HomeMy WebLinkAbout01 - - Second Public Hearing on Proposed City - 2/13/2012CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 13, 2012 ITEM NUMBER:
SUBJECT: SECOND COMMUNITY PUBLIC HEARING ON PROPOSED CITY CHARTER
DATE: FEBRUARY 9, 2012
FROM: BILL LOBDELL, COMMUNICATIONS DIRECTOR
THOMAS R. HATCH, CEO
PRESENTATION THOMAS R. HATCH, CEO
BY:
FOR FURTHER INFORMATION CONTACT: Bill Lobdell @ (714) 754-5288
RECOMMENDATION:
Hold a second public hearing on the proposed City charter for Costa Mesa and receive
community comments/suggestions and provide direction on any changes to the second
draft of the proposed charter (Attachment 1).
BACKGROUND:
In the fall of 2011, City Council requested the City Attorney to investigate the benefits
and variations of the Charter form of city government that would shift control over strictly
municipal affairs from Sacramento to Costa Mesa. On December 6, 2011 (staff report
included as Attachment 2), the City Council voted to move forward the process to
consider placing a charter on the June 5, 2012 ballot. Using an initial first draft of the
proposed charter as a starting point, the City has sought comments on the charter
through various media; the City's website, social media and media outlets; through
public comments at the December 6, 2011 and January 3, 2012 City Council meetings;
and at a charter informational meeting held at the Costa Mesa Neighborhood
Community Center on January 5, 2012 (suggested additions and/or deletions to the
charter and a summary of the comments are included in Attachments 3 and 4). On
January 10, 2012, the first public hearing was held on the proposed City charter. After
taking testimony and reviewing public comments, the City Council voted to approve a
second draft of the proposed charter (staff report included as Attachment 5). The City
Council also requested to include two provisions—on City Council candidate
qualifications and an Ethic and Conduct Code—that were already addressed by state
law, municipal law, or both (charter provision memo from City Attorney's Office included
as Attachment 6).
ANALYSIS:
The City of Costa Mesa is currently a general law city. The general law form allows
cities to act only based upon the authority given by the California Constitution and the
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California Legislature. The alternative type of city government used by 120 California
cities is the charter form (see Attachment 7 for the League of California Cities' primer on
charter cities). A charter city is one that has adopted a set of bylaws, called the charter,
which acts as a local constitution for the city. Similarly to the federal and state
constitutions, a charter may only be adopted, amended, or repealed by a majority vote
of a city's residents.
Charter cities have more authority over their municipal affairs, strengthening the City's
home rule. By adopting a charter, the City will have greater flexibility in the operations
of its municipal government, which if properly utilized, can translate to greater efficiency,
effectiveness, and innovation.
A charter city has more options when considering how to handle a number of municipal
affairs. This includes, but is not limited to, the following:
1. Construction and maintenance contracting;
2. Land use;
3. City finances;
4. State mandates; and
5. City government structure.
For example, the current draft of the Costa Mesa charter states that the City would not
be required to pay prevailing, or union, wage for projects that are locally funded. To
give the City Council and residents an idea of the potential savings, City staff has
looked at several past and future construction projects and calculated the potential
savings (see Attachment 8).
Limitations and Safeguards:
Notwithstanding these advantages, there are several limitations and safeguards upon a
charter city's powers. In particular, a charter city's decision-making authority is
specifically limited to only municipal affairs and does not extend to matters of "state-
wide concern." Generally speaking, a matter of state-wide concern is something that is
determined by the courts to be of an importance to the entire state. In those cases,
state law preempts local regulations. For example, many traffic regulations are matters
of state-wide concern. A charter city would not be able to adopt local traffic regulations
that would conflict with those enacted by the legislature.
Recent charters passed by California cities have included "anti -City of Bell measures"
that limit council member and city employee compensation to what is allowed under
state law. The proposed Costa Mesa charter also includes this provision.
It is important to note that an adoption of a charter does not change the way the City
operates. Like the state and federal constitutions, a charter would only provide the City
a general set of guidelines and an opportunity to make community -specific decisions.
Any changes to existing ordinances and regulations may be made so long as they are
within the parameters found in the charter.
What's Different in Costa Mesa's Draft Charter?
Charters for California cities, especially those adopted within the past decade are
remarkably similar because the primary goal is the same—local control—and the
E
charter language used by other cities has been legally tested. Costa Mesa's proposed
charter is what could be termed as generic, except in the following three areas.
1. Section 301. Purchasing and Contracts. This section allows the City to decide
whether or not to pay prevailing, or union, wage on public works projects that use
only local funds;
2. Section 602. Employee Retirement Benefits. This section requires increases in
employee retirement pensions to be approved by the majority of Costa Mesa
voters; and
3. Section 603. Voluntary Municipal Employee Political Contributions. This
section ensures that city employee association dues collected directly from city
paychecks will not be used for political activities.
Adoption Process:
The state legislature recently approved a bill (AB1344) that provided for more public
input on proposed city charters, both before and after the measures are placed on the
ballot. The City's timeline of events (see Attachment 9) provides for public meetings on
the proposed charter on January 10; February 13; and March 6, 2012.
On March 6, 2012, the City Council can vote on whether to put the proposed charter on
the June 5, 2012 ballot. The charter can be adopted by a simply majority of Costa Mesa
voters.
ALTERNATIVES CONSIDERED:
1. City Council can choose to direct staff and the City Attorney to discontinue the
process of putting a Proposed Charter on the June 5, 2012.
2. City Council can choose to hold a second public hearing on the proposed City
charter for Costa Mesa, receive community comments/suggestions, provide
direction on any changes to the second draft of the proposed charter and direct staff
to prepare informational mailers to Costa Mesa residents to better educate them on
the proposed charter and the adoption process.
FISCAL REVIEW:
If the proposed charter is placed on the June 2012 ballot, the Registrar of Voters estimates
the cost to consolidate to be in the range of $97,500 to $123,500. If placed on the
November 2012 ballot, the Registrar of Voters estimates the cost to consolidate to be in the
range of $78,500 to $97,500.
LEGAL REVIEW:
The City Attorney's office has reviewed this report and attachments and approves as to the
form found therein.
CONCLUSION:
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City Council requested to hold its second public hearing on the proposed City charter for
Costa Mesa and receive community comments and suggestions and provide direction on
any changes to the second draft of the proposed charter.
THOMAS R. HATCH
Chief Executive Officer
THOMAS P. DUARTE
City Attorney
ATTACHMENTS: 1 Second Draft of Proposed Charter for Costa Mesa
2 Dec. 6, 2011 Staff Report on Proposed Charter
3 Comments and Suggestions Submitted to the City Council on
Proposed Charter through January 5, 2012
4 Comments and Suggestions Submitted to the City Council on
Proposed Charter from January 6 to February 10, 2012
5 January 10, 2012 Staff Report on Proposed Charter
6 Charter provision memo from City Attorney's Office
7 A Charter Primer from the League of California Cities
8 Potential Savings as a Charter City
9 Charter Timeline of Events
n
Draft 1
CHARTER
OF THE
CITY OF COSTA MESA
ATTACHMENT 1
WE THE PEOPLE of the city of Costa Mesa declare our intent to restore to our community the
historic principles of self -governance inherent in the doctrine of home -rule. Sincerely committed
to the belief that local government has the closest affinity to the people governed,, firm in the Deleted: and
conviction that the economic and fiscal independence of our local government will better serve
and promote the health, safety and welfare of all of the citizens of this City, and the rule of law,
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 Costa Mesa.
Article I
Municipal Affairs
Section 100. Name of City; Perpetual Succession
The city of Costa Mesa shall continue to be a municipal corporation known as the city of Costa
Mesa. The boundaries of the city of Costa Mesa shall continue as now established until changed
in the manner authorized by law.
Section 101. Rights and Liabilities of Cities; Prior Contracts, Liabilities, Etc., Continued in
Effect
The city of Costa Mesa shall remain vested with and shall continue to own, have, possess,
control and enjoy all property rights 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 City at the time this Charter takes effect. All lawful ordinances,
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. Municipal Affairs
Each of the responsibilities of governance set forth and described in this Charter, and as
established by the Constitutional, statutory and judicially defined law of the State of California,
is hereby declared to be a municipal affair of concern, the performance of which is unique to the
benefit of the citizens of the city of Costa Mesa.
Section 103. General Powers; Seal
The city of Costa Mesa, by and through its legislative body and other officials, shall have and
exercise all powers necessary or appropriate to a municipal corporation and the general welfare
of its inhabitants, which are not prohibited by the Constitution of the State of California, and
which it would be competent for this Charter to set forth particularly or specifically, as fully and
completely as though they were specifically enumerated in this Charter. The enumeration in this
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Draft 1 ATTACHMENT 1
Charter of any particular power, duty or procedure shall not be held to be exclusive of, or any
limitation or restriction upon, this general grant of power. General powers of the city include, but
are not limited to, the powers necessary or appropriate to promote the health, welfare and safety
of its inhabitants. The city shall have and use a common seal and the official seal hereinbefore
adopted and now in use by said city shall continue to be the official seal of the city.
Article 2
Form of Government
Section 200. Form of Government
The municipal government established by this Charter shall be known as the "Council -CEO" Deleted: Manager
form of government. The City Council will establish the policy of the City and the City CEO will Deleted: Manager
carry out that policy.
Section 201. Legislative Body; Composition
The legislative body of the City shall consist of five (5) council members elected at large. This
legislative body shall be known as the City Council, and each of its members shall be known as
"Council Members." The number of terms a member of the city council may serve on the city
council shall be limited to two (2) consecutive terms of four (4) years each. The City Council
shall choose one of its members as mayor and one of its members as mayor pro tempore at the
meeting at which the declaration of the municipal election results. The term of service for both
mayor and mayor pro tempore shall be for a period of two (2) years from the date of
appointment.
The Council Members shall be elected by the qualified voters of the City at a general municipal
election. Their terms shall be staggered in the manner as existing at the time of the adoption of
this Charter. They shall hold office for the period of four years from and after the date of
certification of election results by the City Council, and until their successors are elected, and
qualified. If there is no ordinance establishing the qualifications for a candidate for city council,
then a candidate must meet qualifications as set forth in Government Code Section 36502 and
Elections Code Section 321, as either may be amended and recodified.
The members of the City Council shall not be eligible to any other office or employment with the
City during the period of their incumbency, and for a period of one year following the
termination of their position on the City Council.
Section 202. Time and Place of Meetings; Rules of Conduct of Proceedings
The City Council shall provide by ordinance or resolution for the time and place of holding its
meetings. Special and emergency meetings shall be called in accordance with the provisions of
general law. There shall be at least one regular meeting in each calendar month. Any regular
meeting may be adjourned to a date and hour certain, and such adjourned meeting shall be a
regular meeting for all purposes.
Meeting locations and rules for notice of, and conduct of, meetings of the City Council and all
subordinate legislative bodies in the City shall be conducted in accordance with state laws and
such rules for procedure as established by ordinance of the City Council.
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Draft 1 ATTACHMENT 1
Section 203. Administrative Officers; Appointment and Removal; Grounds
The following administrative officers are hereby established, each of whom shall be appointed Deleted: Manager
by the City Council: a City CEO and a City Attorney.
Except as may be otherwise provided in this Charter the affirmative three (3) members of the
City Council shall be required for the appointment of or the removal of any administrative
officer for cause. "For cause" includes, but is not limited to, refusal to perform the duties of his
or her office; being adjudged mentally incompetent; or being convicted of a felony, or crime of
moral turpitude. The administrative officer is entitled to a hearing before the City Council on the
validity of the grounds providing the basis for removal for cause.
The City Council may remove any of its administrative officers at its pleasure, without cause
stated or hearing had, by the affirmative vote of our 4 members in favor of such removal, and Deleted: four
the determination of the council in such matters shall be final and conclusive.
Section 204. Administrative Officers; Qualifications and Duties
The City CEO shall be the administrative head of the City government. The duties of the Cites Deleted: Manager
CEO shall be m rescribe( Gb this Charter or by ordinance of the Ctv Council Deletes: Manager
The City Attorney shall be the chief legal advisor to the City and the City Council. The City
Attorney shall be an attorney-at-law, admitted to practice as such before the supreme court of the
state, and who has been in actual practice therein for at least hree 3 years next preceding Deleted: three
appointment. All other things being equal, an attorney who has had special training or experience
in municipal corporation law shall be appointed to the office if practicable. The City Attorney
shall, within his or her discretion, prosecute all violations of city ordinances and shall draft or
approve all contracts and other legal documents and instruments.
Deleted: Manager
Section 205. Interference With Performance of Duties of City -CEO
No member of the City Council shall in any manner attempt to influence or coerce the City CEO Deleted: Manager
in the making of any appointment or the purchase of supplies in accordance with the Charter,
City ordinance, or applicable state and federal law.
Except for such direction that it provides to the City Attorney, the City Council shall deal with
the administrative functions of the City through the City ECEO. The City Council shall onlThave Deleted: Manager
direct contact with the directors of the City's departments for the purpose of asking questions.
No Council Member, and no officer, board or member of any board or commission, shall
recommend the appointment of, appoint, vote for or elect, to any office, position of employment,
in any department of the City government, any person related by consanguinity or connected by
marriage with such Council Member. A breach of this section shall be cause for removal of any
such Council Member, officer, board or member of such board or commission.
Article 3
Legislative Authority
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Draft 1
Section 300. Ordinances
The City Council shall act by ordinance, resolution, or motion. Pursuant to Government Code
Section 36937, as may be amended and recodifjed, except for urg ncyordinances, except for
ordinances calling for or otherwise relating to an election, and except for other ordinances
identified in the general laws of the State that do not require introduction prior to adoption, no
ordinance shall be passed by the City Council on the date of its introduction, nor within h iriy
30) days thereafter, nor at any time other than at a rTgular meeting. Nothing herein shall be
construed as prohibiting minor changes, amendments or modifications of a proposed ordinance
between the time of its introduction and final passage, providing its general scope and original
purpose are retained. The affirmative vote of three (3) members shall be necessary to the passage
of any ordinance. All ordinances and resolutions shall be signed by the Mayor and attested by the
City Clerk.
The enacting clause of all ordinances shall be, "The City Council of the City of Costa Mesa does
ordain as follows". All ordinances, with the exception of the annual appropriation ordinance,
shall contain but one subject, which shall clearly be stated in the title.
Fines and other penalties for the violation of City ordinances shall be in such amounts as
established by the City Council in the City's Municipal Code, but no civil fine or penalty shall
exceed an amount set by ordinance of the City Council for each day of the same violation
provided, however, that any civil fines or penalties established by any state or federal agency,
which can be imposed on the City for violations of statutes or regulations adopted by that state or
federal agency, may be imposed by the City against any person, entity, or organization violating
any City ordinance related to such state or federal law or regulation, in like amount. The
maximum amount of any civil fines or penalties shall not be limited to those amounts established
by State law for criminal fines or penalties.
Section 301. General Plan Consistency
Pursuant to Government Code Section 65860, zoning ordinances adopted by the City Council
shall be consistent with theenteral plan of the city. A zoning ordinance shall be consistent with a
city or county enteral plan only if both of the following conditions are met:
(1) The city has officially adopted such a plan.
ATTACHMENT 1
Deleted: E
Deleted: five
Deleted: 5
Deleted: $2,500
(2) The various land uses authorized by the ordinance are compatible with the objectives -
policies, general land uses, and programs specified in the plan.
Article 4
Fiscal Matters
Section 400. Economic and Community Development
The City shall encourage, support, and promote economic development and community
development in the City.
Section 401. Purchasing and Contracts
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Draft 1
"Public Works Contract," as used in this section, means an agreement for the erection,
construction, alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind, which is paid for in whole with tax revenue paid by residents of
the City of Costa Mesa.
"Other Public Contract" as used in this section means any contract, purchase order, or other
agreement used to procure services and supplies of any kind, that are paid for in whole with tax
revenue paid by the residents of the City of Costa Mesa.
The City is exempt from the provisions of all California statutes regulating public contracting
and purchasing, except as provided by this Charter, City ordinance, or by agreement approved by
the City Council.
Annually, the City Council shall set a value at which Public Works Contracts shall be exempt
from public bidding and shall follow such procedures for open market sale or purchase as set by
the City Council.
The City Council shall establish all standards, procedures, rules or regulations to regulate all
aspects of the bidding, award and performance of any Public Works Contract greater than the
value set by the Council ordinance or resolution, including but not limited to, the compensation
rates to be paid for the performance of such work.
The City may, without exception, enter into Other Public Contracts. Other Public Contracts shall
follow such procedures as set by the City Council.
No City Public Works Contract or Other Public Contract shall require payment of the prevailing
wage schedule unless: the prevailing wage is legally required and constitutionally permitted to be
imposed by the requirements of federal grants, state grants, redevelopment law, or other federal
or state law; or the project is considered by the City Council, by resolution, not to be a municipal
affair of the City; or payment of the prevailing wage schedule is authorized by resolution of the
City Council. Payment of the prevailing wage schedule, if authorized hereunder, shall use the
pertinent rates published by the State of California.
The City will promote fair and open competition for all City construction projects so that all
contractors and workers, whether union or non-union, are treated equally in the bidding and
awarding of City construction contracts.
Section 402. Miscellaneous Provisions Relating to Appropriations
ATTACHMENT 1
Upon the request of the City CEO the City Council my, by resolution, transfer as part of an Deleted: Manager
unencumbered balance of any appropriation to another purpose or object, or may, by resolution,
authorize a transfer to be made between items appropriated to the same office or department. At
the close of each fiscal year, the unexpended balance of each appropriation, against which no
contracts or works or supplies are outstanding, shall revert to the City's general fund. Any
money in the general fund otherwise unappropriated may be appropriated by the City Council at
any time by resolution.
Article 5
Revenue Retention
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Draft 1
Section 500. Reductions Prohibited
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 501. 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 6
General Laws
Section 600. General Law Powers
The City shall have the power and authority: to adopt and enforce all legislation, laws, and
regulations; and to take all actions necessary 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.
Section 601. Council Member Compensation
Notwithstanding the previous paragraph, salary of the Mayor and Council Members will
continue to be set by California Government Code §36516, as may be amended and recodified,
as that statute provides as of the date of the adoption of this Charter, where the formula considers
city population and state law.
Section 602. Employee Retirement Benefits
At the time of this Charter's adoption, no ordinance increasing any employee, legislative officer
or elected official's existing retirement benefits, other post -employment benefits, or employer
contributions, with the exception of Cost of Living Adjustments, shall be adopted without the
majority approval of qualified voters of the City at a general municipal election. The City
Council may reduce retirement benefits, other post -employment benefits, or employer
contributions as provided in state law without an amendment to this section.
Section 603. Voluntary Participation in Employee Organizations
ATTACHMENT 1
Pursuant to Government Code Section 3502, city employees shall have the right to refuse to join
or participate in the activities of employeeganizations and shall have the right to represent Formatted: Font: Not Bold,
themselves individually in their employment relations with the public agency, d Underline
Section 604. Voluntary Municipal Employee Political Contributions Formatted: Space After: 12 pt, No
widow/orphan control, Don't adjust
Unless otherwise required by law, a city employee labor union, city contractor, or city employer space between Latin and Asian text,
Don't adjust space between Asian
text and numbers
Page 6 of 8 Draft
Draft 1
("Organization") may only make expenditures for political activities if the Organization
establishes a separate segregated fund that meets the requirements of this chapter. The
Organization shall ensure that: (a) In soliciting contributions for the fund, the Organization
discloses, in clear and unambiguous language on the face of the solicitation, that contributions
are voluntary and that the fund is a political fund and will be expended for political activities; (b)
Union dues are not used for political activities, transferred to the fund, or intermingled in any
way with fund moneys; (c) The cost of administering the fund is paid from fund contributions
and not from union dues; (d) Each contribution is voluntary and shall be made by the member or
employee and may not come from or be remitted by the employer of the member; (e) The
solicitations are written and mailed, by the U.S. Postal Service, to the residence of the member or
employee; (fl The Organization shall not exceed two written solicitations for the fund per
calendar year; and, (g) The solicitations are designed such that the Organization is in compliance
with Government Code Section 84304, as may be amended or recodified. The Organization has
the burden of proof to establish that the requirements above are met.
Article 7
Interpretation
Section 700. Construction and Interpretation
The language contained in this Charter is intended to be permissive rather than exclusive 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 701. 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.
Article 8
Amendment
Section 800. Amendment to Charter, Revised or Repealed
ATTACHMENT 1
Deleted: The solicitations are written
and mailed to the residence of the
member or employee; (f) The
Organization shall not exceed two written
solicitations for the fund per calendar
year; and, (g) The solicitations are
designed such that the Organization
cannot determine who makes a
contribution of less than $100 as a result
of such solicitation and who does not
make such a contribution. The
Organization has the burden of proof to
establish that the requirements above are
met.
