FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #4
MEETING DATE
PREPARED FOR
PREPARED BY
SUBJECT
April 2, 2025
Mayor and Town Council
Heather Abrams, Town Manager
Discuss Transitioning to a Charter City and Provide Direction to Staff
RECOMMENDATION
It is recommended that the Town Council discuss and provide direction to staff on whether to proceed with further analysis and community outreach regarding transitioning to a charter city.
EXECUTIVE SUMMARY
The Town Council is considering transitioning from a general law city to a charter city. Charter cities may have more autonomy in areas such as taxation, elections, contracting, and land use (although land use autonomy has diminished). The transition process requires significant public outreach, voter approval, and careful drafting of a city charter. This report outlines the benefits, drawbacks, expected timeline, and potential impacts on local governance, including elections.
BACKGROUND
California cities operate under one of two different legal foundations: general law cities or charter cities. The primary distinction between the two is that general law cities derive corporate power from the general laws enacted by the California Legislature, where charter cities derive corporate power from the California Constitution, subject to limitations of their charters and enactments of the Legislature on matters of statewide concern. This impacts how a city can regulate local affairs, taxation, elections, contracting, and other municipal functions.
What is a general law city?
A general law city is a municipality that operates under the authority and rules set forth by the California Government Code and other state laws. These cities are required to follow uniform statewide regulations on a variety of municipal matters, including:
• Elections – Must comply with the California Elections Code regarding voting procedures, districting, and candidate qualifications.
• Taxation – Cannot impose certain taxes without state authorization. • Public Contracting – Must adhere to state-mandated competitive bidding processes for public projects.
• Personnel and Employment – Hiring, compensation, and employment rules must follow state labor laws.
• Zoning and Land Use – Subject to state laws and regional mandates, such as housing requirements.
Approximately 75% of California cities are general law cities. 2 What is a Charter City?
A charter city operates under its own governing document, called a city charter, which serves as its local constitution. This can provide greater control over "municipal affairs", as defined by Article XI, Section 5 of the California Constitution. While a charter city must still comply with state and federal laws on matters of statewide concern (such as environmental regulations and workplace safety), it has more authority over the following areas:
• Elections – May establish its own election procedures, term limits, and campaign finance rules. • Taxation – May enact certain local taxes, such as a Real Property Transfer Tax, without state approval.
• Public Contracting – May establish its own procurement rules, potentially allowing for alternative bidding processes to save costs.
• Land Use & Zoning – May be able to exercise greater control over local planning decisions, though state-mandated housing laws still apply.
Approximately 25% of California cities operate under a charter .
DISCUSSION/ANALYSIS
During the 2025 Council Strategic Planning Meeting/Retreat, the Council identified three main goals in considering transitioning to a charter city: a) possibility to directly elect a mayor, b) potential flexibility in complying with state housing regulations, c) options for revenue enhancement/taxation. a) Directly Electing a Mayor
If Fairfax wishes to directly elect a mayor, rather than the rotating mayor system currently used in Fairfax, this would likely be part of a larger Council and Commission handbook creation in which the Council clearly illustrates how it expects Council and Committee processes to occur. As a result of this Council discussion an ordinance to change the Town Code to require a directly elected mayor could be put before the voters. Many directly elected mayors serve for only two years, not the four-year term of a Council Member. Many cities in California, even small towns, elect council members by district, and some have term limits. A charter is not required to have a directly elected mayor; however, a vote of the electorate is required to establish the office of Elected Mayor. This would need to be proceeded by a robust discussion of Council expectations. Such a discussion could be placed on a future agenda for consideration.
b) Charter Cities Lack Clear Autonomy on Housing
The League of California Cities has a 60-page charter city Tool Kit, which was last updated in 2016.
Since then, California State housing laws have found housing to be an issue of statewide concern, making the state housing laws apply to both charter cities and general law cities equally. Charter cities, such as San Rafael , have not been able to avoid State housing mandates such as the housing element and Regional Housing Needs Allocation (RHNA) requirements. Sausalito also recently considered a charter city effort and a committee was discussed on July 16, 2024. 3 Planning Department research found that the State has made it more difficult for charter cities to exercise autonomy as it relates to housing laws, and the scope of a charter city's autonomy is a moving target decided on a case-by-case basis by the court system. As reflected in the Town’s mid-year budget discussion, engaging in litigation can be expensive and time-consuming for the Town.
Below are examples of court cases/laws that speak to the relationship between housing law, the courts, and charter cities:
1. Senate Bill 1037 (“SB 1037”) was signed into law by Governor Newsom on September 19, 2024, and adds section 65009.1 to the Government Code to provide for stronger enforcement of state housing laws. In addition to general law cities, SB 1037 expressly applies to charter cities, and went into effect on January 1, 2025.
The law includes a finding that the changes it proposes address a matter of statewide concern, meaning they apply to all cities, including those with charters. The bill allows the Attorney General to seek penalties against local governments that fail to comply with state housing laws, including charter cities, and these penalties are intended to fund affordable housing in the affected jurisdictions. SB 1037 enhances State enforcement powers and allows the Attorney General to fine jurisdictions at a rate of $10,000 per month (minimum), and not exceeding $50,000 per month, for each violation.
2. Courts have affirmed that the state's interest in housing can override a charter city's authority to deny or delay development projects that meet the state's housing needs.
In Anderson v. San Jose, the Sixth District Court of Appeal held that the Surplus Land Act constitutionally applies to California's charter cities. Many prior published opinions have affirmed that various California housing laws constitutionally apply to charter cities, but Anderson is the only recent binding precedent addressing whether California's recently amended housing laws validly apply to charter cities as well.
