09.a. Proposed City Charter Ballot MeasureMEMORANDUM
TO: CITY COUNCIL
SUBJECT: CONSIDERATION OF PROPOSED ClTY CHARTER BALLOT
MEASURE
DATE: JUNE 12,2012
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 second 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 6,201 2 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 $300,000 annually. It is also estimated that there could be as
much as 40 - 50 hours of staff time involved in the election and public education
process. Efficiency measures are one of the priorities in the Critical Needs Action
Plan.
BACKGROUND:
At the January 24' meeting, staff presented recommendations 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. The first draft
was presented to the City Council at the April 24'h meeting.
The City Council provided the following direction:
Provide more detailed information on both the pros and cons;
Modify the draft Charter to require zoning consistency with the General Plan;
and
Modify the draft Charter to better clarify what changes can be made by
ordinance.
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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 enactments of the legislature on matters of statewide
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may only be adopted, amended or repealed by a majority vote of the City's residents.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 statewide generdl,
statewide primary, or regularly scheduled municipal 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 and decide not to proceed at
any point in the process. In order to place the measure on the November ballot, the
final public hearing will need to be held at the July loth meeting.
Purpose
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 corr~ponent 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.
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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 matter of statewide concern over which the legislature has
authority is a question of law.
A charter city has many options when considering how to handle municipal affairs.
Activities which the courts have determined are municipal affairs include, but are not
limited to, the following:
1. Construction and maintenance contracting;
2. Land use;
3. City finances; and
4. City government structure.
By adopting a charter, the City will have far greater flexibility in the operations of its
municipal government, which, if properly utilized, can translate to greater efficiency,
effectiveness, cost savings, and innovation.
Draft City Charter Provisions
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. Set forth
below is a summary of the key provisions in the draft Charter:
Section 102. No Increased Power to Tax.
This Section provides no additional authority to raise taxes and the City will continue
to act in accordance with State law. This provision (as well as Section 204) is
intended to eliminate 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 the power to tax by the
City.
Section 103. Zoning and General Plan Consistency.
This provision requires that all City zoning must continue to be consistent with the
General Plan, pursuant to State law, which has been added at the Council's direction
at the last public hearing.
Section 104. Powers Established by Ordinance.
This Section prohibits the Council from changing the law unless the change is
specifically described in the Charter or allowed under State law, which has been
added at the Council's request at the last public hearing.
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Section 204. Council Member Compensation.
The Council will continue to receive compensation pursuant to State law. This is also
intended to eliminate problems experienced by the City of Bell.
Section 205. Elections.
Language addressing elections specifies that they will continue to be held in
accordance with State Elections Code provisions applicable to general law cities, with
one exception. The first draft provided the City Council with the ability to make
changes by ordinance. The primary advantage of providing this flexibility was to
enable the City to utilize a mail-in ballot if a special election ever became necessary
in order to substantially reduce election costs.
To eliminate concerns regarding significant changes to the City's election process,
staff has recommended new and very specific language that provides the City with
the ability to adopt an ordinance to conduct a mail-in ballot election only. No other
changes to the current election policies can be made directly by the City Council by
ordinance.
It is important to note that over 60% of registered voters already receive their ballot
by mail in Arroyo Grande. Therefore, if an election were held for only one measure,
the cost of establishing polling places would be largely unnecessary.
Alternative language is included in the draft Charter that requires all elections to be
held pursuant to the State Elections Code applicable to general law cities. Council
direction is necessary if it is determined that this language is preferable.
Section 300. Economic and Community Development.
With the elimination of redevelopment agencies, a charter may provide opportunities
for future economic development efforts. This provision simply states the City's
support for efforts to promote both economic development and preservation of the
City's historic and small town character.
Section 301. Public Works Contracts.
This provision establishes the authority of the City to develop its own standards and
procedures for bidding and awarding public works contracts.
Section 302. Prevailing Wage.
This Section provides the City with the option to forego State prevailing wage
requirements when projects are funded entirely through local revenues.
The prevailing wage rate is the basic hourly rate paid on public works projects to a
majority of workers engaged in a particular craft, classification or type of work within
the labor market area. If there is no single rate paid to a majority, then the single or
modal rate being paid to the greater number of workers is prevailing. Arroyo Grande
normally falls within the Southern California labor market requirements.