This Charter, and any of its provisions, may be amended by a majority vote of the electors voting
on the question. Amendment or repeal may be proposed by initiative or by the governing body.
Formatted: Font: Bold
Section 801. Review of the Charter Formatted: Font: Bold
The City Council shall hold a public hearing during the second meeting of every tenth year after
this charter is adopted to determine if a charter review commission is needed to review the city
charter. This section in no way limits the provisions of Section 800.
AUTHENTICATION
AND
CERTIFICATION
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Authenticated and certified to be a true copy by Mayor and City Clerk
Date of Municipal Election: ATTEST:
Mayor City Clerk
ATTACHMENT 1
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ATTACHMENT 3
CITY CHARTER SUGGESTIONS/COMMENTS (through Jan. 5, 2011)
Since December 6, 2011, the City of Costa Mesa has been soliciting input from
residents and other interested parties on the initial draft of a proposed charter, or
local constitution, for the City.
The City has compiled the suggestions and comments below for the City
Council's consideration.
SUGGESTIONS TO THE CITY COUNCIL
Suggested additions, edits: the Preamble
1. Suggested amend: WE THE PEOPLE of the City of Costa Mesa:
California, believe fiscal responsibility and the prudent stewardship of
public funds is essential for confidence in government, that ethics and
integrity are the foundation of public trust and that just governance is built
upon these values. Through the enactment of this Charter, we declare our
intent ... enact and adopt this Charter for the City of Costa Mesa. It is
incumbent upon those who govern and make decisions for and on behalf
of the City of Costa Mesa to legally, as well as morally, abide by the
provisions of this Charter, in its strictest sense, to assure the continued
success and well-beina of our Citv.
Suggested additions, edits: Municipal Affairs, Section 100
1. Suggested amend to Section 101: Rights and Liabilities of Cityeas; Prior
Contracts, Liabilities, Etc., Continued in Effect The City of Costa Mesa
shall remain vested.... All lawful ordinances, resolutions, rules and
regulations and contracts, or portions thereof, in force at the time this
Charter takes effect ... are hereby continued in force until... superseded by
proper authority.
2. Suggested addition: Section 101(a). Pending Actions and Proceedings
No action or proceeding, civil or criminal, pending at the time when this
Charter takes effect, brought by or against the City or any officer, office,
department or agency thereof, shall be affected or abated by adoption of
this Charter or by anything herein contained.
3. Suggested amend to Section 102: Municipal Affairs Each of the
responsibilities of governance set forth and described in this Charter, and
as establo to the extent allowed by the Constitutional, statutory and
judicially defined law of the State of California, is hereby declared to be a
Page 1 of 11
ATTACHMENT 3
municipal affair Of�-ern, the performance of which is unique to the
benefit of the citizens of the city of Costa Mesa. Unless specifically
provided for in this Charter, the general laws of the State of California shall
apply to the City of Costa Mesa.
Suggested additions, edits: Form of Government, Section 200
1. Suggested addition to Section 201: The parts that are here are fine but a
specific qualification section should be added. City Council members
should be U.S. citizens, at least 18 years old, a registered voter, resident
of the City of Costa Mesa for at least 2 years and remain a resident as
long as they are on the Council. Include language about City Council's
compensation/expenses; include language about Council vacancies,
forfeitures (absenteeism); felony convictions; rules for conflict of interest
and nepotism.
2. Suggested addition to Section 201: The Mayor of the city shall be elected
by the qualified voters of the City at a general municipal election. The term
of service for the mayor and shall be for a period of two (2) years from the
date of election.
3. Suggested amend to Section 201: The members of the City Council shall
not be eligible to hold any other office or employment with the City during
the period of their incumbency, and for a period of two years following the
termination of their position on the City Council.
4. Suggested addition Section 201: Council Member Qualification - 5 year
Minimum Residency requirement.
5. Suggested amend to
Section 202:
Change from requiring 1
public
meeting a month to at
least 2 public
meetings a month. The meetings,
many times, end after
midnight now.
With only one meeting a
month
public input wouldn't have
a chance.
Second paragraph, please
define
and be specific about
"state laws," such as "open and public"
include
specific language about dissemination
of information about
council
meetings.
6. Suggested addition to Section 202. Time and Place of Meetings; Rules of
Conduct of Proceedings (Add third paragraph) No citizen shall be denied
the right, personally or through counsel, to present grievances at any
regular meeting of the City Council, or to offer suggestions for the
betterment of municipal affairs, subject always to the rules of the City
Council, governing the conduct of Council meetings.
Page 2 of 11
ATTACHMENT 3
7. Suggested amend to Sections 203/204: Be consistent. If we aren't having
a title of City Manager anymore then change it everywhere to CEO.
Paragraph 3, remove "without cause stated or hearing had." This
language puts way too much power in the hands of the City Council. What
specific power and duties of the City Manager? What about language that
explains/describes an "acting" city manager? Line 2 "as prescribed by this
Charter" Where? What about language describing personnel, boards,
commissions, committees?
8. Suggested addition to Section 203: Administrative Officers; Appointment
and Removal; Grounds (Add fourth paragraph) The City Manager shall not
be removed from office during or within a period of ninety days after any
municipal election at which a member of the City Council is elected. No
person shall be eligible to receive appointment as City Manager while
serving as a member of the City Council or any City commission, board, or
committee, nor within one year after such person has ceased to be a
member of the Citv Council.
9. Suggested amend to Section 203: Concerned about 4 Council Members
being able to dismiss an employee with no hearing and no stated reason.
10.Suggested amend to Section 204: Administrative Officers; Qualifications
and Duties The City Manager shall be the administrative head ... by
ordinance of the City Council. The City Manager shall be chosen on the
basis of his or her executive and administrative qualifications, with special
reference to actual experience in, and knowledge of, accepted principles
and practices of organizational design and development, long-range
planning, public administration, public financing, municipal budgeting,
financial administration, program and policy formulation, purchasing,
maintenance of public records, and applicable state and federal laws and
regulations governing the administration and operations of a municipal
agency.
11. Suggested amend to Section 205: Interference With Performance of
Duties of City Manager No member of the City Council shall in any
manner attempt to influence or coerce the City Manager in the making 0
any appointment or removal of any officer or employee, in the purchase of
supplies or services, or in any other administrative matter on a^^r.rrJari^o
with the Charter, City ordiRanGe, or appliGable state and federal I&OV.
12. Suggested clarification to Section 205: Second line, "in accordance with
the Charter," where is this language in the charter about attempt to
influence/coerce? What about specific language about a city clerk and city
treasurer?
Page 3 of 11
ATTACHMENT 3
13. Suggested addition: Section 206: Code of Ethics and Conduct The City
Council shall adopt a Code of Ethics and Conduct for elected officials and
members of appointed commissions, boards and committees to assure
public confidence in the integrity of local government elected and
appointed officials. The City Council shall adopt said Code of Ethics and
Conduct by ordinance or resolution within six months of the effective date
of this Charter.
14. Suggested addition: Should include a Court of Review — akin to the U.S.
and California Supreme Courts — to provide local checks and balances on
the City Council by splitting governance into three equal branches; the
executive, legislative and judicial branches. The Court could be
established, for example, with three judges elected by vote of the citizens
of Costa Mesa, and hold office for six years in staggered terms. The Court
would sit only as needed, when a petition for review is filed. Suitable
compensation of judges could be established for their part-time work. The
City would provide a venue, materials, and equipment for the Court's
operation, and fund it as needed. This Court is needed to supplement the
cumbersome and expensive routes of appeal that have been traditionally
available — lawsuits and the Referendum. A more rapid response is
needed, in case a Council greatly empowered by a charter succumbs to
dangerously unfettered activism.
15. Suggested addition: City Council may consider organizations
(Commission) to participate in decisions affecting the City as a whole, a
commission (such as Planning Commission) is given the power to make
decisions, or take actions. Some or all such powers may be limited or
effectively unlimited. Candidates must be at least 18 and willing to
participate for a two-year term. Candidates also should demonstrate a
history of participating in community activities, ideally with emphasis on
city related activities. The City Council conducting the recruitment program
will screen all applications and recommend qualified candidates for
membership and their selections will be made by drawing from eligible
residents.
16. Suggested addition: In the event the Council takes any action that has a
significant negative impact upon the City's finances, including causing
legal action resulting in fines or penalties, said Council will be held
personally financially responsible for said costs.
17. Suggested addition: Include a provision that the municipal elections shall
continue to be governed by state law, or alternatively, have the charter
spell out with specificity the exact manner in which all election matters,
including initiatives, referenda and recalls will be conducted. As written the
charter leaves the door wide open for the council, by a mere vote of 3, to
Page 4 of 11
ATTACHMENT 3
alter the local election laws. This includes setting forth qualifications for
office, percentage of registered voters' signatures required for an initiative,
referendum or recall to be changed (lowered or increased, at the whim of
any given council, since any such election ordinances can be enacted
and/or repealed by Council and not the voters.
18. Suggested addition: All provisions of the general law of the State of
California as they now exist or as amended in the future shall govern
matters concerning elections including, but not limited to, election dates,
initiatives, referenda, recall, eligibility to vote, and qualifications for office,
and no other provisions shall apply, except that the time for filing a petition
for a referendum shall be ninety days from the final reading of the
legislative action, and no such action, other than an urgency ordinance as
defined by general law, shall take effect until the time for filing of a
referendum petition has expired and no valid petition has been filed.
Suggested additions, edits: Legislative Authority, Section 300
Suggested addition to Section 300: add specific language about special
elections article.
2. Suggested amend to Section 300. Ordinances (Amend first paragraph)
The City Council shall act by ordinance, resolution, or motion. Except for
urgency ordinances,... nor at any time other than at a regular meeting, and
no ordinance shall become effective until thirty (30) days from and after
the date of its final passage. Nothing herein... signed by the Mayor and
attested by the City Clerk.
3. Suggested addition: Section 301. Initiative, Referendum and Recall The
provisions of the Elections Code of the State of California, as the same
now exists or may hereafter be amended, governing the initiative and
referendum and the recall of municiaal officers. shall ar)r)ly to the use
thereof in the City of Costa Mesa.
4. Suggested addition: Section 302. Planning and Zoning The Zoning Code,
land use designations of properties as shown on the official Zoning Map,
and land use decisions (including, but not limited to, subdivisions,
variances, conditional use permits, and administrative zoning approvals)
shall be consistent with the General Plan and any applicable Specific
Plan. In the event that a zoning ordinance or zoning map becomes
inconsistent with the General Plan or Specific Plan by reason of
amendment to the General Plan or Specific Plan, the zoning ordinance or
zonina mar) shall be amended within a reasonable time so that it is
consistent with the General Plan or Specific Plan as amended.
Page 5 of 11
ATTACHMENT 3
5. Suggested addition: City Council powers limited, not to be liberally or
broadly interpreted, with all other Charter rights/powers reserved for the
Citizens of Costa Mesa.
6. Suggested addition: Include the manner for the enactment of ordinances
to remain the same as under state law, and for the charter to specifically
so provide.
Suggested additions, edits: Fiscal Matters, Section 400
1. Suggested amend to Section 400: Economic and Community
Development The City shall encourage, support, and promote economic
development and community development in the City, while balancing the
benefits of such development with potential impacts on residents, in terms
of traffic, noise, pollution and other factors that affect the quality of life.
2. Suggested amend to Section 401: Public works contracts should not be
exempt from public bidding. Prevailing wage should be paid even with
"fair and open competition." Bids lower than the prevailing wage allow the
bidder to pay employees much less than the going rate for the work an
employee is doing. This would allow the owner of the business to make a
larger profit on the backs of his workers. This kind of language
encourages the contractor to hire undocumented workers at minimum
wage or even lower than minimum wage.
3. Suggested amend to 401 section: Council shall be required to maximize
contracting out all City services, except above Police/Fire/EMT minimum
Street Patrol services, to most qualified bidder that provides best value to
City over the life of each such contract.
4. Suggested amend to Section 401: Retain all language to Project Labor
Agreements and the ability to keep the City protected from strikes by
unions. PLA's give the City the chance to ensure the most qualified bidder
gets the award.
5. Suggested addition amend to Section 401: Competitive bids shall be
solicited for all contracts with public or private entities, and contracts shall
be awarded to the lowest responsible and responsive bidder. No changes
to an Invitation to Bid or Request for Proposal shall be made after the
Invitation or Request has been issued, and non -responsive bids shall be
rejected; provided, however, that after a contract has been awarded, the
City Council, at a regular public meeting, may modify the contract by
adding or deleting specific items of work within the general scope of the
contract and adjusting compensation accordingly. Contracts for legal,
accounting, engineering or architectural services shall be awarded with
Page 6 of 11
ATTACHMENT 3
due consideration for the specific skills and expertise required, in addition
to the financial and other aspects of the proposals.
6. Suggested addition to Section 401: Every contract awarded by the City of
Costa Mesa which is not limited by its terms to one year or less shall
include a specific amount of maximum compensation, per year and
overall. The maximum compensation shall not be exceeded or increased
except by a vote of at least three members of the City Council at a regular
public meeting, before goods or services in excess of the maximum are
provided to the City.
7. Suggested addition to Section 401: All construction and maintenance
contracts awarded by the City shall provide that all persons providing
services under the contract shall be legally entitled to perform the work
and shall possess all required licenses and permits needed for the work.
The contracts shall require the contractor to provide adequate proof of
compliance prior to the start of the work and monthly thereafter until the
work is completed.
8. Suggested addition: Fiscal matters need language about annual budget
preparation, submission, public hearing, public consideration, City tax
rates, and audits.
9. Suggested addition: Council will minimize hiring Consultants, but in no
event to exceed 0.5% of GF.
10. Suggested addition: Section 403. Conflict of Interest No member of the
City Council shall be financially interested, as that term is defined at
Government Code Section 87103, as it is presently worded or may
hereafter by amended, in any contract, sale or transaction to which the
City is a party, and neither shall any member of any City commission,
board, or committee, or any City official or employee be financially
interested in any contract, sale or transaction to which the City is a party
and which comes before said commission, board, committee or said
official or employee or department of the City with which he or she is
connected. for official action.
Suggested additions, edits: General Laws, Section 600
1. Suggested amend to Section 601: Council Member Compensation now
includes salary benefits, medical benefits and pension benefits. Since
Council members are only here part-time, they should only receive a part-
time salary. Council members should pay for their own medical insurance.
Councilmember Total Compensation- $150 per member per Council
meeting.
Page 7 of 11
ATTACHMENT 3
2. Suggested amend to Section 601: Council Member Compensation
Notwithstanding the previous paragraph, salary of the Mayor and Council
Members will continue to be set by California Government Code §36516,
as that statue provides as of the date of the adoption of this Charter,
where the formula considers city population and state law. Elected Council
members are not entitled to city benefits' benefits, employment benefits, or
employer contributions without the majority approval of qualified voters of
the City at a general municipal election.
3. Suggested addition: Section 602.1 — The City is a right to work City. No
employee is required to join a union or the OC Employee Assn.
4. Suggested deletion to Section 602: Delete the last sentence. If voters
must approve increases they should also have to approve decreases. Add
that sentence to the section. The way it reads the City Council has too
much power in their hands.
5. Suggested addition to Section 602: Retirement age for each new City
employee will be 65 years of age, except for active Police/Fire/EMT on
street patrol, whose Retirement Age will be 59 years of age.
6. Suggested addition: Section 602.2 — Total benefits (retirement, health, +)
contributions shall be shared 50% by the City and the employee. The
City's total contribution shall not exceed 10% of the employees pay.
7. Suggested deletion to Section 603: Delete. City employees should make
that change within their own union or association. They have the power to
make that change themselves if they are unhappy with the way their dues
are being spent.
8. Suggested deletion to Sections 602 & 603. Delete entirely. They are
punitive and unnecessary.
9. Suggested addition: Taxpayer Payroll Committee would establish rates of
compensation for all employees. The compensation would be based on
the Bureau of Labor Statutes for private employers (not union wages).
Local benefits shall not be greater than those provided by Social Security
(rate of contribution by employee and employer, age of retirement).
10. Suggested addition: Need General Fund Appropriate limits specific in
Charter — e.g., maximum 50% of GF for Salaries/Benefits; Minimum 10%
of GF for Reserve; Minimum of 10% of GF for Infrastructure; Minimum of
5% of GF for Telecommunications; Minimum of 5% of GF for Police/Fire
Vehicles. Total City employee headcount not to exceed 200, including
Page 8 of 11
ATTACHMENT 3
FTEs, of those, minimums of 100 Police Street Patrol, 40 Firefighters, and
5 EMTs, with a maximum 55 in other City jobs.
11. Suggested addition: Except for the City Manager, and a Public Safety
Administrator (to head up Police/Fire/EMT), maximum annual salary for
any City employee not to exceed $150K, including all incentives and
bonuses, excluding City PERS contribution.
12. Suggested addition: City's Contribution to PERS for each new City
employee not to exceed 20%.
13. Suggested addition: Each new City employee to pay 100% of City -offered
medical/hospital plans.
14. Suggested addition: Council will minimize Overtime, but in no event
exceed 0.5% of GF.
15. Suggested addition: Add language that protects our status as a "Rule of
Law" City and continues to oppose illegal immigration violations and so-
called "Safe Harbor" cities.
16. Suggested addition: In any doctrine reinforcing the historic principles of
self governance and home -rule, it is of the utmost importance to include
the right of law abiding citizens to keep and bear arms. Laws can come
and go depending on the elected officials but it is crucial that no law can
be passed that would infringe on that primal right for law abiding citizens.
17. Suggested addition: Include a provision that spells out exactly how the
zoning and land use laws will be changed and have them contained in the
charter, or have the charter provide that state law will continue to govern
zoning and land use (including use of public parklands).
18. Suggested addition: The charter to specifically prohibit Council from
seeking voter approval to impose a real property transfer tax.
19. Suggested addition: All zoning ordinances and zoning variances shall
conform to and be consistent with the general plan in effect at the time of
adoption or approval and to any applicable specific plan, and to general
law in regard to the rules governing general and specific plans and zoning.
20. Suggested addition: All provisions of the general law of the State of
California pertaining to conflict of interest, including but not limited to
Government Code Section 1090, shall apply to and be binding upon the
City Council and all officers and employees of the City of Costa Mesa.
Page 9 of 11
ATTACHMENT 3
21. Suggested addition: Whenever a valid petition for a referendum has been
filed, the City Council shall either vacate the action that is the subject of
the referendum or submit the matter to a vote of the electorate at the next
general election.
22. Suggested addition: Any citizen initiative for which a valid petition has
been filed shall be submitted to a vote of the electorate at the next general
election.
23. Suggested addition: No proposed amendment to this charter shall be
adopted unless approved by a majority of those voting on the matter at a
general election held in an even -numbered year.
24. Suggested addition: All matters not expressly included in this charter shall
be governed by the general law of the State of California.
25. Suggested addition: All communications concerning City of Costa Mesa
business between a Council member and any individual or organization
other than City of Costa Mesa employees shall be disclosed at the next
regular Council meeting. The disclosure shall include the names of all
persons participating, the dates of such communications, the form of
communication, the subject of the communication and a summary of the
substance of the communication.
Suggested additions, edits: Amendment, Section 800
1. Suggested amend to Section 800: Amendment to Charter, Revised or
Repealed This Charter, and any of its provisions, may be amended by a
majority two thirds vote of the electors voting on the question. Amendment
or repeal may be proposed by initiative or by the governing body.
2. Suggested amend Section 800: Replace with: A volunteer Charter
Revision, Amendment and Oversight Committee (CRAOC) will be
established. The city is to remain a General Law city until the CRAOC is
established. The CRAOC will consist of a number of individuals elected by
the voters of Costa Mesa and will have service terms and limits.
Committee members will be elected/re-elected by the voters of Costa
Mesa every TBD years. The CRAOC can propose revisions, amendments,
and all other form of changes to the charter or repeal it. The CRAOC
provides oversight by having the authority, through majority CRAOC vote,
to approve for placement on the ballot any proposal for power or authority
that is outside of that specifically defined in the charter. If placed on the
ballot, a majority of Costa Mesa voters must approve the proposal. The
proposed changes or proposal for repeal can be put on the ballot without
the city council's approval if 60% or more of CRAOC committee members
Page 10 of 11
ATTACHMENT 3
agree. All other CRAOC rules for selecting a leader of the CRAOC, and
for operation and approval of proposals will be established by the CRAOC.
If the charter changes or proposal for repeal are approved by the CRAOC
for the ballot, the changes must be approved by a majority of the Costa
Mesa electors voting on the issue before they become effective.
