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09.a. City Charter Ballot MeasureMEMORANDUM TO: CITY COUNCIL FROM: STEVEN ADAMS, CITY MANAGER @ SUBJECT: CONSIDERATION OF PROPOSED ClTY CHARTER BALLOT MEASURE DATE: APRIL 24,2012 RECOMMENDATION: It is recommended the City Council: 1) hold a public hearing on the proposed City Charter; 2) receive community comments and suggestions and provide direction on any changes to the first draft of the proposed charter; and 3) direct staff to proceed with the process of placing a measure on the ballot at the election to be held on November 6,2012 to approve a City Charter. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost of placing the measure on the November ballot is estimated to be approximately $5,000. If successful, it is estimated that the measure could result in savings of $50,000 to $200,000 annually. BACKGROUND: At the January 24" meeting, staff presented recorrlmendations to address the projected budget shortfall. One of the strategies was to place on the November 6" ballot a measure that would establish a City Charter. The City Council directed staff to prepare a draft Charter for City Council review and consideration. Staff has done a significant amount of research and compiled a variety of documentation, contacted other cities that have considered the matter, and obtained other charters to assist in developing a draft document. ANALYSIS OF ISSUES: Overview 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 Constitution, subject to enactmenis of the legislature on mahers of statewide Agenda Item 9.a. Page 1 CITY COUNCIL CONSIDERATION OF PROPOSED CITY CHARTER BALLOT MEASURE APRIL 24,2012 PAGE 2 concern. Attachment 2 includes a comparison of general law versus charter cities provided by the League of California Cities. A charter is a set of bylaws, which acts as a local constitution for the city. A charter may only be adopted, amended or repealed by a majority vote of the City's residents. 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%. Attachment 2 provides a list of charter cities in California as of 2008. Process A city charter can be either initiated by a city council or by the public. The city council may directly place the proposed charter on the ballot at a general or a special election. If the charter is proposed by the voters, the procedure is more cumbersome because two elections are required. The first election is necessary to establish a charter commission and the second to propose the actual charter. There are extensive special public hearing requirements to place a charter measure on the ballot. At least two public hearings must be held a minimum of 30 days apart, and the vote on whether to approve submission to the voters must be a minimum of 21 days after the second public hearing. Notice of each public hearing must be posted a minimum of 21 days prior to the meeting. The purpose of the first public hearing is to present a draft charter, obtain feedback regarding the proposed charter from the public and direction from the city council. The council can make changes to the proposed charter after the first public hearing and decide not to proceed at any point in the process. The final regular City Council meeting available to approve placing the measure on the November ballot is July 10" in order to meet the required deadline for submitting election materials to the County. The following schedule is proposed for the remaining two public hearings: June 12 Second public hearing July 10 Approval of submission of measure to the voters 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. Agenda Item 9.a. Page 2 ClTY COUNCIL CONSIDERATION OF PROPOSED ClTY CHARTER BALLOT MEASURE APRIL 24,201 2 PAGE 3 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. Draft City Charter The majority of the provisions in the draft charter consist of relatively standard language found in other charters throughout the State. Staff has intentionally attempted to keep the proposed Charter as simple and brief as possible. The most important provision establishes the authority of the City to develop its own standards and procedures for purchasing goods and services and for bidding and awarding public works contracts. This provides the City with the ability to forego State prevailing wage requirements when projects are funded entirely through locdl revenues. It should be noted that there is a pending State Supreme Court case being considered that could impact this provision. Staff anticipates this case will be decided prior to final consideration of placing the charter measure on the ballot. It is difficult to find recent detailed data or studies on the potential cost