06-12-12 Supplemental InformationMEMORANDUM
TO: CITY COUNCIL
FROM: STEVEN ADAMs, clw MAE;AGERJ?~-
SUBJECT: SUPPLEMENTAL INFORMA'rION - AGENDA ITEM 9.a.
PROPOSED CITY CHARTER BALLOT MEASURE
DATE: JUNE 12,2012
Attached is correspondence received regarding the proposed City Charter Ballot
Measure.
c: Community Development Director
City Attorney
City Clerk
Kitty Norton
From: Russell Johnson [rjohnson@abccentralcal.org]
Sent: Monday, June 11,2012 2:42 PM
To : Tony Ferrara
Cc: Kitty Norton
Subject: ABC letter of support for City Charter
Attachments: Mayor Ferrara. pdf
Mayor Ferrara,
Attached is a letter of support for the Council and your City's efforts to become a Charter City. Please call me with any
questions.
Best regards,
Russell
Russell Johnson
Director of Government Affairs
Associated Builders and Contractors
Central California Chapter
661-203-1838
www.abccentraIcaI.org
"Merit Shop" is a way of doing business in which companies reward employees based on
performance and encourage them to reach their highest level of achievement, and in which
contracts are awarded based on safety, quality, and value, regardless of labor affiliation.
Asmslmed Bulldnn
and Connomum, Ino.
Central California
Chapter
John Powell, SSI
Chairman
John Kerchinski, PCL
Chairman-Elect
Don Chisum
Processes Unlimited
Treasurer
Tony Castiglione
Secretary
Jodi Nagel
Alcorn Aire
lmmedlate Past Chair
Andy Anderson
Aera Energy
Eddie Bedon,
TIC
Amando Gonzalez
Occldental of Elk Hllls
Rob Hale
Chevron
Jeff Hanesworth
ConUnental Labor
Teny Smith
KS Industries
Kirk Zwicky
Safety and Trainlng
ConsuItanS
P.0 Box 80718 19466 Fllghtpath Way Bakersfield CA 6611 392-0729 Fax - 6611 392-9076
June 8,2012
Mayor Tony Ferrara
City of Arroyo Grande
300 East Branch Street
Arroyo Grande, CA 93420
I Dear Mayor Ferrara:
I am writing to support and applaud your City, and the Council for
considering the benefits of a City Charter. Charter Cities have a unique
protection and benefit in the California Constitution when it comes to
municipal affairs. In fact, every City in California should follow your lead
and implement a City Charter.
The Associated Builders and Contractors (ABC) is an organization of Merit
Shop construction employers. Merit Shop is a way of doing business in
which companies reward employees based on performance and encourage
them to reach their highest level of achievement, and in which contracts
are awarded based on safety, quality, and value, regardless of labor
affiliation.
We have seen many Cities enjoy savings from exempting themselves from
prevailing wage. In Oceanside, they approved a City Charter and
immediately saw an estimated positive savings of approximately $540,000
on three City Public Works jobs. Attached you will find a press release
from Oceanside that details the savings.
Once again, ABC stands in full support of your effort to become a Charter
City and to enjoy the flexibility allowed on constructing local projects.
Should you have any questions please do not hesitate to contact me at 661-
203-1838.
MEMORANDUM
TO: CITYCOUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
SUBJECT: SUPPLEMENTAL INFORMATION - AGENDA ITEM 9.a.
PROPOSED ClTY CHARTER BALLOT MEASURE
DATE: JUNE 12,2012
Attached is a revision to Attachment 2 which provides an additional column of
information on how the City's proposed Charter impacts each of the categories listed in
the comparison of general law and charter cities provided by the League of California
Cities.
Additionally, Attachment 3 has been corrected to reflect a Summary of Construction
Expenditures for FY 2009-1 0 - FY 201 111 2, rather than FY 201 211 3.
c: City Attorney
City Clerk
Public Review Binder
REVISED ATTACHMENT 2
General Law v. Charter City v. Proposed Arroyo Grande Charter City
Proposed Arroyo Grande Charter
Will provide additional flexibility and
authority in specified areas.
No change.
Will allow use of mail in ballots for
special elections per City Council
ordinance. All other requirements
will remain the same.
Charter City
Has supreme authority over
"municipal affairs." Cal. Const. art. XI,
§ 5(b).
Charter can provide for any form of
government including a "strong
mayor," and "city manager forms.
See Cal. Const. art. XI, 5 5(b); Cal.
Gov't Code 5 34450 et seq.
Not bound by the California Elections
Code. May establish own elections
dates, rules, and procedures. See Cal.