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It should be noted that there is a pending State Supreme Court case being
considered that could impact this provision if it determines prevailing wage
requirements are an issue of statewide concern. 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. The majority of cities indicated that reducing
construction costs was the primary purpose for the charter measure and they have
experienced positive results. No negative feedback was received from cities
regarding their experience with the charter since it has been in place. However,
several cities have included provisions in their charters maintaining prevailing wage
requirements due to opposition on this issue.
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."
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%.
Information was received from the City of Palmdale, which ultimately excluded
exerr~ption from prevailing wage from their charter due to opposition received. The
employee preparing their analysis had previously worked as a contractor with
experience in bidding prevailing wage and non-prevailing wage projects. He
provided information that savings was consistently in the range of 12% - 15%, which
primarily involved projects in Los Angeles County. Savings would be expected to be
greater in San Luis Obispo County.
Some cities, such as El Centro, have addressed concerns over prevailing wage
requirements by adopting a "Living Wage" ordinance. This is a specified minimum
wage based on the local cost of living. The El Centro ordinance requires employees
of contractors to be paid wages a specified amount above minimum wage. They
indicated that it has not affected the cost of their bids.
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Some jurisdictions have identified concerns with a reduction in quality of work when
prevailing wage requirements are not used. While staff does not believe this would
be a likely outcome, the City of Monterey addressed this issue by establishing
prevailing wage requirements for more complex projects.
Under a charter, the City would continue to be required to utilize prevailing wage
requirements for any project that is fully or partially funded with State andlor Federal
funds. Staff was requested to provide an analysis of how much historical project
costs have involved State and Federal funding. Attachment 3 presents a summary of
past construction costs from the last three fiscal years. Approximately 65% of
constr~~ction costs involved use of State and Federal funds. Contract costs for street
sweeping and landscaping maintenance are also included since they are subject to
prevailing wage even though they appear to be more of an ongoing service than
project.
This is an important statistic towards addressing different objectives and concerns
that have been identified. On the one hand, for those that are concerned about loss
of prevailing wage rates, it demonstrates there will be no change to the majority of
construction expenditures. On the other hand, for those concerned about efficiency,
the data also shows that nearly $400,000 could have been saved over the past three
years if a 15% cost savings factor is applied.
There could be some increase in the future in the amount of expenditures that would
be exempt from prevailing wage rates under a charter for two reasons. First, State
and Federal funding assistance has now been drastically reduced. Second,
discretionary State and Federal funds for street improvements have often been
disbursed among eligible projects and could be consolidated to select projects in the
future. However, it is projected that a significant majority of construction
expenditures would remain subject to prevailing wage rates.
Programmed funds for FY 2013-14 were reviewed and it is estimated that as much
as $2.5 million could be exempt from prevailing wage rates. Therefore, savings could
be as much as $375,000 based on a 15% costs savings factor. However, this
savings would be reduced if additional grants are obtained andlor it is determined to
apply prevailing wage requirements to certain projects.
Section 303. Purchasing
This Section allows the City to develop its own procedures for purchasing goods and
services.
Section 304. Public Financing
This Section allows the City to develop its own procedures for financing public
projects.
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Section 305. Utility Franchises
This Section allows the City to regulate utilities and utility franchises that use City
streets.
Section 306. Supporting Volunteers in Arroyo Grande
State law inhibits the use of volunteers in some City projects and the State law
exempting cities from paying volunteers prevailing wage will expire at the end of
2016. This provision exempts the City from State law regulating the use of volunteers
and encourages the use of volunteers in community projects.
Public Concerns
In response to Council's request for more research on potential problems of a city
charter, staff contacted cities that have recently proposed charters that were
unsuccessful or those that are pending and have faced active opposition. Information
was requested regarding what public concerns were identified during the election.
The following is a list of the primary issues identified by opponents to the measure in
each jurisdiction:
Solvang (2006)
Proposed change in the charter to go from a 2-year to 4-year term for Mayor.
(The proposed term was then changed to 2-year and the measure passed the
second time.)
Rosemead (2008)
Ability to circumvent State laws capping City Council salaries.
No requirement for zoning code to be consistent with their general plan.
Davis (2008)
Discussion of a proposal for a real estate transfer tax by one council member.
Broad charter that provided City Council too much leeway.
Auburn (201 2)
Potential costly lawsuits, elections and more special interests.
Ability to increase City Council compensation.
Ability to prohibit implementation of State laws that protect citizens.
Ability to give taxpayer funds to individuals and organizations with no
requirements.
Ability to impose higher fines and penalties on taxpayers.
Hiring of less qualified contractors.