of State prevailing wage requirements. However, it is a generally accepted position among municipal agencies that costs increase anywhere from 5% to 30%, depending upon the amount and type of labor involved in a project. Staff surveyed all cities that have adopted charters since 2000. Almost all indicated that reducing construction costs was the primary purpose for the charter measure and have experienced positive results. No negative feed back was received. The most conclusive information was provided by the City of Dinuba, which established a charter in 1994. They bid a water tower project as non-prevailing wage and the cost increased by over 14% after they received grant funding and had to modify the contract to meet prevailing wage requirements. Another contract was estimated at prevailing wage prior to the measure, but they later received a bid for almost 24% less under non-prevailing wage rates. Lastly, Dinuba hired a consultant to survey other cities that had incorporated non-prevailing wage provisions into their charters. According to a communication obtained from Dinuba staff, "he found most cities saw a savings of between 20% and 30% on public works projects." Agenda Item 9.a. Page 3 CITY COUNCIL CONSIDERATION OF PROPOSED CITY CHARTER BALLOT MEASURE APRIL 24,2012 PAGE 4 When the City of Costa Mesa proposed their charter measure, their staff prepared a cost analysis of upcoming projects. Projected savings varied from 2.4% to 15.4%, with an average of 6.7%. To avoid any concerns by the public that adoption of a City Charter could lead to problems experienced by the City of Bell, special measures are recommended to specify that the Charter will not increase any power to tax by the City and City Council compensation will continue to be governed by the same State law provisions applied to general law cities. Language covering elections specifies that they will continue to be held in accordance with State Elections Code provisions applicable to general law cities. However, it also provides the City with the ability to make changes if adopted by ordinance. ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Approve staffs recommendations; 2. Make modifications and direct staff to proceed with the process; 3. Direct staff to take no further action on the charter measure; or 4. Provide staff other direction. ADVANTAGES: The City is facing difficult challenges and is attempting to respond to changing economic conditions in a proactive manner. To do this requires a period of reform. Adopting a charter is an important component of this reform effort because it will increase the City's flexibility and authority to determine the most cost effective approach to meeting the needs of the community. The most instrumental potential changes will fall within City's ability to establish its own policies for purchasing and contracting for public works projects. This can significantly reduce costs for public works projects that are funded exclusively through local revenues. It better enables the City to adopt policies that provide preferences for local vendors and contractors. It also provides more flexibility for the City to take advantage of projects funded and/or constructed by volunteers and volunteer groups utilizing local contractors donating services and supplies. Staff believes the ability to forego prevailing wage requirements will be most advantageous in addressing ongoing street improvement projects. When combined with other funding sources identified in the capital improvement program, this savings could provide the additional amount needed to budget ongoing funding necessary to fully fund the pavement management program. While no changes in election procedures are proposed at this time, the charter would provide greater flexibility that may be valuable in dealing with urgent situations that Agenda Item 9.a. Page 4 ClTY COUNCIL CONSIDERATION OF PROPOSED ClTY CHARTER BALLOT MEASURE APRIL 24,2012 PAGE 5 require a public vote. For example, decisions that would otherwise require waiting for a general election or paying for an expensive special election could potentially be addressed through a mail-in election that could result in tremendous savings. Lastly, despite other protections, the State finds ways to take actions restricting local land use policies, requiring unfunded andlor unnecessary State mandates, and impacting City finances. While most of these apply to charter cities, adopting a charter would provide additional protections that may enable the City to avoid measures inconsistent with the community's interests in some cases. DISADVANTAGES: There are arguments that the quality of work decreases when prevailing wage rates are not paid. However, it is important to emphasize that establishing a City Charter does not require the City Council to forego prevailing wage requirements. It may be determined that prevailing wage rates would be desirable for projects with specialized and technical requirements, as well as other projects. If approved, staff would recommend deleting prevailing wage requirements on a pilot basis to evaluate the results. Since projects receiving grant assistance would continue to be subject to prevailing wage laws, it will also provide an ongoing basis for comparison. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: Pursuant to Government Code Section 34458(b), a Notice of Public Hearing was posted on April 3, 2012 at three (3) public places: City Hall, the Fire Cities Fire Authority, and the Elm Street Community CenterIRecreation and Maintenance Services Ofice. The Notice was also published in The Tribune on Friday, April 6, 2012 and Friday, April 13, 2012 and posted on the City's website. Attachment: 1. Draft City Charter 2. General Law City v. Charter City 3. List of Charter Cities Agenda Item 9.a. Page 5 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 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, 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 manner 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, Agenda Item 9.a. Page 6 Attachment 1 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. The citizens of Arroyo Grande, being ever mindful of the increasing tax burden upon them, confer no increased power to tax upon the City. The City of Arroyo Grande shall have only that power to tax allowed to general law cities. AR'I'ICLE 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 law applicable to general law cities. Section 205. Elections. Unless otherwise provided by ordinance hereafter enacted, all elections shall be held in accordance with the provisions of the Elections Code of the State of California applicable to general law cities, as the same now exists or may hereafter be amended. ARTICLE Ill. CONTRACTS, PUBLIC FINANCING AND FRANCHISES Section 300. Public Works Contracts. Except as provided by ordinance or by agreement approved by the City Council, the City of Arroyo Grande, as a Charter City, is exempt from the provisions of the California Public Contract Code. The City shall have the power to establish standards, procedures, rules or regulations to regulate all aspects of the bidding, award and performance of any public works contract, including, Agenda Item 9.a. Page 7 Attachment 1 but not limited to, the compensation rates to be paid for the performance of such work. 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. 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. The City may also contract with other public agencies for the construction of works of public improvement. Section 301. 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 302. Public Financing. The City shall have the power to establish standards, procedures, rules or regulations related to any public financing. Section 303. 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 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. 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 Agenda Item 9.a. Page 8 Attachment 1 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 col~rt of competent jurisdiction to be invalid, void or otherwise unenforceable, the remainirlg provisions shall remain enforceable to the fullest extent permitted by law. Agenda Item 9.a. Page 9 General Law City v. Charter City Attachment 2 Charter City Has supreme authority over "municipal affairs." Cal. Const. art. XI, § 5(b). Charter can provide for any form of government including the "strong mayor," and "city manager" forms. See Cal. Const. art. XI, § 5(b); Cal. Gov't Code § 34450 et seq. Not bound by the California Elections Code. May establish own election dates, rules, and procedures. See Cal. Const. art. XI, § 5(b); Cal. Elec. Code §§ 101 01 et seq.. May establish procedures for selecting officers. May hold at-large or district elections. See Cal. Const. art. XI, § 5(b). Can establish own criteria for city office provided it does not violate the U.S. Constitution. Cal. Const. art. XI, § 5(b), 82 Cal. Op. Att'y Gen. 6, 8 (1999). Characteristic Ability to Govern Municipal Affairs Form of Government Elections Generally Methods of Elections City Council Member Qualifications General Law City Bound by the state's general law, regardless of whether the subject concerns a municipal affair. State law describes the city's form of government For example, Government Code section 36501 authorizes general law cities be governed