Const. art. XI, 5 5(b); Cal. Elec. Code
55 10101 et. Seq.
Characteristic
Ability to Govern
Municipal Affairs
Form of Government
Elections Generally
General Law City
Bound by the state's general law,
regardless of whether the subject
concerns a municipal affair.
State law describers the city's form of
government. For example,
Government Code section 36501
authorizes general law cities to 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. California
Government section 34871. The
Government Code also authorizes the
"city manager form of government.
Cal. Gov't Code 5 34851.
IVlunicipal elections conducted in
accordance with the California
Elections Code. Cal. Elec. Code 5
10101 et seq.
REVISED AlTACHMENT 2
Proposed Arroyo Grande Charter
No change.
No change.
No change.
Charter City
May establish procedures for
selecting officers. May hold at-large
or district elections. See Cal. Const.
art. XI, 5 5(b).
Can establish own criteria for city
office provided it does not violate the
U.S. Constitution. Cal Const. art. XI, 5
5(b), 82 Cal Op. Att'y Gen. 6,8
(1999).
Public financing of election
campaigns is lawful. Johnson v.
Bradley, 4 Cal. 4th 389 (1992).
Characteristic
Methods of Elections
City Council Member
Qualifications
Public Funds for
Candidate in Municipal
Elections
General Law City
Generally holds at-large elections
whereby voters vote for any
candidate on the ballot. Cities may
also choose to elect the city council
"by" or "from" districts, so long as
the election system has been
established by ordinance and
approved by the voters. Cal. Gov't
Code 5 34871. Mayor may be elected
by the city council or by vote of the
people. Cal. Gov't Code 55 34902.
Minimum qualifications are:
1. United States Citizen
2. At least 18 years old
3. Registered voter
4. Resident of the city at least
15 days prior to the elections
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 5 321; Cal. Govt. Code
55 34882, 36502; 87 Cal. Op. Att'y
Gen. 30 (2004).
No public officer shall expend and no
candidate shall accept public money
for the purpose of seeking elected
office. Cal. Gov't Code 5 85300.
REVISED ATTACHMENT 2
Characteristic
Term Limits
Vacancies and
Termination of Office
Council Member
Compensation and
Expense
Reimbursement
Legislative Authority
General Law City
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,
36502,36513.
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
Charter City
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).
Proposed Arroyo Grande Charter
No change.
No change.
No change.
No change.
REVISED AlTACHMENT 2
Characteristic
Legislative Authority
(continued)
Resolution
Quorum and Voting
Requirements
Rules Governing
Procedure and
Decorum
General Law City
the title, further reading is waived.
Cal. Gov't Code 9 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 9 36810.
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 9 36936.
Specific legislation requires
supermajority votes for certain
actions.
Ralph Brown Act is applicable. Cal.
Gov't Code 99 54951,54953(a).
Conflict of interest laws are
applicable. See Cal. Gov't Code 9
87300 et seq..
Charter City
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.
Ralph Brown Act is applicable. Cal.
Gov't Code 99 54951,54953(a).
Conflict of interest laws are
applicable. See Cal. Gov't Code 9
87300 et seq..
May provide provisions related to
ethics, conflicts, campaign financing
and incompatibility of office.
Proposed Arroyo Grande Charter
No change.
No change.
No change.
REVISED AlTACHMENT 2
Characteristic
Personnel Matters
Contracting Services
General Law City
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 5 45000 et seq.
Meyers-Milias-Brown Act applies. Cal.
Gov't Code 5 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, 5
10(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 5 37103; Carruth v. City of
Madera, 233 Cal. App. 2d 688 (1965).
Charter City
May establish standards,
requirements, and procedures,
including compensation, terms and
conditions of employment for
personnel. See Cal. Const. art. XI, 5
5(b).
Procedures set forth in Meyers-
Milias-Brown Act (Cal. Gov't Code 5
3500) apply, but note, "[Tlhere 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 10(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
Proposed Arroyo Grande Charter
No change.
No change.
REVISED AllACHMENT 2
Characteristic
Contracting Services
(continued)
Public Contract
Payment of Prevailing
Wages
Charter City
and assessments. Cal. Gov't Code §§
51330,51334,51335.
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 Services,
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
(1998).
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 Son Diego, 122
Cal. App. 3d 346, 348 (1981).
General Law City
Competitive bidding required for
public works contracts over $5,000.
Cal. Pub. Cont. Code 5 20162. Such
contracts must be awarded to the
lowest responsible bidder. Pub. Cont.
Code 5 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 55 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 5 4526.
