of these changes have been made to the final proposed Charter. ANALYSIS OF ISSUES: Purpose The California Constitution vests charter cities with authority over municipal affairs, significantly strengthening their home rule. There is no precise definition of the term "municipal affair." Whether a given activity is a municipal affair over which a charter city has sovereignty or a statewide concern over which the legislature has authority is a question of law. A charter city has many options when considering how to handle municipal affairs. Activities which the courts have determined are municipal affairs include, but are not limited to, the following: 1. Construction and maintenance contracting; 2. Land use; 3. City finances; and 4. City government structure. By adopting a charter, the City will have far greater flexibility in the operations of its municipal government, which, if properly utilized, can translate to greater efficiency, effectiveness and innovation. Process Government Code Section 34458(b) requires that two public hearings be held prior to ' placing a city charter measure on the ballot. Two required public hearings were held during the original effort. However, given the change in the process, changes to the recommended City Charter, and the time that has lapsed since it was last discussed, staff recommended the process start again. Both of the required public hearings have been held, which were on January 14 and April 8, 2014. SB 311 (Chapter 184, Statutes of 2013), which was recently approved by the State Legislature and signed by the Governor, amended Government Code Sections 34457 and 34458 and now requires any proposed city charter to be placed on the ballot of a statewide general election. Item 9.a. - Page 3 CITY COUNCIL CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIED VOTERS JUNE 24, 2014 PAGE4 A number of actions have been prepared for Council consideration. These include adopting a Resolution placing the measure on the ballot, a Resolution setting priorities for filing written arguments regarding the measure and directing the City Attorney to prepare an impartial analysis, a Resolution providing for the filing of rebuttal arguments, and approving the argument in favor of the measure. Prevailing Wage The most significant item involving the charter is the issue of prevailing wage requirements. A number of representatives from various labor union organizations spoke at City Charter Advisory Committee meetings and at the City Council public hearings in opposition to any provisions modifying State prevailing wage requirements. The proposed City Charter would not prohibit or preclude requirements to pay prevailing wage on public works projects. It would simply provide the City Council the authority to make that determination rather than the State Legislature. The purpose of providing increased flexibility to the City on prevailing wage requirements is to ensure projects are constructed in the most cost effective manner. The proposed language would enable the City Council to establish guidelines whereby prevailing wage requirements could be applied when determined to be in the best interest of the City and also waived when determined to be more cost efficient for other projects. SB 7 On July 2, 2012, the California Supreme Court issued its decision in State Building and Constructions Trades Councils of California, AFL -CIO v. City of Vista. The court held that locally funded public works projects performed by chartered cities are municipal affairs under the California Constitution and, as a result, the wages paid to workers on charter city projects are not subject to California's prevailing wage law. Shortly following the ruling, the State legislature proposed and later approved SB 7, now Labor Code Section 1782 (Chapter 794, Statutes of 2013). The law prohibits a charter city from receiving or using State funding or financial assistance for a construction project if the city has a voter-approved charter provision or ordinance that authorizes a contractor to not comply with State prevailing wage requirements on local construction projects funded by (non-State) city funds. The bill is now being contested in court (City of El Centro v. Lanier). Due to its inconsistency with the City of Vista ruling, the City Attorney's Office review concluded that it is likely to be invalidated. However, it could take several years before the constitutionality of SB 7 is finally decided by the courts. Therefore, language has been provided in the proposed City Charter provisions regarding prevailing wage so that they will take effect only if SB 7 is found to be invalid by the courts. Item 9.a. - Page 4 CITY COUNCIL CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIED VOTERS JUNE 24, 2014 PAGES Public Works Contracts The City Charter Advisory Committee determined there are benefits of utilizing the State Public Works Contract Code to avoid the need by the City to entirely establish its own policies and procedures. As a result, rather than exempting the City from the entire State Public Works Contract Code, they instead recommended language that would authorize the City to establish its own standards, procedures, rules or regulations for those areas where staff identified it could result in significant improvements. These areas include the ability to establish the City's own criteria for determining award of public works contract bids, to accept gifts and donations of material or labor, and to use in-house staff or coordinate with other public agencies to construct public works projects. These changes would better enable the City to reject bids from contractors with a history of low quality work, more easily accept work provided by local contractors at reduced rates as part of community project