by a city council of five members, a city clerk, a city treasurer, a police chief, a fire chief and any subordinate officers or employees as required by law. City electors may adopt ordinance which provides for a different number of council members. Cal. Gov't section 34871. The Government Code also authorizes the "city manager" form of government. Cal. Gov't Code § 34851. Municipal elections conducted in accordance with the California Elections Code. Cal. Elec. Code §§ 101 01 et seq.. Generally holds at-large elections whereby voters vote for any candidate on the ballot. Cities may also choose to elect the city council "byn or "from" districts, so long as the election system has been established by ordinance and approved by the voters. Cal. Gov't Code § 34871. Mayor may be elected by the city council or by vote of the people. Cal. Gov't Code §§ 34902. Minimum qualifications are: 1. United States citizen 2. At least I8 years old 3. Registered voter 4. Resident of the city at least 15 days prior to the election and throughout his or her term 5. If elected by or from a district, be a resident of the geographical area comprising the district from which he or she is elected. Cal. Elec. Code § 321; Cal. Gov't Code §§ 34882, 36502; 87 Cal. Op. Att'y Gen. 30 (2004). Agenda Item 9.a. Page 10 Charter City Public financing of election campaigns is lawful. Johnson v. Bradley, 4 Cal. 4th 389 (1992). May provide for term limits. Cal. Const. art. XI, § 5(b); Cal Gov't Code Section 36502 (b). May establish criteria for vacating and terminating city offices so long as it does not violate the state and federal constitutions. Cal. Const. art. XI, § 5(b). May establish council members' salaries. See Cal. Const. art. XI, § 5(b). If a city provides any type of compensation or payment of expenses to council members, then all council members are required to have two hours of ethics training. See Cal. Gov't Code §§ 53234 - 53235. May establish procedures for enacting local ordinances. Brougher v. Bd. of Public Works, 205 Cal. 426 (1928). May establish procedures for adopting, amending or repealing resolutions. Brougher v. Bd. of Public Works, 205 Cal. 426 (1928). May establish own procedures and quorum requirements. However, certain legislation requiring supermajority votes is applicable to charter cities. For example, see California Code of Civil Procedure section 1245.240 requiring a vote of two-thirds of all the members of the governing body unless a greater vote is required by charter. Characteristic Public Funds for Candidate in Municipal Elections Term Limits Vacancies and Termination of Office Council Member Compensation and Expense Reimbursement Legislative Authority Resolutions Quorum and Voting Requirements General Law City No public officer shall expend and no candidate shall accept public money for the purpose of seeking elected office. Cal. Gov't Code § 85300. May provide for term limits. Cal. Gov't Code § 36502(b). An office becomes vacant in several instances including death, resignation, removal for failure to perform official duties, electorate irregularities, absence from meetings without permission, and upon non- residency. Cal. Gov't Code §§ 1770, 36502, 3651 3. Salary-ceiling is set by city population and salary increases set by state law except for compensation established by city electors. See Cal. Gov't Code § 36516. If a city provides any type of compensation or payment of expenses to council members, then all council members are required to have two hours of ethics training. See Cal. Gov't Code §§ 53234 - 53235. Ordinances may not be passed within five days of introduction unless they are urgency ordinances. Cal. Gov't Code § 36934. Ordinances may only be passed at a regular meeting, and must be read in full at time of introduction and passage except when, after reading the title, further reading is waived. Cal. Gott Code § 36934. May establish rules regarding the procedures for adopting, amending or repealing resolutions. A majority of the city council constitutes a quorum for transaction of business. Cal. Gov't Code § 3681 0. All ordinances, resolutions, and orders for the payment of money require a recorded majority vote of the total membership of the city council. Cal. Gov't Code § 36936. Specific legislation requires supermajority votes for certain actions. Agenda Item 9.a. Page 11 Charter City Ralph Brown Act is applicable. Cal. Gov't Code §§ 54951, 54953(a). Conflict of interest laws are applicable. See Cal. Gov't Code § 87300 et seq.. May provide provisions related to ethics, conflicts, campaign financing and incompatibility of office. May establish standards, requirements, and procedures, including compensation, terms