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HomeMy WebLinkAbout1998-01-13ADJOURNED MEETING OF THE PALM DESERT CITY COUNCIL TUFSDAY, JANUARY 13, 1998 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER Mayor Benson convened the meeting at 9:30 a.m. H. PLEDGE OF ALLEGIANCE - Councilman Buford A. Crites III. ROLL CALL Present: Councilman Buford A. Crites Councilman Jim Ferguson Councilman Richard S. Kelly Mayor Pro-Tempore Robert A. Spiegel Mayor Jean M. Benson Also Present: Ramon A. Diaz, City Manager David J. Erwin, City Attorney Sheila R. Gilligan, Director of Community Affairs/City Clerk Richard J. Folkers, ACM/Director of Public Works John Wohlmuth, ACM/Director of Administrative Services Carlos L. Ortega, RDA Executive Director Phil Drell, Director of Community Development Paul Gibson, Finance Director/City Treasurer Teresa LaRocca, Housing Programs Coordinator Hart Ponder, Code Compliance Supervisor Mary P. Gates, Deputy City Clerk IV. ORAL COMMUNICATIONS None MINUTES ADJOURNED PALM DESERT CITY COUNCIL MEETING JANUARY 13, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * V. NEW BUSINESS A. PRESENTATION BY THE CITY ATTORNEY RELATIVE TO THE PROVISIONS OF BEING A CHARTER CITY. Mr. Erwin stated that the City's charter is a limitation of authority, not a grant of authority. He said that as a charter city, the City has determined that it should be governed by the City Council in all municipal affairs although the Constitution does not defme "municipal affairs". He said municipal affairs was basically determined by court cases to be something that is determined on a case by case basis. Mr. Erwin stated that the Constitution gives cities the ability to establish a charter and indicates, in a limited way, what a charter can include. He said it indicated that the City, as a charter city, can make and enforce ordinances and regulations with respect to municipal affairs, subject only to the restrictions and limitations in the charter, the Constitution of the State of California, and the Federal Constitution. He said there was a statement that, with respect to municipal affairs, the charter supersedes all laws that are inconsistent therewith. This is a change from general law cities where the authority as a general law city is granted by the legislature, and the Council would look to some enabling statute for its authority to do things. A charter allows the Council to act without that enabling legislation because the charter is a legislative act of the State, and the Council has more and broader authority. He said to some extent it was left to the Council and staff imagination, hopefully some very competent evaluation and imagination, in getting to the point of fording "a municipal affair" and having it not necessarily in conflict with State law, although if there is a charter and if it is a State law that may be inconsistent, there is the potential with the charter that the charter regulation or ordinances under the charter may prevail over the State law. He said the Constitution goes further in providing that the charter community can: establish a City police force establish a sub -government in all or part of the City establish elections in any manner the Council wishes so long as it does not violate individuals' Constitutional rights. He said the Council does not necessarily need to follow the election laws of California, although he felt it would be a good idea to do so. He said if the Council wanted to make changes in how elections are run, the authority is there with the charter to do that. He said the Council was also provided the authority to determine the method by which, the times at which, and the terms for which the several municipal officers and employees, whose compensation is paid by the City, shall be elected or appointed, for their removal, for their compensation, for the numbers of deputies, clerks, and other employees that each shall have, 2 MINUTES ADJOURNED PALM DESERT CITY COUNCIL MEETING JANUARY 13, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * for the compensation, method of appointment, qualifications, tenure of office, removal of such deputies, clerks and other employees. He said this basically said that the Council can determine, if it wishes, term limits, terms of office, and compensation of not only the Council itself but any other officers or employees of the City without being controlled or governed by thegeneral laws of the State of California. He said that with regard to compensation of the Council, it is currently based upon population. The Council has established this in the past, and it can be increased up to five percent each year; however, this increase could not occur automatically and would take an affirmative act on the part of the Council. He added that as it stands currently, if and when the Council increases the amount, that increase would not become effective until the next individual is sworn into office so that it would, in effect, await the next election before it could become effective. He noted that none of those restrictions are applicable now because of the charter city status, and the Council has the ability to determine compensation. He stated that the Council also has the ability to award different types of compensations retroactively. Mr. Erwin stated that his staff had reviewed all of the cases dealing with charter cities to obtain excerpts of what is "a municipal affair". He said the charter allows the Council to levy taxes for municipal purposes without any other enabling legislation from the Legislature, as