Charter Commissions
In the last staff report, information was provided regarding the process used for
citizen initiated charters, which require election of a charter commission to draft the
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charter for a subsequent vote. Staff was requested to provide additional information
on use of comrr~issions to draft charters.
Some cities have chosen to use appointed commissions or committees rather than
those elected under the process described above. Under this process, the City
Council may appoint a commission to present a recommended draft. The City
Council maintains authority over approving the final charter to be placed on the
ballot. Below is a summary of the use of commissions for cities that recently
approved charter measures that responded to the City's request for information:
Solvang (No)
Santa Maria (No)
Oceanside (No)
Carlsbad (No)
Victorville (No)
Woodlake (Yes)
El Centro (Yes)
Davis (No)
Palmdale (No)
ALTERNATIVES:
The following alternatives are provided for City Council consideration:
1. Direct staff to proceed with the process of placing the proposed measure on
the ballot at the election to be held on November 6, 2012 to approve a City
Charter;
2. Direct staff to include the alternative identified for the elections provision and
proceed with the process;
3. Make other modifications and direct staff to proceed with the process;
4. Direct staff to take no further action on the charter measure; or
5. Provide staff other direction.
ADVANTAGES:
The following advantages have been identified:
The City would no longer be subject to State prevailing wage requirements,
which could result in significant savings to capital project costs and maintenance
contracts, including street sweeping and landscaping services. This will also
encourage local contractors to submit bids on these contracts.
It better enables the City to adopt policies that provide preferences for local
vendors and contractors.
Volunteer organizations could utilize local contractors offering to provide work at
reduced costs on community projects on City property.
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When cost effective, more work could be performed by City staff. The Public
Contracts Code currently limits the work that can be performed by City staff. As
a result, to reduce costs, a project could be built by City staff and supplemented
with contract work for specialized tasks.
While one of the disadvantages identified is the potential decrease in quality of
work on projects in the absence of prevailing wage requirements, the opposite
may be true in many cases because the City would have more authority to reject
bidders due to lack of experience or poor performance records.
Mail-in ballots could be used at a substantially reduced cost if a special election
became necessary to address an issue that could not wait for the next general
election.
With the elimination of redevelopment, it may make possible new opportunities
to create incentives for economic development that are not currently available.
DISADVANTAGES:
Staff believes most of the issues identified by opposition to measures in other
jurisdictions have been addressed. The potential disadvantages of the proposed
charter measure include the following:
There is the potential that the absence of prevailing wage requirements could
result in decreased quality of workers assigned.
Charters proposed by some cities have been actively opposed by unions.
Others have not. In cities where they were opposed, the opposition was often
strong and involved significant expenditures. Since the City cannot use public
resources to advocate for a ballot measure, any strong organized opposition
would place the City at a significant disadvantage in obtaining approval by the
voters.
Staff does not have a good projection on the likelihood for success. The most
recent measure proposed by a City was in the City of Auburn, which failed by
over 65% of the vote on June 5Ih. The election and public education processes
will require a significant amount of staff time, which would be wasted if
unsuccessful. This is a concern given the staff time that has also been devoted
to the Police Station and consolidation proposals with little results to show.
A city charter increases the areas of authority that could be amended by a local
initiative placed on the ballot by 15% of the City electorate. This could lead to
special interest proposals, such as the binding arbitration requirements formerly
adopted by the voters in San Luis Obispo. Binding arbitration requirements
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have been determined to be unconstitutional in General Law cities, but not
charter cities. Such proposals could be supported by funding from interests
outside the City. However, the ultimate authority lies with the voters of the City.
Conversely, local initiatives can now be placed on the ballot with as few as 10%
of the City electorate. Therefore, the charter could make it more difficult for the
voters to make a change by initiative if it involved an item covered specifically in
the charter.
There were concerns identified in public comment at the last meeting regarding
the impact on middle class income resulting from loss of prevailing wage
requirements. While staff agrees protection of a strong middle class is an
important national goal, staff questions whether prevailing wage requirements
applied only to public agencies is an effective or fair solution to this issue.
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 May 22, 2012 at three (3) public places: City Hall, the Fire Cities Fire
Authority, and the Elm Street Community CenterIRecreation and Maintenance
Services Office. The Notice was also published in The Tribune on Friday, May 25,
2012 and Friday, June 1, 2012 and posted on the City's website. One
correspondence was received, which is attached.