The decision recognized that the Legislature may advance state land use policy objectives by overriding the laws and policies of charter cities because addressing the shortage of sites available for low- and moderate-income housing is a matter of statewide concern.
By affirming a state law that directly infringes on charter cities' ability to control the disposition of their own property, Anderson sets an important precedent that can be used to defend the constitutionality of other state laws which limit charter cities' authority to deny or delay development projects that meet the state's critical housing shortage.
3. Huntington Beach
Huntington Beach sued the state in federal court, arguing that state housing mandates were unconstitutional and that charter cities like Huntington Beach were not bound by regular state laws.
While Huntington Beach sued in federal court, the state, represented by Attorney General Rob Bonta, sued the city in state court to compel them to adopt a housing plan. 4 The Ninth Circuit Court of Appeals ruled against Huntington Beach, affirming the dismissal of the city's lawsuit, meaning the state's housing mandates will be enforced. The three-judge panel stated that "no matter how California categorizes charter cities, they remain subordinate political bodies, not sovereign entities".
Huntington Beach has lost a number of legal battles regarding its charter.
4. SB 1333 requires charter cities to follow the same housing rules as general law cities.
Under SB 1333 charter cities must follow the same housing rules as general law cities, such as adopting a housing element, ADU laws, etc. This State law specifically requires that Charter cities comply with housing element regulations. Enacted in 2018, SB 1333: Planning and zoning: general plan: zoning regulations, applies specifically to charter cities. More information can be found at:
• https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB1333 • https://calmatters.digitaldemocracy.org/bills/ca_201720180sb1333 c) Recent Charter Attempts – Costs and Taxation
During the 2024 Statewide Election, two California general law cities placed transitioning to a charter city on the ballot. Neither measure was successful. Both of these cities’ charter efforts were narrowly focused on adding the ability to enhance tax revenue by charging a real estate transfer tax. This narrow focus kept costs relatively low and the timeline short for these cities, whereas Fairfax’s reasons for considering charter city power is much broader. Fairfax can expect its costs and timeline to be significantly more due to Fairfax’s much broader scope. Benicia spent approximately $50,000 in consulting fees, plus attorney’s fees, and took approximately one year to consider a charter. St. Helena spent approximately $80,000 and took approximately two years to consider a charter. More information about the efforts can be found online for St. Helena and Benicia Measure G.
Understanding the above analysis, staff has summarized the key benefits, challenges, impacts, and transition timeline below. The Town’s specialized attorney firm, BBK, has provided background material on charter city formation as they have represented many cities that have considered becoming charter cities. The anticipated outcome of this staff report and Council discussion on April 2, 2025 is direction to staff from the Council as to whether to continue investing Town resources into exploring the charter city option.
Key Benefits of Becoming a Charter City
1. Greater Local Control – The town can govern municipal affairs, including elections, land use, and contracting, without strict adherence to state laws.
2. Revenue Flexibility – Charter cities can put a local tax measure on the ballot, such as additional Real Property Transfer Tax, without requiring state approval.
3. Alternative Contracting & Purchasing Procedures – The town could establish its own procurement policies, potentially streamlining processes and saving costs.
4. Election Control – The town could set its own election dates, rules, and procedures, including district-based elections or ranked-choice voting.
5 5. Zoning & Land Use – The town could modify zoning and land-use regulations without full compliance with state mandates, though certain housing laws would still apply.
Potential Challenges & Drawbacks
1. Legal & Administrative Complexity – Charter cities face potential legal challenges over what qualifies as a "municipal affair" versus a "statewide concern".
2. Public Approval Required – A majority vote is required to adopt a city charter, which can be difficult to achieve without strong community support.
3. Higher Costs for Transition – Drafting a charter, conducting legal reviews, and holding elections can cost between $50,000 and $100,000.
4. State Intervention – The state can still regulate matters deemed of "statewide concern," such as environmental regulations, housing mandates, and labor laws.
5. Difficulty Amending a Charter – Once adopted, changes require another public vote, making governance less flexible.
Impact on Local Elections
• Charter cities can establish their own election dates, candidate qualifications, and campaign finance rules.
• The town could consider district-based elections or ranked-choice voting, subject to compliance with the California Voting Rights Act.
• Council term limits and selection methods could be modified through the charter.
Timeline for Transition
The process of becoming a charter city typically takes approximately 18 months and includes the following steps:
1. Initiation – If the Council wishes to further consider becoming a charter city, the Council would direct the Town Attorney and staff to draft a charter. Alternatively, The Town Council can draft a charter for consideration, delegate charter drafting to an ad hoc committee for Town Council approval or the Town Council can call for an election to form a charter commission comprised of registered voters in the Town to draft a charter. Or, Town voters could also initiate the charter process by electing a Charter Committee and then circulating an initiative and gathering signatures of at least 15% of registered voters to place the charter proposal on the ballot. Any drafts provided by a citizen’s committee would require significant interaction and review by the Town Attorney to ensure it could withstand challenge and meets legal requirements. This represents a significant potential expense.
2. Public Hearings & Community Engagement – Outreach to educate and gather feedback from residents.
3. Drafting & Revising the Charter – A charter can be very narrowly focused, as in those cities that wished to institute real property transfer tax only, or a charter can address governance structure, elections, taxation, and municipal operations. 6 4. Voter Approval – Placing the charter on a statewide general election ballot (requires a simple majority vote to pass).