3. Suggested addition: Section 801. Charter Review The City Council shall
hold a public hearing to determine if there is a need to convene a citizens'
Charter Review Commission to conduct a review of the City Charter no
less frequently than every ten years.
SUMMARY OF GENERAL COMMENTS
Slow down - 19
No charter — 11
The draft charter should written by a citizen commission that is elected by the
citizens of Costa Mesa — 8
Yes charter — 1
Don't use other cities' charters-1
Possible day meetings scheduled for those who do not drive at night-1
Please schedule more town hall meetings at various places and times, so more
people can be educated.-1
Public funding of election campaigns should be unlawful. Could not find where
that was included-1
There are huge problems allowing Council to establish their own salaries.-1
[Note: The proposed Charter prevents this under Section 601.1
Very concerned about the clause regarding the public financing of election
campaigns as being "lawful.-1
Needs more detailed information. Charters from other OC cities: Anaheim, 50
pages; Cypress, 29; Huntington Beach, 20; Irvine, 10; NB (contracts for services
only) 6; Placentia, 24; Santa Ana, 5; Seal Beach, 24.
Page 11 of 11
ATTACHMENT 4
CITY CHARTER SUGGESTIONS/COMMENTS
(from Jan. 10 through Feb. 10, 2012)
Since Dec. 6, 2011, the City of Costa Mesa has been soliciting input from residents and other
interested parties on the initial draft of a proposed charter, or local constitution, for the City.
The City compiled the first round of suggestions and comments on the proposed city charter (click
here), and the City Council considered them on Jan. 10 at the first official public hearing. Some of
those suggestions were incorporated into the second draft of the charter. The City will continue to
solicit input on the charter for the council's consideration prior to the second public hearing at 7
p.m. on Monday, Feb. 13.
The additions made since Jan. 28, 2012 are in green/gray.
General comments to the City Council submitted between Jan. 10 -Feb. 10, 2012
• Slow down the process (6)
• Don't want charter (4)
• Wants charter on June ballot (4)
• Include a definition section. Much of it is ambiguous absent the definitions in other laws
that would become inapplicable if the charter were approved. (1)
• Charter is ploy to bust unions (1)
• No collective bargaining (1)
• Police shall arrest drivers who have no licenses and put them in jail (1)
• The City Council needs to allow an elected commission of 15 citizens work on the charter
(1)
• Wants to see more citizen input (1)
Suggestions to the City Council submitted between Jan. 10 -Feb. 10, 2012
Suggested additions, edits, deletions: Section 100, Municipal Affairs
1. Suggested addition: Except as expressly set forth in this charter, the general law set forth
in the Constitution of the State of California and the laws of the State of California shall
govern the operations of the City of Costa Mesa.
2. Suggested addition: Section 104. Since the general public in numerous public hearings
and meetings have strongly expressed that there should be no Santa Ana River bridge
crossings between Costa Mesa and her neighboring cities at either 19th St. or Gisler Ave.
and since the city has maintained a Council policy of not supporting any bridge crossings
at these streets and that these two elements of the Orange County Master Plan of
Highways (OCMPH) should be deleted from the OCMPH since the early 1990s, it is the
wish of the people of Costa Mesa to include that same policy along with the planning
policy as described in the General Plan Circulation Element Circulation Objective IA.18
as part of this Charter, unless and until that policy is changed by amendment to this
Charter.
3. Suggested addition: Section 104. No General Plan or Specific Plan will include any
proposed or future Santa Ana River crossing, including the 19th St./Banning and
Gisler/Garfield bridges, emanating or terminating within the city limits of Costa Mesa; will
be included on any planning studies, traffic mitigation measures or approval of
development projects without the approval of the majority of the electorate.
4. Suggested addition: Section 105. Any Municipal Affair, responsibility, governance action,
or authority not specifically addressed in this charter shall be governed by the rules
governing general law cities in the State of California.
Page 1 of 4
ATTACHMENT 4
Suggested additions, edits, deletions: Section 200, Form of Government
1. Suggested amend to Section 201: The qualifications for City Council shall include:1)
citizen of the United States; and 2) resident of the city for a minimum of 3 years.
2. Suggested amend to Section 201: City Council members must be residents of the City for
more than 10 years.
3. Suggested amend to Section 201: The person with the next highest amount of votes, on
the most recent election, be appointed to the vacated position if he or she is still
interested on being on the City Council.
4. Suggested amend to Section 201: All matters concerning municipal elections including
but not limited to, initiatives, referendums, recalls, voter qualification, qualifications for
office, timing of elections and charter amendments shall follow the election Codes of the
state of California as described for General law cities.
5. Suggested amend to Section 201: There shall be a City Council consisting of a Mayor
and four Council members. If a vacancy occurs in the office of Mayor, the Vice Mayor
shall assume the duties of the office of Mayor until the office shall be filled at the next
general municipal election. The assumption of the duties of the Mayor shall not require
that the Vice Mayor relinquish his or her seat as a Council member elected or appointed
from a district. If a vacancy occurs among any other members of the City Council, the
remaining members shall within 75 days after such occurrence appoint a qualified
resident voter of the unrepresented district who shall hold office until the office is filled at
the next general municipal election. If the City Council cannot agree on one person to fill
the vacancy, the replacement shall be chosen by lot. The Mayor shall be elected by the
voters of the City at large for a term of four years beginning with the municipal elections.
The Mayor shall be a voting member of the City Council and shall preside at meetings of
the City Council. The Mayor shall act as chief executive of the City in performing all acts
required to be performed under the laws of the State of California and this Charter. The
Mayor shall be recognized as the official head of the City for all ceremonial purposes, by
the Courts for the purpose of serving civil process and by the Governor of the State for
military purposes. The Mayor shall have a voice and vote in all proceedings of the City
Council and shall perform such other duties as may be prescribed by this Charter or as
may be imposed by the City Council consistent with his or her office. At its organizational
meeting, the City Council shall elect from among the Council members a Vice Mayor who
shall exercise the powers and perform the duties of the Mayor during the latter's absence
or disability. All powers of the City shall be vested in the City Council subject to the
provisions of this Charter and to the Constitution of the State of California. The City
Council is empowered to carry into effect the provisions of this Charter, to execute the
powers vested in the City, and to perform all duties and obligations imposed upon the
City by State law.
6. Suggested addition: Section 206. Members of the Planning Commission shall be elected
for two-year terms by the residents of Costa Mesa at large.
7. Suggestion addition: Section 207. Members of all commissions and committees shall be
chosen by an appointment committee consisting of equal numbers of council members
plus current committee members and citizens chosen at random from a volunteer pool.
(For example, if two council members and two members of the Arts Commission will be
on a committee, four members randomly selected from a pool of interested residents
shall be included. The method of including representatives of the public at large is used
at other public institutions.) The appointment committee shall establish a job description
and a list of desirable qualifications prior to solicitation of applicants. Any member of a
hiring committee who has a personal relationship with an applicant—family, friendship, or
business, must resign from the hiring committee for that particular position. Strictly
professional relationships within the Costa Mesa committee or employee network would
not exclude a person from the hiring committee.
Suggested additions, edits, deletions: Section 300, Legislative Authority
Page 2 of 4
ATTACHMENT 4
Suggested amend to Section 300. After my [Perry Valantine's] recent submittal, I realized
that the 1/13 wording refers to passage, not the effective date of, ordinances. It should be
modified to reflect passage not within 5 days and effective date 30 days later. At the 1/10
meeting, Mayor Pro Tem Righeimer asked that the wording be changed to reflect current
practice for adoption of ordinances. Current practice is in accordance with both
Government Code Sections 36934 (ordinances may not be passed within 5 days of
introduction, nor at other than a regular meeting) and 36937 (ordinances take effect 30
days after final passage). Thus, the wording in the original draft charter and the 1/13 draft
should BOTH be included.
Suggested addition: Section 302. All ordinances will continue to be adopted in the same
manner as described in California code covering general law cities.
Suggested additions, edits, deletions: Section 400, Fiscal Matters
1. Suggested addition: Require a vote of the people before any sale or lease of real
property owned by the city.
2. Suggested addition: Require a vote of the people before increasing any salaries for
appointed commissioners.
3. Suggested amend to Section 401: Prohibit no -bid contracts.
4. Suggested amend to Section 401: Since the lack of prevailing wage and it's apparent tie
with union workers is included, a statement must be included that requires the same or
equivalent 5 -year training of workers that are being hired for all jobs where the prevailing
wage was required under General Law. This insures adequately trained employees.
5. Suggested amend to Section 401: The provisions of California Labor Code Section 1770
et. Deq. Regarding prevailing wages on public works and related regulations, as now
existing and as may be amended, are accepted and made applicable to the City, its
departments, boards, offers, agents and employees.
6. Suggested addition: Section 403. Would like to see limits put on rezoning and eminent
domain. I do not want the city council alone to decide these issues.
7. Suggested addition: Section 403. The city is prohibited from enacting any law imposing a
real property transfer fee.
Suggested additions, edits, deletions: Section 600, General Laws
1. Suggested deletion: All of Section 602.
2. Suggested deletion: Section 603. [Comment: How would you determine that a contractor
/ company used separate funds? Will the city be hiring forensic accountants? Sounds like
the council members are afraid of being removed from office and want to control who
offers input into the election.]
3. Suggested deletion: All of Section 604. General comment: It is absurd to list these
provisions in "General Laws -there is nothing general about them.
4. Suggested addition: Section 605. Include a requirement that all lobbyists register with the
city clerk and make the registration would be public. Require that lobbyists report their
activities, also making it public.
5. Suggested addition: Section 606. Require disclosure of ex parte communications.
6. Suggested addition: Section 607. Electronic devices must be turned off during public
meetings.
7. Suggested addition: Section 608.No conferring with fellow council or commission
members when the public is speaking.
8. Suggested addition: Section 609. The use and disposition of all city parks and/or park
land shall be governed by California code as described for general law cities and the
general plan of Costa Mesa.
Suggested additions for new Section 900
Page 3 of 4
ATTACHMENT 4
Suggested addition: Oversight review committee. A committee of a minimum of 10
registered voter residents of the City of Costa Mesa shall be appointed by the city council
within 30 days of the approval of this charter whose duty shall be the oversight/review of
the charter, development and recommendation of appropriate amendments to the
charter; (a) said committee has the authority to have/hold public discussions/forums to
receive public input on charter strengths, weaknesses, needs, and abuses; (b) whose
reasonable cost will be covered by the city; (c) who's recommendations must be
presented at a public hearing of the council within 30 days of receipt of the
recommendations.
Suggested additions for new Section 1100
1. Suggested addition: Section 1101. Ex parte Communications. All elected officials and any
appointed officials of those elected officials shall report, in a public manor, any ex parte
communications with any interested parties on an issue before such official(s) prior to a
vote on that issue.
Suggested additions for new Section 1200
1. Suggested addition: Section 1201. Pending Actions and Proceedings: No action or
proceeding, civil or criminal, pending at the time when this Charter takes effect, brought by or
against the City or any officer, office, department or agency thereof, shall be affected or
abated by adoption of this Charter or by anything herein contained.
Page 4 of 4
ATTACHMENT 5
CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 10, 2012 ITEM NUMBER:
SUBJECT: COMMUNITY PUBLIC HEARING ON PROPOSED CITY CHARTER
DATE: JANUARY 5, 2012
FROM: BILL LOBDELL, COMMUNICATIONS DIRECTOR
THOMAS R. HATCH, CEO
PRESENTATION THOMAS R. HATCH
BY:
FOR FURTHER INFORMATION CONTACT: Bill Lobdell at (714) 754-5288
RECOMMENDATION:
Hold a public hearing on the proposed City charter for Costa Mesa and receive community
comments and suggestions and provide direction on any changes to the first draft of the
proposed charter (Attachment 1).
BACKGROUND:
In the fall of 2011, City Council asked the City Attorney to investigate the benefits and
variations of the Charter form of city government that would shift control over strictly
municipal affairs from Sacramento to Costa Mesa. On December 6, 2011 (staff report
included as Attachment 2), the City Council voted to move forward the process to
consider placing a charter on the June 5, 2012 ballot. Using an initial first draft of the
proposed charter as a starting point, the City has sought comments on the charter
through various media; the City's website, social media and media outlets; through
public comments at the December 6, 2011 and January 3, 2012 City Council meetings;
and at a charter informational meeting held at the Costa Mesa Neighborhood
Community Center on January 5, 2012. The suggested additions and/or deletions to
the charter and a summary of the comments are included in Attachment 3.
ANALYSIS:
The City of Costa Mesa is currently a general law city. The general law form allows
cities to act only based upon the authority given by the California Constitution and the
California Legislature. The alternative type of city government used by 120 California
cities is the charter form (see Attachment 4 for the League of California Cities' primer on
charter cities). A charter city is one that has adopted a set of bylaws, called the charter,
which acts as a local constitution for the city. Similarly to the federal and State
constitutions, a charter may only be adopted, amended, or repealed by a majority vote
of a city's residents.
Page 1 of 55
ATTACHMENT 5
Charter cities have more authority over their municipal affairs, strengthening the City's
home rule.' By adopting a charter, the City will have greater flexibility in the operations
of its municipal government, which, if properly utilized, can translate to greater
efficiency, effectiveness, and innovation.
A charter city has more options when considering how to handle a number of municipal
affairs. These include, but are not limited to, the following:
1. Construction and maintenance contracting;
2. Land use;
3. City finances;
4. State mandates; and
5. City government structure.
For example, the current draft of the Costa Mesa charter states that the City would not
be required to pay prevailing, or union, wage for projects that are locally funded. To
give the City Council and residents an idea of the potential savings, City staff has
looked at several past and future construction projects and calculated the potential
savings (see Attachment 5).
Limitations and safeauards:
Notwithstanding these advantages, there are several limitations and safeguards upon a
charter city's powers. In particular, a charter city's decision-making authority is
specifically limited to only municipal affairs and does not extend to matters of "state-
wide concern." Generally speaking, a matter of state-wide concern is something that is
determined, by the courts, to be of an importance to the entire state. In those cases,
state law preempts local regulations. For example, many traffic regulations are matters
of state-wide concern. A charter city would not be able to adopt local traffic regulations
that would conflict with those enacted by the Legislature.
Also, recent charters passed by California cities have included "anti -City of Bell
measures" that limit council member and city employee compensation to what's allowed
under state law. The first draft of Costa Mesa's charter also includes this provision.
It is important to note that an adoption of a charter does not change the way the City
operates. Like the state and federal constitutions, a charter would only provide the City
a general set of guidelines and an opportunity to make community -specific decisions.
Any changes to existing ordinances and regulations may be made so long as they are
within the parameters found in the charter.
What is different in Costa Mesa's draft charter:
Charters for California cities, especially those adopted within the past decade, are
remarkably similar because the primary goal is the same—local control—and the
charter language used by other cities has been legally tested. Costa Mesa's proposed
charter is what could be termed as generic, except in the following three areas.
' "Home rule" refers to the relative degree of decision-making authority a city has regarding its local or
municipal affairs. Page 2 of 55
ATTACHMENT 5
Section 301. Purchasing and Contracts. This section allows the City to decide
whether or not to pay prevailing, or union, wage on public works projects that use
only local funds.
2. Section 602. Employee Retirement Benefits. This section requires increases in
employee retirement pensions to be approved by the majority of Costa Mesa
voters.
3. Section 603. Voluntary Municipal Employee Political Contributions. This section
ensures that city employee association dues collected directly from city
paychecks will not be used for political activities.
Adoption process:
The State legislature recently approved a bill (AB1344) that provided for more public
input on proposed city charters, both before and after the measures are placed on the
ballot. The City's timeline of events (see Attachment 6) provides for public meetings on
the proposed charter on January 10, February 14 and March 6, 2012.
The City has encouraged interested parties to submit potential changes to the proposed
charter before the January 10, 2012 meeting, so the City Council and residents will
have the maximum time to review a draft charter. However, additions and deletions to
the proposed charter can be made at the Feb. 14, 2012 meeting, and the City will
continue to solicit input until then for Council consideration. (This is a correction from the
Dec. 6, 2011 staff report on the proposed charter).
ALTERNATIVES CONSIDERED:
Council can choose to direct staff and the City Attorney to discontinue the process of
putting a Proposed Charter on the June 5, 2012.
FISCAL REVIEW:
If the proposed charter is placed on the June 2012 ballot, the Registrar of Voters estimates
the cost to consolidate to be in the range of $97,500 to $123,500. If placed on the
November 2012 ballot, the Registrar of Voters estimates the cost to consolidate to be in the
range of $78,500 to $97,500.
LEGAL REVIEW:
The City Attorney's office has reviewed this report and attachments and approves as to the
form found therein.
Page 3 of 55
ATTACHMENT 5
CONCLUSION:
Council is requested to hold a public hearing on the proposed City charter for Costa Mesa
and listen to community comments and suggestions and provide direction on any changes
to the first draft of the proposed charter.
THOMAS R. HATCH THOMAS P. DUARTE
Chief Executive Officer City Attorney
ATTACHMENTS: 1 Sample Charter for Costa Mesa
2 City Council Staff Report — December 6, 2011
3 Comments and Suggestions Submitted to the City Council on
Proposed Charter Through January 5, 2012
4 A Charter Primer from the League of California Cities
5 Potential Savings as a Charter City
6 Charter Timeline of Events
Page 4 of 55
Draft 1
CHARTER
OF THE
CITY OF COSTA MESA
ATTACHMENT 5
WE THE PEOPLE of the city of Costa Mesa declare our intent to restore to our community the
historic principles of self -governance inherent in the doctrine of home -rule. Sincerely committed
to the belief that local government has the closest affinity to the people governed and firm in the
conviction that the economic and fiscal independence of our local government will better serve
and promote the health, safety and welfare of all of 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 Costa Mesa.
Article I
Municipal Affairs
Section 100. Name of City; Perpetual Succession
The city of Costa Mesa shall continue to be a municipal corporation known as the city of Costa
Mesa. The boundaries of the city of Costa Mesa shall continue as now established until changed
in the manner authorized by law.
Section 101. Rights and Liabilities of Cities; Prior Contracts, Liabilities, Etc., Continued in
Effect
The city of Costa Mesa shall remain vested with and shall continue to own, have, possess,
control and enjoy all property rights 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 City at the time this Charter takes effect. All lawful ordinances,
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. Municipal Affairs
Each of the responsibilities of governance set forth and described in this Charter, and as
established by the Constitutional, statutory and judicially defined law of the State of California,
is hereby declared to be a municipal affair of concern, the performance of which is unique to the
benefit of the citizens of the city of Costa Mesa.
Section 103. General Powers; Seal
The city of Costa Mesa, by and through its legislative body and other officials, shall have and
exercise all powers necessary or appropriate to a municipal corporation and the general welfare
of its inhabitants, which are not prohibited by the Constitution of the State of California, and
which it would be competent for this Charter to set forth particularly or specifically, as fully and
completely as though they were specifically enumerated in this Charter. The enumeration in this
Page 1 of 7 Draft
Page 5 of 55
ATTACHMENT 5
Draft 1
Charter of any particular power, duty or procedure shall not be held to be exclusive of, or any
limitation or restriction upon, this general grant of power. General powers of the city include, but
are not limited to, the powers necessary or appropriate to promote the health, welfare and safety
of its inhabitants. The city shall have and use a common seal and the official seal hereinbefore
adopted and now in use by said city shall continue to be the official seal of the city.
Article 2
Form of Government
Section 200. Form of Government
The municipal government established by this Charter shall be known as the "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. Legislative Body; Composition
The legislative body of the City shall consist of five (5) council members elected at large. This
legislative body shall be known as the City Council, and each of its members shall be known as
"Council Members." The number of terms a member of the city council may serve on the city
council shall be limited to two (2) consecutive terms of four (4) years each. The City Council
shall choose one of its members as mayor and one of its members as mayor pro tempore at the
meeting at which the declaration of the municipal election results. The term of service for both
mayor and mayor pro tempore shall be for a period of two (2) years from the date of
appointment.
The Council Members shall be elected by the qualified voters of the City at a general municipal
election. Their terms shall be staggered in the manner as existing at the time of the adoption of
this Charter. They shall hold office for the period of four years from and after the date of
certification of election results by the City Council, and until their successors are elected, and
qualified.
The members of the City Council shall not be eligible to any other office or employment with the
City during the period of their incumbency, and for a period of one year following the
termination of their position on the City Council.
Section 202. Time and Place of Meetings; Rules of Conduct of Proceedings
The City Council shall provide by ordinance for the time and place of holding its meetings.
Special and emergency meetings shall be called in accordance with the provisions of general
law. There shall be at least one regular meeting in each calendar month. Any regular meeting
may be adjourned to a date and hour certain, and such adjourned meeting shall be a regular
meeting for all purposes.