Attachments:
1. Draft City Charter
2. General Law City v. Charter City
3. Summary of Construction Expenditures
4. Public Correspondence
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Attachment 1
CHARTER OF THE CITY OF ARROYO GRANDE
ARTICLE I. MUNICIPAL AFFAIRS
AR'I'ICLE 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 comtrritted 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 urrique 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. This Charter shall not be interpreted as
giving the City greater authority to raise the level of taxes or to create new taxes beyond
the powers granted to general law cities nor to exempt the City from any procedures for
raising the level of taxes or for creating new taxes required by the law applicable to
general law cities.
Section 103. Zoning and General Plan Consistency. Zoning shall continue to be to
be consistent with the City's General Plan, pursuant to requirements of the State law
applicable to general law cities.
Section 104. Powers Established by Ordinance. The City Council may not establish
by Ordinance any powers, rights, and responsibilities that are not either expressly
described in this Charter or allowed by State law applicable to general law cities.
ARTICLE II. FORM OF GOVERNMENT
Section 200. Form of Government. The City shall continue to be governed under this
Charter by a "Council-Manager" form of government. The City Council will establish the
policy of the City and the City Manager will carry out that policy.
Section 201. Elected Officials. The elective officers of the City of Arroyo Grande shall
be a Mayor and four Council members each of whom, including the Mayor, shall have
the right to vote on all questions conling 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 corr~municate
the will of the Council majority to the administrative ofFicers in matters of policy. The
Mayor shall be recognized as the official head of the City for all ceremonial purposes.
Section 204. Council Member Compensation. The salary of the Mayor and Council
Members shall continue to be set pursuant to the State law applicable to general law
cities.
Section 205. Elections. The City Council may approve by ordinance use of a mail-in
ballot for special elections. All elections shall be held in accordance with all other
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Attachment 1
provisions of the law applicable to general law cities.
Section 205. Elections.
All elections shall be held in accordance with the provisions of the law applicable to
general law cities.
ARTICLE Ill. CONTRACTS, PUBLIC FINANCING AND FRANCHISES
Section 300. Economic and Community Development. The City shall encourage,
support, and promote economic and community development and preserve and
enhance the small-town and historic character of Arroyo Grande.
Section 301. Public Works Contracts. 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,
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 302. Prevailing Wage.
No City contract shall require payment of the prevailing wage schedule unless:
(i) the prevailing wage is legally required, and constitutionally permitted, to be
imposed;
(ii) required by Federal or State grants pursuant to Federal or State law;
(iii) the City Council does not consider the project to be a municipal affair; or
(iv) payment of the prevailing wage schedule is authorized by resolution of the
City Council.
Section 303. Purchasing. The City shall have the power to establish standards,
procedures, rules or regulations related to the purchasing of goods, property, or
services, including, but not limited to, the establishment of local preferences.
Section 304. Public Financing. The City shall have the power to establish standards,
procedures, rules or regulations related to any public financing.
Section 305. Utility Franchises. The City shall have the power to adopt any ordinance
providing for the acquisition, development, or operation by the City of any utility, or to
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Attachment 1
adopt any ordinance providing for the granting of a franchise to any utility not owned by
the City which proposes to use or is using City streets, highways or other rights-of-way.
Section 306. Supporting Volunteers in Arroyo Grande
The City seeks to support volunteers in creating a higher quality of life for Arroyo
Grande citizens and declares itself exempt from any State laws or regulations that
would make it more difficult or expensive for volunteers in any community project,
whether funded with City revenues or not.
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
broadly construed in favor of the exercise by the City of its power to govern with respect
to any matter which is a municipal affair.
Section 601. Severability. If any provision of this Charter should be held by a court of
competent jurisdiction to be invalid, void or otherwise unenforceable, the remaining
provisions shall remain enforceable to the fullest extent permitted by law.
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Attachment 1
Authentication
And
Certification
Authenticated and certified to be a true copy by Mayor and City Clerk .
Date of Municipal Election: ATTEST:
Mayor City Clerk
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General Law City v. Charter City Attachment 2
. -. -. . -- -- - .-,- - .: - . - -. . . ..
I-.:,:;->.;.:: - charier city: :, - 7. . '- . - . . . . -.A. -- . A-. - - .-
Has supreme authority over "municipal
affairs." Cal. Const. art. XI, 5 5(b).
Charter can provide for any form of
government including the "strong mayor,"
and "crty 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 election dates, rules, and
procedures. See Cal. Const. art. XI, 5 5(b);
Cal. Elec. Code 55 101 01 et seq..
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 (1 999).
