Item No. 11
Town of Atherton
CITY COUNCIL STAFF REPORT – REGULAR AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GEORGE RODERICKS, CITY MANAGER
DATE: OCTOBER 15, 2025
SUBJECT: DISCUSSION AND DIRECTION REGARDING FORMATION OF A
CITY CHARTER
RECOMMENDATION
It is recommended that the Council review and discuss the draft charter submitted by the Charter City Standing Subcommittee; and, if appropriate, provide direction regarding next steps.
BACKGROUND
Early in 2025, the City Council formed a Charter City Standing Subcommittee to explore the advantages of becoming a Charter City. The Council directed that the Subcommittee create a draft charter for consideration by the City Council.
Transitioning to a Charter City would provide Atherton with greater autonomy in taxation, procurement, and governance. However, for some of these areas, the practical benefit to the Town is limited. The Town must carefully consider legal constraints, stakeholder concerns, and potential litigation risks before moving forward. Furthermore, once a charter is adopted, the Town must ensure that future decisions conform with the charter. Otherwise, the Town will be required to amend the charter each time there is a potential conflict between what the charter says and what the Town wants to do.
The Town currently operates as a General Law City under California law, meaning its governance, policies, and regulations are based in the Constitution or by statutes. Shifting to a Charter City model would grant Atherton greater autonomy over “municipal affairs”, particularly in areas such as elections, personnel matters, contracting, prevailing wages, and taxation. However, the benefit of that greater autonomy is limited in many areas, with changes to those powers sometimes reflected in new judicial interpretations, when those powers are disputed.
The Subcommittee met several times over the past few months and crafted the attached draft charter.
Consideration of Next Steps – City Charter
OCTOBER 15, 2025
ANALYSIS
The charter city provision of the State Constitution, also commonly referred to as the “home rule”, allows charter cities to conduct their own business and control their own affairs. Put differently, “home rule” is a principle in the Constitution that allows a charter city to govern itself on any matter considered a “municipal affair”, subject to constitutional limitations and subject to matters that are made, by the Legislature, “a matter of statewide concern.” Charter cities are specifically authorized by state constitution to govern themselves, free of state legislative intrusion, as to the matters deemed municipal affairs. Thus, the potential for local control under the home rule principle is broad and significant; subject to what is or what is not a “municipal affair” but limited by what the legislature declares to be a matter of statewide concern. Courts have held that “home rule” is a means of adjusting the political relationship between state and local governments in discrete areas of conflict.
For these reasons, defining what is and what is not a “municipal affair” is an ever-evolving matter.
Article IX, section 5 of the Constitution sets out categorical areas that are considered municipal affairs – governance, regulation of police forces, and elections, but it does not define “municipal affair”. Instead, specific areas of municipal affairs have been more defined over time by court decisions. These include general municipal election matters, land use and zoning matters, the expenditure of local tax dollars, and public contracts.
The Subcommittee crafted the attached draft charter to address the broad areas of local control for the Town. The draft charter is concise and contains the following articles and preamble. • Preamble – the Preamble highlights the Town’s beliefs with respect to home rule and control over municipal affairs.
• Article I – Article I outlines the parameters of home rule and what constitutes municipal affairs. It highlights that nothing within the charter is intended to restrict the Town from exercising any right or power of authority granted by the general laws of the State. • Article II – Article II is a basic section that highlights the Town’s form of local governances.
• Article III – Article III describes the method of selection of Mayor and Vice Mayor. • Article IV – Article IV prescribes that all laws in effect upon adoption of the charter remain in effect.
• Article V – Article V prescribes that the charter shall be interpreted broadly and that its provisions are severable.
Next Steps
Consideration of Next Steps – City Charter
OCTOBER 15, 2025
Based on the process selected by the Council earlier in discussion, to place a charter city measure on the November 2026 ballot, the Town should follow these procedural steps:
• Form a Standing City Council Charter Subcommittee to draft a proposed charter (COMPLETED)
o Public Meetings were held on March 10, May 6, June 11, July 16, and September 15 • Host Community Meetings and Workshops to educate residents and solicit input on the draft charter
o Staff suggests a minimum of two public workshops (one at the onset of public engagement and one at the conclusion of public engagement) o Staff suggests that in between the two public workshops that there be several neighborhood meetings (Lindenwood HOA, Lloyden Park, Selby/Stockbridge, Central Atherton, etc.)
o These meetings would be held from November 2025 through April 2026 • Host two City Council Public Hearings for Council approval of placing the Charter on the November 2026 Ballot
o These would take place in May and June (there must be a minimum of 30 days between each public hearing and at least 21 days notice for each hearing) o At the final Public Hearing, Council adopts a resolution to place the charter on the November ballot (at least 88 days before the election). Alternatively, at this point, the Council could also opt not to move forward with placing it on the ballot. • If the Council opts to move it to the ballot, staff recommends that the Town host two additional Community Meetings to conduct voter outreach to explain the benefits and implications of charter city status.
o Staff suggests a minimum of two public workshops with one to be held in September and one in October.
o As with all ballot measures, there will be a City Attorney analysis, as well as potential pro and against arguments submitted for the ballot. • Conduct November 2026 Election
o A majority vote (50%+1) is required for adoption.
The Subcommittee is recommending that the City Council consider the draft charter and provide direction regarding next steps. The Council may:
• direct that staff move forward as described above with the intent to move the charter to the November 2026 ballot;
• direct that the issue be returned to the Subcommittee for further revision and discussion based on Council feedback; or
• direct that the matter does not move forward at this time.
Consideration of Next Steps – City Charter
OCTOBER 15, 2025
FISCAL IMPACT
None at this time. However, if the charter moves forward, there will be staff time and resources expended for outreach and educational materials.
GOAL ALIGNMENT
This Report and its contents are in alignment with the following Council Policy Goals:
• Goal A - Preserve Small Town Character & Quality of Life • Goal D - Be Forward Thinking
POLICY FOCUS
Policy focus for the discussion is on the merits of a charter.
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. Draft Charter