Meeting locations and rules for notice of, and conduct of, meetings of the City Council and all
subordinate legislative bodies in the City shall be conducted in accordance with state laws and
such rules for procedure as established by ordinance of the City Council.
Page 2 of 7 Draft
Page 6 of 55
ATTACHMENT 5
Draft 1
Section 203. Administrative Officers; Appointment and Removal; Grounds
The following administrative officers are hereby established, each of whom shall be appointed
by the City Council: a City Manager and a City Attorney.
Except as may be otherwise provided in this Charter the affirmative three (3) members of the
City Council shall be required for the appointment of or the removal of any administrative
officer for cause. "For cause" includes, but is not limited to, refusal to perform the duties of his
or her office; being adjudged mentally incompetent; or being convicted of a felony, or crime of
moral turpitude. The administrative officer is entitled to a hearing before the City Council on the
validity of the grounds providing the basis for removal for cause.
The City Council may remove any of its administrative officers at its pleasure, without cause
stated or hearing had, by the affirmative vote of four members in favor of such removal, and the
determination of the council in such matters shall be final and conclusive.
Section 204. Administrative Officers; Qualifications and Duties
The City Manager shall be the administrative head of the City government. The duties of the
City Manager shall be as prescribed by this Charter or by ordinance of the City Council
The City Attorney shall be the chief legal advisor to the City and the City Council. The City
Attorney shall be an attorney-at-law, admitted to practice as such before the supreme court of the
state, and who has been in actual practice therein for at least three years next preceding
appointment. All other things being equal, an attorney who has had special training or experience
in municipal corporation law shall be appointed to the office if practicable. The City Attorney
shall, within his or her discretion, prosecute all violations of city ordinances and shall draft or
approve all contracts and other legal documents and instruments.
Section 205. Interference With Performance of Duties of City Manager
No member of the City Council shall in any manner attempt to influence or coerce the City
Manager in the making of any appointment or the purchase of supplies in accordance with the
Charter, City ordinance, or applicable state and federal law.
Except for such direction that it provides to the City Attorney, the City Council shall deal with
the administrative functions of the City through the City Manager. The City Council shall only
have direct contact with the directors of the City's departments for the purpose of asking
questions.
No Council Member, and no officer, board or member of any board or commission, shall
recommend the appointment of, appoint, vote for or elect, to any office, position of employment,
in any department of the City government, any person related by consanguinity or connected by
marriage with such Council Member. A breach of this section shall be cause for removal of any
such Council Member, officer, board or member of such board or commission.
Article 3
Legislative Authority
Page 3 of 7 Draft
Page 7 of 55
ATTACHMENT 5
Draft 1
Section 300. Ordinances
The City Council shall act by ordinance, resolution, or motion. Except for urgency ordinances,
except for ordinances calling for or otherwise relating to an election, and except for other
ordinances identified in the general laws of the State that do not require introduction prior to
adoption, no ordinance shall be passed by the City Council on the date of its introduction, nor
within five (5) days thereafter, nor at any time other than at a regular meeting. Nothing herein
shall be construed as prohibiting minor changes, amendments or modifications of a proposed
ordinance between the time of its introduction and final passage, providing its general scope and
original purpose are retained. The affirmative vote of three (3) members shall be necessary to the
passage of any ordinance. All ordinances and resolutions shall be signed by the Mayor and
attested by the City Clerk.
The enacting clause of all ordinances shall be, "The City Council of the City of Costa Mesa does
ordain as follows". All ordinances, with the exception of the annual appropriation ordinance,
shall contain but one subject, which shall clearly be stated in the title.
Fines and other penalties for the violation of City ordinances shall be in such amounts as
established by the City Council in the City's Municipal Code, but no civil fine or penalty shall
exceed $2,500 for each day of the same violation provided, however, that any civil fines or
penalties established by any state or federal agency, which can be imposed on the City for
violations of statutes or regulations adopted by that state or federal agency, may be imposed by
the City against any person, entity, or organization violating any City ordinance related to such
state or federal law or regulation, in like amount. The maximum amount of any civil fines or
penalties shall not be limited to those amounts established by State law for criminal fines or
penalties.
Article 4
Fiscal Matters
Section 400. Economic and Community Development
The City shall encourage, support, and promote economic development and community
development in the City.
Section 401. Purchasing and Contracts
"Public Works Contract," as used in this section, means an agreement for the erection,
construction, alteration, repair, or improvement of any public structure, building, road, or other
public improvement of any kind, which is paid for in whole with tax revenue paid by residents of
the City of Costa Mesa.
"Other Public Contract" as used in this section means any contract, purchase order, or other
agreement used to procure services and supplies of any kind, that are paid for in whole with tax
revenue paid by the residents of the City of Costa Mesa.
The City is exempt from the provisions of all California statutes regulating public contracting
and purchasing, except as provided by this Charter, City ordinance, or by agreement approved by
the City Council.
Page 4 of 7 Draft
Page 8 of 55
ATTACHMENT 5
Draft 1
Annually, the City Council shall set a value at which Public Works Contracts shall be exempt
from public bidding and shall follow such procedures for open market sale or purchase as set by
the City Council.
The City Council shall establish all standards, procedures, rules or regulations to regulate all
aspects of the bidding, award and performance of any Public Works Contract greater than the
value set by the Council, including but not limited to, the compensation rates to be paid for the
performance of such work.
The City may, without exception, enter into Other Public Contracts. Other Public Contracts shall
follow such procedures as set by the City Council.
No City Public Works Contract or Other Public Contract shall require payment of the prevailing
wage schedule unless: the prevailing wage is legally required and constitutionally permitted to be
imposed by the requirements of federal grants, state grants, redevelopment law, or other federal
or state law; or the project is considered by the City Council not to be a municipal affair of the
City; or payment of the prevailing wage schedule is authorized by resolution of the City Council.
Payment of the prevailing wage schedule, if authorized hereunder, shall use the pertinent rates
published by the State of California.
The City will promote fair and open competition for all City construction projects so that all
contractors and workers, whether union or non-union, are treated equally in the bidding and
awarding of City construction contracts.
Section 402. Miscellaneous Provisions Relating to Appropriations
Upon the request of the City Manager the City Council may, by resolution, transfer any part of
an unencumbered balance of any appropriation to another purpose or object, or may, by
resolution, authorize a transfer to be made between items appropriated to the same office or
department. At the close of each fiscal year, the unexpended balance of each appropriation,
against which no contracts or works or supplies are outstanding, shall revert to the City's general
fund. Any money in the general fund otherwise unappropriated may be appropriated by the City
Council at any time by resolution.
Article 5
Revenue Retention
Section 500. Reductions Prohibited
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 501. 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.
Page 5 of 7 Draft
Page 9 of 55
Draft 1
Article 6
General Laws
Section 600. General Law Powers
ATTACHMENT 5
The City shall have the power and authority: to adopt and enforce all legislation, laws, and
regulations; and to take all actions necessary 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.
Section 601. Council Member Compensation
Notwithstanding the previous paragraph, salary of the Mayor and Council Members will
continue to be set by California Government Code §36516, as that statute provides as of the date
of the adoption of this Charter, where the formula considers city population and state law.
Section 602. Employee Retirement Benefits
At the time of this Charter's adoption, no ordinance increasing any employee, legislative officer
or elected official's existing retirement benefits, other post -employment benefits, or employer
contributions, with the exception of Cost of Living Adjustments, shall be adopted without the
majority approval of qualified voters of the City at a general municipal election. The City
Council may reduce retirement benefits, other post -employment benefits, or employer
contributions as provided in state law without an amendment to this section.
Section 603. Voluntary Municipal Employee Political Contributions
Unless otherwise required by law, a city employee labor union, city contractor, or city employer
("Organization") may only make expenditures for political activities if the Organization
establishes a separate segregated fund that meets the requirements of this chapter. The
Organization shall ensure that: (a) In soliciting contributions for the fund, the Organization
discloses, in clear and unambiguous language on the face of the solicitation, that contributions
are voluntary and that the fund is a political fund and will be expended for political activities; (b)
Union dues are not used for political activities, transferred to the fund, or intermingled in any
way with fund moneys; (c) The cost of administering the fund is paid from fund contributions
and not from union dues; (d) Each contribution is voluntary and shall be made by the member or
employee and may not come from or be remitted by the employer of the member; (e) The
solicitations are written and mailed to the residence of the member or employee; (f) The
Organization shall not exceed two written solicitations for the fund per calendar year; and, (g)
The solicitations are designed such that the Organization cannot determine who makes a
contribution of less than $100 as a result of such solicitation and who does not make such a
contribution. The Organization has the burden of proof to establish that the requirements above
are met.
Article 7
Interpretation
Page 6 of 7 Draft
Page 10 of 55
ATTACHMENT 5
Draft I
Section 700. Construction and Interpretation
The language contained in this Charter is intended to be permissive rather than exclusive 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 701. 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.
Article 8
Amendment
Section 800. Amendment to Charter, Revised or Repealed
This Charter, and any of its provisions, may be amended by a majority vote of the electors voting
on the question. Amendment or repeal may be proposed by initiative or by the governing body.
AUTHENTICATION
AND
CERTIFICATION
Authenticated and certified to be a true copy by Mayor and City Clerk
Date of Municipal Election:
, Mayor
ATTEST:
Page 11 of 55
, City Clerk
Page 7 of 7 Draft
ATTACHMENT 5
CITY COUNCIL AGENDA REPORT
MEETING DATE: DECEMBER 6, 2011
SUBJECT: INFORMATION REGARDING PROPOSED CHARTER
DATE: DECEMBER 1, 2011
FROM: BILL LOBDELL, INTERIM COMMUNICATIONS DIRECTOR
THOMAS R. HATCH, CHIEF EXECUTIVE OFFICER
PRESENTATION BILL LOBDELL
BY:
FOR FURTHER INFORMATION CONTACT: Bill Lobdell at (714) 754-5288
RECOMMENDATION:
ITEM NUMBER:
Direct staff and the City Attorney to begin the process of drafting a Proposed Charter and
required supplemental documents.
BACKGROUND:
In the fall of 2011, City Council asked the City Attorney to investigate the benefits and
variations of the Charter form of city government. This report and the attached
documents outline the differences between a general law city (Costa Mesa's current
form of government), and a charter law city; the advantages of the Charter form of city
government; and various other relevant issues regarding the decision to use the Charter
form of city government. Any proposed charter would need to be placed on the ballot
and approved by the voters.
ANAI WRIS•
The City of Costa Mesa is currently a general law city. The general law form allows
cities to act only based upon the authority given by the California Constitution and the
California Legislature. The alternative type of city government used by approximately
120 California cities is the charter form. A charter city is one that has adopted a set of
bylaws, called the charter, which acts as a local constitution for the city. Similarly to the
federal and State constitutions, a charter may only be adopted, amended, or repealed
by a majority vote of a city's residents.
General Law vs. Charter
File Name: Charter Staff Report 11-28-2011 Date: Time:
(RK).doc Page 12 of 55
ATTACHMENT 5
Charter cities have more authority over their municipal affairs, strengthening the City's
home rule.' By adopting a charter, the City will have greater flexibility in the operations
of its municipal government, which, if properly utilized, can translate to greater
efficiency, effectiveness, and innovation.
A charter city has more options when considering how to handle a number of municipal
affairs. This includes, but is not limited to, the following:
1. Construction and maintenance contracting.
2. Land use.
3. City finances.
4. State mandates.
5. City government structure.
Notwithstanding these advantages, there are several limitations and safeguards upon a
charter city's powers. In particular, a charter city's decision-making authority is
specifically limited to only municipal affairs and does not extend to matters of "state-
wide concern." Generally speaking, a matter of statewide concern is something that is
determined, by the courts, to be of an importance to the entire state. In those cases,
state law preempts local regulations. For example, many traffic regulations are matters
of state-wide concern. A charter city would not be able to adopt local traffic regulations
that would conflict with those enacted by the Legislature.
Also, recent charters passed by California cities have included "anti -City of Bell
measures" that limit council member and city employee compensation to what's allowed
under state law.
It's important to note that an adoption of a charter does not change the way the City
operates. Like the state and federal constitutions, a charter would only provide the City
a general set of guidelines and an opportunity to make community -specific decisions.
Any changes to existing ordinances and regulations may be made so long as they are
within the parameters found in the charter.
Adoption
The state Legislature recently approved a bill (AB1344) that provided for more public
input on proposed city charters, both before and after the measures are placed on the
ballot. The City's proposed timeline of events (see attached) adds significantly more
meetings than the required two public hearings over a two-month period and allows for
the proposed charter to be submitted 95 days prior to the June 5, 2012 election
(previously, the minimum had been 88 days).
It's important to note that during the process of creating a proposed charter, language
and items can be edited and deleted, hear' ,
Pon ho Odclod
Therefore, the first drafts of city charters are usually broadly written and
then refined through public input during the process.
ALTERNATIVES CONSIDERED:
"Home rule" refers to the relative degree of decision-making authority a city has regarding its local or
municipal affairs.
File Name: Charter Staff Report 11-28-2011 Date: Time:
(RK).doc Page 13 of 55
ATTACHMENT 5
Council can choose to not direct staff and the City Attorney to begin the process of drafting
a Proposed Charter and required supplemental documents.
FISCAL REVIEW:
If the proposed charter is placed on the June 2012 ballot, then the Registrar of Voters
estimates the cost to consolidate to be in the range of $97,500 to $123,500. If placed on
the November 2012 ballot, the Registrar of Voters estimates the cost to consolidate to be in
the range of $78,500 to $97,500.
LEGAL REVIEW:
The City Attorney's office has reviewed this report and attachments and approves as to the
form found therein.
CONCLUSION:
Council is requested to provide staff and the City Attorney's office direction whether it
wants to move forward in drafting a proposed charter and the required supplemental
documents for voter consideration.
THOMAS R. HATCH
CHIEF EXECUTIVE OFFICER
THOMAS P. DUARTE
CITY ATTORNEY
ATTACHMENTS: 1 Sample Charter for Costa Mesa
2 A charter primer from the League of California Cities
http://www.cacities.org/index.osp?displaVtVpe=11 &story=2627
9
3 Timeline of events for creating a city charter
AB1344.pdf (http://www.leginfo.ca.gov/pub/11-
12/bill/asm/ab 1301-
1350/ab 1344 bill 20110920 enrolled.pdf)
File Name: Charter Staff Report 11-28-2011 Date: Time:
(RK).doc Page 14 of 55
ATTACHMENT 5
CITY CHARTER SUGGESTIONS/COMMENTS (through Jan. 5, 2011)
Since December 6, 2011, the City of Costa Mesa has been soliciting input from
residents and other interested parties on the initial draft of a proposed charter, or
local constitution, for the City.
The City has compiled the suggestions and comments below for the City
Council's consideration.
SUGGESTIONS TO THE CITY COUNCIL
Suggested additions, edits: the Preamble
1. Suggested amend: WE THE PEOPLE of the City of Costa Mesa:
California, believe fiscal responsibility and the prudent stewardship of
public funds is essential for confidence in government, that ethics and
integrity are the foundation of public trust and that just governance is built
upon these values. Through the enactment of this Charter, we declare our
intent ... enact and adopt this Charter for the City of Costa Mesa. It is
incumbent upon those who govern and make decisions for and on behalf
of the City of Costa Mesa to legally, as well as morally, abide by the
provisions of this Charter, in its strictest sense, to assure the continued
success and well-beina of our Citv.
Suggested additions, edits: Municipal Affairs, Section 100
1. Suggested amend to Section 101: Rights and Liabilities of Cityeas; Prior
Contracts, Liabilities, Etc., Continued in Effect The City of Costa Mesa
shall remain vested.... All lawful ordinances, resolutions, rules and
regulations and contracts, or portions thereof, in force at the time this
Charter takes effect ... are hereby continued in force until... superseded by
proper authority.
2. Suggested addition: Section 101(a). Pending Actions and Proceedings
No action or proceeding, civil or criminal, pending at the time when this
Charter takes effect, brought by or against the City or any officer, office,
department or agency thereof, shall be affected or abated by adoption of
this Charter or by anything herein contained.
3. Suggested amend to Section 102: Municipal Affairs Each of the
responsibilities of governance set forth and described in this Charter, and
as establo to the extent allowed by the Constitutional, statutory and
judicially defined law of the State of California, is hereby declared to be a
Page 15 of 55
ATTACHMENT 5
municipal affair ^fes -ern, the performance of which is unique to the
benefit of the citizens of the city of Costa Mesa. Unless specifically
provided for in this Charter, the general laws of the State of California shall
apply to the City of Costa Mesa.
Suggested additions, edits: Form of Government, Section 200
1. Suggested addition to Section 201: The parts that are here are fine but a
specific qualification section should be added. City Council members
should be U.S. citizens, at least 18 years old, a registered voter, resident
of the City of Costa Mesa for at least 2 years and remain a resident as
long as they are on the Council. Include language about City Council's
compensation/expenses; include language about Council vacancies,
forfeitures (absenteeism); felony convictions; rules for conflict of interest
and nepotism.
2. Suggested addition to Section 201: The Mayor of the city shall be elected
by the qualified voters of the City at a general municipal election. The term
of service for the mayor and shall be for a period of two (2) years from the
date of election.
3. Suggested amend to Section 201: The members of the City Council shall
not be eligible to hold any other office or employment with the City during
the period of their incumbency, and for a period of two years following the
termination of their position on the City Council.
4. Suggested addition Section 201: Council Member Qualification - 5 year
Minimum Residency requirement.
5. Suggested amend to
Section 202:
Change from requiring 1
public
meeting a month to at
least 2 public
meetings a month. The meetings,
many times, end after
midnight now.
With only one meeting a
month
public input wouldn't have
a chance.
Second paragraph, please
define
and be specific about
"state laws," such as "open and public"
include
specific language about dissemination
of information about
council
meetings.
6. Suggested addition to Section 202. Time and Place of Meetings; Rules of
Conduct of Proceedings (Add third paragraph) No citizen shall be denied
the right, personally or through counsel, to present grievances at any
regular meeting of the City Council, or to offer suggestions for the
betterment of municipal affairs, subject always to the rules of the City
Council, governing the conduct of Council meetings.
Page 16 of 55
ATTACHMENT 5
7. Suggested amend to Sections 203/204: Be consistent. If we aren't having
a title of City Manager anymore then change it everywhere to CEO.
Paragraph 3, remove "without cause stated or hearing had." This
language puts way too much power in the hands of the City Council. What
specific power and duties of the City Manager? What about language that
explains/describes an "acting" city manager? Line 2 "as prescribed by this
Charter" Where? What about language describing personnel, boards,
commissions, committees?
8. Suggested addition to Section 203: Administrative Officers; Appointment
and Removal; Grounds (Add fourth paragraph) The City Manager shall not
be removed from office during or within a period of ninety days after any
municipal election at which a member of the City Council is elected. No
person shall be eligible to receive appointment as City Manager while
serving as a member of the City Council or any City commission, board, or
committee, nor within one year after such person has ceased to be a
member of the Citv Council.
9. Suggested amend to Section 203: Concerned about 4 Council Members
being able to dismiss an employee with no hearing and no stated reason.
10.Suggested amend to Section 204: Administrative Officers; Qualifications
and Duties The City Manager shall be the administrative head ... by
ordinance of the City Council. The City Manager shall be chosen on the
basis of his or her executive and administrative qualifications, with special
reference to actual experience in, and knowledge of, accepted principles
and practices of organizational design and development, long-range
planning, public administration, public financing, municipal budgeting,
financial administration, program and policy formulation, purchasing,
maintenance of public records, and applicable state and federal laws and
regulations governing the administration and operations of a municipal
agency.
11. Suggested amend to Section 205: Interference With Performance of
Duties of City Manager No member of the City Council shall in any
manner attempt to influence or coerce the City Manager in the making 0
any appointment or removal of any officer or employee, in the purchase of
supplies or services, or in any other administrative matter on a^^r.rrJari^o
with the Charter, City ordiRanGe, or appliGable state and federal I&OV.
12. Suggested clarification to Section 205: Second line, "in accordance with
the Charter," where is this language in the charter about attempt to
influence/coerce? What about specific language about a city clerk and city
treasurer?
Page 17 of 55
ATTACHMENT 5
13. Suggested addition: Section 206: Code of Ethics and Conduct The City
Council shall adopt a Code of Ethics and Conduct for elected officials and
members of appointed commissions, boards and committees to assure
public confidence in the integrity of local government elected and
appointed officials. The City Council shall adopt said Code of Ethics and
Conduct by ordinance or resolution within six months of the effective date
of this Charter.
