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G.9 - Charter and General Law CitiesCity of Grand Terrace City Council Charter vs. General Law Cities Adrian R. Guerra, City Attorney March 14, 2023 General Law Cities General law cities derive their powers from, and organize their governments according to, acts of the legislature. The fundamental law of these cities is found in the Government Code which enumerates their powers and specifies their structure. Charter Cities Charter cities are formed when citizens specifically frame and adopt a charter to establish the organization and basic law of the city. Article XI, section 3(a) of the Calif. Constitution authorizes the adoption of a charter, which has the force and effect of state law. Difference between Charter and General Law BASIC DIFFERENCE: Degree of control that the state government may exercise over cities. Charter cities: More freedom to innovate and pass ordinances on matters of “municipal affairs” according to local need. General law cities: More limited powers on matters of “municipal affairs.” However, difference may not be as important Because the legislature has tended to give general law cities the same control over internal matters that the constitution grants to charter cities, the original distinction between the two forms of city authority has been somewhat blurred. Ability to Govern Municipal Affairs General Law Bound by the state’s general law, regardless of whether the subject concerns a “municipal affair.” Charter “Home Rule” provision grants charter cities supreme authority over “municipal affairs.” Cal. Const. art. XI, § 5(a). What are “Municipal Affairs”? Whether an activity is a municipal affair over which charter cities have sovereignty or a statewide concern over which the California legislature has preemptive authority, is a determination made on a case-by-case basis. The following slides provide examples of distinctions that have been established based on statutes and case law. Form of Government General Law State law authorizes: Cities to be governed by a city council of five members, a city clerk, a city treasurer, a police chief, a fire chief and any subordinate officers or employees as required by law. G.C. § 36501. Electors may adopt ordinance which provides for a different number of council members. G.C. §34871. “City manager” form of government. G.C. §34851. Charter Charter can provide for any form of government including the “strong mayor,” or “city manager” forms. See Cal. Const. art. XI, §5(b); G.C. § 34450 et seq Elections Generally General Law Municipal elections conducted in accordance with the California Elections Code. E.C. §§10101 et seq. Charter Not bound by the California Elections Code. May establish own rules and procedures. See Cal. Const. art. XI, §5(b); E.C. §§10101 et seq. Compensation of City Officers and Employees General Law Setting of City Council compensation is subject to state law. Employee compensation subject to labor negotiations per Meyers-Milias Brown Act (G.C. §3500). Charter Charter cities retain authority to set City Council compensation. Const. art. XI, Section 5(b). Charter cities generally retain discretion to set employee compensation. Sonoma County Org. of Public Employees v. County of Sonoma (1979) 23 Cal.3d 296. Employee compensation subject to labor negotiations must still comply with Meyers-Milias Brown Act., G.C. §3500; see San Leandro P.O.A. v. City of San Leandro (1976) 55 Cal.App.3d 553. Public Contracts General Law Competitive bidding required for public works contracts over $5,000. P.C.C §20162. Such contracts must be awarded to the lowest responsible bidder. P.C.C. §20162. If city elects to subject itself to uniform construction cost accounting procedures, less formal procedures may be available for contracts less than $100,000. P.C.C. §§22000, 22032. Charter Not required to comply with bidding statutes provided the city charter or a city ordinance exempts the city, and the subject matter of the bid constitutes a municipal affair. P.C.C §1100.7; Howard Contracting, Inc. v. G.A. MacDonald Constr. Co.(1998) 71 Cal. App. 4th 38. Activities of Statewide Concern (not deemed “municipal affairs”) Traffic and Vehicle Regulation. V.C. §21 Licensing of Members of a Trade or Profession. City and County of San Francisco v. Boss (1948) 83 Cal.App.2nd 445. Open and Public Meetings law. Ralph M. Brown Act. G.C. §§54951-54953. School systems. Whisman v. San Francisco Unified Sch. Dist.(1978) 86 Cal.App.3d 782. State-wide shortage of sites for low-and moderate-income housing and the regional spillover effect of insufficient housing was deemed an issue of statewide concern and demonstrated “extramunicipal concerns” justifying statewide application of Surplus Land Act's affordable housing priorities. Anderson v. City of San Jose (2019) 42 Cal. App. 5th 683 (2019),review denied (Mar. 11, 2020). Drafting Charter may be drafted by a charter commission (elected by voters), a charter committee (appointed by City Council), or by the City Council. If done by charter committee or City Council, then the City Council may decide on whether to proceed by submitting the charter to the voters (please note that all proposed charters must be submitted to voters). A charter commission must complete its work on a proposed charter and must submit the charter to the voters of the City within two years of the date of the election of the charter commissioners pursuant to G.C. 34462. Charter Commission Either City Council can call for an election to form a charter commission or one can be proposed by initiative of the voters. (G.C. §§34451 & 34452). The initiative can only occur at a general election. Once formed, the charter commission has 2 years to complete their work and, at the end of that period, is abolished. (G.C. §34462). Any proposal by the charter commission requires a majority of the signatures of the commissioners (G.C. §34455) Charter Committee A charter committee appointed by City Council is a step that can be taken as part of a City Council submitted charter. This is similar to forming an ad hoc committee to advise the City Council on City matters. No fixed time. When done, the proposed charter is submitted as a recommendation to the City Council (which can be modified). City Council then decides whether to proceed by submitting the proposed charter to the voters (deciding not to proceed stops the process here). City Council City Council, itself, can submit a draft charter to the voters without a charter commission or committee. However, if City Council submits a draft charter to voters (this includes a recommended charter from a charter committee), the following procedures must be followed prior to submission for approval (G.C. §34458(b)): At least two public hearings on the charter proposal and content of the proposed charter. The public hearings notices must be published pursuant to G.C. §6066 in a designated newspaper and circulated throughout the City, and by posting the notice in three public places within the jurisdiction at least 21 calendar days prior to each public hearing date. The 2nd public hearing must be held be held at least 30 days after the 1st public hearing. At least one public hearing must be held outside of normal business hours to facilitate public participation. City council cannot 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. When Submitted to Voters A city charter proposed by the City Council on its own motion that qualifies pursuant to E.C. §9255 must be submitted to the voters at the next established statewide general election pursuant to E.C. §1200 occurring not less than 88 days after the date of the order of election. E.C. §1415. A charter proposed by a charter commission, whether elected or appointed by a governing body, for a city shall be submitted to the voters at an established statewide general election pursuant to E.C. §1200, provided there are at least 95 days before the election. A charter commission may also submit a charter pursuant to G.C. §34455. E.C. §9255. Meet and Confer Requirements Prior to the City Council submitting a charter to the voters, a determination must be made as to whether any proposed element may affect wages, hours or other terms and conditions of employment for employees in one or more employee organizations. If so, the City will be required to meet and confer in good faith, which means that the City and recognized employee organizations have the obligation to personally meet and confer promptly upon request by either party and continue for a reasonable period to try and reach agreement on matters within the scope of representation prior to proposing a charter. People ex rel. Seal Beach Police Officers Assn. v. City of Seal Beach (1984) 36 Cal.3d 591. CEQA Where the City Council acts on its own to place a proposed charter on a ballot, it is a project, and full compliance with CEQA will be required before placing the matter on the ballot. Friends of Sierra Madre v. City of Sierra Madre (2001) 25 Cal.4th 165, 191 (finding that initiatives placed on the ballot by a city are subject to CEQA). Questions or Comments?