efforts, and to construct small scale projects more efficiently. City Council Salaries A common concern of city charter measures and a claim made in a mailer to Arroyo Grande residents by opponents to the City Charter is that it would enable council members to raise their own pay. This is due partly to the fact that the City of Bell used their city charter to help carry out their salary increase abuses. The proposed City Charter addresses this through Section 204, which states that the salary of the Mayor and Council Members shall continue to be set pursuant to the State law applicable to general law cities. Therefore, there will be no change. Tax Increases Another concern stemming from abuses in the City of Bell is the ability of charter cities to increase taxes. This is also addressed in the proposed City Charter in Section 102, which specifies that the City Charter does not provide any authority for new or increased taxes beyond that provided to general law cities. Public Education It is proposed to distribute an additional informational flyer that will be produced in- house by staff. Staff will also be available to speak to service clubs and community groups and information will be placed in the City newsletter, website and cable television channel. Ballot Question Staff researched the wording of a number of ballot questions used by other jurisdictions. The recommended language is as follows: Shall the charter be adopted making the City of Arroyo Grande a charter city so that the laws of the City of Arroyo Grande shall prevail over state law with respect to municipal affairs? Item 9.a. - Page 5 CITY COUNCIL CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIEp VOTERS JUNE 24, 2014 PAGES Staff felt this language is descriptive, accurate and impartial. Other common variations that are alternatives include the following: • Shall the proposed City charter of the City of Arroyo Grande be adopted? • Shall the City of Arroyo Grande become a charter city by adopting a charter to give it full home-rule powers under the State Constitution? • Shall the City of Arroyo Grande be changed from a general law city to a charter city through the adoption of the charter proposed by Resolution No. __ of the Arroyo Grande City Council? ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Approve staff's recommendations; 2. Modify the ballot question; 3. Modify the ballot argument; 4. Delay placing the Charter on the ballot until court rulings involving SB 7 are completed; 5. Direct staff to remove the prevailing wage section from the proposed City Charter and proceed to place it on the ballot; 6. Direct staff to remove the prevailing wage section and propose it as a separate measure on the ballot or on the ballot at a subsequent election; 7. Make other changes to the draft City Charter and direct staff to proceed; 8. Direct staff to take no further action on the charter measure; or 9. Provide staff other direction. ADVANTAGES: Adopting the proposed City Charter would increase the City's autonomy from the State; may enable the City to reduce the costs of capital and other improvements in the future; would increase the City's ability to award bids only to competent contractors; and would increase the ability to utilize in-house staff, volunteers and contractors donating work on projects. Proceeding at this time may enable the City Council to adopt its own guidelines on when to require prevailing wage rates, subject to a final court ruling that SB 7 is invalid. DISADVANTAGES: There are costs and staff time associated with placing a city charter measure on the ballot and educating the public. There will likely be strong organized opposition from labor union organizations based on prior feedback. In addition, it will be challenging to educate the public on the benefits of becoming a charter city. ENVIRONMENTAL REVIEW: No environmental review is required for this item. Item 9.a. - Page 6 CITY COUNCIL CONSIDERATION OF PLACING A PROPOSED CITY CHARTER ON THE BALLOT AT THE NOVEMBER 4, 2014 ELECTION FOR CONSIDERATION BY QUALIFIED VOTERS JUNE 24, 2014 PAGE 7 PUBLIC NOTIFICATION AND COMMENTS: Pursuant to Government Code Sections 34458 and 6066, the City Council held two (2) noticed public hearings on January 14, 2014 and April 8, 2014 to consider the proposed Charter and the content of the proposed Charter. A notice of public hearing for this meeting to consider the proposed Charter was published in The Tribune on Friday, May 30, 2014. No written public comments have been received. Attachment: 1 . Proposed City Charter 2. Proposed Ballot Argument Item 9.a. - Page 7 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ORDERING THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY A MEASURE RELATING TO THE ADOPTION OF A CITY CHARTER AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2014, AS CALLED BY RESOLUTION NO. 4596 WHEREAS, a General Municipal Election on November 4, 2014 has been called by Resolution No.4596 adopted on June 10, 2014; and WHEREAS, the City Council also desires to submit to the voters at the election a question relating to the adoption of a City Charter. NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Arroyo Grande does resolve, declare, determine, and order as follows: SECTION 1. That the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election the following question: CITY OF ARROYO GRANDE MEASURE Yes - Shall the charter be adopted making the City of Arroyo No Grande a charter city so that the laws of the City of Arroyo Grande shall prevail over state law with respect to municipal affairs? SECTION 2. That the full text of the proposed Charter to be submitted to the voters is attached hereto as Exhibit A. SECTION 4. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by State law for holding municipal elections. SECTION 5. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member _____ , seconded by Council Member ____ , and on the following roll call vote: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this_ day of ___ , 2014. Item 9.a. - Page 8 RESOLUTION NO. PAGE2 TONY FERRARA, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY -___ _j Item 9.a. - Page 9 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a General Municipal Election is to be held in the City of Arroyo Grande, California, on November 4, 2014, at which there will be submitted to the voters the following measure: CITY OF ARROYO GRANDE MEASURE Yes Shall the charter be adopted making the City of Arroyo Grande a charter city so that the laws of the City of Arroyo Grande shall prevail over No state law with respect to municipal affairs? NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That the City Council, being the legislative body of the City of Arroyo Grande, hereby authorizes ALL members of the City Council, to file a written argument in favor of the City measure not exceeding 300 words, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California. The argument may be changed or withdrawn until and including the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. The arguments shall be filed with the City Clerk, signed, with the printed names and signatures of the authors submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. SECTION 2. That the City Council directs the City Clerk to transmit a copy of the measure to the City Attorney, unless the organization or salaries of the Office of the City Attorney are affected. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. If the measure affects the organization or salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments. Item 9.a. - Page 10 RESOLUTION NO. PAGE 2 SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion by Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this __ day of June, 2014. Item 9.a. - Page 11 RESOLUTION NO. PAGE3 TONYFERRARA,MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 9.a. - Page 12 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Section 9285 of the Elections Code of the State of California authorizes the City Council by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for City measures submitted at municipal elections. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That pursuant to Section 9285 of the Elections Code of the State of California, when the City Elections Official has selected the arguments for and against the measure which will be printed and distributed to the voters, the City Elections Official shall send a copy of an argument in favor of the measure to the authors of any argument against the measure, and a copy of an argument against the measure to the authors of any argument in favor of the measure, immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a City measure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five authors. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for City measures are repealed. SECTION 3. That the provisions of Section 1 shall apply only to the election to be held on November 4, 2014, and shall then be repealed. SECTION 4. That the City Clerk shall certify to the. passage and adoption of this Resolution and enter it into the book of original Resolutions. Item 9.a. - Page 13 RESOLUTION NO. PAGE2 On motion of Council Member , seconded by Council Member _____ , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this_ day of June, 2014. Item 9.a. - Page 14 RESOLUTION NO. PAGE 3 TONYFERRARA,MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Item 9.a. - Page 15 ATTACHMENT 1 CHARTER OF THE CITY OF ARROYO GRANDE ARTICLE I. MUNICIPAL AFFAIRS ARTICLE II. FORM OF GOVERNMENT ARTICLE Ill. CONTRACTS, PUBLIC FINANCING AND FRANCHISES ARTICLE IV. REVENUE RETENTION ARTICLE V. GENERAL LAWS ARTICLE VI. INTERPRETATION PREAMBLE DRAFT WE THE PEOPLE of the City of Arroyo Grande declare our intent to restore our community to the historic principles of self-governance inherent in the doctrine of home- rule. Sincerely committed to the belief that local government has the closest affinity to the people governed, and firm in the conviction that the economic and fiscal independence of our local government will promote the health, safety and welfare of all the citizens of this City and better preserve its small town character and agricultural heritage, we do hereby exercise the express right granted by the Constitution of the State of California to enact and adopt this Charter for the City of Arroyo Grande. ARTICLE I. MUNICIPAL AFFAIRS Section 100. Municipal Affairs. The City shall have full power and authority to adopt, make, exercise and enforce all legislation, laws, and regulations and to take all actions relating to municipal affairs, without limitation, which may be lawfully adopted, made, exercised, taken or enforced under the Constitution of the State of California. Without limiting in any manner the foregoing power and authority, each of the powers, rights, and responsibilities described in this Charter is hereby declared to be a municipal affair, the performance of which is unique to the benefit and welfare of the citizens of the City of Arroyo Grande. Section 101. Incorporation and Succession. The City of Arroyo Grande, in the County of San Luis Obispo, State of California, shall continue to be a municipal corporation under its present name City of Arroyo Grande. The boundaries of the City of Arroyo Grande shall continue as now established until changed in the manrier authorized by law. The City of Arroyo Grande shall remain vested with and shall continue to own, have, possess, control and enjoy all property, rights of property and rights of action