. . -. - -.., .- -- " 9" :. , .,> .-- - - . , ,.. - . .
:-:+; ;-:;. +Ctiaracter@tic-, 7.- . - I ---. - -
Ability to Govern
Municipal Affairs
Form of Government
Elections Generally
Methods of Elections
City Council Member
Qualifications
%_l- . -- ;- %I,.?... : ,- . .;:,>- ., - ,... ,;. - :-.:: : - ,- --.z , ,, . ,--... - .- -
a .. . --
- . 4 :;-.- - ~~~~hi ~=iCi*+.<::. .:. ,;'-.: -- .. . .. , . , . - - - - - % --.. .-- .- _ ._ _ ..._._.,
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 5 34851.
Municipal elections conducted in accordance
with the California Elections Code. Cal. Elec.
Code 55 10101 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 "bf 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 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 5 321; Cal. Gov't Code 55
34882, 36502; 87 Cal. Op. Att'y Gen. 30
(2004).
Agenda Item 9.a.
Page 16
Public Funds for Candidate
in Municipal Elections
Term Limits r
Vacancies and Termination
of Office
Council Member
Compensation and
Expense Reimbursement
Legislative Authority
Resolutions
Quorum and Voting
Requirements
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. Gov't 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
majoriiy vote of the total membership of the
city council. Cat. Gov't Code § 36936.
Specific legislation requires supermajority
votes for certain actions.
Public financing of election campaigns is
lawful. Johnson v. Bradley, 4 Cal. 4th 389
(1 992).
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. Bmugher v. Bd. of Public Wofks,
205 Cal. 426 (1928).
May establish procedures for adopting,
amending or repealing resolutions. Bmugher
v. Bd. of Public Wofks, 205 Cal. 426 (1928).
May establish own procedures and quorum
requirements. However, certain legislation
-equiring supermajority votes is applicable to
:hatter cities. For example, see California
:ode of Civil Procedure section 1245.240
-equiring a vote of two-thirds of all the
nembers of the governing body unless a
jreater vote is required by charter.
Agenda Item 9.a.
Page 17
. - , - - >
., :. I -- . - . . -. :=.- - .charter city.- -.-I . . -.
Ralph Brown Act is applicable. Cal. GoVt
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.
. , - - . . - . . - - - : .-.- , :.
: i: : ~haracteri~dc-:--: - - , .-- :. -.
Rules Governing
Procedure and Decorum
Personnel Matters
Contracting Services
.. - .. - -- , -.:~_ .- .- . . -. --- . . . . . ,--
.; ' -:: .. '-- . . -. . ~enbrai~& . . - 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, 5
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 5 371 03;
Carruth v. City of Madera, 233 Cal. App. 2d
688 (1 965).
Agenda Item 9.a.
Page 18
-. - . , .:. .. -.
a.
;---- dh=&r city , - L .. . ,.- --- - - - . - . .
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 5 1100.7;
see R & A Vending Services, Inc. v. City of
Los Angeles, 172 Cal. App. 3d 11 88 (1 985);
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. Crty of San Diego,
122 Cal. App. 3d 346, 348 (1981). 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.
. . - _ .__ . 3-.z. . ,
c.tiaf&teiieti=; - - - , -.. - -- - - . ..-.
Public Contracts
.
Payment of Prevailing
Wages
.. . . -- . - .i - -. . .- . ,
l. . ._ .-. .._ - - - -
- " -..- -: ' ' .. ~~"~j~!:~~b. -. City: : ,.I --- ' - L --,.: - - .: -.., -2-
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 1771.5(a)-(c).
Agenda Item 9.a.
Page 19
.:.: . .
J. characteristic. - . - . . . .- -
Finance and Taxing Power
Streets 8 Sidewalks
Penalties 8 Cost Recovery
. , - -- . . ,----. .- - _ - .- . . , . , . -. . ,.-.17 - ~eneral caw .city: ..I: .: , .-
I- .- -*. . .
-7 - .
May impose the same kinds of taxes and
assessment as charter cities. See Cal. Gov't
Code § 37100.5.
Imposition 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 191 1. Cal. Sts.
& High. Code § 22500 et seq..
Municipal lmprovement Act of 1913.
See Cal. Sts. & High. Code §§
10000 et seq..
Improvement Bond Act of 191 5, Gal.
sts. & High. Code cjcj 8500 et seq.,
Landscaping and Lighting Act of
1972. Cal. Sts. & High. Code §§
22500 et seq..
Benefit Assessment Act of 1982.