and conditions of employment for personnel. See Cal. Const. art. XI, § 5(b). Procedures set forth in Meyers-Milias-Brown Act (Cal. Gov't Code § 3500) apply, but note, "mhere is a clear distinction between the substance of a public employee labor issue and the procedure by which it is resolved. Thus there is no question that 'salaries of local employees of a charter city constitute municipal affairs and are not subject to general laws.'" Voters for Responsible Retirement v. Board of Supervisors, 8 Cal.4th 765, 781 (1994). Cannot require employees be residents of the city, but can require them to reside within a reasonable and specific distance of their place of employment. Cal. Const. art. XI, section 1 O(b). Full authority to contract consistent with charter. May transfer some of its functions to the county including tax collection, assessment collection and sale of property for non- payment of taxes and assessments. Cal. Gov't Code §§ 51 330, 51 334, 51 335. Characteristic Rules Governivg Procedure and Decorum Personnel Matters Contracting Services General Law City Ralph Brown Act is applicable. Cal. Gov't Code §§ 54951, 54953(a). Conflict of interest laws are applicable. See Cal. Gov't Code § 87300 et seq.. May establish standards, requirements and procedures for hiring personnel consistent with Government Code requirements. May have "civil service" system, which includes comprehensive procedures for recruitment, hiring, testing and promotion. See Cal. Gov't Code § 45000 et seq. Meyers-Milias-Brown Act applies. Cal. Gov't Code § 3500. Cannot require employees be residents of the city, but can require them to reside within a reasonable and specific distance of their place of employment. Cal. Const. art. XI, § 1 O(b). Authority to enter into contracts to carry out necessary functions, including those expressly granted and those implied by necessity. See Cal. Gov't Code § 37103; Camth v. City of Madera, 233 Cal. App. 2d 688 (1965). Agenda Item 9.a. Page 12 Charter City Not required to comply with bidding statutes provided the city charter or a city ordinance exempts the city from such statutes, and the subject matter of the bid constitutes a municipal affair. Pub. Cont. Code § 1100.7; see R & A Vending Sefvices, Inc. v. City of Los Angeles, 172 Cal. App. 3d 1188 (1985); Howard Contracting, Inc. v. G.A. MacDonald Constr. Co., 71 Cal. App. 4th 38 (1 998). Historically, charter cities have not been bound by state law prevailing-wage requirements so long as the project is a municipal affair, and not one funded by state or federal grants. Vial v. City of San Diego, 122 Cal. App. 3d 346,348 (1 981 ). However, there is a growing trend on the part of the courts and the Legislature to expand the applicability of prevailing wages to charter cities under an analysis that argues that the payment of prevailing wages is a matter of statewide concern. The California Supreme Court currently has before them a case that will provide the opportunity to decide whether prevailing wage is a municipal affair or whether it has become a matter of statewide concern. Characteristic Public Contracts Payment of Prevailing Wages General Law City Competitive bidding required for public works contracts over $5,000. Cal. Pub. Cont. Code § 20162. Such contracts must be awarded to the lowest responsible bidder. Pub. Cont. Code § 20162. If city elects subject itself to uniform construction accounting procedures, less formal procedures may be available for contracts less than $100,000. See Cal. Pub. Cont. Code §§ 22000, 22032. Contracts for professional services such as private architectural, landscape architectural, engineering, environmental, land surveying, or construction management firms need not be competitively bid, but must be awarded on basis of demonstrated competence and professional qualifications necessary for the satisfactory performance of services. Cal. Gov't Code § 4526. In general, prevailing wages must be paid on public works projects over $1,000. Cal. Lab. Code § 1771. Higher thresholds apply ($1 5,000 or $25,000) if the public entity has adopted a special labor compliance program. See Cal. Labor Code § 1771.5(a)-(c). Agenda Item 9.a. Page 13 Charter City Have the power to tax. Have broader assessment powers than a general law city, as well as taxation power as determined on a case-by case basis. lmposition of taxes and assessments subject to Proposition 218, Cal. Const. art. XIIIC, 5 2, and own charter limitations May proceed under a general assessment law, or enact local assessment laws and then elect to proceed under the local law. See J. W. Jones Companies v. City of San Diego, 157 Cal. App. 3d 745 (1984). May impose business license