EXHIBIT O
000327
CHARTER REVIEW COMMITTEE
City of Riverside
February 26, 2004, 5 p.m.
Mayor's Ceremonial Room
City Hall, 3900 Main Street
MINUTES
PRESENT: Chair Eric Haley and Members Barry Johnson, Marjorie von Pohle, Gar Brewton, Connie Leach, Damon Castillo, Dale McNair, Ray Higgins, Dorothy Bailey, Rusty Bailey, Marcia McQuern, Ben Johnson, Mike Teer, Rose Mayes, Art Garcia, and Sharon Tyrrell
ABSENT: Stan Stosel (excused)
STAFF PRESENT: Susan Wilson, Tricia Ruiz, Sherry Morton, and Janis Lowry ALSO PRESENT: George Caravalho, Penelope Culbreth-Graft, Paul Sundeen, Bob Hall, and others
Chair Eric Haley convened the Charter Review Committee meeting at 5:05 p.m.
The Pledge of Allegiance was given to the Flag.
ORAL COMMUNICATIONS FROM THE AUDIENCE
There were no comments presented at this time.
MINUTES
Member Teer expressed his concern regarding the Committee minutes reflecting excused absences as unexcused absences, and requested that his past absences be reflected as excused in the minutes from those meetings. Member Tear also requested that the Charter Review Committee minutes from January 22, 2004, and February 12, 2004, be revisited to clearly summarize the meetings and redistributed to all Committee members and staff. Chair Haley agreed with Member Teer that the changes be made to the minutes. Member Garcia requested absences of December 11, 2003, and January 22, 2004, be reflected as excused and requested that campaign contributions be agendized for a future Committee meeting.
Chair Haley would like a presentation from County Registrar Michelle Townsend regarding run- off elections. Member Mayes also stated she had an excused absence January 22, 2004, and had received her packet one and one half week later due to an address change. Member Brewton expressed his concern regarding violating the original format of the committee meeting, stating that the Committee is to receive testimony and not engage in debate.
Following discussion, a motion was made by Member Teer and seconded by Member Brewton to (1) reject the Committee minutes of January 22, 2004, and February 12, 2004; (2) revise the minutes of January 22, 2004, and February 12, 2004 to adequately summarize the Committee meetings; (3) redistribute the revised minutes to all Committee members and staff; and (4) request that future Committee minutes be in narrative format. Motion carried unanimously.
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Member Higgins made a motion to replace the Vice Chair due to absences. Chair Haley stated he would like to speak to the Vice Chair before making that decision. Motion failed for lack of a second.
CITY MANAGER RECOMMENDED CHARTER AMENDMENTS - PUBLIC WORKS
CONSTRUCTION CONTRACTING - GENERAL OBLIGATION BOND ISSUANCES City Manager George Caravalho presented the following issues for the Committee's consideration:
• Public works contracts - Flexibility for different method of posting security - Relative to Charter Section 1109, Paragraph 2
City Manager Caravalho and Finance Director Sundeen addressed Charter Review Committee member questions regarding bids, the open bid process, and clarified the proposed Charter changes. Member Castillo asked if there would be pilot testing. Finance Director Sundeen confirmed there will be testing.
• Public works contracts - Permit design-build projects - Relative to Charter Section 1104 City Manager Caravalho discussed the advantages of design-build projects and responded to Committee questions. Member McQuern suggested changing the proposed language for legal clarity. Deputy City Attorney Wilson stated the City Attorney's Office would work on simpler language. Deputy City Attorney Wilson also stated the City does currently permit design-build projects in Public Utilities.
• General obligation bonded debt limit - Authorizing mail-ballot elections - Relative to Charter Section 1108
City Manager Caravalho briefly discussed the cost effectiveness of mail-in ballots • General obligation bonded debt limit - Adding provision to sell bonds through two methods:
Bids or Negotiated Private Sale - Relative to Charter Section 1108 City Manager Caravalho and Finance Director Sundeen answered questions regarding the use of different approaches, negotiated price sale, and open negotiations. Member D. Bailey asked Deputy City Attorney Wilson for clarification regarding the use of "may vs. "shall". Deputy City Attorney Wilson will consult with the City's bond counsel. Chair Haley requested the answer to the question at a future Committee meeting.