In general, prevailing wages must be
paid on public works projects over
$1,000. Cal. Lab. Code 5 1771. Higher
thresholds apply ($15,000 or
$25,000) if the public entity has
adopted a special labor compliance
program. See Cal. Labor Code 5
Proposed Arroyo Grande Charter
City Council may establish by
ordinance policies and requirements
regarding bidding and awarding
contracts.
City Council will have authority to
determine whether or not to require
prevailing wage on projects that do
not utilize State or Federal funds.
Prevailing wage will continue to be
required when State and Federal
funds are used or when otherwise
REVISED AlTACHMENT 2
Proposed Arroyo Grande Charter
required by law.
No change with regard to taxing
authority. The City Council would be
able to establish local assessment
procedures, which would remain
subject to Proposition 218.
Charter City
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.
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 Componie~ V. City of
Son Diego, 157 Cal. App. 3d 745
(1984).
Characteristic
Payment of Prevailing
Wages (continued)
Finance and Taxing
Power
General Law City
1771.5(a)-(c).
May impose the same kinds of taxes
and assessment as charter cities. See
Cal. Gov't Code § 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:
Improvement Act of 1911.
Cal. Sts. & High. Code §
22500 et seq..
Municipal Improvement Act
of 1913. See Gal. Sts. & High.
Code §§ 10000 et seq..
REVISED AlTACHMENT 2
Proposed Arroyo Grande Charter
No change.
No change.
Charter City
May impose business license taxes
for any purpose unless limited by
state or federal constitutions, or city
charter. See Cal. Const. art. XI, § 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. 3d 261
(1990); Fielder v. City of Los Angeles,
14 Gal. APP. 4th 137 (1993).
State has preempted entire field of
traffic control. Cal. Veh. Code § 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
Characteristic
Finance and Taxing
Power (continued)
Streets and Sidewalks
Penalties and Cost
Recovery
General Law City
Improvement Bond Act of
1915. Cal. Sts. & High. Code
§§ 8500 et seq..
Landscaping and Lighting Act
of 1972. Cal. Sts. & High.
Code §§ 22500 et seq..
Benefit Assessment Act of
1982. Cal. Gov't Code §§
54703 et seq..
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 11911(a), (c).
State has preempted entire field of
traffic control. Cal. Veh. Code !j 21.
May impose fines, penalties and
forfeitures, with a fine not exceeding
$1,000. Cal. Gov't Code 5 36901.
REVISED ATTACHMENT 2
Characteristic
Penalties and Cost
Recovery (continued)
Public
Utilities/Franchises
Zoning
Charter City
Angeles, 219 Cal. App. 2d 838,844
(1963).
May establish, purchase, and operate
public works to furnish its inhabitants
with electric power. See Cal. Const.
art. XI, 4 9(a); Cal. Apartment Ass'n v.
City of Stockton, 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 5 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 4
65803.
General Law City
May establish, purchase, and operate
public works to furnish its inhabitants
with electric power. See Cal. Const.
art. XI, 4 9(a); Cal. Gov't Code 4
39732; Cal. Pub. Util. Code 4 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 44 6001-6092, or
without a bidding process under the
Franchise Act of 1937, Cal. Pub. Util.
Code 44 6201-6302.
Zoning ordinances must be consistent
with general plan. Cal. Gov't Code 4
65860.
Proposed Arroyo Grande Charter
City Council may establish by
ordinance the acquisition,
development, or operation by the
City of any utility or establish by
ordinance regulations on granting
franchises to utilities using City
streets or rights-of-way.
No change.
Attachment 3
City of Arroyo Grande
FY 200911 0 - FY 201 111 2
Summary of Construction Expenditures
All Local Funding
Corporation Yard Repairs
Le Point Street Parking Lot
City Hall Parking Lot Bioswale
Porter Field Backstop Replacement
Heritage Square Park lmprovements
Sidewalk Replacement
Traffic Way Streetscape
Fair Oaks Traffic Signal
Pearwood Avenue Overlay
Short Street Narrowing
Myrtle Street Resurfacing
Newsom Springs Drainage
Soto Pond Fence Replacement
Fair Oaks Sewer Upgrade
Reservoir No. 6 Construction
Oro Booster Station Upgrade
Water Well #10
Total
Use of State and/or Federal Funding
Centennial Park
City Hall Expansion
Short Street Bathroom Upgrade
Park lmprovements
ADA lmprovements
Pavement Management
El Camino Rehabilitation
Sidewalk Replacement and ADA Ramps
Orchard Street and Adjacent Streets
Paulding School Area Sidewalks
West Branch Resurfacing
Tally Ho Sidewalks
Total