14. Suggested addition: Should include a Court of Review — akin to the U.S.
and California Supreme Courts — to provide local checks and balances on
the City Council by splitting governance into three equal branches; the
executive, legislative and judicial branches. The Court could be
established, for example, with three judges elected by vote of the citizens
of Costa Mesa, and hold office for six years in staggered terms. The Court
would sit only as needed, when a petition for review is filed. Suitable
compensation of judges could be established for their part-time work. The
City would provide a venue, materials, and equipment for the Court's
operation, and fund it as needed. This Court is needed to supplement the
cumbersome and expensive routes of appeal that have been traditionally
available — lawsuits and the Referendum. A more rapid response is
needed, in case a Council greatly empowered by a charter succumbs to
dangerously unfettered activism.
15. Suggested addition: City Council may consider organizations
(Commission) to participate in decisions affecting the City as a whole, a
commission (such as Planning Commission) is given the power to make
decisions, or take actions. Some or all such powers may be limited or
effectively unlimited. Candidates must be at least 18 and willing to
participate for a two-year term. Candidates also should demonstrate a
history of participating in community activities, ideally with emphasis on
city related activities. The City Council conducting the recruitment program
will screen all applications and recommend qualified candidates for
membership and their selections will be made by drawing from eligible
residents.
16. Suggested addition: In the event the Council takes any action that has a
significant negative impact upon the City's finances, including causing
legal action resulting in fines or penalties, said Council will be held
personally financially responsible for said costs.
17. Suggested addition: Include a provision that the municipal elections shall
continue to be governed by state law, or alternatively, have the charter
spell out with specificity the exact manner in which all election matters,
including initiatives, referenda and recalls will be conducted. As written the
charter leaves the door wide open for the council, by a mere vote of 3, to
Page 18 of 55
ATTACHMENT 5
alter the local election laws. This includes setting forth qualifications for
office, percentage of registered voters' signatures required for an initiative,
referendum or recall to be changed (lowered or increased, at the whim of
any given council, since any such election ordinances can be enacted
and/or repealed by Council and not the voters.
18. Suggested addition: All provisions of the general law of the State of
California as they now exist or as amended in the future shall govern
matters concerning elections including, but not limited to, election dates,
initiatives, referenda, recall, eligibility to vote, and qualifications for office,
and no other provisions shall apply, except that the time for filing a petition
for a referendum shall be ninety days from the final reading of the
legislative action, and no such action, other than an urgency ordinance as
defined by general law, shall take effect until the time for filing of a
referendum petition has expired and no valid petition has been filed.
Suggested additions, edits: Legislative Authority, Section 300
Suggested addition to Section 300: add specific language about special
elections article.
2. Suggested amend to Section 300. Ordinances (Amend first paragraph)
The City Council shall act by ordinance, resolution, or motion. Except for
urgency ordinances,... nor at any time other than at a regular meeting, and
no ordinance shall become effective until thirty (30) days from and after
the date of its final passage. Nothing herein... signed by the Mayor and
attested by the City Clerk.
3. Suggested addition: Section 301. Initiative, Referendum and Recall The
provisions of the Elections Code of the State of California, as the same
now exists or may hereafter be amended, governing the initiative and
referendum and the recall of municiaal officers. shall ar)r)ly to the use
thereof in the City of Costa Mesa.
4. Suggested addition: Section 302. Planning and Zoning The Zoning Code,
land use designations of properties as shown on the official Zoning Map,
and land use decisions (including, but not limited to, subdivisions,
variances, conditional use permits, and administrative zoning approvals)
shall be consistent with the General Plan and any applicable Specific
Plan. In the event that a zoning ordinance or zoning map becomes
inconsistent with the General Plan or Specific Plan by reason of
amendment to the General Plan or Specific Plan, the zoning ordinance or
zonina mar) shall be amended within a reasonable time so that it is
consistent with the General Plan or Specific Plan as amended.
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ATTACHMENT 5
5. Suggested addition: City Council powers limited, not to be liberally or
broadly interpreted, with all other Charter rights/powers reserved for the
Citizens of Costa Mesa.
6. Suggested addition: Include the manner for the enactment of ordinances
to remain the same as under state law, and for the charter to specifically
so provide.
Suggested additions, edits: Fiscal Matters, Section 400
1. Suggested amend to Section 400: Economic and Community
Development The City shall encourage, support, and promote economic
development and community development in the City, while balancing the
benefits of such development with potential impacts on residents, in terms
of traffic, noise, pollution and other factors that affect the quality of life.
2. Suggested amend to Section 401: Public works contracts should not be
exempt from public bidding. Prevailing wage should be paid even with
"fair and open competition." Bids lower than the prevailing wage allow the
bidder to pay employees much less than the going rate for the work an
employee is doing. This would allow the owner of the business to make a
larger profit on the backs of his workers. This kind of language
encourages the contractor to hire undocumented workers at minimum
wage or even lower than minimum wage.
3. Suggested amend to 401 section: Council shall be required to maximize
contracting out all City services, except above Police/Fire/EMT minimum
Street Patrol services, to most qualified bidder that provides best value to
City over the life of each such contract.
4. Suggested amend to Section 401: Retain all language to Project Labor
Agreements and the ability to keep the City protected from strikes by
unions. PLA's give the City the chance to ensure the most qualified bidder
gets the award.
5. Suggested addition amend to Section 401: Competitive bids shall be
solicited for all contracts with public or private entities, and contracts shall
be awarded to the lowest responsible and responsive bidder. No changes
to an Invitation to Bid or Request for Proposal shall be made after the
Invitation or Request has been issued, and non-responsive bids shall be
rejected; provided, however, that after a contract has been awarded, the
City Council, at a regular public meeting, may modify the contract by
adding or deleting specific items of work within the general scope of the
contract and adjusting compensation accordingly. Contracts for legal,
accounting, engineering or architectural services shall be awarded with
Page 20 of 55
ATTACHMENT 5
due consideration for the specific skills and expertise required, in addition
to the financial and other aspects of the proposals.
6. Suggested addition to Section 401: Every contract awarded by the City of
Costa Mesa which is not limited by its terms to one year or less shall
include a specific amount of maximum compensation, per year and
overall. The maximum compensation shall not be exceeded or increased
except by a vote of at least three members of the City Council at a regular
public meeting, before goods or services in excess of the maximum are
provided to the City.
7. Suggested addition to Section 401: All construction and maintenance
contracts awarded by the City shall provide that all persons providing
services under the contract shall be legally entitled to perform the work
and shall possess all required licenses and permits needed for the work.
The contracts shall require the contractor to provide adequate proof of
compliance prior to the start of the work and monthly thereafter until the
work is completed.
8. Suggested addition: Fiscal matters need language about annual budget
preparation, submission, public hearing, public consideration, City tax
rates, and audits.
9. Suggested addition: Council will minimize hiring Consultants, but in no
event to exceed 0.5% of GF.
10. Suggested addition: Section 403. Conflict of Interest No member of the
City Council shall be financially interested, as that term is defined at
Government Code Section 87103, as it is presently worded or may
hereafter by amended, in any contract, sale or transaction to which the
City is a party, and neither shall any member of any City commission,
board, or committee, or any City official or employee be financially
interested in any contract, sale or transaction to which the City is a party
and which comes before said commission, board, committee or said
official or employee or department of the City with which he or she is
connected. for official action.
Suggested additions, edits: General Laws, Section 600
1. Suggested amend to Section 601: Council Member Compensation now
includes salary benefits, medical benefits and pension benefits. Since
Council members are only here part-time, they should only receive a part-
time salary. Council members should pay for their own medical insurance.
Councilmember Total Compensation- $150 per member per Council
meeting.
Page 21 of 55
ATTACHMENT 5
2. Suggested amend to Section 601: Council Member Compensation
Notwithstanding the previous paragraph, salary of the Mayor and Council
Members will continue to be set by California Government Code §36516,
as that statue provides as of the date of the adoption of this Charter,
where the formula considers city population and state law. Elected Council
members are not entitled to city benefits' benefits, employment benefits, or
employer contributions without the majority approval of qualified voters of
the City at a general municipal election.
3. Suggested addition: Section 602.1 — The City is a right to work City. No
employee is required to join a union or the OC Employee Assn.
4. Suggested deletion to Section 602: Delete the last sentence. If voters
must approve increases they should also have to approve decreases. Add
that sentence to the section. The way it reads the City Council has too
much power in their hands.
5. Suggested addition to Section 602: Retirement age for each new City
employee will be 65 years of age, except for active Police/Fire/EMT on
street patrol, whose Retirement Age will be 59 years of age.
6. Suggested addition: Section 602.2 — Total benefits (retirement, health, +)
contributions shall be shared 50% by the City and the employee. The
City's total contribution shall not exceed 10% of the employees pay.
7. Suggested deletion to Section 603: Delete. City employees should make
that change within their own union or association. They have the power to
make that change themselves if they are unhappy with the way their dues
are being spent.
8. Suggested deletion to Sections 602 & 603. Delete entirely. They are
punitive and unnecessary.
9. Suggested addition: Taxpayer Payroll Committee would establish rates of
compensation for all employees. The compensation would be based on
the Bureau of Labor Statutes for private employers (not union wages).
Local benefits shall not be greater than those provided by Social Security
(rate of contribution by employee and employer, age of retirement).
10. Suggested addition: Need General Fund Appropriate limits specific in
Charter — e.g., maximum 50% of GF for Salaries/Benefits; Minimum 10%
of GF for Reserve; Minimum of 10% of GF for Infrastructure; Minimum of
5% of GF for Telecommunications; Minimum of 5% of GF for Police/Fire
Vehicles. Total City employee headcount not to exceed 200, including
Page 22 of 55
ATTACHMENT 5
FTEs, of those, minimums of 100 Police Street Patrol, 40 Firefighters, and
5 EMTs, with a maximum 55 in other City jobs.
11. Suggested addition: Except for the City Manager, and a Public Safety
Administrator (to head up Police/Fire/EMT), maximum annual salary for
any City employee not to exceed $150K, including all incentives and
bonuses, excluding City PERS contribution.
12. Suggested addition: City's Contribution to PERS for each new City
employee not to exceed 20%.
13. Suggested addition: Each new City employee to pay 100% of City -offered
medical/hospital plans.
14. Suggested addition: Council will minimize Overtime, but in no event
exceed 0.5% of GF.
15. Suggested addition: Add language that protects our status as a "Rule of
Law" City and continues to oppose illegal immigration violations and so-
called "Safe Harbor" cities.
16. Suggested addition: In any doctrine reinforcing the historic principles of
self governance and home -rule, it is of the utmost importance to include
the right of law abiding citizens to keep and bear arms. Laws can come
and go depending on the elected officials but it is crucial that no law can
be passed that would infringe on that primal right for law abiding citizens.
17. Suggested addition: Include a provision that spells out exactly how the
zoning and land use laws will be changed and have them contained in the
charter, or have the charter provide that state law will continue to govern
zoning and land use (including use of public parklands).
18. Suggested addition: The charter to specifically prohibit Council from
seeking voter approval to impose a real property transfer tax.
19. Suggested addition: All zoning ordinances and zoning variances shall
conform to and be consistent with the general plan in effect at the time of
adoption or approval and to any applicable specific plan, and to general
law in regard to the rules governing general and specific plans and zoning.
20. Suggested addition: All provisions of the general law of the State of
California pertaining to conflict of interest, including but not limited to
Government Code Section 1090, shall apply to and be binding upon the
City Council and all officers and employees of the City of Costa Mesa.
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ATTACHMENT 5
21. Suggested addition: Whenever a valid petition for a referendum has been
filed, the City Council shall either vacate the action that is the subject of
the referendum or submit the matter to a vote of the electorate at the next
general election.
22. Suggested addition: Any citizen initiative for which a valid petition has
been filed shall be submitted to a vote of the electorate at the next general
election.
23. Suggested addition: No proposed amendment to this charter shall be
adopted unless approved by a majority of those voting on the matter at a
general election held in an even -numbered year.
24. Suggested addition: All matters not expressly included in this charter shall
be governed by the general law of the State of California.
25. Suggested addition: All communications concerning City of Costa Mesa
business between a Council member and any individual or organization
other than City of Costa Mesa employees shall be disclosed at the next
regular Council meeting. The disclosure shall include the names of all
persons participating, the dates of such communications, the form of
communication, the subject of the communication and a summary of the
substance of the communication.
Suggested additions, edits: Amendment, Section 800
1. Suggested amend to Section 800: Amendment to Charter, Revised or
Repealed This Charter, and any of its provisions, may be amended by a
majority two thirds vote of the electors voting on the question. Amendment
or repeal may be proposed by initiative or by the governing body.
2. Suggested amend Section 800: Replace with: A volunteer Charter
Revision, Amendment and Oversight Committee (CRAOC) will be
established. The city is to remain a General Law city until the CRAOC is
established. The CRAOC will consist of a number of individuals elected by
the voters of Costa Mesa and will have service terms and limits.
Committee members will be elected/re-elected by the voters of Costa
Mesa every TBD years. The CRAOC can propose revisions, amendments,
and all other form of changes to the charter or repeal it. The CRAOC
provides oversight by having the authority, through majority CRAOC vote,
to approve for placement on the ballot any proposal for power or authority
that is outside of that specifically defined in the charter. If placed on the
ballot, a majority of Costa Mesa voters must approve the proposal. The
proposed changes or proposal for repeal can be put on the ballot without
the city council's approval if 60% or more of CRAOC committee members
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ATTACHMENT 5
agree. All other CRAOC rules for selecting a leader of the CRAOC, and
for operation and approval of proposals will be established by the CRAOC.
If the charter changes or proposal for repeal are approved by the CRAOC
for the ballot, the changes must be approved by a majority of the Costa
Mesa electors voting on the issue before they become effective.
3. Suggested addition: Section 801. Charter Review The City Council shall
hold a public hearing to determine if there is a need to convene a citizens'
Charter Review Commission to conduct a review of the City Charter no
less frequently than every ten years.
SUMMARY OF GENERAL COMMENTS
Slow down - 19
No charter — 11
The draft charter should written by a citizen commission that is elected by the
citizens of Costa Mesa — 8
Yes charter — 1
Don't use other cities' charters -1
Possible day meetings scheduled for those who do not drive at night -1
Please schedule more town hall meetings at various places and times, so more
people can be educated. -1
Public funding of election campaigns should be unlawful. Could not find where
that was included -1
There are huge problems allowing Council to establish their own salaries. -1
[Note: The proposed Charter prevents this under Section 601.]
Very concerned about the clause regarding the public financing of election
campaigns as being "lawful. -1
Needs more detailed information. Charters from other OC cities: Anaheim, 50
pages; Cypress, 29; Huntington Beach, 20; Irvine, 10; NB (contracts for services
only) 6; Placentia, 24; Santa Ana, 5; Seal Beach, 24.
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ATTACHMENT 5
Information from the nonpartisan California League of Cities:
http://www. cacities. orglchadercities
Introduction
Charter Cities
Did you know that, under certain home rule provisions in California's state constitution, voters can
exercise a greater degree of local control than that provided by the California Legislature? Becoming a
charter city allows voters to determine how their city government is organized and, with respect to
municipal affairs, enact legislation different than that adopted by the state.
In 2001, the Institute for Local Government, the League's research arm, teamed up with the Hastings
Public Law Research Institute to create an informational resource for those interested in understanding
more about this special form of local control. The League is grateful to everyone who helped with this
project including Phillip Hall of LIC Hastings and the Hastings Public Law Research Institute; Karl Berger
of Jenkins & Hogin LLP; Betsy Strauss (Attorney at Law); John Cook (Former City Attorney, Indian Wells);
and Harvey Levine (City Attorney, Fremont), in 2007, the League updated these resources and the new
documents can be found below. The League would like to thank Hilda Cantu Montoy (Attorney at Law) for
her help with the update.
Charter Cities: A Quick Summary for the Press and Researchers
The following summary was drafted by the League of California Cities' legal state;
in an attempt to give the press and research communities a primer on some
frequently asked questions regarding charier cities.
Charter Cities vs. General Law Cities -- The Basics
The California Constitution gives cities the power to become charter cities.1 The benefit of becoming a
charter city is that charter cities have supreme authority over "municipal affairs."2 In other words, a
charter city's law concerning a municipal affair will trump a state law governing the same topic.3
Cities that have not adopted a charter are general law cities. General law cities are bound by the state's
general law, even with respect to municipal affairs. Of California's 478 cities, 108 of them are charter
cities.
The charter city provision of the State Constitution, commonly referred to as the "home -rule" provision, is
based on the principle that a city, rather than the state, Is in the best position to know what it needs and
how to satisfy those needs.4 The home -rule provision allows charter cities to conduct their own business
and control their own affairs.s A charter maximizes local control.
A city charter, in effect a city's constitution, need not set out every municipal affair the city would like to
govern. So long as the charter contains a declaration that the city intends to avail Itself of the full power
provided by the California Constitution, any city ordinance that regulates a municipal affair will govern over
a general law of the states
Defining 'Municipal Affairs'
Determining what is and is not a "municipal affair" is not always straightforward. The California
Constitution does not define "municipal affair." It does, however, set out a nonexclusive list of four "core"
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ATTACHMENT 5
Information from the nonpartisan California League of Cities:
http://www. ca cities. ptglcharfewities
categories that are, by definition, municipal affairs.?
These categories are 'i) regulation of the "city police force"; 2) "subgovernment in ail or part of a city"; 3)
"conduct of city elections"; and 4) "the manner in which ... municipal officers fare) elected."a Beyond this
list, it is up to the courts to determine what is and is not a municipal affair.
To determine if a matter is a municipal affair, a court will ask whether there are good reasons, grounded
on statewide interests, for the state law to preempt a local law.9 In other words, courts will ask whether
there is a need for "paramount state control" in the particular area of law.,o The Legislature's intent when
enacting a specific law is not determinativom
The concept of "municipal affairs" is fluid and may change over timeA2 Issues that are municipal affairs
today could become areas of statewide concern in the future.13 Nonetheless, there are some areas that
courts have consistently classified as municipal affairs. These include:
• Municipal election mattersia
• Land use and zoning decisions (with some exceptions)is
• Flow a city spends its tax dollarsis
• Municipal contracts, provided the charter or a city ordinance exempts the city from the Public
Contract Code, and the subject matter of the bid constitutes a municipal affair.17 Thus, a charter
may exempt a city from the State's competitive bidding statutes.
Likewise, there are some areas that courts have consistently classified as areas of statewide concern,
including:
• Traffic and vehicle regulationts
• Tort claims against a governmental entity,9
• Regulation of school systems20
How to Become a Charter City
To become a charter city, a city must adopt a charter. There are two ways to adopt a charter:
• The city's voters elect a charter commission.21 The commission has the responsibility of drafting and
debating the charter.
• The governing board of the city, on its own motion, drafts the charter.22
In either case, the charter is not adopted by the city until it is ratified by a majority vote of the city's
voters.23
For more information about charter cities, please visit the "Charter Cities" section of the League's Web
site at http:Ilrvt Av. cacilies. oig&hartorcities.
2 Cal. Const. art. XI, § 3(a),
3 Cal. Const. art, Xl, § 5(a).
4 Johnson v. Bradley, 4 Cal. 4th 389, 399 (1992).
s Fragley v. Phelan, 126 Cal. 383, 387 (1899).
Id.
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ATTACHMENT 5
Information from the nonpartisan California League of Cities;
htt ://www.cacifies.or /chatlef*cities
6
There are some exceptions to this rule. For example, a charter city Is bound by the Public Contract Code unless the city's
charier expressly exempts the city from the Code's provisions or a city ordinance conflicts %Wh a provlslon In the Code. Soo Cal.
Pub. Cont. Code § 1100.7.
a Cal. Const. art. XI, § 5(b); Johnson, 4 Cal. 4th at 398.
s Cal. Const. art, XI, § 5(b).
Johnson, 4 Cal. 4th at 405.
Id. at 400.
12 Id. at 405.
Cal. Fed. Savings & Loan Assn v. City of Los Angeles, 54 Cal. 3d 1, 16 (1991); Isaac v, City of Los Angelos, 66 Cal. App. 4th
1388, 599 (1998).
14 Isaac, 66 Cal, App. 4th at 599.
15 Mackey v. Thiel, 262 Cal. App. 2d 362, 365 (1958).
16 See Brougher v. Bd. of Pub. Works, 205 Cal. 426,440 (1928).
u Johnson, 4 Cal. 4th at 407.
Pub. Cont. Code § 1100.7; R & A Vending Services, Inc, v, City of Los Angelos, 172 Cal. App. 3d 1188, 1191 (1985); Howard
18ontraciing, Inc. v. G.A. MacDonald Constr. Co., 71 Cal. App. 41h 36,151 (1998).
rg Cal. Veh. Code § 21.