5. Implementation – The Town would file the charter with the Secretary of State and adopt necessary ordinances to implement charter provisions.
A Town can amend or repeal its charter only through voter approval. Town Council or a citizen initiative can place the measure to amend or repeal on the ballot.
Staff requests Town Council receive and file this report and provide staff direction should Town Council decide to further consider charter city governance.
COMMUNITY OUTREACH
Public engagement is critical to securing voter approval. The town would need to conduct:
• Community meetings and workshops.
• Informational materials such as newsletters, social media, and the town website. • Stakeholder engagement with local businesses, neighborhood groups, and civic organizations.
FISCAL IMPACT
The cost of drafting a charter and conducting an election is estimated at $50,000 and $100,000.
The town could gain new revenue streams, such as a real property transfer tax, which could offset costs.
ATTACHMENTS
CalCities Charter City Quick Summary
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
Introduction
Charter Cities
Did you know that, under certain home rule provisions in California's state constitution, voters can exercise a greater degree of local control than that provided by the California Legislature? Becoming a charter city allows voters to determine how their city government is organized and, with respect to municipal affairs, enact legislation different than that adopted by the state.
In 2001, the Institute for Local Government, the League's research arm, teamed up with the Hastings Public Law Research Institute to create an informational resource for those interested in understanding more about this special form of local control. The League is grateful to everyone who helped with this project including Phillip Hall of UC Hastings and the Hastings Public Law Research Institute; Karl Berger of Jenkins & Hogin LLP; Betsy Strauss (Attorney at Law); John Cook (Former City Attorney, Indian Wells); and Harvey Levine (City Attorney, Fremont). In 2007, the League updated these resources and the new documents can be found below. The League would like to thank Hilda Cantú Montoy (Attorney at Law) for her help with the update.
Charter Cities: A Quick Summary for the Press and Researchers The following summary was drafted by the League of California Cities’ legal staff, in an attempt to give the press and research communities a primer on some frequently asked questions regarding charter cities.
Charter Cities vs. General Law Cities – The Basics
The California Constitution gives cities the power to become charter cities.1 The benefit of becoming a charter city is that charter cities have supreme authority over “municipal affairs.”2 In other words, a charter city’s law concerning a municipal affair will trump a state law governing the same topic.3 Cities that have not adopted a charter are general law cities. General law cities are bound by the state’s general law, even with respect to municipal affairs. Of California’s 478 cities, 108 of them are charter cities.
The charter city provision of the State Constitution, commonly referred to as the “home-rule” provision, is based on the principle that a city, rather than the state, is in the best position to know what it needs and how to satisfy those needs.4 The home-rule provision allows charter cities to conduct their own business and control their own affairs.5 A charter maximizes local control.
A city charter, in effect a city’s constitution, need not set out every municipal affair the city would like to govern. So long as the charter contains a declaration that the city intends to avail itself of the full power provided by the California Constitution, any city ordinance that regulates a municipal affair will govern over a general law of the state.6
Defining ‘Municipal Affairs’
Determining what is and is not a “municipal affair” is not always straightforward. The California Constitution does not define “municipal affair.” It does, however, set out a nonexclusive list of four “core” ATTACHMENT 4 Page 1 of 18
ATTACHMENT A
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
categories that are, by definition, municipal affairs.7 These categories are 1) regulation of the “city police force”; 2) “subgovernment in all or part of a city”; 3) “conduct of city elections”; and 4) “the manner in which . . . municipal officers [are] elected.”8 Beyond this list, it is up to the courts to determine what is and is not a municipal affair.
To determine if a matter is a municipal affair, a court will ask whether there are good reasons, grounded on statewide interests, for the state law to preempt a local law.9 In other words, courts will ask whether there is a need for “paramount state control” in the particular area of law.10 The Legislature’s intent when enacting a specific law is not determinative.11
The concept of “municipal affairs” is fluid and may change over time.12 Issues that are municipal affairs today could become areas of statewide concern in the future.13 Nonetheless, there are some areas that courts have consistently classified as municipal affairs. These include:
• Municipal election matters14
• Land use and zoning decisions (with some exceptions)15 • How a city spends its tax dollars16
• Municipal contracts, provided the charter or a city ordinance exempts the city from the Public Contract Code, and the subject matter of the bid constitutes a municipal affair.17 Thus, a charter may exempt a city from the State’s competitive bidding statutes.
Likewise, there are some areas that courts have consistently classified as areas of statewide concern, including:
• Traffic and vehicle regulation18
• Tort claims against a governmental entity19
• Regulation of school systems20
How to Become a Charter City
To become a charter city, a city must adopt a charter. There are two ways to adopt a charter:
• The city’s voters elect a charter commission.21 The commission has the responsibility of drafting and debating the charter.
• The governing board of the city, on its own motion, drafts the charter.22 In either case, the charter is not adopted by the city until it is ratified by a majority vote of the city's voters.23
For more information about charter cities, please visit the “Charter Cities” section of the League’s Web site at http://www.cacities.org/chartercities.
1 Cal. Const. art. XI, § 3(a).
2 Cal. Const. art. XI, § 5(a).
3 Johnson v. Bradley, 4 Cal. 4th 389, 399 (1992). 4
Fragley v. Phelan, 126 Cal. 383, 387 (1899). 5
Id.
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
6 There are some exceptions to this rule. For example, a charter city is bound by the Public Contract Code unless the city’s charter expressly exempts the city from the Code’s provisions or a city ordinance conflicts with a provision in the Code. See Cal.
