Item No. 8
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GEORGE RODERICKS, CITY MANAGER
DATE: SEPTEMBER 18, 2024
SUBJECT: CONSIDERATION AND DIRECTION REGARDING ADOPTION OF A TOWN CHARTER – TO INCLUDE APPOINTMENT OF A
STANDING SUBCOMMITTEE OF THE CITY COUNCIL
RECOMMENDATION
It is recommended that the Council receive the staff report, discuss and provide direction regarding adoption of a Town Charter, to include consideration of appointment of a Standing Subcommittee of the City Council.
BACKGROUND
At the June 5, 2024 Study Session the City Council discussed the possibility of pursuing a Town Charter (Staff Report Link HERE). Following discussion, the Council directed that staff return in September with a recommendation on next steps for discussion by the Council.
ANALYSIS
Attached to this Staff Report for Council reference are the following:
- Attachment 1 – League of Cities Charter City Toolkit
- Attachment 2 – Table Comparing General Law to Charter City - Attachment 3 – Government Code Section 34450 (governing adoption of charters) - Attachment 4 – Simple Town Charter
- Attachment 5 – Draft Charter Prepared by Council Subcommittee in 2013 The June 5, 2024 Staff Report provided an analysis of pros and cons of enacting a Town Charter.
Following discussion in June, the Council directed that staff return with a recommendation for next steps.
Drafting of a Charter
Pursuant to Government Code Section 34450 et seq., a Charter may only be adopted, amended or repealed by majority voter approval. A charter can be drafted by a “charter commission” (elected Charter City Discussion
SEPTEMBER 18, 2024
by the voters), a charter committee (appointed by the City Council), or by the City Council itself.
When drafted by a charter committee of a City Council or the City Council itself, the Council decides whether or not to submit the draft charter to the electorate. If a charter commission drafts the charter, the commission is entitled to submit the charter to the voters with or without Council approval.
Timeline
With an elected commission, there is an extended timeline for adoption. This is due to the election of members of the commission itself in addition to the election for the charter. This would place the timing for the elected commission on the November 2026 ballot and the charter itself, assuming the work is completed, on the November 2028 ballot. Elections cannot take place at special elections.
For a charter drafted by the Council (either through a Council Subcommittee or by the Council itself), it must be submitted to the electorate for approval. The earliest this could take place would be November 2026. As noted in the June 5, 2024 Report, there are numerous timelines prescribed in State law for process. The City Council cannot vote to place a charter on the ballot until 21 days.
After it holds at least two public hearings on the matter, with each hearing preceded by 21 days’ notice and the second public hearing at least 30 days after the first. Typically, this timeline prescribes that the final version of any charter must be prepared no later than the June preceding the November election (June 2026).
Advantages and Disadvantages
There are advantages of charter city status. While many historic advantages have been eroded over time by State law, the list below still provides advantage to local charter cities:
- The Town would be able to exercise greater local control over municipal affairs, as allowed by the State.
- As to municipal elections, the City Council could prescribe longer or shorter filing periods, longer or shorter notices of elections, different nominating procedures, different terms of office, district elections, different procedures for voting by mail or other election procedures.
- The Town would be able to charge different fees or compensation than that which is prescribed in State law, coupled with the constitutional authority to regulate the granting of franchises.
- Public works contracting procedures on Town-financed projects could be made more flexible, as could procedures with respect to bond financing. - Ordinance adoption processes could be modified.
- A charter city can override statutory limitations placed upon the levy of a business tax and allows for more options with respect to property transfer taxes. - A charter city has some additional flexibility, but not unlimited flexibility, with respect to planning and land use.
While there are no actual legal disadvantages with charter city status, the Council should take the following under consideration.
Charter City Discussion
SEPTEMBER 18, 2024
- There is time, effort and expense required to draft a charter and hold the election. - A local charter will not be a barrier to matters determined by the State to be “of statewide concern” as has recently been the case with the numerous housing laws recently promulgated by the State.
- The transition from operation as a “general law” city to a “charter city” may require some adjustment in other processes and procedures. Ultimately, there may be additional tests and reviews for conformity to a Town Charter that did not exist prior to adoption of a charter. - The simple or complex nature of any adopted charter may result in situations where matters are debated as to whether they are municipal concerns (i.e. local charter) or of statewide concern. This could give rise to legal debate and conflict when seeking resolution.
Future Amendments
Once adopted, an existing charter may be amended or repealed only by a majority vote of the electorate. A measure to amend or repeal a charter may be placed on the ballot by the City Council or by initiative petition of the electorate.
Next Steps
If the Council is desirous of pursuing adoption of a charter, staff does not recommend the formation of a charter commission. Staff recommends that the Council consider discussion as a full Council or as a Standing Subcommittee, Standing Subcommittee is preferred. Either of these options will allow the participation of the public in discussions as all meetings of the Council or Standing Subcommittees are Brown Act compliant meetings (agendas, minutes regularly scheduled meetings). At a minimum, the City Manager, City Attorney, and City Clerk would be involved at the staff level.
If the Council desires to move forward with a Standing Subcommittee, appointments could be made at this meeting along with direction regarding a Subcommittee charter. Staff would recommend the following for Council’s consideration:
• Create a Standing Subcommittee of the Council by appointing two members of the City Council
• Direct the charter of the Subcommittee as follows:
o Work with staff to create a draft charter for the Council’s future consideration with a target of November 2026 presentation to the electorate o Staff liaisons to the Subcommittee shall include the City Manger, City Attorney and City Clerk
o Work of the Subcommittee shall be conducted at regularly noticed public meetings o Subcommittee shall report out to the City Council at regular intervals Charter City Discussion
SEPTEMBER 18, 2024
FISCAL IMPACT
None at this time. Establishment of a Standing Subcommittee will commit staff time and resources to support the work of the Standing Subcommittee.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal Area B – Preserve Small Town Character and Quality of Life • Goal Area F – Be Forward-Thinking, Well-Managed, and Well-Planned
POLICY FOCUS
Policy focus for the Council is on the pros and cons of the formation of a Town Charter and the process by which to engage the public in the discussion.
PUBLIC NOTICE
Public notification was achieved by posting the agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online. There are approximately 1,200 subscribers to the Town’s electronic News Flash publications. Subscribers include residents as well as stakeholders –to include, but be not limited to, media outlets, school districts, Menlo Park Fire Protection District, service provides (water, power, and sewer), and regional elected officials.
COMMISSION/COMMITTEE FEEDBACK/REFERRAL
This item has not been before a Town Committee or Commission
ATTACHMENTS
1. League of Cities Charter City Toolkit
2. Comparison General Law to Charter City
3. Government Code Provisions Regarding Adoption of City Charters
4. Sample Simple Charter
5. Draft Charter from 2013