• Board of Public Utilities powers and duties - Relative to Charter Section 1202 City Manager Caravalho answered questions regarding awarded contract authority limits, supplemental funding, City Council approval, and semi-annual review of the budget. Member D. Bailey asked Deputy City Attorney Wilson to rephrase the language to be more specific. • Board of Utilities customer-requested work - Relative to Charter Section 1202(b) City Manager Caravalho and Assistant City Manager Culbreth-Graft answered questions regarding customer requests and what type of customer makes the request. Chair Haley CRC-37
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requests Public Utilities Director Evans attend a future meeting to discuss the Committee's concerns and answer questions.
• Board of Utilities authority to enter into long-term contracts - Relative to Charter Section 1202
City Manager Caravalho and Assistant City Manager Culbreth-Graft answered questions regarding the Public Utilities Director's authority. Chair Haley requested that Public Utilities Director Evans attend a future meeting to discuss the Committee's concerns and answer questions.
LOCAL PREFERENCE POLICY FOR PUBLIC WORKS CONTRACTS - SURVEY RESULTS Chair Haley briefly reviewed the Local Preference Policies for Public Works Contracts survey.
Member McQuer asked that smaller cities be surveyed. Deputy City Attorney Wilson stated the survey can include smaller cities. Chair Haley stated only comparable cities are part of the survey. No formal action was taken.
PROPOSED CHARTER AMENDMENTS MATRIX
Member Higgins noted that there was no preamble change as suggested. Deputy City Attomey Wilson requested that Committee members notify her by email if there were any changes to be made. Member Garcia requested the word "Ward" change to "District "on page 7-6 of the report. Member D. Bailey suggested that the content of the matrix be updated after each meeting. Chair Haley requested an open-ended discussion in the next six weeks to sort through issues and take positions. Member Mayes requested outside groups participate in the discussion. Chair Haley stated that Ruth Anderson Wilson would also like to discuss the history of the Charter. No formal action was taken.
Vice Chair Johnson apologized for missing past meetings due to work commitments. He also suggested that the Committee be more proactive by sending letters to various organizations regarding the topics of the Committee meetings.
The Committee adjourned at 6:40 p.m.
Respectfully submitted,
sher histon
SHERRY MORTON
Senior Deputy City Clerk
ACCOMPLISHMENTS
1. Discussed recommended Charter amendments with the City Manager.
2. Reviewed the local preference policy for public works contracts survey.
3. Reviewed the proposed Charter amendment matrix.
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TO DO:
1. Continue discussion regarding the Board of Public Utilities' recommendation for local preference to Riverside-based companies for construction contracts
2. Approve the revised Minutes of January 22, 2004, and February 12, 2004
3. Continue discussion regarding Charter Amendments with the Public Utilities' Director regarding (1) Board of Public Utilities customer-requested work; and (2) Board of Utilities authority to enter into long-term contracts
4. Begin policy deliberations and formulate positions
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Riverside
CITY OF RIVERSIDE ****
RIVERSIDE: -America C
INTEROFFICE MEMO
People Scrving
l'eople
TO: Charter Review Committee DATE: February 20, 2004
FROM:
City Manager
SUBJECT: Recommended Changes to the City Charter
Thank you for the opportunity to present my suggested changes to the City Charter.
Having been with the City for almost two years, I have had an opportunity to make cortain observations and glean insight into management areas that could be enhanced by slight adjustments to the Charter.
Over the past few months, I have been working with staff and the City Attorney's office on a number of proposals. The City Attorney's office has been working specifically or those issues involving Article XI-Fiscal Administration, which are reflected in the firs four items of this memo. In addition to those four issues, I am also adding three additional items for a total of seven proposals.
1. Public works contracts-flexibility for different method of posting security. This change is requested to allow for the different methods of credit to be used that are possible through technology, such as electronic transfer. The provision proposed would simply give the Council ability to authorize posting of security for bids using now credit tools.
Recommendation:
Charter Section 1109, paragraph two, first sentence be revised to read:
"All bids shall be accompanied by a certified or cashier's check, a bidder's bond executed by a corporate surety authorized to engage in such business in California, made payable to the City, or such other form of bidder's security as the City Council establishes by ordinance."
