NOTICE AND AGENDA
CITY OF UNION CITY
CITY COUNCIL
SPECIAL MEETING
Tuesday, March 26, 2024
6:30 PM
City Hall Chambers | 34009 Alvarado-Niles Road, Union City, CA 94587
1. CALL TO ORDER
2. ROLL CALL
3. ORAL COMMUNICATIONS - Comments limited to items on the Special Meeting Agenda
4. CITY MANAGER REPORTS
4.a. Receive Report Regarding Campaign Contribution Limits And Provide Further Direction
5. ADJOURNMENT
/s/ Carol Dutra-Vernaci
Carol Dutra Vernaci
Mayor
Agenda Item
DATE: 3/26/2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: KRISTOPHER J. KOKOTAYLO, CITYATTORNEY
SUBJECT: RECEIVE REPORT REGARDING CAMPAIGN CONTRIBUTION LIMITS
AND PROVIDE FURTHER DIRECTION
At the regular City Council meeting on February 13, 2024, a majority of the City Councilexpressed an interest in further discussing a potential revision to the City’s campaign contribution limit and asked staff to agendize a discussion regarding the same.
As a result of that direction, staff and the City Attorney’s Office prepared a report that the City Council received at its February 27, 2024 Special Meeting. The City Council requested further information regarding cities that utilize a voluntary expenditure limit.
Staff and the City Attorney’s Office recommends that the City Council receive this report and provide further direction regarding any revisions to the Union City Municipal Code to revise campaign contribution limits and/or establish a voluntary expenditure limit.
BACKGROUND
At the February 27, 2024 City Council Special Meeting, the Council discussed the current campaign contribution limits regarding candidates for elected office in the City of Union City and reviewed the City’s limits to those of neighboring jurisdictions. A copy of the February 27, 2024 staff report and exhibits is attached as Attachment 1. After considering the limits of neighboring jurisdictions, the City Council requested more information related to voluntary expenditure limits established within other cities in Alameda County and requested that the City Attorney’s Office return with further information.
DISCUSSION
Neighboring Jurisdictions in Alameda County
Hayward: The 2023 voluntary expenditure limit is $86,706.00 per candidate, with a limit of $1699 per individual contributor. The amount is adjusted annually by a percentage equal to the SF-Bay Area Consumer Price Index (CPI). A candidate who does not accept the voluntary contribution limits is limited to $393 per person for each election.
Oakland:As of 2022, the voluntary expenditure limit ranges based on office with by-district councilmember candidates having an expenditure limit ranging from approximately $170,000 to $180,000 and mayoral candidates having an expenditure limit of approximately $580,000. Candidates that agree to limit their spending may receive $900 per election from any individualand $1800 from any broad-based politicalcommittee.
Candidates that did not agree to limit their spending were eligible to receive $200 from any person and $400 from any broad-based politicalcommittee. It appears that Oakland has subsequently adopted a new structure involving an aspect of public financing that deviates from what the Council direction is at this time.
Newark: The voluntary expenditure limit is equal to one dollar per resident of the City, as determined by the City Council not less than 7 months prior to the election. Each candidate who accepts the voluntary limit is subject to a contribution limit of $500 per election while candidates who reject the voluntary limit are subject to a contribution limit of $100 per election.
Considerations for Revisions to Campaign Contribution Limits Staff have had a chance to consider the potential impact of an amendment to the City’s Municipal Code to establish a voluntary expenditure limit. One consideration relates to the potentialeffective date of a proposed ordinance. A likely effective date for a proposed ordinance establishing a voluntary expenditure limit would be early summer at the earliest. Given where the City is in the current election cycle, there may be an impact on existing campaigns and how candidates have proceeded in reliance of the existing structure. Should a proposed ordinance have greater complexity, it would require additional time to prepare text amendments and may not take effect until further along in the election cycle or until the next election cycle. A more straightforward amendment could take effect earlier in the election cycle.
An additional note is that the City Council raised concerns regarding large campaign contributions influencing candidates for office. One consideration for the Council relates to SB 1439 and recent amendments to the Levine Act. The Levine Act, passed in 1982, aimed to prevent officials from using their authority as a government official to demand campaign contributions from applicants, a practice known as “pay to play”.