of every nature and description owned, had, possessed, controlled or enjoyed by it at the time this Charter takes effect, and is hereby declared to be the successor of same. It shall be subject to all debts, obligations and liabilities, which exist against the municipality at the time this Charter takes effect. All lawful ordinances, 1 Item 9.a. - Page 16 DRAFT resolutions, rules and regulations, or portions thereof, in force at the time this Charter takes effect and not in conflict with or inconsistent herewith, are hereby continued in force until the same have been duly repealed, amended, changed or superseded by . proper authority. Section 102. No Increased Power to Tax. This Charter shall not be interpreted as giving the City greater authority to raise the level of taxes or to create new taxes beyond the powers granted to general law cities nor to exempt the City from any procedures for raising the level of taxes or for creating new taxes required by the law applicable to general law cities. Section 103. Zoning and General Plan Consistency. Zoning shall continue to be to be consistent with the City's General Plan, pursuant to requirements of the State law applicable to general law cities. ARTICLE II. FORM OF GOVERNMENT Section 200. Form of Government. The City shall continue to be governed under this Charter by a "Council-Manager" form of government. The City Council will establish the policy of the City and the City Manager will carry out that policy. Section 201. Elected Officials. The elective officers of the City of Arroyo Grande shall be a Mayor and four Council members each of whom, including the Mayor, shall have the right to vote on all questions coming before the Council. The minimum qualifications for these offices shall be as provided by law for general law cities and any vacancy in office shall be filled in the manner provided by that law. The Mayor shall be elected at the general municipal election from the City at large. The Council members shall be elected at the general municipal election from the City at large, two being selected biennially. The term of the Mayor shall be two years and the terms of the Council members shall be four years. Section 203. Mayor. Powers and Duties. The Mayor shall preside at all meetings of the City Council. As presiding officer of the Council the Mayor will faithfully communicate the will of the Council majority to the administrative officers in matters of policy. The Mayor shall be recognized as the official head of the City for all ceremonial purposes. Section 204. Council Member Compensation. The salary of the Mayor and Council Members shall continue to be set pursuant to the State law applicable to general law cities. Section 205. Elections. The City Council may approve by ordinance use of a mail-in ballot or other electronic voting systems for special elections, except that this Charter shall only be amended by a vote of the people at a Statewide General Election. All elections shall be held in accordance with all other provisions of the law applicable to general law cities. 2 Item 9.a. - Page 17 DRAFT ARTICLE Ill. CONTRACTS, PUBLIC FINANCING AND FRANCHISES Section 300. Economic and Community Development. The City shall encourage, support, and promote economic and community development and preserve and enhance the small-town and historic character of Arroyo Grande. Section 301. Public Works Contracts. Th'e City shall follow the provisions of the California Public Contract Code and its standards, procedures, rules or regulations relating to the bidding, award and performance of any public works contract, except that the City shall have the power to establish by ordinance alternative standards, procedures, rules or regulations for public projects in the following areas: (i) The City Council may, by ordinance, establish criteria for determining the award of public works contracts to the lowest responsible and most reliable bidder on any project, as well as other aspects of bidding, award and performance of any public works contract that it deems to be in the best interests of the City. (ii) The City shall have the power to accept gifts and donations, including donations of material and labor, in the construction of any public works project. (iii) The City shall have the power to perform any work of improvement by use of its own forces and is not required to contract for the construction of works of public improvement. (iv) The City may also contract with other public agencies for the construction of works of public improvement Section 302. Prevailing Wage. The City Council shall establish by Ordinance criteria and guidelines for determining when payment of prevailing wages will apply to any contract. Prevailing wages shall also apply if: (i) the prevailing wage is legally required, and constitutionally permitted, to be imposed; (ii) required by Federal or State grants pursuant to Federal or State law; (iii) the City Council does not consider the project to be a municipal affair. Section 303. Purchasing. The City shall have the power to establish standards, procedures, rules or regulations related to the purchasing of goods, property, or services, including, but not limited to, the establishment of local preferences. Section 304. Public Financing. The City shall have the power to establish standards, procedures, rules or regulations related to any public financing. Section 305. Utility Franchises. The City shall have the power to adopt any ordinance providing for the acquisition, development, or operation by the City of any utility, or to adopt any ordinance providing for the granting of a franchise to any utility not owned by the City which proposes to use or is using City streets, highways or other rights-of-way. 3 Item 9.a. - Page 18 DRAFT Section 