2. Public works contracts—-permit design-build projects. Staff is proposing a design- build process be permitted that would allow a project to be bid and awarded to on contractor for both design and construction. Permitting such an approach to public works projects gives flexibility to the process and may result in projects that are less costly, reduce project time, and ensure fluidity of the project by holding one contractor accountable for the entire project.
Recommendation:
Charter Section 1104 be added to Article XI (Fiscal Administration) as follows:
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*Notwithstanding any provision to the contrary in the California Public Contracts Code, in Charter Section 1109, or any other law or regulation of the City of Riverside, the use of design-build procurement for public works projects by competitive negotiation is authorized. The City Council shall establish by ordinance regulations for the award, use and evaluation of such design-build contracts, in which the design and construction of a public works project are procured from a single entity."
3. General obligation bonded debl limit-authorizing mail-ballot elections. It is recommended that the City Council be given an opportunity to determine if a general obligation election may be conducted as a mail-ballot election. Such a change would not obligale this method but would provide this as an alternative. Such election method is less costly than the traditional election process.
Recommendation:
Add to subsection b of Charter Section 1108, to read:
"The City Council may by ordinance determine that the election shall be conducted as a mail-ballot election and prescribe the procedures for conducting the election."
4. General obligation bonded debt limit-adding provision to sell bonds through two methods: bids or negotiated private sale. There are times when it may be advantageous for a public agency to negotiate private sale of bonds rather than arrange for sale through a bid. This change would allow the City to determine what is best for the City in each case. Using one approach over another under certain market conditions could result in tremendous savings to the City. Such a change would ensure that the City Council reviews the options and is empowered to determine the best method on a case-by-case basis.
Recommendation:
Add subsection d to Section 1108:
"d. Before issuing general obligation bonds or revenue bonds, notes or other evidences of indebtedness, the City Council shall determine by ordinance or resolution whether such bonds, notes or other evidences of indebtedness shall be sold at public sale by notice inviting bids or by negotiated private sale."
5. Board of Utilities powers and duties. I am supporting the recommendation from the Board of Public Utilities to give the Board the authority to award contracts over $50,000 when the projects are covered within the approved City budget. Because of he size and volume of Public Utility projects, such authorization will streamline the pproval process, expedite projects, and reduce staff costs in preparation. Counci review of projects would occur with the annual budget review.
Recommendation:
Amend Section 1202 to add the words "and award contracts" to subsection b after the first word "authorize."
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6. Board of Utilities customer-requested work. I am supporting the recommendation from the Board of Public Utilities to amend Section 1202(b) so that, in addition to exceptions for "urgent necessity to preserve life, health, and property," customer- requested work provided under the rules adopted by the Board and the City Council also be exempt from approval requirements (subject to ratification by the board after the fact). This is a tool that allows us to support local businesses with a direct impact on economic development.
Recommendation:
Amend Section 1202(b)
"Notwithstanding the above, such a purchase or acquisition, construction, extension, enlargement, diminution or curtailment may be made without prior approval if there is an urgent necessity to preserve life, health or property, as determined by the director of public utilities, that customer-requested work provided under the rules adopted by the board of public utilities and City Council also be exempt from approval requirements, or, if the amount exceeds $100,000 by the director of public utilities and the City Manager. As soon as practicable thereafter, the director of public utilities shall take the matter to the board of public utilities for ratification."
7. Board of Utilities authority to enter into long-term contracts. Our Public Utilities Director has expressed the need to have the authority to enter into long-term contracts (up to seven years) for power and water services. In order to implement this, the City Council would issue a tariff establishing the terms and conditions of those contracts.
Currently, contracts are typically written for three to five years with Council approval of each unique contract on a case-by-case basis. The need to offer this flexibility with the long-term contracts results from changes in the industry towards deregulation. As our customers have choices to seek these services from other sources, Riverside needs to be able to enter into these long-term contracts expediently in order to remain competitive and retain its customers by providing for alternative commodity sources.
Recommendation:
Amend Section 1202 with specific language to be developed in collaboration with the City Attorney's office and the Department of Public Utilities if the Charter Review Committee approves the concept.
Please let me know if you would like additional justification for any of these items or if you would like to discuss them in more detail. I appreciate your consideration of these issues.