23 Helbach v. City of Long Beach, 50 Cal, App. 2d 242, 247 (1942).
21 Whisman v. San Francisco Unified Sch. Dist., 86 Cal. App. 30 782, 789 (1978).
22 Cal. Gov't Code § 34451.
23 Cal. Gov't Code § 34458.
Cal. Gov't Code §§ 34457, 34462,
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ATTACHMENT 5
General Law City v. Charter City
Characteristic
General Law City
Charter City
Ability to Govern
Bound by the state's general law, regardless
Has supreme authority over "municipal
Municipal Affairs
of whether the subject concerns a municipal
affairs." Cal. Const. art. XI, § 5(b).
affair.
Form of Government
State law describes the city's form of
Charter can provide for any form of
government For example, Government
government including the "strong mayor,"
Code section 36509 authorizes general law
and "city manager" forms. See Cal. Const.
cities be governed by a city council of five
art. XI, § 5(b); Cal. Gov't Code § 34450 et
members, a city clerk, a city treasurer, a
seq.
police chief, a Fre 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 34879. The
Government Code also authorizes the "city
manager" form of government. Cal. Gov't
Code § 34859.
Elections Generally
Municipal elections conducted in accordance
Not bound by the California Elections Code.
with the California Elections Code. Cal. Elec.
May establish own election dates, rules, and
Code §§ 10101 et seq..
procedures. See Cal. Const. art. XI, § 5(b);
Cal. Elec. Code §§ 10101 et seq..
Methods of Elections
Generally holds at -large elections whereby
May establish procedures for selecting
voters vote for any candidate on the ballot.
officers. May hold at -large or district
Cities may also choose to elect the city
elections. See Cal. Const, art. XI, § 5(b).
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 § 34871. Mayor may be elected
by the city council or by vote of the people.
Cal. Gov't Code §§ 34902.
City Council Member
Minimum qualifications are:
Can establish own criteria for city office
Qualifications
provided it does not violate the U.S.
1. United States citizen
Constitution. Cal. Const. art. XI, § 5(b), 82
2. At least 18 years old
Cal. Op. Att'y Gen. 6, 8 (1999).
3. Registered voter
4. Resident of the city at least 15 days
prior to the election and throughout
his or her term
5. If elected by or from a district, be a
resident of the geographical area
comprising the district from which he
or she is elected.
Cal. Elec. Code § 321; Cal. Gov't Code §§
34882, 36502; 87 Cal. Op. Att'y Gen. 30
(2004).
Page 29 of 55
ATTACHMENT 5
Characteristic
General Law City
Charter City
Public Funds for Candidate
No public officer shall expend and no
Public financing of election campaigns is
in Municipal Elections
candidate shall accept public money for the
lawful. Johnson v. Bradley, 4 Cal. 4th 389
purpose of seeking elected office. Cal. Gov't
(1992).
Code § 85300.
Term Limits
May provide for term limits. Cal. Gov't Code
May provide for term limits. Cal. Const. art.
§ 36502(b).
XI, § 5(b), Cal Gov't Code Section 36502 (b).
Vacancies and Termination
An office becomes vacant in several
May establish criteria for vacating and
of Office
instances including death, resignation,
terminating city offices so long as it does not
removal for failure to perform official duties,
violate the state and federal constitutions.
electorate irregularities, absence from
Cal. Const. art. XI, § 5(b).
meetings without permission, and upon non-
residency. Cal. Gov't Code §§ 1770, 36502,
36513.
Council Member
Salary -ceiling is set by city population and
May establish council members' salaries.
Compensation and
salary increases set by state law except for
Seo Cal. Const. art. XI, § 5(b). If a city
Expense Reimbursement
compensation established by city electors.
provides any type of compensation or
See Cal. Gov't Code § 36516. If a city
payment of expenses to council members,
provides any type of compensation or
then all council members are required to
payment of expenses to council members,
have two hours of ethics training. See Cal.
then all council members are required to
Gov't Code §§ 53234 - 53235.
have two hours of ethics training. See Cal.
Gov't Code §§ 53234 - 53235.
Legislative Authority
Ordinances may not be passed within five
May establish procedures for enacting local
days of introduction unless they are urgency
ordinances. Brougher v. Bd. of Public Works,
ordinances. Cal. Gov't Code § 36934.
205 Cal. 426 (1928).
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.
Resolutions
May establish rules regarding the
May establish procedures for adopting,
procedures for adopting, amending or
amending or repealing resolutions. Brougher
repealing resolutions.
v. Bd. of Public Works, 205 Cal. 426 (1928).
Quorum and Voting
A majority of the city council constitutes a
May establish own procedures and quorum
Requirements
quorum for transaction of business. Cal.
requirements. However, certain legislation
Gov't Code § 36810.
requiring supermajority votes is applicable to
charter cities. For example, see California
All ordinances, resolutions, and orders for
Code of Civil Procedure section 1245.240
the payment of money require a recorded
requiring a vote of two-thirds of all the
majority vote of the total membership of the
members of the governing body unless a
city council. Cal. Gov't Code § 36936.
greater vote is required by charter.
Specific legislation requires supormajority
votes for certain actions.
Page 30 of 55
ATTACHMENT 5
Characteristic General Law City Charter City
Rules Governing
Procedure and Decorum
Personnel Matters
Contracting Services
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-MWas- 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, §
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 § 37103;
Carruth v. City of Madera, 233 Cal. App. 2d
688 (1965).
Page 31 of 55
Ralph Brown Act is applicable. Cal. Gov't
Code §§ 54951, 54953(a),
Conflict of interest laws are applicable. See
Cal. Gov't Code § 87300 et seq..
May provide provisions related to ethics,
conflicts, campaign financing and
incompatibility of office.
May establish standards, requirements, and
procedures, including compensation, terms
and conditions of employment for personnel.
See Cal. Const. art. X1, § 5(b).
Procedures set forth in Meyers -M illas- Brown
Act (Cal. Gov't Code § 3500) apply, but note,
"(Tjhere 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 and assessments. Cal.
Gov't Code §§ 51330, 51334, 51335.
ATTACHMENT 5
Characteristic General Law City Charter City
Public Contracts
Payment of Prevailing
Wages
Competitive bidding required for public works
contracts over $5,000. Cal. Pub. Cont. Code
§ 20162. Such contracts_ must be awarded to
the lowest responsible bidder. Pub. Cont.
Code § 20162. If,city elects subject itself to
uniform construction accounting procedures,
less formal procedures may be available for
contracts less than $100,000. See Cal. Pub.
Cont. Code §§ 22000, 22032.
Contracts for professional services such as
private architectural, landscape architectural,
engineering, environmental, land surveying,
or construction management firms need not
be competitively bid, but must be awarded
on basis of demonstrated competence and
professional qualifications necessary for the
satisfactory performance of services. Cal.
Gov't Code § 4526.
In general, prevailing wages must be paid on
public works projects over $1,000. Cal. Lab.
Code § 1771. Higher thresholds apply
($15,000 or $25,000) if the public entity has
adopted a special labor compliance program.
See Cal. Labor Code § 1771.5(a) -(c).
Page 32 of 55
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 stale law prevailing -wage
requirements so long as the project is a
municipal affair, and not one funded by state
or federal grants. Vial v. City of San Diego,
122 Cal. App. 3d 346, 348 (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.
ATTACHMENT 5
Characteristic
General Law City
Charter City
Finance and Taxing Power
May impose the same kinds of taxes and
Have the power to tax.
assessment as charter cities. See Cal. Gov't
Code § 37100.5.
Have broader assessment powers than a
general law city, as well as taxation power as
Imposition of taxes and assessments subject
determined on a case -by case basis.
to Proposition 218, Cal. Const. art.XIIIC.
Imposition of taxes and assessments subject
Examples of common forms used in
to Proposition 218, Cal. Const, art. XIIIC, §
assessment district financing include;
2, and own charter limitations
• Improvement Act of 1911. Cal. Sts.
May proceed under a general assessment
& High. Code § 22500 et seq..
law, or enact local assessment laws and
then elect to proceed under the local law.
Municipal Improvement Act of 1913.
Soo J. W. Jones Companies v. City of San
See Cal. Sts. & High. Code §§
Diego, 157 Cal. App. 3d 745 (1984).
10000 et seq..
May impose business license taxes for any
• Improvement Bond Act of 1915. Cal.
purpose unless limited by state or federal
Sts. & High. Code §§ 8500 of seq..
constitutions, or city charter. See Cal. Const.
art. XI, § 5.
Landscaping and Lighting Act of
1972. Cal. Sts. & High. Code §§
May impose real property transfer tax; does
22500 of seq.,
not violate either Cal. Const art. XIIIA or
California Government Code section 53725.
Benefit Assessment Act of 1982.
See Cohn v. City of Oakland, 223 Cal. App.
Cal. Gov't Code §§ 54703 et seq..
3d 261 (1990); Fielder v. City of Los
Angeles, 14 Cal. App. 4th 137 (1993).
May impose business license taxes for
regulatory purposes, revenue purposes, or
both. See Cal. Gov't Code § 37101.
May not impose real properly 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 §
11911(a), (c).
Streets & Sidewalks
State has preempted entire field of traffic
State has preempted entire field of traffic
control. Cal. Veh. Code § 21.
control. Cal. Veh. Code § 21*.
Penalties & Cost Recovery
May impose fines, penalties and forfeitures,
May enact ordinances providing for various
with a fine not exceeding $1,000. Cal. Gov't
penalties so long as such penalties do not
Code § 36901.
exceed any maximum limits set by the
charter. County of Los Angeles v. City of Los
Angeles, 219 Cal. App. 2d 838, 844 (1963).
Page 33 of 55
ATTACHMENT 5
Characteristic
General Law City
Charter City
Public Util itleslFranch ises
May establish, purchase, and operate public
May establish, purchase, and operate public
works to furnish its inhabitants with electric
works to furnish its inhabitants with electric
power. See Cal. Const. art. Xl, § 9(a); Cal.
power. See Cal. Const. art. XI, § 9(a); Cal.
Gov't Code § 39732; Cal. Pub. Util. Code §
Apartment Assn v. City of Stockton, 80 Cal.
10002.
App. 4th 699 (2000).
May grant franchises to persons or
May establish conditions and regulations on
corporations seeking to furnish light, water,
the granting of franchises to use city streets
power, heat, transportation or
to persons or corporations seeking to furnish
communication services in the city to allow
light, water, power, heat, transportation or
use of city streets for such purposes. The
communication services in the city.
grant of franchises can be done through a
bidding process, under the Broughton Act,
Franchise Act of 1937 is not applicable if
Cal. Pub. Util. Code §§ 6001-6092, or
charter provides. Cal. Pub. Util. Code §
without a bidding process under the
6205.
Franchise Act of 1937, Cal. Pub. Util. Code
% 6201-6302.
Zoning
Zoning ordinances must be consistent with
Zoning ordinances are not required to be
general plan. Cal. Gov't Code § 65860.
consistent with general plan unless the city
has adopted a consistency requirement by
charter or ordinance. Cal. Gov't. Code §
65801
Page 34 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities:
htW.,11www. cacities. orIchartercities
Foundational aspects ' f charter cities
What is the Constitutional Framework for Charter Cities?
Article XI, section 3(a) of the California Constitution authorizes the adoption of a city
charter and provides such a charter has the force and effect of state law. Article XI,
section 5(a), the "home rule" provision, affirmatively grants to charter cities supremacy
over "municipal affairs." However, the California Constitution does not define the term
"municipal affair."
What are "Municipal Affairs?"
The home rule provision of the California Constitution authorizes a charter city to
exercise plenary authority over municipal affairs, free from any constraint imposed by the
general law and subject only to constitutional limitations. See Cal. Const. art. XI § 5(a);
Ex Parte Braun, 141 Cal. 204, 209 (1903); Bishop v. City of San Jose, 1 Cal. 3d 56, 61
(1969); Comm. of Seven Thousand v. Super. Ct. (City of Irvine), 45 Cal.3d 491 (1988).
How Do the Courts Distinguish Between Municipal and Statewide Concerns?
Whether a given activity is a municipal affair over which a city has sovereignty, or a
statewide concern, over which the legislature has authority, is a legal determination for
the courts to resolve. Thus, the determination of whether a given activity is a municipal
affair or statewide concern is done on a case-by-case basis. The court's determination
will depend on the particular facts and circumstances of each case. See In Re Hubbard,
62 Cal. 2d 119, 128 (1964). Keep in mind that the concept of "municipal affairs" is a fluid
one that changes over time as local issues become statewide concerns. See Issac v.
City of Los Angeles, 66 Cal. App. 4th 586 (1998).
What Activities Have the Courts Classified As Municipal Affairs?
There are some areas that the courts have consistently classified as municipal affairs.
Examples include the following:
• Municipal Election Matters. See Mackey v. Thiel, 262 Cal. App. 2d 362 (1968).
• Procedures for Initiative, Referendum and Recall. See Lawing v. Faul, 227 Cal.
App. 2d 23, 29 (1964).
• Procedures for Adopting Ordinances. See Brougher v. Board of Public Works,
205 Cal. 426 (1928).
• Compensation of City Officers and Employees. Cal. Const. art. XI, § 5(b); See
Sonoma County Organization of Public Employees v. County of Sonoma, 23 Cal,
3d 296 (1979); but see San Leandro Police Officers Association v. City of San
Leandro, 55 Cal. App. 3d 553 (1976) (labor relations is not a municipal affair;
Charter cities are subject to the Meyers-Milias Brown Act, Cal. Gov't Code §
3500.
• Processes Associated with City Contracts, See First Street Plaza Partners v. City
of Los Angeles, 65 Cal. App. 4th 650 (1998); but see Domar Electric, Inc. v. City
of Los Angeles, 41 Cal. App. 4th 810 (1995) (state law establishing employment
policy may preempt local regulation of bidding criteria).
Page 35 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities:
http.//www. cacities. orq/chartercities
• Financing Public Improvements. See City of Santa Monica v. Grubb, 245 Cal.
App. 2d 718 (1996).
• Making Charitable Gifts of Public Funds for Public Purposes, See Cal. Const, art.
XVI, § 6; Tevis v. City and County of San Francisco, 43 Cal. 2d 190 (1954).
Term Limits for Council Members. See Cawdrey v. City of Redondo Beach, 15
Cal. App. 4th 1212 (1993); but see Cal. Gov't Code § 36502(b) (regulating term
limits).
• Land Use and Zoning Decisions (with a few exceptions). See Brougher v. Bd. of
Pub. Works, 205 Cal. 426 (1928),
What Activities Have the Courts Classified as Statewide Concerns?
The following have consistently been classified by the courts as matters of statewide
concern:
• School Systems. Whisman v. San Francisco Unified Sch. Dist., 86 Cal. App. 3d
782, 789 (1978).
• Traffic and Vehicle Regulation. Cal. Veh. Code § 21.
• Licensing of Members of a Trade or Profession. City and County of San
Francisco v. Boss, 83 Cal. App. 2d 445 (1948).
• Tort Claims Against a Governmental Entity. Helbach v. City of Long Beach, 50
Cal. App. 2d 242, 247 (1942).
• Open and Public Meetings, Ralph M. Brown Act. Cal. Gov't Code §§ 54951,
54953(a).
• Exercise of the Power of Eminent Domain. Wilson v Beville, 47 Cal. 2d 852, 856
(1957).
Page 36 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities;
ht( .//www. cacities. or /ghartercities
What A..
s a"chader2
A city charter is a unique document that, in many ways, acts like a constitution for the
city adopting it. It can only be adopted, amended or repealed by a majority vote of a
city's voters. The primary advantage of a charter is that it allows greater authority for a
city's governance than that provided by state law. For example, a city may tailor its
organization and elective offices, taking into account the unique local conditions and
needs of the community.
A charter transfers the power to adopt legislation affecting municipal affairs from the
state legislature to the city adopting it. A city operating under a charter can acquire full
control over its municipal affairs. These affairs are unaffected by the general laws
passed by the state legislature on the same subject matters. This, in effect, gives the
local voters more control over their local government and the affairs of the city.
However, a city operating under a charter is still subject to the general laws, as passed
by the state legislature, on affairs that are not municipal in nature, and are of statewide
concern (e.g., California Vehicle Code).
It is the scope of the term "municipal affairs" that provides the opportunity for uncertainty.
No easy analytical test exists. The threshold issue is whether there is a conflict between
state law and a charter city enactment. The next issue is whether the state regulation
addressed an issue of "state wide concern." Courts analyze these conflicts on a case-
by-case basis.
Page 37 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities:
htt ://www. cacities. or /chartercities
What is in a charter?
While a city charter is not required to have any particular provisions in it, a city will often
reserve for itself the greatest amount of power it can when it adopts a charter. To
accomplish this goal, the charter must include a declaration that it is the intention of the
city to avail itself of the full power provided by the state constitution to charter cities.
However, the city is not required to extend the breadth of its charter any further than it
wishes.
Some of the common areas that are explicitly regulated in a charter are:
• The date and conduct of city elections;
Regulations on the appointment of municipal officials;
• The terms and payment of municipal officials;
• The process for removal of municipal officials;
Form of government;
Budget adoption;
• The number, pay, qualifications, and appointment of deputies, clerks, and other
employees that each municipal officer will have;
Sub -government in all or part of the city;
• The tenure of office for deputies, clerks, and other employees;
• The process for removal of such deputies, clerks, and other employees; and
• The constitution, regulation, and government of the local police force.
A number of California cities' charters are available online. The National Civic League
also has a model charter project.
Page 38 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities:
http.//www.cacities,or lchartercities
Process used fo adopt a charter
There are two ways to draft and adopt a city charter. The first is to elect a charter
commission, The commission then has the responsibility of debating over the provisions
and the drafting of the charter. The other alternative allows the governing board of the
city, on its own motion, to draft the charter. In either case, the charter is not adopted by
the city until it is ratified by a majority vote of the city's voters.
When using the charter commission approach, the first step is to elect the commission.
The vote to elect a charter commission is called for by either a majority vote of the city's
governing body or by a petition signed by not less than fifteen percent of the registered
voters within the city. If the formation of a charter commission is requested by a petition,
the authority in charge of the city's registration records must verify the signatures on the
petition. The expense of this verification must be paid for by the city's governing board.
If the petition is verified, the city's governing board must call for an election in
accordance with sections 1000 and 10403 of the California Elections Code. See Cal.
Gov't Code section 34452.
Once it has been decided that a charter commission election will take place, candidates
for commissioners must be nominated. Candidates for the office of charter
commissioner are nominated either in the same manner as officers of the city or by
petition. A candidate for charter commissioner must be a registered voter of the city.
After the election of commissioners, any vacancy on the commission will be filled by a
mayoral appointment. See Cal. Gov't Code section 34452.
At an election for charter commission members, the voters will vote first on the following
question: "Shall a charter commission be elected to propose a new charter?" After
voting on this question, the voters will then vote for the charter commission candidates.
If a majority of the voters vote for the formation of a charter commission, then the top
fifteen candidates for the office of charter commissioner will be organized as the city's
charter commission. No commission will be formed if a majority of voters vote against
the election of a charter commission. See Cal. Gov't Code section 34453.
Once formed, the charter commission will have the responsibility of developing the city's
charter. After a simple majority of commissioners have decided that the proposed
charter is appropriate, they file the charter with the city's clerk in preparation for a vote by
the city's electorate. See Cal. Gov't Code section 34455. However, instead of sending
the whole charter at once, periodically the commission may send portions of the charter
to the city's electorate for a vote. See Cal. Gov't Code section 34462.
After the charter (or portions of it) has been filed, it must be copied in type greater than
10 point and either mailed to all the voters of the city or made available to those citizens
who wish to review it before the election. The city may show the difference between
existing provisions of law and the new charter through the use of distinguished type
styles, but this is not required. See Cal. Gov't Code section 34456.
After the charter has been filed with the city clerk, the city's governing board must decide
whether to call a special election or to wait until the next established municipal election
to submit the charter to the voters. If the city's governing board determines that a
Page 39 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities;
htta://www.cacit es, ora/chartercities
special election should be held, then they must call for that special election within 14
days of the charter being filed. The special election must be set at least 95 days after
the date from which the special election was called. See Cal. Gov't Code section 34457.
In any case, the charter commission must send the charter to the voters within two years
of the vote that formed the commission. Upon the expiration of the two-year time period,
the commission is abolished. See Cal. Gov't Code section 34462.
The alternative to electing a charter commission is to have the city's governing board
develop and draft the charter. An election to decide on the adoption of a charter may be
called by initiative or the city council. See Cal. Const. art. XI, § 3. On its own motion, the
city's governing board may propose a charter and submit it to the voters for adoption.