Pub. Cont. Code § 1100.7.
7 Cal. Const. art. XI, § 5(b); Johnson, 4 Cal. 4th at 398. 8 Cal. Const. art. XI, § 5(b).
9 Johnson, 4 Cal. 4th at 405. 10
Id. at 400. 11
Id. at 405. 12
Cal. Fed. Savings & Loan Ass’n v. City of Los Angeles, 54 Cal. 3d 1, 16 (1991); Isaac v. City of Los Angeles, 66 Cal. App. 4th 586, 599 (1998). 13
Isaac, 66 Cal. App. 4th at 599. 14
Mackey v. Thiel, 262 Cal. App. 2d 362, 365 (1968). 15
See Brougher v. Bd. of Pub. Works, 205 Cal. 426, 440 (1928). 16 Johnson, 4 Cal. 4th at 407. 17
Pub. Cont. Code § 1100.7; R & A Vending Services, Inc. v. City of Los Angeles, 172 Cal. App. 3d 1188, 1191 (1985); Howard Contracting, Inc. v. G.A. MacDonald Constr. Co., 71 Cal. App. 4th 38, 51 (1998). 18 Cal. Veh. Code § 21. 19
Helbach v. City of Long Beach, 50 Cal. App. 2d 242, 247 (1942). 20 Whisman v. San Francisco Unified Sch. Dist., 86 Cal. App. 3d 782, 789 (1978). 21 Cal. Gov’t Code § 34451. 22
Cal. Gov’t Code § 34458. 23
Cal. Gov’t Code §§ 34457, 34462.
General Law City v. Charter City
Characteristic General Law City Charter City
Ability to Govern
Municipal Affairs
Bound by the state’s general law, regardless
of whether the subject concerns a municipal
affair.
Has supreme authority over “municipal
affairs.” Cal. Const. art. XI, § 5(b).
Form of Government State law describes the city’s form of government For example, Government
Code section 36501 authorizes general law
cities 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.
City electors may adopt ordinance which
provides for a different number of council
members. Cal. Gov’t section 34871. The
Government Code also authorizes the “city
manager” form of government. Cal. Gov’t
Code § 34851.
Charter can provide for any form of
government including the “strong mayor,”
and “city manager” forms. See Cal. Const.
art. XI, § 5(b); Cal. Gov’t Code § 34450 et
seq.
Elections Generally Municipal elections conducted in accordance with the California Elections Code. Cal. Elec.
Code §§ 10101 et seq..
Not bound by the California Elections Code.
May establish own election dates, rules, and
procedures. See Cal. Const. art. XI, § 5(b);
Cal. Elec. Code §§ 10101 et seq..
Methods of Elections Generally holds at-large elections whereby voters vote for any candidate on the ballot.
Cities may also choose to elect the city
council “by” or “from” districts, so long as the
election system has been established by
ordinance and approved by the voters. Cal.
Gov’t Code § 34871. Mayor may be elected
by the city council or by vote of the people.
Cal. Gov’t Code §§ 34902.
May establish procedures for selecting
officers. May hold at-large or district
elections. See Cal. Const. art. XI, § 5(b).
City Council Member
Qualifications
Minimum qualifications are:
1. United States citizen
2. At least 18 years old
3. Registered voter
4. Resident of the city at least 15 days
prior to the election and throughout
his or her term
5. If elected by or from a district, be a
resident of the geographical area
comprising the district from which he
or she is elected.
Cal. Elec. Code § 321; Cal. Gov’t Code §§
34882, 36502; 87 Cal. Op. Att’y Gen. 30
(2004).
Can establish own criteria for city office
provided it does not violate the U.S.
Constitution. Cal. Const. art. XI, § 5(b), 82
Cal. Op. Att’y Gen. 6, 8 (1999).
Characteristic General Law City Charter City
Public Funds for Candidate
in Municipal Elections
No public officer shall expend and no
candidate shall accept public money for the
purpose of seeking elected office. Cal. Gov’t
Code § 85300.
Public financing of election campaigns is
lawful. Johnson v. Bradley, 4 Cal. 4th 389
(1992).
Term Limits May provide for term limits. Cal. Gov’t Code § 36502(b).
May provide for term limits. Cal. Const. art.
XI, § 5(b); Cal Gov’t Code Section 36502 (b).
Vacancies and Termination
of Office
An office becomes vacant in several
instances including death, resignation,
removal for failure to perform official duties,
electorate irregularities, absence from
meetings without permission, and upon nonresidency. Cal. Gov’t Code §§ 1770, 36502, 36513.
May establish criteria for vacating and
terminating city offices so long as it does not
violate the state and federal constitutions.
Cal. Const. art. XI, § 5(b).
Council Member
Compensation and
Expense Reimbursement
Salary-ceiling is set by city population and
salary increases set by state law except for
compensation established by city electors.
See Cal. Gov’t Code § 36516. If a city
provides any type of compensation or
payment of expenses to council members,
then all council members are required to
have two hours of ethics training. See Cal.
Gov’t Code §§ 53234 - 53235.
May establish council members’ salaries.
See Cal. Const. art. XI, § 5(b). If a city
provides any type of compensation or
payment of expenses to council members,
then all council members are required to
have two hours of ethics training. See Cal.
Gov’t Code §§ 53234 - 53235.
Legislative Authority Ordinances may not be passed within five days of introduction unless they are urgency
ordinances. Cal. Gov’t Code § 36934.