The Levine Act prohibits certain public officials from accepting, soliciting, and directing campaign contributions over $250 from any party to, or participating in, a proceeding involving a license, permit, contract, or entitlement for use before the agency. An official who received a contribution of more than $250 in the past twelve months from such a party or participant may be disqualified from participating in the proceeding and must disclose that fact on the record. Additionally, a public official is prohibited from accepting a contribution of more than $250 in the twelve months following consideration of a request for an entitlement from a party that makes the contribution. Prior to SB 1439, councilmembers were not subject to the Levine Act and but are now subject to its restrictions.
FISCAL IMPACT
There is no direct fiscal impact associated with this item.
RECOMMENDATION
Staff recommends the City Council provide direction regarding potential revisions to the Union City Municipal Code to revise campaign contribution limits and/or establish a voluntary expenditure limit.
Prepared by:
Juliet E. Vaughn, Associate
Submitted by:
Kristopher J. Kokotaylo, City Attorney
ATTACHMENTS:
Description Type
Attachment A - February 27, 2024 City Council Special Meeting Staff Report and Corresponding Attachments
Attachment
Item4.a. Powerpoint Attachment
Agenda Item
DATE: 2/27/2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: KRISTOPHER J. KOKOTAYLO, CITYATTORNEY
SUBJECT: RECEIVE REPORT REGARDING CAMPAIGN CONTRIBUTION LIMITS
AND PROVIDE FURTHER DIRECTION
At the City Council meeting on February 13, a majority of the City Councilexpressed an interest in further discussing a potential revision to the City’s campaign contribution limit and asked staff to agendize a discussion regarding the same.
As a result of that direction, staff and the City Attorney’s Office recommends that the City Council receive this report regarding the City’s existing campaign contribution limits and provide further direction regarding a potentialamendment to the Union City Municipal Code to adjust the limit for campaign contributions or provide other direction as sought by the Council.
BACKGROUND
The City’s campaign contribution limit is established in Chapter 2.06, Campaign Contribution Limitations in Municipal Elections, of the Union City Municipal Code (the “Campaign Contribution Ordinance”). The City Council first adopted the Campaign Contribution Ordinance on September 13, 1994 (see Attachment 1, Ordinance No. 441-94). The initialcampaign contribution limit was set at $500 for any election.
Approximately 11 years later, the City Councilamended the Campaign Contribution Ordinance on September 27, 2005 (see Attachment 2, Ordinance No. 658-05) to increase the campaign contribution limit to $600. The City Council last amended the Campaign Contribution Ordinance on May 27, 2014 (see Attachment 3, Ordinance No. 795-14), approximately 10 years ago, to increase the campaign contribution limit to $720.
DISCUSSION
Assembly Bill 571
Pursuant to Assembly Bill 571, effective January 1, 2021, state law applies a default campaign contribution limit to city and county candidates when the city or county has not already enacted a contribution limit. That contribution limit is set at $5,500 for 2023-2024. Cities are free to, by ordinance, set a higher or lower limit or establish no limit at all.
City Campaign Contribution Limits in Alameda County
The FPPC has provided a repository of allcities and counties within California that have established their own contribution limit ordinances (https://www.fppc.ca.gov/learn/Contribution-Limits-City-and-CountyCandidates.html). A review of the FPPC’s repository reveals localcampaign contribution limits for the following Alameda County cities:
• Oakland: $600. (Oakland Municipal Code Section 3.12.050). The limit is adjusted bi-annually based on the Consumer Price Index beginning in 2025.
• Hayward: Hayward has two campaign contribution limits. If a candidate chooses to accept the voluntary expenditure limit, the campaign contribution limit is $1,699. If a candidate does not accept the voluntary expenditure limit, the campaign contribution limit is $393. The voluntary expenditure limit is $86,706. These limits are adjusted annually. (Hayward Municipal Code Chapter 2, Article 13). In Hayward, the limits established are adjusted annually based on the Consumer Price Index. • Dublin: $500. (Dublin Municipal Code Chapter 2.28).
• Fremont: $640. (Fremont Municipal Code Chapter 2.30). The limit is increased based on the Consumer Price Index biennially by the City Clerk.