See Cal, Gov't Code section 34458. With this option, the governing board can call a
special election or allow the charter to be voted on at any established election date, as
long as that election date is at least 88 days after the proposed charter was filed with the
city clerk. See Cal. Gov't Code section 34458. As a practical matter, an election may
have to be called sooner than 88 days before the election in order to meet certain notice
and ballot printing deadlines.
In either case, the majority of voters must vote in favor of the proposed charter for it to
be ratified. The charter will not go into effect until it has been filed and accepted by the
Secretary of State. See Cal. Gov't Code section 34459. After a charter is approved by a
majority vote of the voters, the mayor and city clerk shall certify that the charter was
submitted to the voters of the city and that it was approved by a majority vote. See Cal.
Gov't Code section 34460. One copy of the approved charter shall be filed with the
County Recorder's office and one shall be kept in the City's archive. See Cal. Gov't Code
section 34460. A third copy of the charter must be submitted to the Secretary of State
with (1) copies of all publications and notices in connection with the calling of the
election; (2) certified copies of any arguments for or against the charter proposal which
were mailed to the voters; (3) a certified abstract of the vote at the election on the
charter. See Cal. Gov't Code section 34460.
Page 40 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities;
hUP Wwww, cacities. omIchartercities
Howto,arnend or repeal a.;charter
If a citizens group, or the city's governing body, wishes to amend or repeal a portion of
the city's charter, the steps remain largely the same as they are for drafting a charter.
There are, however, two notable exceptions. First, the petition calling for the repeal or
amendment needs only ten percent of the electorate's signatures, instead of the
previous fifteen percent. See Cal. Elec. Code sections 9215 and 9255. The other
notable difference has to do with the charter itself. A city charter may establish different
rules for the municipal elections process than those laid out by the state legislature in the
Elections Code. If this is the case, the city's charter will govern the elections process
used to appeal or amend the city's charter, instead of the general laws laid out in the
Elections Code.
Page 41 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities;
htt ://www. ca cities. or /chartercities
Charter Cities
Adelanto
Lemoore
Alameda
Lindsay
Albany
Loma Linda
Alhambra
Long Beach
Anaheim
Los Alamitos
Arcadia
Los Angeles
Bakersfield
Marina
Bell
Marysville
Berkeley
Merced
Big Bear Lake
Modesto
Buena Park
Monterey
Burbank
Mountain View
Carlsbad
Napa
Cerritos
Needles
Chico
Newport Beach
Chula Vista
Norco
Compton
Oakland .
Culver City
Oceanside
Cypress
Oroville
Del Mar
Pacific Grove
Desert Hot Springs
Palm Desert
Dinuba
Palm Springs
Downey
Palmdale
EI Centro
Palo Alto
Eureka
Pasadena
Exeter
Petaluma
Folsom
Piedmont
Fortuna
Placentia
Fresno
Pomona
Gilroy
Port Hueneme
Glendale
Porterville
Grass Valley
Rancho Mirage
Hayward
Redondo Beach
Huntington Beach
Redwood City
Indian Wells
Richmond
Industry
Riverside
Inglewood
Roseville
Irvine
Sacramento
Irwindale
Salinas
King City
San Bernardino
Kingsburg
San Diego
Lancaster
San Francisco
La Quinta
San Jose
Page 42 of 55
ATTACHMENT 5
Information from the nonpartisan California League of Cities:
htf .//www. cacifies. or /chartercifies
San Leandro
San Luis Obispo
San Marcos
San Mateo
San Rafael
San Ramon
Sand City
Santa Ana
Santa Barbara
Santa Clara
Santa Cruz
Santa Maria
Santa Monica
Santa Rosa
Santee
Seal Beach
Shafter
Total Cities; 120
Signal Hill
Solvang
Stockton
Sunnyvale
Temple City
Torrance
Truckee
Tulare
Vallejo
Ventura
Vernon
Victorville
Visalia
Vista
Watsonville
Whittier
Woodlake
Page 43 of 55
ATTACHMENT 5
Department of Public Services 1 Administration
INTER OFFICE MEMORANDUM
To: Honorable City Council
From:Ernesto Munoz, Interim Director, Public Services Department
Date; IrJanuary 6, 2012
Subject: PREVAILING WAGE VS. NON -PREVAILING WAGE FOR
CAPITAL IMPROVEMENT PROJECTS
At the December 6, 2011 meeting, the City Council requested staff to provide an
analysis of potential cost savings the City may realize if it was not required to
meet prevailing wage rate requirements on the labor costs associated with its
capital improvement projects,
Staff examined the past two years` project records and analyzed the cost for five
non -Federally funded projects, since projects with a Federally -funded match
must pay prevailing wage rates.
The following five projects were funded with local revenues and, therefore, were
not subject to Federal wage rate requirements, However, prevailing wages were
paid pursuant to State labor code requirements, The weighted average cost
savings of a non -prevailing wage contract for these projects is approximately
$232,752 or 6.7% over total project costs,
PROJECT
TOTAL
PREVAILING
NODI-
TOTAL.
%
% SAVINGS
COST
WAGE
PREVAILING
LABOR
SAVINGS
ON TOTAL
LABOR
WAGE
COST
ON
CONTRACT
COST
LABOR
SAVINGS
LABOR
COST
COST
COST
WALNUT
$377,589
$69,831
$20,725
$49,106
70.32%
13.00%
DRAINAGE
IMPROVEMENTS
FARM SPORTS
$42,940
$7,538
$6,505
1 $1,033
13.70%
2.40%
COMPLEX
LIGHTING
BRENTWOOD
$80,803
$42,858
$30,402
$12,456
29.06%
15.40%
PARK
LANDSCAPING
PARKING LOT
$292,744
$61,646
$26,172
$35,474
57.64%
12.10%
NO. 1
REHABILITATION
CITYWIDE
$2,678,033
$928,847
$794,164
$134,683
14.50%
5.03%
STREET MAINT.
2010/2011
TOTAL
$3,472,109
$1,110,720
$877,968
$232,762
Page 44 of 55
ATTACHMENT 5
Based on the listed projects, the potential savings over the total project costs
could have ranged between 2.4% and 15.4% if non -prevailing wage rates would
have been paid by the City.
It would be reasonable to assume (without further project -specific detailed
analysis) that comparable theoretical savings may have been realized on a
project such as the Police Department Expansion and Renovation in the range of
$500,000 to $3 million. Staff feels that savings for the Police Department
Expansion and Renovation Project, with a total construction contract cost of
$19,964,780, could have been in the middle of this range given the high labor
component of this contract or approximately $1.8 million.
The potential savings to the City increase relative to the project size and the
size of the project labor component. For further illustration, on a larger facility -
type project, such as the construction of a new public library facility (assuming a
hypothetical $30 million budget), the potential savings could be as much as $2.7
million.
Attached also find other information you may find useful relative to the prevailing
wage issue and its Impact on public works contract costs.
Please feel free to contact me should you have any questions regarding the
above information.
Attachments
c; Thomas R. Hatch, Chief Executive Officer
Peter Naghavi, Economic Development Director/Deputy CEO
Page 45 of 55
ATTACHMENT 5
ME MORAN D U M
Development Services Department
To: Honorable Mayor and City Councilmembers
Through: Peter Weiss, City Manager l J
By: Gary Kellison, Senior Civil Engi'n'eer
Greg Blakely, Water Utilities Division Manager
Date: April 1, 2010
Subject: Relative Portion of local versus Federally Funded Capital Projocts
Counclimember Kern requested a breakdown of the relative portion of current capital projects
funded with local or regional funds versus those with State or Federal funds. Currently,
Oceanside pays prevailing wages on both kinds of projects,
Fund
Descrl tion
Local
Federal
751
Harbor --- Lot 11 Restroom
$2504000
591
Redevelop. — Drainage Improvements; Tyson parkin lot
$2,800,000
520
Drainage fes TransNet — Loma Alta Crk detention basins
$4,490,000
216
State Prop 42 — Sidewalk repairs; storm drains
$290,000
212
TransNet, Street maintenance and new construction
$10,840,000
212
TransNet -- Federal match for Paclflc Street bride
$770 000
561
Thoroughfare fee — College Blvd median storm drain
$100,000
508
Traffic Signal fee -- varlous traffic sign
$1,670,000
501
Misc Capital Pro'ects --1617 Mission Ave bld remodel
$310,000
501
Misc Capital Projects — Pacific Street bride
$450 000
237
Housin HUD , CBDG and ARRA housin rants
$500000
272
Public Works -- State Pro 50 rant arundo removal
$80 000
Public Works — DOE ARRA (energyefficlenc rants
$9 $1,600.000
Water Utilities -- water and sewer projects
$8,560,000
$490,000
' Total
$29,310,000
$3,790,000
Page 46 of 55
ATTACHMENT 5
The table above lists the current -year budget for various types of projects split between local
and Federal fund sources. TransNet and some State programs, such gas tax, are categorized
as "local" because they defer to local rules. Local funds that are budgeted on Federal projects
are counted as "Federal" because those funds become subject to Federal rules when spent on
Federal projects.
In the previous two years, Oceanside received Federal reimbursements of approximately $18
mllllon for the Pacific Street Bridge. The next largest project over the same period was Fl
Corazon Senior Center, which was built with $10 million in local funds,
cc: George Buell, Development Services Department Director
Loren Wasserman, Interim Water Utilltles Director
Page 47 of 55
ATTACHMENT 5
From: Peter Weiss
Sent: Monday, April 05, 2010 7,41 AM
To: City Council
Cc: Gary Keliison; Scott Smith
Subject: FW: Questions regarding Mance Buchanon Park
Mayor and Council:
Council Member Kern requested information regarding the costs for Mance Buchanon Park and an
estimate of savings If prevailing wages would not have been required, The following is staff's response,
From: Gary Kellison
Sent: Friday, April 02, 2010 1:14 PM
To: Peter Weiss; Scott Smith
Cc; David Toschak
Subject: RF: Questions regarding Mance Buchanon Park
Peter and Scott,
The construction of Mance Buchanon Park cost $11,753,000 and its design cost $775,000 for a total of
$12,528,000,
Prevailing wage savings are difficult to estimate. At the high end, the cost of a consultant providing
construction staking or field testing would be 30% without prevailing wages. For a large general
contractor, the savings would be smaller because of his fixed material costs and an Inability to fully
reduce salaries of skilled employees. I think an reasonable savings rate would be 10% at the low end
and 20% at the high end. For Mance Buchanon Park, that translates to a savings of $1,175,000 to
$2,350,000.
Gary Kellison
Council Member Kern would like to know how much money was spent to build Mance Buchanan Park?
Can you estimate what the savings would be to the taxpayers if the City of Oceanside did not
have to pay prevailing wages on this project?
Ben Sullivan
Page 48 of 55
ATTACHMENT 5
16 Memorandum
DEVELOPMENT SERVICES DEPARTMENT
Engineering Division
TO:
Honorable Mayor and City Counclimembers
THROUGH,
Peter Weiss, City Mana Ml
FROM:
Gary Kellison, Senior Civil Engineer
DATE:
September 15, 2010
SUBJECT: Harbor Aquatics Center Project Bid Results and Cost Comparison
This memo provides Information similar to the memo dated September 7, 2010, on the
Library Renovation bid results,
The City first bid the Harbor Aquatics Center in May 2008, Then, the low bid was
$4,353,000, but was not awarded because it exceeded the City's budget at that time.
The Aquatics Center was rebid fast month with a low bid of $3,530,249, It Is on the
September 22, 2010, City Council agenda with a staff recommendation to award,
The $822,751 (19% difference) price difference between the 2008 and 2010 bid prices
Is due to a combination of:
Depressed conditions in the current construction market
+ No prevailing wages on the current bid
The Harbor Aquatic Center bid is a "lump sum" price without a breakdown between
labor and material, or the Individual trades. In response to the City's inquiry about the
Impact of no prevailing wages on the bid results, the contractor replied with the aNached
email Indicating a savings of 12 to 18% for omitting prevailing wages.
If additional information is needed, please contact Gary Kellison.
c:
Don Hadley
George Buell
Scott Smith
Frank Quan
Nathan Mertz
Page 49 of 55
ATTACHMENT 5
Dori Hadle
From; Son Menasherov IBMenaslierov@SMCCON,com]
Sent: Wednesday, September 08, 201011:00 AM
To: Nathan Mertz
Cc: Gary Kelllson; Scott Smlth; Don Hadley; Frank Quan; Al Chegtni
Subject: RE: Harbor Aquatles Center Prevailing Wage vs Non-Prevalling Wage Projects
Nathan,
I just checked with my estimating department and please keep in mind that each subcontractor
and contractor's wages are different regarding non prevailing rates. We have seen that there
ins a cost savings of anywhere from 12 to 18% versus prevailing wage work,
In addition the material and equipment costs have also dropped significantly in the past
couple of years,
In summary projects in Southern California are coming in approximately 20 to 30% less than
they were two years ago.
Hope this helps,
Take care,
Ben Menasherov
General Manager
20 Morgan, Ste. 100
Irvine CA 92618
tel #949.916.3500
fax #949,916.3510
Benosmccon.com
www,smccon.com
CONFIDENTIALITY NOTICE, This email message, together with any attachments, is intended for
the sole use of the individual or entity to which it is addressed, and may contain
information that is legally privileged, confidential and restricted from disclosure, if you
are not the intended recipient, or responsible for delivery to that person, you are hereby
notified that any dissemination or copying of this communication is STRICTLY PROHIBITED. Xf
you are not the intended recipient, please contact the sender by reply e-mail or telephone,
delete this message, and destroy all copies of the message immediately,
-----Original Message -----
From: Nathan Mertz[mailto:NMertz@aci.oceanside.ca,us]
Sent: Wednesday, September 08, 2010 10:34 AM
To: Ben Menasherov
Cc: Gary Kellison; Scott Smith; Don Hadley; Frank Quan
subject: Harbor Aquatics Center Prevailing Wage vs Non -Prevailing Wage Projects
Hi Ben
As discussed will you please send information in regards to any opinions on cost savings for
non -prevailing wage vs, prevailing wage projects.
General percentages or specific percentages to our project will work -- thanks[
Nathan Mertz
Page 50 of 55
ATTACHMENT 5
OCEANSME CITY COUNCIL MEMBER JERRY yXi M
NEWS RELEASE
Confacf Bess Sullivan
Aide to Council Member Jerry Kern For Release September 16, 2010
300 N. Coast Hfghway NOTE;
Oceanside, CA 92054 5 PAGES WITH ATTACHMENTS
Picone (760) 435-3042
Fax (760) 435-6042
bs.ulliv.an_p_cf,ocea_n_s_idexa,us_
)X%v►v,doceanside,cams
COST SAVINGS NEAR $1 MILLION ON PUBLIC WORKS
PROJECTS WITH ADOPTION OF THE CITY CHARTER
OCEANSIDE CITY STAFF ANNOUNCED THAT COST SAVINGS RELATED TO
PROVISIONS WITHIN THE RECENTLY ADOPTED OCEANSIDE CITY CHARTER HAS
SAVED A TOTAL OF $970,365 ON TWO CITY PROJECTS,
ACCORDING TO STAFF THE CITY REALIZED $947,804 IN SAVINGS FOR THE LIBRARY
RENOVATION PROJECT DUE PRIMARILY TO SAVINGS IN LABOR COSTS,
COUNCIL MEMBER JERRY KERN SAID, "THESE SAVINGS PROVED HELPFUL IN
SEEING THE OCEANSIDE CIVIC CENTER LIBRARY RENOVATIONS PROJECT BECOME
A REALITY.
ADDITIONAL GOOD NEWS BY CITY STAFF ANNOUNCED SAVINGS OF $822,759 ON
THE HARBOR AQUATICS CENTER, WHICH TURNED OUT TO BE A 99 PERCENT
REDUCTION OVER AN EARLIER BID WHEN PREVAILING WAGES WERE REQUIRED
WHEN OCEANSIDE WAS A "GENERAL LAW" CITY.
"THE CITIZENS OF OCEANSIDE SHOULD FEEL REALLY GOOD ABOUT SAVING
NEARLY $9 MILLION ON THE FIRST TWO PROJECTS SINCE THE RECENTLY ADOPTED
CITY CHARTER WAS ENACTED,"KERN SAID,
Page 51 of 55
ATTACHMENT 5
"WITH THE ON-GOING BENEFITS OF LOWER LABOR RELATED COSTS ON
APPROXIMATELY $30 MILLION A YEAR IN DAY -TO DAY PUBLIC WORKS PROJECTS,
THE TAXPAYERS OF OCEANSIDE SHOULD REALIZE ANNUAL SAVINGS IN THE
AMOUNT OF $3 -6 MILLION PER YEAR," KERN SAID,
Page 52 of 55
ATTACHMENT 5
;� a Memorandum
DEVELOPMENT SERVICES 13EPARTME14T
Engineering Division
TO: Honorable Mayor and City Councilmembers
THROUGH: Peter Weiss, City Manage of
FROM: Nathan Mertz, Parks Development Manager
DATE; September 7, 2010
SUBJECT: Civic Center Library Renovation Project Cost Savings
At the request of Councllmember Lowery, the following Information regarding cost
savings for the Library Renovation Project Is being provided.
As part of the library project re -bid process, a reduced base bid schedule with the
Inclusion of additive and deductive alternates was prepared. At the time of the project
re-bld process the CA State Prevailing Wage provisions were deleted,
I have provided a simple spread sheet from both of the base bids received (see
attached). For further description of the Individual bid Items please refer to the attached
bid schedule for the project, The base bids were used In determining the low bidder at
the time of the bid opening. I have outlined the "re-bld" base bid Items in comparison to
the respective 'original" base bid Items (deductive and additive alternates for the
project are not included within the spreadsheet), There Is $447,604 in savings which Is
primarily based on labor.
The project bid Items (fine Items) are Inclusive of equipment, materials and labor. Bids
received by the City from a general contractor do not Include the breakdown of
equipment, materials and labor, In addition, most of the bid items for this project are
performed by sub -contractors, Proposals provided by sub -contractors to the general
contractor do not include a breakdown of equipment, material and labor either.
Please feel free to contact me with any other questions.
Cc; George Buell
Deborah Polich
Page 53 of 55
ATTACHMENT 5
REVISED (01/03/11) Timeline of Events for Creating Proposed Charter
Before Costa Mesa residents can vote on whether their municipality should
become a charter city, state law requires a three-month public hearing process
so the issue can be thoroughly vetted by the public.
Here is the relevant text from the state law:
Prior to approving the submission to the voters of a proposal to adopt a charter, the
governing body shall hold at least two public hearings on the matter of the proposal of a
charter and the content of the proposed charter. Notice of the public hearings shall be
given by publication pursuant to Section 6066, in a newspaper designated by the
governing body and circulated throughout the city, and by posting the notice in three
public places within the jurisdiction at least 21 calendar days prior to the date of each
public hearing. The second public hearing shall be held at least 30 days after the first
public hearing. At least one of the public hearings shall be held outside of normal
business hours to facilitate public participation. The governing body shall not conduct a
vote on whether to approve the submission to the voters of the proposal to adopt a
charter until 21 days after the second public hearing.
[Cal. Gov. Code 34458(b) (effective on January 1, 2012)]
Between December 6, 2011 and March 6, 2012, the City of Costa Mesa will hold
a series of City Council meetings, study sessions, informational town hall
meetings, and mandatory hearings (pursuant to state statute) to provide
information and receive input on the proposed charter.
The City will also provide on its website and through other information outlets
information about the potential charter and the process of getting it on the ballot
for the June 5, 2012 election.
Below is the tentative schedule of meetings, study sessions, town hall meetings,
and mandatory hearings.
Dec. 6, City Council meeting: Report on possible City charter, including
introduction to what's a charter, pros and cons of becoming a charter city,
and procedure for being a charter city (including proposed timeline); first
draft of the charter will be presented and discussed; public comment will
be taken.
Dec. 20, deadline for notice posted for the mandatory First Hearing of
proposed charter on Jan. 10, 2012.
Jan. 4, Wednesday, Informational Town Hall meeting: 7 p.m. at the Costa
Mesa Neighborhood Community Center. City staff will provide information
on charters, the charter process, the sample charter for Costa Mesa and
how to participate in the process.
Page 54 of 55
ATTACHMENT 5
Jan. 10, Special City Council meeting (First Hearing): The City Council will
look at potential provisions to include in a charter for Costa Mesa, take
public comment and may vote on a first draft of a charter, which can be
edited by the council throughout the process.
Jan. 23, deadline for notice posted for the mandatory Second Hearing of
proposed charter on Feb. 14, 2012.
Jan. 24 and/or Jan. 31, Potential informational meetings on charter: If
needed, the City of Costa Mesa will present information on the charter and
charter process.