City Council
City Altorney
Executive Lcadership Team
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CITY OF
RIVERSID
CHARTER
PASTA FUTURE
CHARTER REVIEW COMMITTEE
Local Preference Policies for Public Works Contracts
City Charter/General Local Preference Policy
Law Yes/No
Anaheim Charter No
Bakersfield Charter No
Corona General No
Fresno Charter No
Long Beach Charter No
Los Angeles Charter Yes. 10% for contracts of $100,000, or less.
Ontario General No
Napa Charter Yes. 3% preference provided to local businesses.
Sacramento Charter No
San Bemardino Charter No
San Diego Charter No
San Francisco Charter No
San Jose Charter No
Santa Ana Charter No
Stockton Charter No
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000335
CITY OF
RIVERSIDE
CHARTER
PAST•FUTURE
CHARTER REVIEW COMMITTEE'
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
100-104 Incorporation and • No proposed changes. N/A N/A Succession
7-1
'All reconmendations reflect an affirmative vote of at least two-thirds (11 of 17) of the members of the Charter Review Committee. Revised 2/19/04 > 000336
• Acte Section Title Issues Substantive/
Non-
Substantive
Changes
200 Powers of City • No proposed changes. N/A N/A
7-2:
000337
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
III 300 Form of Government ISSUE 1: Council-Manager form of Government.
Positions:
• No change 1o current Council-Manager form of No
government.
• Strong Mayor form of government.
Recommendation:
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) 000338
Icte Section Title Issues Substantive/ Fis
Non- Impact
Substantive
Changes
IV 400 Enumerated; number, ISSUE 1: Nomination and elections by ward. term and manner of
election; wards. Positions:
• No change to the current system of clections by ward. • Top two candidates nominated by ward and then elected No at large.
Recommendation:
ISSUE 2: Instant run-off voting.
Positions:
• No change to the current voting system (general
7-4 Adopt pat alterin out rem to separat necessary. Yes election).
• Highest vote getter is elected (no separate run-off
election).
Recommendation:
ISSUE 3: Shorten period between general election
and run-off election from ten weeks to six
weeks.
Positions:
No change to general election and run-off election
schedules.
• Shorten time between such elections to six weeks.
Recommendation:
000339
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
IV 400 Enumerated; number, ISSUE 4: Election of Mayor in even numbered years. term and manner of
election; wards Positions:
No change to current system of election in odd No
numbered years, concurrent with Wards, 2, 4 and 6
elections.
• Coordinate election of Mayor with Presidential clection. Yes Recommendation:
ISSUE 5: Definition of position as Councilmember as full- time or part-time.
Positions:
7-5
: Denia nute Chanter petite as on or part-lime. No
No
Recommendation:
> 000340
ticle Section Title Issues Substantive/ Fi.
Non- Impact
Substantive
Changes
IV 402 Wards Established ISSUE 1: Increase number of wards.
Positions:
• No change to current seven ward system. No
• Increase number of wards. Yes
Recommendation:
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Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
403 Compensation ISSUE 1: Method for determining compensation for Council Members and Mayor.
• No change to current system of determining No
compensation.
• All future changes in compensation automatically linked Yes to an external factor.
Recommendation:
7-7
) 000342
ficle Section Title Issues Substantive/
Non- Impct
Substantive
Changes
IV 405 Duties of Mayor; ISSUE 1: Voting power of Mayor. mayor pro tempore;
council tie - mayor's Positions:
vote.
• No change to current system which gives Mayor a tie- No breaking vote and power to veto any formal action of
City Council.
• Mayor would be eighth voting member and the veto No
power would be eliminated.
Recommendation:
ISSUE 2: Mayor's appointive authority for Council
standing committees.
7-8
Positions:
• No change to current system of council self-appointment to standing committees.
• Mayor appoints members of standing committees.
Recommendation:
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Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
IV 413 Adoption of ISSUE 1: Mayor's veto power.
ordinances and
resolutions Positions:
• See section 405.
Recommendation:
7-9
) 000344
article Section Title Issues Substantive/ Fis.
Non- Impact
Substantive
Changes
500 Elections ISSUE 1: Schedule of elections.
Positions:
• See Section 400.
Recommendation:
ISSUE 2: Campaign contribution limits.
Positions:
• No change to campagn contribution limits- compliance No • Campaign contribution limits more restrictive than No 7-10 state law.
