HomeMy WebLinkAbout1996-09-03 - AGENDA REPORTS - CHARTER CITYHOOD (2)NEW BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
BACKGROUND
II. ♦11: � •� t 1
September 3, 1996
CHARTER CITYHOOD
City Manager
City Manager Approw
Item to be presented
Terri Maus
In California there are only two classes of cities, chartered or general law. Of the 445 cities in
the state, 90 are now chartered.
Unlike cities in other states, both types of California cities have a very broad base of power and
enjoy considerable freedom in the form of government established and the type of activities the
can engage in. There are however distinctions between charter and general law cities that
which relate to the powers exercised by each. Theses distinction bear directly on the desirability
of reorganizing as a charter city.
In California, the State Constitution allows charter cities to do all things which a general law
city can do. In addition, according to Article XI of the State Constitution, charter cities have the
authority to do anything not contrary to the State Constitution or determined by act of the
Legislature to be "a matter of statewide concern."
Charter cities therefore have the authority to make and enforce all ordinances and regulations
with respect to "municipal affairs" subject only to the restrictions and limitations provided in
their charters. The following items have been held to be municipal affairs; salaries of officers
and employees, taxation, election of officers, initiatives and referendum processes, manner of
passing ordinances, revenue bond procedures, zoning, contracting procedures, procurement of
goods and services and form of the city government organization.
With respect to matters of "statewide concern," a charter city, as well as a general law city, must
yield to state legislation. The courts are therefore the final decision on weather a particular
issue is a state wide concern or a municipal affair. Matters that have been held to be a matter
of "statewide concern" are; annexations, labor relations, workers compensation, liability of
claims, traffic regulations, alcoholic beverage taxation and pollution control.
As a general proposition, the main advantage of the charter city form of government stems from
APPROVED Agenda Item:
the potential breadth of local authority which may be exercised. Charter cities are not restricted
to the exercise of such powers as are set forth in general law, although contrary restrictions may
be written into a charter. General law cities are what the name implies, those governed
principally by the laws of the state. In this lies the primary advantage of a general law city.
They have been subjected to scrutiny over the years resulting in some clarity of meaning and
understanding of what is permissible under those laws. This is not the case when considering
the unique provisions within a given charter.
A charter city does however have a greater amount of local control. Economic and social
conditions unique to a particular city may be addressed through the appropriate wording of a
charter. While, at any time the State Legislature may enact laws which a general law city may
find detrimental or inhibiting to its operation, with respect to municipal affairs, a charter city
would remain insulated from such legislative changes.
It might appear that charter cities with their autonomy in municipal affairs enjoy a substantial
advantage over general law cities. However in information gathered by the League of California
Cities it a appears that the statutory law on which general law cities are dependent indicates
that today there are very few powers possessed by charter cities which are not also available
to general law cities. In addition, the courts appear to be recognizing fewer matters as
"municipal affairs". Therefore when considering reorganizing as a charter city, a general law
city should carefully consider the question, "Is there something we want to do in our city which
we cannot now do under general law status?"
The process of preparing a city charter is fairly complex. It may be initiated through an election
to choose a charter commission charged with the duty of drafting a charter or as an alternative,
a city council may draft the charter and submit it for approval to a vote of the citizens. If the
first alternative is utilized, an election for choosing charter commissioners may be called either
by a majority vote of the city counicl or by petition signed by not less that 15% of the registered
voters of the city. If the question of electing a charter commission recieves a majority vote of
the of the qualified voters, the candidates receiving the highest number of votes at the same
election are required to organzize as a charter commission and propose a charter to be
submitted to the citizens at a date set by the commission.
If the charter, as proposed by the commission, or by the city council, is approved by a majority
vote of the citizens, it is filed with the Secretary of State. Any subsequent amendment, revision
or repeal to the city charter may be proposed by the city council or by a petition signed by 15%
of the registered voters, and must be receive the same majority approval of the citizens.
Given the diminishing benefits of charter cityhood, as well as the extensive process to establish
a charter city, fewer cities are choosing to pursue this option unless there is a specific issue that
can only be resolved through obtaining this status. Santa Clarita does not appear to have
issues of this nature at this time. Therefore, given the cost of achieving a charter, $100,000 to
$300,000, it may not advantageous to pursue charter cityhood at this time. However, should
the City Council wish to pursue this matter, it is recommended that a consultant be retained
early to assist in the charter drafting process.
That the City Council receive and discuss report.
ATTACHMENTS
Pros and cons of charter cityhood
Listing of charter cities
PROS/ADVANTAGES
CONS/DISADVANTAGES
1. Can exercise choice relative to prevailing 1. Is relatively expensive to adopt ($1000,000 -
wage. $300,000) requiring drafting, discussing input
and election.
2. Can determine projects and programs 2. Requires lawsuits appealed to State
subject to special assessment. Supreme Court to determine if a "new" act is
within charter city power or if state has pre-
empted such act.
3. Can determine procedure for special 3. Charters can contain restrictions that would
assessments (due process and public notice be more restrictive than general law. (Need
is in constitution). to consider mood of community)
4. Charter can mandate or prohibit matters or 4. Charters can be amended by initiative to
concerns unique to City. contain a "hot' topic, but may not be a "good
law or good municipal policy".