Ordinances may only be passed at a regular
meeting, and must be read in full at time of
introduction and passage except when, after
reading the title, further reading is waived.
Cal. Gov't Code § 36934.
May establish procedures for enacting local
ordinances. Brougher v. Bd. of Public Works,
205 Cal. 426 (1928).
Resolutions May establish rules regarding the
procedures for adopting, amending or
repealing resolutions.
May establish procedures for adopting,
amending or repealing resolutions. Brougher
v. Bd. of Public Works, 205 Cal. 426 (1928).
Quorum and Voting
Requirements
A majority of the city council constitutes a
quorum for transaction of business. Cal.
Gov’t Code § 36810.
All ordinances, resolutions, and orders for
the payment of money require a recorded
majority vote of the total membership of the
city council. Cal. Gov't Code § 36936.
Specific legislation requires supermajority
votes for certain actions.
May establish own procedures and quorum
requirements. However, certain legislation
requiring supermajority votes is applicable to
charter cities. For example, see California
Code of Civil Procedure section 1245.240
requiring a vote of two-thirds of all the
members of the governing body unless a
greater vote is required by charter.
Characteristic General Law City Charter City
Rules Governing
Procedure and Decorum
Ralph Brown Act is applicable. Cal. Gov’t
Code §§ 54951, 54953(a).
Conflict of interest laws are applicable. See
Cal. Gov’t Code § 87300 et seq..
Ralph Brown Act is applicable. Cal. Gov’t
Code §§ 54951, 54953(a).
Conflict of interest laws are applicable. See
Cal. Gov’t Code § 87300 et seq..
May provide provisions related to ethics,
conflicts, campaign financing and
incompatibility of office.
Personnel Matters May establish standards, requirements and procedures for hiring personnel consistent
with Government Code requirements.
May have “civil service” system, which
includes comprehensive procedures for
recruitment, hiring, testing and promotion.
See Cal. Gov't Code § 45000 et seq.
Meyers-Milias-Brown Act applies. Cal. Gov't
Code § 3500.
Cannot require employees be residents of
the city, but can require them to reside within
a reasonable and specific distance of their
place of employment. Cal. Const. art. XI, §
10(b).
May establish standards, requirements, and
procedures, including compensation, terms
and conditions of employment for personnel.
See Cal. Const. art. XI, § 5(b).
Procedures set forth in Meyers-Milias-Brown
Act (Cal. Gov't Code § 3500) apply, but note,
“[T]here is a clear distinction between the
substance of a public employee labor issue
and the procedure by which it is resolved.
Thus there is no question that 'salaries of
local employees of a charter city constitute
municipal affairs and are not subject to
general laws.'” Voters for Responsible
Retirement v. Board of Supervisors, 8
Cal.4th 765, 781 (1994).
Cannot require employees be residents of
the city, but can require them to reside within
a reasonable and specific distance of their
place of employment. Cal. Const. art. XI,
section 10(b).
Contracting Services Authority to enter into contracts to carry out necessary functions, including those
expressly granted and those implied by
necessity. See Cal. Gov't Code § 37103;
Carruth v. City of Madera, 233 Cal. App. 2d
688 (1965).
Full authority to contract consistent with
charter.
May transfer some of its functions to the
county including tax collection, assessment
collection and sale of property for nonpayment of taxes and assessments. Cal.
Gov't Code §§ 51330, 51334, 51335.
Characteristic General Law City Charter City
Public Contracts Competitive bidding required for public works contracts over $5,000. Cal. Pub. Cont. Code
§ 20162. Such contracts must be awarded to
the lowest responsible bidder. Pub. Cont.
Code § 20162. If city elects subject itself to
uniform construction accounting procedures,
less formal procedures may be available for
contracts less than $100,000. See Cal. Pub.
Cont. Code §§ 22000, 22032.
Contracts for professional services such as
private architectural, landscape architectural,
engineering, environmental, land surveying,
or construction management firms need not
be competitively bid, but must be awarded
on basis of demonstrated competence and
professional qualifications necessary for the
satisfactory performance of services. Cal.
Gov't Code § 4526.
Not required to comply with bidding statutes
provided the city charter or a city ordinance
exempts the city from such statutes, and the
subject matter of the bid constitutes a
municipal affair. Pub. Cont. Code § 1100.7;
see R & A Vending Services, Inc. v. City of
Los Angeles, 172 Cal. App. 3d 1188 (1985);
Howard Contracting, Inc. v. G.A. MacDonald
Constr. Co., 71 Cal. App. 4th 38 (1998).
Payment of Prevailing
Wages
In general, prevailing wages must be paid on
public works projects over $1,000. Cal. Lab.
Code § 1771. Higher thresholds apply
($15,000 or $25,000) if the public entity has
adopted a special labor compliance program.
See Cal. Labor Code § 1771.5(a)-(c).
Historically, charter cities have not been
bound by state law prevailing-wage
requirements so long as the project is a
municipal affair, and not one funded by state
or federal grants. Vial v. City of San Diego,
122 Cal. App. 3d 346, 348 (1981). However,
there is a growing trend on the part of the
courts and the Legislature to expand the
applicability of prevailing wages to charter
cities under an analysis that argues that the
payment of prevailing wages is a matter of
statewide concern. The California Supreme
Court currently has before them a case that
will provide the opportunity to decide
whether prevailing wage is a municipal affair
or whether it has become a matter of
statewide concern.
Characteristic Charter City
Finance and Taxing Power May impose the same kinds of taxes and assessment as charter cities. See Cal. Gov't
Code § 37100.5.