Gal. Gov't Code €j€j 54703 et seq..
May impose business license taxes for
regulatory purposes, revenue purposes, or
both. See Cal. Gov't Code § 37101.
May not impose real property transfer tax.
See Cal. Const. art. XIIIA, § 4; Cal. Gov't
Code § 53725; but see authority to impose
documentary transfer taxes under certain
circumstances. Cal. Rev. & Tax. Code §
I I91 l(a), (c).
State has preempted entire field of traffic
control. Cal. Veh. Code § 21.
May impose fines, penalties and forfeitures,
with a fine not exceeding $1,000. Cal. Gov't
Code § 36901.
-. . . - . . .-2 . . .. . .
.chart=i'.city .- - .- . . -.
~ave 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, §
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 (1 984).
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); Fielderv. City of Los
Angeles, 14 Cal. App. 4th 137 (1 993).
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
Angeles, 21 9 Cal. App. 2d 838, 844 (1 963).
Agenda Item 9.a.
Page 20
-. -
-= : . chartercity. : '' - , .. .. . - :i . .. .a - - ..
May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 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 §
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 §
65803.
. . ...... -- . .
- . . Characteristjc - .. - , :r7. . . ;
. . . . - . . . -
Public UtilitieslFranchises
Zoning
. . - -. .
.
. - .. .. : ~e,nera! ~aw ~iiy =--I -:'--:.' - -:
. .a -I- ... -_ ., . - . . .
May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.
Gov't Code § 39732; Cal. Pub. Util. Code §
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 ofcity streets for such purposes. The
grant of franchises can be done through a
bidding process, under the Broughton Act,
Cal. Pub. Util. Code §§ 60014092, or
without a bidding process under the
Franchise Act of 1937, Cal. Pub. Util. Code
§§ 62014302.
Zoning ordinances must be consistent with
general plan. Cal. Gov't Code § 65860.
Agenda Item 9.a.
Page 21
Attachment 3
City of Arroyo Grande
FY 200911 0 - FY 201 211 3
Summary of Construction Expenditures
All Local Fundinq
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
Agenda Item 9.a.
Page 22
Attachment 4
Steve Adams
From:
Sent:
To:
Cc:
Subject:
lantsberg@gmail.com on behalf of Alex Lantsberg-SMART CITIES PREVAIL
[alantsberg@smartcitiesprevail.org]
Tuesday, May 01,201 2 11 :31 AM
Tony Ferrara; Steve Adams
Kelly Wetmore
RE: Proposed Charter as means to save on Public Works costs
Mr. Tony Ferrara, Mayor
Mr. Steven Adams, City Manager
300 East Branch Street
Arroyo Grande, CA 93420
Dear Mayor Ferrara and Mr. Adams,
I am a Research Analyst with Smart Cities Prevail, a non-profit organization dedicated to illustrating
the benefits of prevailing wages to local economies, taxpayers, and workers. I have read reports of
discussions in the City of Arroyo Grande where City officials have indicated that elimination of
prevailing wages could result in savings of up to 20% for municipal public works projects. I am
writing to both set the record straight and offer SCP as a resource for information about prevailing
wages, public works, and construction economics in general.
To begin, the claim that elimination of prevailing wages results in cost savings has been thoroughly
debunked in a variety of authoritative studies by academic economists and government agencies.
Because direct construction labor typically comprises less than a quarter of a total project's cost, the
types of savings often claimed by prevailing wage opponents are simply impossible to achieve. In
fact, what we've seen over the past several years is that public works construction prices have come
down dramatically due to the dramatic shrinkage of demand for construction services.
SCP believes that prevailing wages are an indispensable element of a good public works program.
Given that public works projects have precision engineering and design elements that cannot be
executed by unskilled construction crews, prevailing wages help to attract skilled contractors and
ensure quality construction that is completed on time and on budget. Don't just take our word for
it; elected and appointed officials and construction professionals throughout California have reached
the same conclusions, and we encourage you to follow those links and watch the videos. In addition
to these testimonials, we also encourage you to investigate for yourself the ongoing problems in
Oceanside and Palo Alto.
Agenda Item 9.a.
Page 23
Smart Cities Prevail would be delighted to discuss this matter further with yourselves, your staff, and
Arroyo Grande's elected officials. We are committed getting the facts out there and will make
ourselves available at your convenience. Please do not hesitate to contact me.
Sincerely
Alex Lantsberg
Research Analyst
(91 6) 259-3727
Agenda Item 9.a.
Page 24