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.
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CITY COUNCIL
CONSIDERATION OF PROPOSED CITY CHARTER BALLOT MEASURE
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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may only be adopted, amended or repealed by a majority vote of the City's residents.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.
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CONSIDERATION OF PROPOSED ClTY CHARTER BALLOT MEASURE
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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."
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CITY COUNCIL
CONSIDERATION OF PROPOSED CITY CHARTER BALLOT MEASURE
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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.
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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.
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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.
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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
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Agenda Item 9.a.
Page 18