taxes for any purpose unless limited by state or federal constitutions, or city charter. See Cal. Const. art. XI, 5 5. May impose real property transfer tax; does not violate either Cal. Const art. XlllA or California Government Code section 53725. See Cohn v. City of Oakland, 223 Cal. App. 3d261(1990);Fielderv.CityofLos Angeles, 14 Cal. App. 4th 137 (1993). State has preempted entire field of traffic control. Cal. Veh. Code 5 21. May enact ordinances providing for various penalties so long as such penalties do not exceed any maximum limits set by the charter. County of Los Angeles v. City of Los Angeles, 219 Cal. App. 2d 838, 844 (1963). Characteristic Finance and Taxing Power Streets 8 Sidewalks Penalties 8 Cost Recovery General Law City May impose the same kinds of taxes and assessment as charter cities. See Cal. Gov't Code 5 37100.5. lmposition of taxes and assessments subject to Proposition 218. Cal. Const. art.XIIIC. Examples of common forms used in assessment district financing include: lmprovement Act of 1911. Cal. Sts. & High. Code 5 22500 et seq.. Municipal lmprovement Act of 191 3. See Cal. Sts. & High. Code $5 10000 et seq.. lmprovement Bond Act of 191 5. Gal. sts. & High. Code $5 8500 etseq.. Landscaping and Lighting Act of 1972. Cal. Sts. & High. Code $5 22500 et seq.. Benefit Assessment Act of 1982. Cal,Gov*tCode§§54703etseq.. May impose business license taxes for regulatory purposes, revenue purposes, or both. See Cal. Gov't Code 5 37101. May not impose real property transfer tax. See Cal. Const. art. XIIIA, 5 4; Cal. Gov't Code 5 53725; but see authority to impose documentary transfer taxes under certain circumstances. Cal. Rev. & Tax. Code 5 11 91 1 (a), (c). State has preempted entire field of traffic control. Cal. Veh. Code 5 21. May impose fines, penalties and forfeitures, with a fine not exceeding $1,000. Cal. Gov't Code 5 36901. Agenda Item 9.a. Page 14 Charter City May establish, purchase, and operate public works to furnish its inhabitants with electric power. See Cal. Const. art. XI, 9 9(a); Cal. Apartment Ass'n v. City of Stockon, 80 Cal. App. 4th 699 (2000). May establish conditions and regulations on the granting of franchises to use city streets to persons or corporations seeking to furnish light, water, power, heat, transportation or communication services in the city. Franchise Act of 1937 is not applicable if charter provides. Cal. Pub. Util. Code 9 6205. Zoning ordinances are not required to be consistent with general plan unless the city has adopted a consistency requirement by charter or ordinance. Cal. Gov't. Code 9 65803. Characteristic Public UtilitieslFranchises Zoning General Law City May establish, purchase, and operate public works to furnish its inhabitants with electric power. See Cal. Const. art. XI, 9 9(a); Cal. Gov't Code 9 39732; Cal. Pub. Util. Code 9 10002. May grant franchises to persons or corporations seeking to furnish light, water, power, heat, transportation or communication services in the city to allow use of city streets for such purposes. The grant of franchises can be done through a bidding process, under the Broughton Act, Cal. Pub. Util. Code 99 6001-6092, or without a bidding process under the Franchise Act of 1937, Cal. Pub. Util. Code 9s 6201 -6302. Zoning ordinances must be consistent with general plan. Cal. Gov't Code § 65860. Agenda Item 9.a. Page 15 Attachment 3 CALIFORNIA CHARTER CITIES DATE OF CHARTER Adelanto Alameda Albany Alhambra Anaheim Arcadia Bakersfield Berkeley Big Bear Lake Burbank Carlsbad Cenitos . Chico Chula Vista Compton Culver City Cypress Del Mar Desert Hot Springs Dinuba Downe y Eureka Exeter Folsom Fortuna Fresno Gil roy Glendale Grass Valley Hayward Huntington Beach Indian Wells Industry lnglewood l rvine lrwindale Kingsburg La Quinta ~emoore Lindsay Loma Linda Long Beach Los Alamitos Los Angeles Marina Marysville Merced Modesto Monterey Mountain View Napa Needles Newport Beach Norco Oakland Oroville Pacific Grove Palm Desert Palm Springs Palo Alto Pasadena Petaluma Piedmont Placentia Pomona Port Hueneme Porterville Rancho Mirage Redondo Beach Redwood City Richmond Riverside Roseville Sacramento Salinas San Bemardino San Diego San Francisco San Jose San Leandro San Luis Obispo San Marcos San Mateo San Rafael San Ramon Sand City Agenda Item 9.a. Page 16 Attachment 3 Santa Ana Santa '~arbara Santa Clara Santa Cruz Santa Maria Santa Monica Santa Rosa Seal Beach S hafter Signal Hill Solvang Stockton Sunnyvale Temple City Torrance Truckee Tulare Vallejo Ventura Vernon Victorville Visalia Vista Watsonville Whittier Woodlake Total: 112 (Updated 2008) Agenda Item 9.a. Page 17 THIS PAGE INTENTIO NALLY LEFT BLANK Agenda Item 9.a. Page 18