306. Supporting Volunteers in Arroyo Grande The City seeks to support volunteers in creating a higher quality of life for Arroyo Grande citizens and declares itself exempt from any State laws or regulations that would make it more difficult or expensive for volunteers in any community project, whether funded with City revenues or not. Section 307. Section 302 and Labor Code Section 1782 Neither Section 302, nor any subsequently adopted ordinance, shall be interpreted or applied in any manner that would authorize any contractor to avoid compliance with the requirements of Article 2 of Chapter 1 of Part 7 of the California Labor Code, commencing with Section 1770, relating to the payment of prevailing wages on public works projects. Section 302 shall only be operative during such time that a court of competent jurisdiction enjoins the operation of Labor Code Section 1782 (Chapter 794, Statutes of 2013, also referred to as SB7), or a final decision has been rendered by a court of competent jurisdiction that Labor Code Section 1782 is invalid and unenforceable. After such a final decision has been rendered invalidating Labor Code 1782, this Section 307 shall no longer be operative and may be deleted from this Charter. ARTICLE IV. REVENUE RETENTION Section 400. Reductions Prohibited. Any revenues raised and collected by the City shall not be subject to subtraction, retention, attachment, withdrawal or any other form of involuntary reduction by any other level of government. Section 401. Mandates Limited. No person, whether elected or appointed, acting on behalf of the City, shall be required to perform any function which is mandated by any other level of government, unless and until funds sufficient for the performance of such function are provided by said mandating authority. ARTICLE V. GENERAL LAWS Section 500. General Law Powers. In addition to the power and authority granted by the terms of this Charter and the Constitution of the State of California, the City shall have the power and authority to adopt, make, exercise and enforce all legislation, laws and regulations and to take all actions and to exercise any and all rights, powers, and privileges heretofore or hereafter established, granted or prescribed by any law of the State of California or by any other lawful authority. In the event of any conflict between the provisions of this Charter and the provisions of the general laws of the State of California, the provisions of this Charter shall control. ARTICLE VI. INTERPRETATION Section 600. Construction and Interpretation. The language contained in this Charter is intended to be permissive rather than conclusive or limiting and shall be liberally and 4 Item 9.a. - Page 19 DRAFT broadly construed in favor of the exercise by the City of its power to govern with respect to any matter which is a municipal affair. Section 601. Severability. If any provision of this Charter should be held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. ARTICLE VII. AMENDMENTS Section 700. Amendments. Any proposal for the amendment, revision, or repeal of this Charter or any portion thereof may be proposed by majority vote of the City Council or by initiative by the People of the City of Arroyo Grande. No such proposal shall be effective until approved by a majority vote of the voters voting at an election on the question and until filed with the Secretary of State of the State of California. In the event of any conflict between this section and Article XI, § 3 of the California Constitution, as may be amended, the latter shall govern. Authentication And Certification Authenticated and certified to be a true copy by Mayor ____ and City Clerk __ Date of Municipal Election: ATTEST: Mayor City Clerk 5 Item 9.a. - Page 20 ATTACHMENT 2 ARGUMENT IN FAVOR OF MEASURE __ We, not the State, should decide what is in the best interest of our community. Your YES vote on Measure to approve a city charter will help increase local control and the principles of home rule and self governance. It will enable the City Council, not the State Legislature, to make decisions on issues that have been determined by the State Constitution and courts to be "municipal affairs". Each year, the State takes over $800,000 from our City to balance their budget and fund their own programs. They impose unfunded programs, infringe upon municipal affairs, and restrict contracting procedures that reduce the City's ability to utilize your tax dollars in the most cost efficient manner. It's imperative that we gain more control over our municipal affairs-and a Charter is the way Arroyo Grande can do that. Do not be misled. Voting YES on Measure will not change any other laws or ordinances and can only be modified by a public vote. Voting YES on Measure __ will not increase taxes or provide any additional authority to do so. Voting YES on Measure will not increase compensation for Council Members or provide any additional authority to do so. The proposed Charter was developed through an extensive public process to erisure it reflects the interests of the community. A Citizens' Advisory Committee of appointed representatives from the community at large developed recommendations after holding seven public meetings. The City Council then approved placing the proposed City Charter on the ballot following a process that involved five public hearings. Please join us in taking charge of our destiny by restoring local control over municipal affairs and enabling the City to operate as efficiently as possible. Join us in voting YES on Measure ---- Tony Ferrara, Mayor Jim Guthrie, Mayor Pro Tern Joe Costello, Council Member Tim Brown, Council Member Kristen Barneich, Council Member Item 9.a. - Page 21 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.a. - Page 22