Imposition of taxes and assessments subject
to Proposition 218. Cal. Const. art.XIIIC.
Examples of common forms used in
assessment district financing include:
• Improvement Act of 1911. Cal. Sts.
& High. Code § 22500 et seq..
• Municipal Improvement Act of 1913.
See Cal. Sts. & High. Code §§
10000 et seq..
• Improvement Bond Act of 1915. Cal.
Sts. & High. Code §§ 8500 et seq..
• Landscaping and Lighting Act of
1972. Cal. Sts. & High. Code §§
22500 et seq..
• Benefit Assessment Act of 1982.
Cal. Gov't Code §§ 54703 et seq..
May impose business license taxes for
regulatory purposes, revenue purposes, or
both. See Cal. Gov't Code § 37101.
May not impose real property transfer tax.
See Cal. Const. art. XIIIA, § 4; Cal. Gov't
Code § 53725; but see authority to impose
documentary transfer taxes under certain
circumstances. Cal. Rev. & Tax. Code §
11911(a), (c).
Have the power to tax.
Have broader assessment powers than a
general law city, as well as taxation power as
determined on a case-by case basis.
Imposition of taxes and assessments subject
to Proposition 218, Cal. Const. art. XIIIC, §
2, and own charter limitations
May proceed under a general assessment
law, or enact local assessment laws and
then elect to proceed under the local law.
See J.W. Jones Companies v. City of San
Diego, 157 Cal. App. 3d 745 (1984).
May impose business license taxes for any
purpose unless limited by state or federal
constitutions, or city charter. See Cal. Const.
art. XI, § 5.
May impose real property transfer tax; does
not violate either Cal. Const art. XIIIA or
California Government Code section 53725.
See Cohn v. City of Oakland, 223 Cal. App.
3d 261 (1990); Fielder v. City of Los
Angeles, 14 Cal. App. 4th 137 (1993).
Streets & Sidewalks State has preempted entire field of traffic control. Cal. Veh. Code § 21.
State has preempted entire field of traffic
control. Cal. Veh. Code § 21.
Penalties & Cost Recovery May impose fines, penalties and forfeitures, with a fine not exceeding $1,000. Cal. Gov’t
Code § 36901.
May enact ordinances providing for various
penalties so long as such penalties do not
exceed any maximum limits set by the
charter. County of Los Angeles v. City of Los
Angeles, 219 Cal. App. 2d 838, 844 (1963).
Characteristic General Law City Charter City
Public Utilities/Franchises May establish, purchase, and operate public works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.
Gov't Code § 39732; Cal. Pub. Util. Code §
10002.
May grant franchises to persons or
corporations seeking to furnish light, water,
power, heat, transportation or
communication services in the city to allow
use of city streets for such purposes. The
grant of franchises can be done through a
bidding process, under the Broughton Act,
Cal. Pub. Util. Code §§ 6001-6092, or
without a bidding process under the
Franchise Act of 1937, Cal. Pub. Util. Code
§§ 6201-6302.
May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.
Apartment Ass’n v. City of Stockton, 80 Cal.
App. 4th 699 (2000).
May establish conditions and regulations on
the granting of franchises to use city streets
to persons or corporations seeking to furnish
light, water, power, heat, transportation or
communication services in the city.
Franchise Act of 1937 is not applicable if
charter provides. Cal. Pub. Util. Code §
6205.
Zoning Zoning ordinances must be consistent with
general plan. Cal. Gov't Code § 65860.
Zoning ordinances are not required to be
consistent with general plan unless the city
has adopted a consistency requirement by
charter or ordinance. Cal. Gov’t. Code §
65803.
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
Foundational aspects of charter cities
What is the Constitutional Framework for Charter Cities? Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides such a charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, affirmatively grants to charter cities supremacy over "municipal affairs." However, the California Constitution does not define the term "municipal affair."
What are "Municipal Affairs?"
The home rule provision of the California Constitution authorizes a charter city to exercise plenary authority over municipal affairs, free from any constraint imposed by the general law and subject only to constitutional limitations. See Cal. Const. art. XI § 5(a); Ex Parte Braun, 141 Cal. 204, 209 (1903); Bishop v. City of San Jose, 1 Cal. 3d 56, 61 (1969); Comm. of Seven Thousand v. Super. Ct. (City of Irvine), 45 Cal.3d 491 (1988).
How Do the Courts Distinguish Between Municipal and Statewide Concerns? Whether a given activity is a municipal affair over which a city has sovereignty, or a statewide concern, over which the legislature has authority, is a legal determination for the courts to resolve. Thus, the determination of whether a given activity is a municipal affair or statewide concern is done on a case-by-case basis. The court's determination will depend on the particular facts and circumstances of each case. See In Re Hubbard, 62 Cal. 2d 119, 128 (1964). Keep in mind that the concept of "municipal affairs" is a fluid one that changes over time as local issues become statewide concerns. See Issac v.
City of Los Angeles, 66 Cal. App. 4th 586 (1998).
What Activities Have the Courts Classified As Municipal Affairs? There are some areas that the courts have consistently classified as municipal affairs.
Examples include the following:
Municipal Election Matters. See Mackey v. Thiel, 262 Cal. App. 2d 362 (1968). Procedures for Initiative, Referendum and Recall. See Lawing v. Faul, 227 Cal.
App. 2d 23, 29 (1964).
Procedures for Adopting Ordinances. See Brougher v. Board of Public Works, 205 Cal. 426 (1928).
