Item No. 2
Town of Atherton
CITY COUNCIL STAFF REPORT – ACTION ITEM
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GEORGE RODERICKS, CITY MANAGER
DATE: FEBRUARY 5, 2025
SUBJECT: CONSIDERATION OF CREATION OF A CHARTER CITY
COMMITTEE (EITHER AD HOC OR STANDING); AND, IF CREATED,
APPROVAL OF A CHARTER FOR THE COMMITTERE
RECOMMENDATION
Consideration of creation of Charter City Committee (either Ad Hoc or Standing); and, if created, approval of a charter for the Committee.
BACKGROUND
At the June 5 Study Session, the City Council discussed the possibility of pursuing a Town Charter. (LINK to June 5 Agenda Packet – Item No. 5). Following discussion, the Council directed that staff return with a recommendation for next steps. At the November 20 Regular Meeting, the Council discussed draft charters, a timeline for pursuit of a charter, and the advantages and disadvantages of obtaining charter city status. (LINK to November 20 Agenda Packet – Item No. 3).
The Council directed that staff return with a proposed charter that would be followed should the Council opt to create a Charter City Committee.
ANALYSIS
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Pursuant to Government Code Section 34450 et seq., a Charter may only be adopted, amended or repealed by majority voter approval.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 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 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.
Charter City Discussion
February 5, 2025
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. 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
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:
• 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.
Charter City Discussion
February 5, 2025
• 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.
Forming an Ad Hoc or Standing Committee
Staff recommends that the Council consider discussion as an Ad Hoc or Standing Committee. An Ad Hoc Committee would be a Subcommittee of the Council working with staff and/or consultants. Members of the public would not be involved in discussion or meetings of an Ad Hoc Committee without transitioning the meeting to a Standing Committee. A Standing Committee is a Brown Act compliant Committee with public 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 Committee, appointments could be made at this meeting along with direction regarding a Committee charter. Staff would recommend the following for Council’s consideration:
Direct the charter of the Committee as follows:
• Committee shall work with staff to create a draft charter for the Council’s future consideration with a target of November 2026 presentation to the electorate. • Staff liaisons to the Committee shall include the City Manger, City Attorney and City Clerk. • If the Committee is appointed as a Standing Committee, work of the Committee shall be conducted at regularly noticed public meetings.
• Committee work shall be reported out to the City Council at regular intervals.
FISCAL IMPACT
None at this time. Establishment of a Standing Committee will commit staff time and resources to support the work of the Committee.
GOAL ALIGNMENT
Goal Area F – Be Forward-Thinking, Well-Managed, and Well-Planned