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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