Compensation of City Officers and Employees. Cal. Const. art. XI, § 5(b); See Sonoma County Organization of Public Employees v. County of Sonoma, 23 Cal. 3d 296 (1979); but see San Leandro Police Officers Association v. City of San Leandro, 55 Cal. App. 3d 553 (1976) (labor relations is not a municipal affair; Charter cities are subject to the Meyers-Milias Brown Act. Cal. Gov’t Code § 3500.
Processes Associated with City Contracts. See First Street Plaza Partners v. City of Los Angeles, 65 Cal. App. 4th 650 (1998); but see Domar Electric, Inc. v. City of Los Angeles, 41 Cal. App. 4th 810 (1995) (state law establishing employment policy may preempt local regulation of bidding criteria).
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
Financing Public Improvements. See City of Santa Monica v. Grubb, 245 Cal.
App. 2d 718 (1996).
Making Charitable Gifts of Public Funds for Public Purposes. See Cal. Const. art.
XVI, § 6; Tevis v. City and County of San Francisco, 43 Cal. 2d 190 (1954). Term Limits for Council Members. See Cawdrey v. City of Redondo Beach, 15 Cal. App. 4th 1212 (1993); but see Cal. Gov't Code § 36502(b) (regulating term limits).
Land Use and Zoning Decisions (with a few exceptions). See Brougher v. Bd. of Pub. Works, 205 Cal. 426 (1928).
What Activities Have the Courts Classified as Statewide Concerns? The following have consistently been classified by the courts as matters of statewide concern:
School Systems. Whisman v. San Francisco Unified Sch. Dist., 86 Cal. App. 3d 782, 789 (1978).
Traffic and Vehicle Regulation. Cal. Veh. Code § 21.
Licensing of Members of a Trade or Profession. City and County of San Francisco v. Boss, 83 Cal. App. 2d 445 (1948).
Tort Claims Against a Governmental Entity. Helbach v. City of Long Beach, 50 Cal. App. 2d 242, 247 (1942).
Open and Public Meetings. Ralph M. Brown Act. Cal. Gov’t Code §§ 54951, 54953(a).
Exercise of the Power of Eminent Domain. Wilson v Beville, 47 Cal. 2d 852, 856 (1957).
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
What is a charter?
A city charter is a unique document that, in many ways, acts like a constitution for the city adopting it. It can only be adopted, amended or repealed by a majority vote of a city's voters. The primary advantage of a charter is that it allows greater authority for a city’s governance than that provided by state law. For example, a city may tailor its organization and elective offices, taking into account the unique local conditions and needs of the community.
A charter transfers the power to adopt legislation affecting municipal affairs from the state legislature to the city adopting it. A city operating under a charter can acquire full control over its municipal affairs. These affairs are unaffected by the general laws passed by the state legislature on the same subject matters. This, in effect, gives the local voters more control over their local government and the affairs of the city.
However, a city operating under a charter is still subject to the general laws, as passed by the state legislature, on affairs that are not municipal in nature, and are of statewide concern (e.g., California Vehicle Code).
It is the scope of the term "municipal affairs" that provides the opportunity for uncertainty.
No easy analytical test exists. The threshold issue is whether there is a conflict between state law and a charter city enactment. The next issue is whether the state regulation addressed an issue of "state wide concern." Courts analyze these conflicts on a caseby-case basis.
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
What is in a charter?
While a city charter is not required to have any particular provisions in it, a city will often reserve for itself the greatest amount of power it can when it adopts a charter. To accomplish this goal, the charter must include a declaration that it is the intention of the city to avail itself of the full power provided by the state constitution to charter cities.
However, the city is not required to extend the breadth of its charter any further than it wishes.
Some of the common areas that are explicitly regulated in a charter are:
The date and conduct of city elections;
Regulations on the appointment of municipal officials; The terms and payment of municipal officials;
The process for removal of municipal officials;
Form of government;
Budget adoption;
The number, pay, qualifications, and appointment of deputies, clerks, and other employees that each municipal officer will have;
Sub-government in all or part of the city;
The tenure of office for deputies, clerks, and other employees; The process for removal of such deputies, clerks, and other employees; and The constitution, regulation, and government of the local police force.
A number of California cities' charters are available online. The National Civic League also has a model charter project.
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
Process used to adopt a charter
There are two ways to draft and adopt a city charter. The first is to elect a charter commission. The commission then has the responsibility of debating over the provisions and the drafting of the charter. The other alternative allows the governing board of the city, on its own motion, to draft the charter. In either case, the charter is not adopted by the city until it is ratified by a majority vote of the city's voters.
When using the charter commission approach, the first step is to elect the commission.
The vote to elect a charter commission is called for by either a majority vote of the city's governing body or by a petition signed by not less than fifteen percent of the registered voters within the city. If the formation of a charter commission is requested by a petition, the authority in charge of the city's registration records must verify the signatures on the petition. The expense of this verification must be paid for by the city's governing board.
If the petition is verified, the city's governing board must call for an election in accordance with sections 1000 and 10403 of the California Elections Code. See Cal.
Gov't Code section 34452.
Once it has been decided that a charter commission election will take place, candidates for commissioners must be nominated. Candidates for the office of charter commissioner are nominated either in the same manner as officers of the city or by petition. A candidate for charter commissioner must be a registered voter of the city.
After the election of commissioners, any vacancy on the commission will be filled by a mayoral appointment. See Cal. Gov't Code section 34452.