Recommendation:
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Article Section Title Issues Substantivel Fiscal
Non- Impact
Substantive
Changes
600-603 City Manager • No proposed changes. N/A N/A
7-11
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) 000346
micte Section Title Issues Substantivel
Non- Impact
Substantive
Changes
700-709 Officers and • No proposed changes. N/A
Employees Generally.
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Article Section Title Issues Substantivel Fiscal
Non- Impact
Substantive
Changes
VUI 802 Board and ISSUE 1: Appointment of members of Boards Commissions and Commissions.
Positions:
• No change to current system of Mayor and City Council No jointly appointing.
• Members appointed by Mayor. No
Recommendation:
ISSUE 2: Ward representation on each Board and
Commission.
Positions:
7-13
• No change to current system of appointment
(representation by ward not assured).
War Councilmember nominates a member from his/her
Recommendation:
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) 000348
fide Section Title Issues Substantive/ Fis
Non- Impact
Substantive
Changes
VIII 806 Planning Commission ISSUE 1: Advisory role of Planning Commission. • No change to current advisory role of Planning No
Commission.
• Delegate certain final policy-making authority to
Planning Commission with right to appeal decision to
City Council.
Recommendation:
7-14
•14-
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Article Section Title Issues Substantivel Fiscal
Non- Impact
Substantive
Changes
VIlI 809 Park and Recreation ISSUE 1: Advisory Role of Park and Recreation Commission Commission.
Positions:
• No change to current advisory role of Park and No
Recreation Commission.
• Delegate certain final decision making authority to Park and Recreation Commission with right to appeal
decision to City Council.
Recommendation:
7-15
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) 000350
Article Section Title Issues Substantivel Fiscal
Non- Impact
Substantive
Changes
VIII 810 Mayor and Council ISSUE 1: Role of Mayor and City Council Salary Members salary Commission.
Commission
Positions:
• No change to current role of Commission.
Eliminate Commission (see Section 403)
Recommendation:
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Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
IX 900 Personnel Merit • No proposed changes. N/A N/A
System
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) 000352
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
1000 Retirement No proposed changes. N/A N/A
7-18
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E98000
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
XI 1109 Public Works ISSUE 1: Local preference for Public Works construction Contracts
Positions:
• No change to current system of awarding the contract to No the lowest responsible bidder.
• Grant preference to local contractors. Yes
Recommendation:
7-19
- 19.
) 000354
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
1110 Cash Management ISSUE 1: Typographical error. VS
Positions:
No
Recommendation:
7-20
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Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
I111 Capital Project Fund ISSUE 1: Typographical errors. NS Positions:
No
: Nuder subs to graph (a) the capital leters therein, "g" No and "C" should be changed to (b) and (c).
7-21 Recommendation:
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) 000356
• )
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
1113 Independent Audit ISSUE 1: Typographical error. NS Positions:
• No changes to the current section. No
• In the second sentence change "audit and report" to ? "audit report".
Recommendation:
7-22
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L9E000
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
XII 1202 Same-Powers and ISSUE 1: Authority of the Board of Public Utilities Duties to award contracts without City Council
approval.
Positions:
• No change to the current procedure of seeking City No Council approval for all contracts over $25,000.
• Authorize Board to award contracts over $50,000 within No the approved City budget without City Council
approval.
Recommendation:
7-23 ISSUE 2: Required approvals for customer-requested work.
Positions:
No changes to the current procedure of requiring No
customer-requested work over $25,000 be approved by
Board and City Council.
• Under subsection (b), customer-requested work No
provided under the rules adopted by the Board and
Council be exempt from approval requirements, subject
to ratification of the Board after the fact.
Recommendation:
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) 0000358
• )
Article Section Title Issues Substantive/ Fiscal
Non- Impact
Substantive
Changes
XII 1202 Same-Powers and ISSUE 3: Authority of the Public Utilities Director to enter Duties into long-term contracts to provide water and
pover.
• No change to current procedure of secking Board and No Council approval of all long-term contracts to provide
Provide Utilities Director, with full authority to enter No into long-term contracts to provide water and power in
accordance with Board/Council - approved tariffs based
7-24 fengurrent cost of service studies up to seven years in 03-1193
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