• Berkeley: $250. (Berkeley Municipal Code Section 2.12.415). The limit is adjusted for cost of living in January of every odd-numbered year.
Summary of Prior Campaign Contribution Limits in Union City • 1994: $500
• 2004: $600
• 2014: $720
The last two increases to the contribution limits were 20% increases. The City Council is free to leave the contribution limit as-is or adjust it in any amount. A further 20% increase would bring the contribution limit $864.
FISCAL IMPACT
There is no direct fiscal impact from receiving this report.
RECOMMENDATION
Staff recommends that the City Council receive this report regarding the City’s existing campaign contribution limits and provide further direction regarding a potentialamendment to the Union City Municipal Code to adjust the limit for campaign contributions or provide other direction.
Prepared by:
Juliet Vaughn, Attorney
Submitted by:
Kristopher J. Kokotaylo, City Attorney
ATTACHMENTS:
Description Type
Attachment 1 Attachment
A
ttachment2Attachment
Attachment3Attachment
Item3.a. PowerpointAttachment
CITY COUNCIL MEETING
February 27, 2024
CAMPAIGN CONTRIBUTIONS LIMITS
City Council
February 27, 2024
3 Background
• City Council provided direction to agendize discussion regarding campaign contribution limits on February 13
• Union City Municipal Code Chapter 2.06 adopted by the City Council on September 13, 1994.
• City Council has increased contribution limits by 20% twice in 2005 and in 2014. 4 History of Limit and Increases
• September 13, 1994: $500.• September 27, 2005: 20% increase to $600. • May 27, 2014: 20% increase to $720. 5 State Law and Other Alameda County Cities
• State Law: $5,500. • Hayward: Limit of $315 if the candidate does not accept voluntary expenditure limits, and $1295 for those who do accept the voluntary expenditure limits. • Fremont: $640 (adjusted biennially based on CPI).• Dublin: $500. • Berkeley: $250 (adjusted for cost of living in January of odd-numbered years). • Oakland: $600 (adjusted for CPI beginning January 2025 and every odd year thereafter). 6 Recommendation
Provide further direction regarding potential revisions to the Campaign Contribution Ordinance.
CITY COUNCIL MEETING
March 26, 2024
REPORT REGARDING
CAMPAIGN CONTRIBUTION LIMITS
City Council
March 26, 2024
3 Background
• At the February 13, 2024 City Council meeting, the Council requested a future agenda item relating to a potential revision to the City’s campaign contribution limit. • At the February 27, 2024 City Council meeting, the Council received a staff report regarding campaign contribution limits, and requested further information about voluntary expenditure limits. 4 Historical Information
• Union City enacted a campaign contribution limit of $500 in 1994.• In 2004, Union City amended the contribution limit, increasing it by 20%, to $600.• In 2014, Union City again amended the contribution limit by an increase of 20%, to $720.
5 Contribution Limits in Alameda County
Non-Comprehensive examples of contribution limits in Alameda County cities:• Dublin: $500• Fremont: $640• Berkeley: $250• Pursuant to AB 571, state law applies a default contribution limit of $5,500 for 2023- 2024 when the city or county has not already enacted a limit. 6 Voluntary Expenditure Limits in Alameda County
• Hayward: $86,706.00 per candidate (2023), with a contribution limit of $1699 per individual contributor.
• A candidate who does not accept the voluntary contribution limits is limited to $393 per person for each election.
• Newark: One dollar per resident of the City, with a contribution limit of $500 per election. • Candidates who reject the voluntary limit are subject to a contribution limit of $100 per election.
• Oakland: In 2022, range from approximately $170,000 to $180,000 for council candidates and approximately $580,000 for mayoral candidates, with a contribution limit of $900 per election from any individual and $1800 from any broad-based political committee. • Candidates that did not agree to limit their spending were eligible to receive $200 from any person and $400 from any broad-based political committee. 7 Additional Considerations
• Timing and spot in election cycle. • SB 1439 amendments to Levine Act. 8 Recommendation
Staff and the City Attorney’s Office recommends that the City Council receive this report and provide further direction regarding campaign contribution limits and voluntary expenditure limits.