At an election for charter commission members, the voters will vote first on the following question: "Shall a charter commission be elected to propose a new charter?" After voting on this question, the voters will then vote for the charter commission candidates.
If a majority of the voters vote for the formation of a charter commission, then the top fifteen candidates for the office of charter commissioner will be organized as the city's charter commission. No commission will be formed if a majority of voters vote against the election of a charter commission. See Cal. Gov't Code section 34453.
Once formed, the charter commission will have the responsibility of developing the city's charter. After a simple majority of commissioners have decided that the proposed charter is appropriate, they file the charter with the city's clerk in preparation for a vote by the city's electorate. See Cal. Gov't Code section 34455. However, instead of sending the whole charter at once, periodically the commission may send portions of the charter to the city's electorate for a vote. See Cal. Gov't Code section 34462.
After the charter (or portions of it) has been filed, it must be copied in type greater than 10 point and either mailed to all the voters of the city or made available to those citizens who wish to review it before the election. The city may show the difference between existing provisions of law and the new charter through the use of distinguished type styles, but this is not required. See Cal. Gov't Code section 34456.
After the charter has been filed with the city clerk, the city's governing board must decide whether to call a special election or to wait until the next established municipal election to submit the charter to the voters. If the city's governing board determines that a
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
special election should be held, then they must call for that special election within 14 days of the charter being filed. The special election must be set at least 95 days after the date from which the special election was called. See Cal. Gov't Code section 34457.
In any case, the charter commission must send the charter to the voters within two years of the vote that formed the commission. Upon the expiration of the two-year time period, the commission is abolished. See Cal. Gov't Code section 34462.
The alternative to electing a charter commission is to have the city's governing board develop and draft the charter. An election to decide on the adoption of a charter may be called by initiative or the city council. See Cal. Const. art. XI, § 3. On its own motion, the city's governing board may propose a charter and submit it to the voters for adoption.
See Cal. Gov't Code section 34458. With this option, the governing board can call a special election or allow the charter to be voted on at any established election date, as long as that election date is at least 88 days after the proposed charter was filed with the city clerk. See Cal. Gov't Code section 34458. As a practical matter, an election may have to be called sooner than 88 days before the election in order to meet certain notice and ballot printing deadlines.
In either case, the majority of voters must vote in favor of the proposed charter for it to be ratified. The charter will not go into effect until it has been filed and accepted by the Secretary of State. See Cal. Gov't Code section 34459. After a charter is approved by a majority vote of the voters, the mayor and city clerk shall certify that the charter was submitted to the voters of the city and that it was approved by a majority vote. See Cal.
Gov't Code section 34460. One copy of the approved charter shall be filed with the County Recorder's office and one shall be kept in the City's archive. See Cal. Gov't Code section 34460. A third copy of the charter must be submitted to the Secretary of State with (1) copies of all publications and notices in connection with the calling of the election; (2) certified copies of any arguments for or against the charter proposal which were mailed to the voters; (3) a certified abstract of the vote at the election on the charter. See Cal. Gov't Code section 34460.
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
How to amend or repeal a charter
If a citizens group, or the city's governing body, wishes to amend or repeal a portion of the city's charter, the steps remain largely the same as they are for drafting a charter.
There are, however, two notable exceptions. First, the petition calling for the repeal or amendment needs only ten percent of the electorate's signatures, instead of the previous fifteen percent. See Cal. Elec. Code sections 9215 and 9255. The other notable difference has to do with the charter itself. A city charter may establish different rules for the municipal elections process than those laid out by the state legislature in the Elections Code. If this is the case, the city's charter will govern the elections process used to appeal or amend the city's charter, instead of the general laws laid out in the Elections Code.
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
Charter Cities
Adelanto
Alameda
Albany
Alhambra
Anaheim
Arcadia
Bakersfield
Bell
Berkeley
Big Bear Lake
Buena Park
Burbank
Carlsbad
Cerritos
Chico
Chula Vista
Compton
Culver City
Cypress
Del Mar
Desert Hot Springs
Dinuba
Downey
El Centro
Eureka
Exeter
Folsom
Fortuna
Fresno
Gilroy
Glendale
Grass Valley
Hayward
Huntington Beach
Indian Wells
Industry
Inglewood
Irvine
Irwindale
King City
Kingsburg
Lancaster
La Quinta
Lemoore
Lindsay
Loma Linda
Long Beach
Los Alamitos
Los Angeles
Marina
Marysville
Merced
Modesto
Monterey
Mountain View
Napa
Needles
Newport Beach
Norco
Oakland
Oceanside
Oroville
Pacific Grove
Palm Desert
Palm Springs
Palmdale
Palo Alto
Pasadena
Petaluma
Piedmont
Placentia
Pomona
Port Hueneme
Porterville
Rancho Mirage
Redondo Beach
Redwood City
Richmond
Riverside
Roseville
Sacramento
Salinas
San Bernardino
San Diego
San Francisco
San Jose
Information from the nonpartisan California League of Cities:
http://www.cacities.org/chartercities
San Leandro
San Luis Obispo
San Marcos
San Mateo
San Rafael
San Ramon
Sand City
Santa Ana
Santa Barbara
Santa Clara
Santa Cruz
Santa Maria
Santa Monica
Santa Rosa
Santee
Seal Beach
Shafter
Signal Hill
Solvang
Stockton
Sunnyvale
Temple City
Torrance
Truckee
Tulare
Vallejo
Ventura
Vernon
Victorville
Visalia
Vista
Watsonville
Whittier
Woodlake
Total Cities: 120