5. Have opportunity for exception from
Planning and Housing Act requirements and
mandates.
5. Charters can be amended by initiative to
contain what currently may be unpopular,
however if enough signatures or votes are
secured, can be required of the City.
6. Can broaden city revenue base through 6. Potential reluctance of citizens to expect a
maximum revenue authority. City from action of the legislature.
7. Can utilize "municipal affairs" argument as to
liability defense in law suits for and against
the city.
8. Can challenge state mandates as intrusion
into "municipal affairs" reserve to charter
cities.
9. Can issue revenue bonds without a public
vote is cash flow is adequate.
10. Can secure a half lever (e.g. A- to A) rating
improvement for municipal bonds which
translates to a 1/4% lower interest rate.
11. Can organize differently than general law
cities and call elections when it chooses..
12. Has immunity from acts of the legislature
with items other than those of "statewide
concern".
13. Can perform any act in a method chosen
locally, that does not conflict with legislature.
14. Having maximum "home rule authority"
requires an alert interested and informed
public and creates opportunity for greater
public outreach.
tmm\chartcty.doc
7. Potential reluctance of the public to have
more local authority versed in a City Council.
LEAGUE OF CALIFORNIA CITIES
CALIFORNIA CHARTER CITIES
`-9111 � . 3 1po �i€ �T Idn� i A rlr rr�t 'rl�
Adelanto
Alameda
Albany
Alhambra
Anaheim
Arcadia
Bakersfield
Berkeley
Big Bear Lake
Burbank
Cerritos
Chico
Chula Vista
Compton
Culver City
Cypress
Del Mar
Dinuba
Downey
Eureka
Folsom
Fresno
Gilroy
Glendale
Grass Valley
Hayward
Huntington Beach
Industry
Inglewood
Irvine
Irwindale
Loma Linda
Long Beach
Los Alamitos
Los Angeles
Marysville
Merced
Modesto
Monterey
Mountain View
Napa
Needles
Newport Beach
Oakland
Orovil le
Pacific Grove
Palm Springs
Palo Alto
Pasadena
Petaluma
Piedmont
Redondo Beach
Redwood City
Richmond
Riverside
Roseville
San Bernardino
Alameda
Alameda
Los Angeles
Orange
Los Angeles
Kern
Alameda
San Bernardino
Los Angeles
Los Angeles
Butte
San Diego
Los Angeles
Los Angeles
Orange
San Diego
Tulare
Los Angeles
Humboldt
Sacramento
Fresno
Santa Clara
Los Angeles
Nevada
Alameda
Orange
Los Angeles
Los Angeles
Orange
Los Angeles
San Bernardino
Los Angeles
Orange
Los Angeles
Yuba
Merced
Stanislaus
Monterey
Santa Clara
Napa
San Bernardino
Orange
Alameda
Butte
Monterey
Riverside
Santa Clara
Los Angeles
Sonoma
Alameda
Los Angeles
San Mateo
Contra Costa
Riverside
Placer
13,278
80,815
17,404
87,405
296,497
51,265
212,634
105,855
6,075
99,880
54,652
48,442
153,401
92,128
40,039
46,963
5,211
14,544
96,413
29,606
40,826
405,145
33,550
190,536
9,642
123,364
189,795
695
114,583
123,909
1,081
21,604
442,106
12,425
3,620,543
12,854
61,712
181,783
32,904
71,496
67,757
6,004
70,098
386,779
12,768
17,406
42,509
58,575
135,240
48,569
11,288
63,002
71,718
93,015
247,800
59,432
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Sacramento
Salinas
San Bernardino
San Diego
San Francisco
San Jose
San Leandro
San Luis Obispo
San Marcos
San Mateo
San Rafael
San City
Santa Ana
Santa Barbara
Santa Clara
Santa Cruz
Santa Monica
Santa Rosa
Seal Beach
Shatter
Stockton
Sunnyvale
Temple City
Torrance
Tulane
Vallejo
Ventura
Vernon
Visalia
Watsonville
Whittier
TMM\CITYINFO.DOC
LEAGUE OF CALIFORNIA CITIES
CALIFORNIA CHARTER CITIES
Sacramento
Monterey
San Bernardino
San Diego
San Francisco
Santa Clara
Alameda
San Luis Obispo
San Diego
San Mateo
Marin
Monterey
Orange
Santa Barbara
Santa Clara
Santa Cruz
Los Angeles
Sonoma
Orange
Kern
San Joaquin
Santa Clara
Los Angeles
Los Angeles
Tulane
Solano
Ventura
Los Angeles
Tulane
Santa Cruz
Los Angeles
396,032
122,390
185,942
1,197,676
759,282
845,991
72,307
43,704
48,030
92,017
53,247
198
311,491
90,218
98,159
52,677
89,809
128,255
26,795
11,139
234,009
125,959
32,541
137,886
39,901
116,148
100,677
82
91,792
33,798
81,423
111105196
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03/03/98
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