Feb. 14, Special City Council meeting (Second Hearing): City Council will
receive public comment and may continue to hone the draft charter toward
completion.
March 6, COUNCIL MEETING to vote upon resolution directing that the
Charter be submitted to the Voters: This is the earliest date in which
Council may adopt a resolution directing the charter to be submitted to the
voters.
Page 55 of 55
ATTACHMENT 6
MEMORANDUM
To: Tom Hatch, Costa Mesa City CEO
From: Thomas P. Duarte, Costa Mesa City Attorney
Date: January 26, 2012
Subject: ANALYSIS OF PROPOSED CHARTER PROVISIONS REGARDING
ETHICS/CONFLICT OF INTEREST AND COUNCILMEMBER
QUALIFICATIONS
1. Introduction
Our office was asked to determine which proposed provisions could, legally speaking, be
added to the Proposed Charter. After analyzing each proposed provision, we have determined
that two proposed provisions attempt to govern an area of law that is already addressed by either
State law, municipal ordinance, or both; and, therefore, would be potentially duplicative or
conflicting with already establish law.
2. Qualifications of Councilmembers
While Council expressed a desire to provide in the Proposed Charter a section that
detailed the qualifications for councilmembers (e.g. minimum age and residency requirements),
we have determined that placing qualifications that are not in line with the Government and
Election Codes may potentially run into constitutional problems. Article XI, § 5 of the California
Constitution allows a Charter City to set up city council candidate qualifications (using the
"home rule" provision). See Ops Cal Atty Gen 6, 8 (1999). Thus, it is possible to set such
qualifications in the Proposed Charter. Nevertheless, because any candidate qualifications would
involve residency requirements, any such charter provision would have to be in line with the
"privileges and immunities" clause of the United States Constitution. Generally speaking, the
constitutional rights of candidacy, voting, and travel are implicated in analyzing any durational
residency requirements and, therefore, a city would have to show a compelling state interest in
such a restriction. See Johnson v. Hamilton, 15 Cal. 3d 461, 468 (1975).
To that end, it was our intent to draft the councilmember qualifications in a manner that
would give the City an option of either proscribing such requirements by ordinance or, absent an
ordinance so stating, use the requirements as set forth in the Government Code § 36502 and
Election Code § 321. This conservative position allows the City to use the already -tested and
constitutional candidate qualifications found in the Government and Election Codes while, at the
same time, gives the City the option to change candidate qualifications in the future if desired.
Page 1 of 2
ATTACHMENT 6
3. Ethics and Conduct Code
a. Political Reform Act applies to charter cities.
Our office has determined that the inclusion of an "Ethics and Conduct Code" to be
unnecessary as it would be duplicative of statutes/ordinances already in place and could, if
improperly drafted, potentially conflict with state law provisions. The Political Reform Act
(Government Code § 82000 et seq.) covers both general law and charter cities. Specifically, the
Political Reform Act defines a "city" to include both general and charter cities. See Cal. Gov.
Code § 82008. Thus, anytime the Act refers to a "city" in its regulations, it is being inclusive of
charter cities. Further, regulations promulgated by the Fair Political Practices Commission also
apply to charter cities for the same reason. Therefore, providing for codes of ethics and conduct
that attempt to duplicate the Political Reform Act could potentially lead to a conflict with State
law, and, thus, rendering this proposed revision invalid.
b. Government Code § 1090 apply to charter cities.
Government Code § 1090 covers the following public officials: "[m]embers of the
Legislature, state, county, district, judicial district, and city officers or employees." Cal. Gov.
Code § 1090. Thus, because councilmembers and city employees are still "city officers or
employees" under a charter city, § 1090 applies regardless of whether the City is a general law or
charter city. Therefore, it would be unnecessary to state, in the Proposed Charter, that § 1090 is
applicable. Further, an attempt to duplicate the language in § 1090 would immediately invalidate
the proposed provision because it would be duplicative of State law.
c. City's Municipal Code already contains a conflict of interest code.
Chapter X of Title 2 of the Costa Mesa Municipal Code already contains a "Conflict of
Interest Code" as required by the Political Reform Act. This Conflict of Interest Code, when
originally adopted, has already been vetted to be in line with the Political Reform Act. As such, it
is unnecessary to duplicate the Code in the Proposed Charter.
Page 2 of 2
ATTACHMENT 8
Department of Public Services 1 Administration
INTER OFFICE MEMORANDUM
To: Honorable City Council
From: Ernesto Munoz, Interim Director, Public Services Department
Date: IrJanuary 6, 2012
Subject: PREVAILING WAGE VS. NON -PREVAILING WAGE FOR
CAPITAL IMPROVEMENT PROJECTS
At the December 6, 2011 meeting, the City Council requested staff to provide an
analysis of potential cost savings the City may realize if it was not required to
meet prevailing wage rate requirements on the labor costs associated with its
capital improvement projects.
Staff examined the past two years' project records and analyzed the cost for five
non -Federally funded projects, since projects with a Federally -funded match
must pay prevailing wage rates.
The following five projects were funded with local revenues and, therefore, were
not subject to Federal wage rate requirements. However, prevailing wages were
paid pursuant to State labor code requirements. The weighted average cost
savings of a non -prevailing wage contract for these projects is approximately
$232,752 or 6.7% over total project costs.
PROJECT
TOTAL
PREVAILING
NON-
TOTAL
%
% SAVINGS
COST
WAGE
PREVAILING
LABOR
SAVINGS
ON TOTAL
LABOR
WAGE
COST
ON
CONTRACT
COST
LABOR
SAVINGS
LABOR
COST
COST
COST
WALNUT
$377,589
$69,831
$20,725
$49,106
70.32%
13.00%
DRAINAGE
IMPROVEMENTS
FARM SPORTS
$42,940
$7,538
$6,505
$1,033
13.70%
2.40%
COMPLEX
LIGHTING
BRENTWOOD
$80,803
$42,858
$30,402
$12,456
29.06%
15.40%
PARK
LANDSCAPING
PARKING LOT
$292,744
$61,646
$26,172
$35,474
57.54%
12.10%
NO. 1
REHABILITATION
CITYWIDE
0,678,033
$928,847
$794,164
$134,683
14.50%
5.03%
STREET MAINT.
2010/2011
TOTAL
$3,472,109
$1,110,720
$877,968
$232,752
Page 1
Page 1 of 10
ATTACHMENT 8
Based on the listed projects, the potential savings over the total project costs
could have ranged between 2.4% and 15.4% if non -prevailing wage rates would
have been paid by the City.
It would be reasonable to assume (without further project -specific detailed
analysis) that comparable theoretical savings may have been realized on a
project such as the Police Department Expansion and Renovation in the range of
$500,000 to $3 million. Staff feels that savings for the Police Department
Expansion and Renovation Project, with a total construction contract cost of
$19,964,780, could have been in the middle of this range given the high labor
component of this contract or approximately $1.8 million.
The potential savings to the City increase relative to the project size and the
size of the project labor component. For further illustration, on a larger facility -
type project, such as the construction of a new public library facility (assuming a
hypothetical $30 million budget), the potential savings could be as much as $2.7
million,
Attached also find other information you may find useful relative to the prevailing
wage issue and its impact on public works contract costs.
Please feel free to contact me should you have any questions regarding the
above information,
Attachments
c: Thomas R. Hatch, Chief Executive Officer
Peter Naghavi, Economic Development Director/Deputy CEO
PaET 2
Page of 10
ATTACHMENT 8
Development Services Department
To: Honorable Mayor and City Councilmembers
Through: Peter Weiss, City Manager l ►�
By: Gary Kellison, Senior Civil Engineer
Greg Blakely, Water Utilities Division Manager
Date: April 1, 2010
Subject: Relative Portion of Local versus Federally Funded Capital Projects
Councilmember Kern requested a breakdown of the relative portion of current capital projects
funded with local or regional funds versus those with State or Federal funds. Currently,
Oceanside pays prevailing wages on both kinds of projects.
Fund
Description
Local
Federal
751
Harbor — Lot 11 Restroom
$250,000
691
Redevelop. — Drainage Improvements; Tyson parking lot
$2,800,000
620
Drainage fee, TransNet -- Loma Alta Crk detention basins
$4,490,000
216
State Prop 42 — Sidewalk repairs; storm drains
$290,000
212
TransNet — Street maintenance and new construction
$10,840,000
212
TransNet — Federal match for Pacific Street bride
$770,000
561
Thoroughfare fee -- College Blvd median storm drain
$100,000
508
Traffic Signal fee -- various traffic signals
$1,670,000
601
Misc Capital Projects — 1617 Mission Ave bldg remodel
$310,000
501
Misc Capital Pro ects -- Pacific Street bride
$450,000
237
Housing (HUD)— CBDG and ARRA(housing rants
$500,000
272
Public Works — State Pro 50 rant arundo removal
$80,000
Public Works — DOE ARRA energy efficient rants
$1,500,000
Water Utilities — water and sewer ro'ects
$8,560,000
$490,000
' Total
$29,310,000
$3,790,000
Page 3 of 10
ATTACHMENT 8
The table above lists the current -year budget for various types of projects split between local
and Federal fund sources. TransNet and some State programs, such gas tax, are categorized
as "local" because they defer to local rules. Local funds that are budgeted on Federal projects
are counted as "Federal" because those funds become subject to Federal rules when spent on
Federal projects.
In the previous two years, Oceanside received Federal reimbursements of approximately $18
million for the Pacific Street Bridge. The next largest project over the same period was El
Corazon Senior Center, which was built with $10 million in local funds.
cc; George Buell, Development Services Department Director
Loren Wasserman, Interim Water Utilities Director
Page 4 of 10
ATTACHMENT 8
From: Peter Weiss
Sent, Monday, April 05, 2010 7:41 AM
To: City Council
Cc: Gary Kellison; Scott Smith
Subject: FW: Questions regarding Mance Buchanon Park
Mayor and Council:
Council Member Kern requested information regarding the costs for Mance Buchanon Park and an
estimate of savings if prevailing wages would not have been required. The following is staff's response.
From: Gary Kellison
Sent: Friday, April 02, 2010 1:14 PM
To: Peter Weiss; Scott Smith
Cc: David Toschak
Subject: RE: Questions regarding Mance Buchanon Park
Peter and Scott,
The construction of Mance Buchanon Park cost $11,753,000 and its design cost $775,000 for a total of
$12,528,000.
Prevailing wage savings are difficult to estimate. At the high end, the cost of a consultant providing
construction staking or field testing would be 30% without prevailing wages. For a large general
contractor, the savings would be smaller because of his fixed material costs and an inability to fully
reduce salaries of skilled employees. I think an reasonable savings rate would be 10% at the low end
and 20% at the high end. For Mance Buchanon Park, that translates to a savings of $1,175,000 to
$2,350,000.
Gary Kellison
Council Member Kern would like to know how much money was spent to build Mance Buchanon Park?
Can you estimate what the savings would be to the taxpayers if the City of Oceanside did not
have to pay prevailing wages on this project?
Ben Sullivan
Page 5 of 10
ATTACHMENT 8
as
Memorandum
DEVELOPMENT SERVICES DEPARTMENT
Engineering Division
TO:
Honorable Mayor and City Councilmembers
THROUGH:
Peter Weiss, City Manac l~�,_
FROM:
Gary Kellison, Senior Civil Engineer° M
DATE.,
September 15, 2010
SUBJECT: Harbor Aquatics Center Project Bid Results and Cost Comparison
This memo provides information similar to the memo dated September 7, 2010, on the
Library Renovation bid results.
The City first bid the Harbor Aquatics Center in May 2008. Then, the low bid was
$4,353,000, but was not awarded because it exceeded the City's budget at that time.
The Aquatics Center was rebid last month with a low bid of $3,530,249. It is on the
September 22, 2010, City Council agenda with a staff recommendation to award.
The $822,751 (19% difference) price difference between the 2008 and 2010 bid prices
is due to a combination of:
Depressed conditions in the current construction market
• No prevailing wages on the current bid
The Harbor Aquatic Center bid is a "lump sum" price without a breakdown between
labor and material, or the individual trades. In response to the City's inquiry about the
impact of no prevailing wages on the bid results, the contractor replied with the attached
e-mail indicating a savings of 12 to 18% for omitting prevailing wages,
If additional Information is needed, please contact Gary Kellison.
c:
Don Hadley
George Buell
Scott Smith
Frank Quan
Nathan Mertz
Page 6 of 10
ATTACHMENT 8
Dori Hadley
From: Ben Monasherov [BMenasherov@SMCCON.com]
Sent: Wednesday, September 08, 2010 11:00 AM
To: Nathan Mertz
Cc: Gary Ke€€€son; Scott Smith; Don Hadley; Frank Quan; At Cheg€ni
Subject: RE: Harbor Aquatics Center Prevailing Wage vs Non -Prevailing Wage Projects
Nathan,
I just checked with my estimating department and please keep in mind that each subcontractor
and contractor's wages are different regarding non prevailing rates. We have seen that there
is a cost savings of anywhere from 12 to 18% versus prevailing wage work.
In addition the material and equipment costs have also dropped significantly in the past
couple of years.
In summary projects in Southern California are coming in approximately 20 to 30% less than
they were two years ago.
Hope this helps,
Take care,
Ben Menasherov
General Manager
20 Morgan, Ste. 100
Irvine CA 92618
tel #949,916.3500
fax #949.916.3510
Ben smccon.com
www.smccon.com
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-----Original Message -----
From: Nathan Mertz[mailto:NMertz@ci.oceanside.ca.us]
Sent: Wednesday, September 08, 2010 10:34 AM
To: Ben Menasherov
Cc: Gary Kellison; Scott Smith; Don Hadley; Frank Quan
Subject: Harbor Aquatics Center Prevailing Wage vs Non -Prevailing Wage Projects
Hi Ben
As discussed will you please send information in regards to any opinions on cost savings for
non -prevailing wage vs. prevailing wage projects.
General percentages or specific percentages to our project will work -- thanks[
Nathan Mertz
1
Page 7 of 10
ATTACHMENT 8
OCEANSME CITY COUNCIL MEMBER JERRY KERN
NEWS RELEASE
Contact. Ben Sullivan
Aide to Council Member Jerry Kern For Release September 16, 2010
300 N. Coast Highway NOTE:
Oceanside, CA 92054 5 PAGES WITH ATTACHMENTS
Phone (760) 435-3042
Fax (760) 435-6042
bsulliyannu,ci.oceanside.ca.us
wwiv.ci.oceanside.ca.us
COST SAVINGS NEAR $1 MILLION ON PUBLIC WORKS
PROJECTS WITH ADOPTION OF THE CITY CHARTER
OCEANSIDE CITY STAFF ANNOUNCED THAT COST SAVINGS RELATED TO
PROVISIONS WITHIN THE RECENTLY ADOPTED OCEANSIDE CITY CHARTER HAS
SAVED A TOTAL OF $970,355 ON TWO CITY PROJECTS.
ACCORDING TO STAFF THE CITY REALIZED $147,604 IN SAVINGS FOR THE LIBRARY
RENOVATION PROJECT DUE PRIMARILY TO SAVINGS IN LABOR COSTS.
COUNCIL MEMBER JERRY KERN SAID, "THESE SAVINGS PROVED HELPFUL IN
SEEING THE OCEANSIDE CIVIC CENTER LIBRARY RENOVATIONS PROJECT BECOME
A REALITY.
ADDITIONAL GOOD NEWS BY CITY STAFF ANNOUNCED SAVINGS OF $822,751 ON
THE HARBOR AQUATICS CENTER, WHICH TURNED OUT TO BE A 19 PERCENT
REDUCTION OVER AN EARLIER BID WHEN PREVAILING WAGES WERE REQUIRED
WHEN OCEANSIDE WAS A "GENERAL LAW" CITY.
"THE CITIZENS OF OCEANSIDE SHOULD FEEL REALLY GOOD ABOUT SAVING
NEARLY $1 MILLION ON THE FIRST TWO PROJECTS SINCE THE RECENTLY ADOPTED
CITY CHARTER WAS ENACTED,"KERN SAID.
Page 8 of 10
ATTACHMENT 8
"WITH THE ON -GOING BENEFITS OF LOWER LABOR RELATED COSTS ON
APPROXIMATELY $30 MILLION A YEAR IN DAY -TO DAY PUBLIC WORKS PROJECTS,
THE TAXPAYERS OF OCEANSIDE SHOULD REALIZE ANNUAL SAVINGS IN THE
AMOUNT OF $3 -6 MILLION PER YEAR," KERN SAID.
Page 9 of 10
ATTACHMENT 8
8,4N
Memorandum
DEVELOPMENT SERVICES DEPARTMENT
Engineering Division
TO: Honorable Mayor and City Councilmembers
THROUGH: Peter Weiss, City Manage o�
FROM: Nathan Mertz, Parks Development Manager
DATE: September 7, 2010
SUBJECT: Civic Center Library Renovation Project Cost Savings
At the request of Councilmember Lowery, the following information regarding cost
savings for the Library Renovation Project is being provided,
As part of the library project re -bid process, a reduced base bid schedule with the
inclusion of additive and deductive alternates was prepared. At the time of the project
re-bld process the CA State Prevailing Wage provisions were deleted.
I have provided a simple spread sheet from both of the base bids received (see
attached). For further description of the individual bid items please refer to the attached
bid schedule for the project. The base bids were used in determining the low bidder at
the time of the bid opening. I have outlined the "re-bld" base bid items in comparison to
the respective 'original" base bid items (deductive and additive altemates for the
project are not included within the spreadsheet). There is $147,604 in savings which is
primarily based on labor.
The project bid items (line items) are inclusive of equipment, materials and labor. Bids
received by the City from a general contractor do not Include the breakdown of
equipment, materials and labor. In addition, most of the bid items for this project are
performed by sub -contractors. Proposals provided by sub -contractors to the general
contractor do not include a breakdown of equipment, material and labor either.
Please feel free to contact me with any other questions.
Cc; George Buell
Deborah Polich
Page 10 of 10
ATTACHMENT 9
Timeline of Events for Creating Proposed Charter
Before Costa Mesa residents can vote on whether their municipality should
become a charter city, state law requires a three-month public hearing process
so the issue can be thoroughly vetted by the public.
Here is the relevant text from the state law:
Prior to approving the submission to the voters of a proposal to adopt a charter, the
governing body shall hold at least two public hearings on the matter of the proposal of a
charter and the content of the proposed charter. Notice of the public hearings shall be
given by publication pursuant to Section 6066, in a newspaper designated by the
governing body and circulated throughout the city, and by posting the notice in three
public places within the jurisdiction at least 21 calendar days prior to the date of each
public hearing. The second public hearing shall be held at least 30 days after the first
public hearing. At least one of the public hearings shall be held outside of normal
business hours to facilitate public participation. The governing body shall not conduct a
vote on whether to approve the submission to the voters of the proposal to adopt a
charter until 21 days after the second public hearing.
[Cal. Gov. Code 34458(b) (effective on January 1, 2012)]
Between December 6, 2011 and March 6, 2012, the City of Costa Mesa is
holding a series of City Council meetings, study sessions, informational town hall
meetings, and mandatory hearings (pursuant to state statute) to provide
information and receive input on the proposed charter.
The City will also provide on its website and through other information outlets
information about the potential charter and the process of getting it on the ballot
for the June 5, 2012 election.
Below is the tentative schedule of meetings, study sessions, town hall meetings,
and mandatory hearings.
Dec. 6, City Council meeting: Report on possible City charter, including
introduction to what's a charter, pros and cons of becoming a charter city,
and procedure for being a charter city (including proposed timeline); first
draft of the charter will be presented and discussed; public comment will
be taken.
Dec. 20, deadline for notice posted for the mandatory First Hearing of
proposed charter on Jan. 10, 2012.
Jan. 4, Wednesday, Informational Town Hall meeting: 7 p.m. at the Costa
Mesa Neighborhood Community Center. City staff will provide information
on charters, the charter process, the sample charter for Costa Mesa and
how to participate in the process.
Page 1 of 2
ATTACHMENT 9
Jan. 10, Special City Council meeting (First Hearing): The City Council will
look at potential provisions to include in a charter for Costa Mesa, take
public comment and may vote on a first draft of a charter, which can be
edited by the council throughout the process.
Jan. 23, deadline for notice posted for the mandatory Second Hearing of
proposed charter on Feb. 14, 2012.
Feb. 13, Special City Council meeting (Second Hearing): City Council will
receive public comment and may continue to hone the draft charter toward
completion.
March 6, Council meeting to vote upon resolution directing that the Charter
be submitted to the voters: This is the earliest date in which Council
may adopt a resolution directing the charter to be submitted to the voters.
Page 2 of 2