long as it is within the City and for a municipal affair, subject to some of the Constitutional provisions of elections (i.e., Proposition 62, etc.) Councilman Spiegel stated that Palm Desert is a no -low tax city because of when it incorporated, and he asked if that was now reversed. Mr. Erwin stated that it was not reversed in and of itself. Councilman Spiegel asked if the City could say it now wants those property taxes and does not want them to go somewhere else. Mr. Erwin responded that this was something that he needed to discuss with the City Manager to see what could be done in that area, although he said he did not have a good feeling about it and there aren't any particular cases on that issue. He said this was something the Council might want to start talking about. Mayor Benson asked if the Council could create assessment districts and assess how much residents are going to pay toward the operation of that district. Mr. Erwin responded that the City can assess the districts, although it would still have to provide due process in doing that. He said as long as the Council does not violate someone's Constitutional rights, it has the ability to establish its procedures for setting up assessment districts. Councilman Ferguson stated that it was his understanding this would be subject to Proposition 218, and Mr. Erwin agreed. Mr. Erwin stated that the court cases all start off with the proposition that they have to look at what is a municipal affair on a case by case basis. He said there were a couple of cases where, in one instance, it was determined to be a municipal affair and in another instance it was not. He said this dealt with a utility that was providing water service, and in the one 3 MINUTES ADJOURNED PALM DESERT CITY COUNCIL MEETING JANUARY 13, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * instance they were regulating it, establishing their own company, and establishing their own rates. In the one case where it was determined to be a municipal affair it was wholly within the City; the other case had some regional effect and went outside the City boundaries. He said the courts state over and over again that the facts have to be looked at ona case by case basis. Councilman Spiegel asked if it would have any effect on the school district. Mr. Erwin responded that it may have an effect. He said that it had an effect in one area. He noted that some of the Council would remember when the City was discussing the establishment of Palm Desert High School. He said there were some limitations on general law cities expending money for school purposes, and the City ran into some problems and had to use some innovative ways to utilize money to fund some of the activities in that area. As a charter city, there are not those restrictions on the expenditure of funds. He said if the Council determines it is a municipal affair and is something within the City that is of importance to the Council, it is likely to be determined a municipal affair. As such, the Council has the authority to decide whether or not to expend the funds. He said that another example was that, as a charter city, the Council does not necessarily have to determine a public purpose with regard to the expenditure of funds as long as the Council determines that it is within the authority of the City. The Council can make charitable donations without receiving services in kind. Upon question by Councilman Crites, Mr. Erwin stated that as long as the Council determines an expenditure is for something that would benefit to the City and is within the corporate boundaries of the City, it would be considered a municipal affair. He said this was a much broader test, and in almost all events, the courts would look to the Council's determination as opposed to looking at it from the standpoint of a gift of public funds which general law cities are prohibited from doing. Councilman Crites asked if the City could fund something outside its boundaries if the Council believed it was of benefit and good value to the City of Palm Desert. Mr. Erwin responded that this could be done as long as it benefits the City of Palm Desert, and he would recommend that that benefit be documented in the application process, even though it is not absolutely necessary to do so from a legal standpoint. He stated that different types of cases where the courts have said they are municipal affairs include the conduct of municipal elections, setting up separate procedures for initiative, referendum and recall, the procedures for adopting ordinances, compensation, and the bidding process. Mayor Benson asked if the City has to put something out to bid. Mr. Erwin responded that the Council can determine whether or not to go out to bid. He said the City may contractually be required to go out to bid if it receives State or Federal funds; however, if it is totally a City expenditure, the City may not have to go out to bid. Mayor Benson stated she was thinking of Christmas decorations where in the past if it was over a certain amount of money, the City had to go out to bid. 4 MINUTES ADJOURNED PALM DESERT CITY COUNCIL MEETING JANUARY 13, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Erwin responded that the City could just pick a vendor now. He added that additional areas that have been determined to be municipal affairs, within the control of the Council, were financing of public improvements, charitable gifts, and term limits. Councilman Spiegel asked what the effect would be on the Redevelopment Agency. Mr. Erwin responded that the Redevelopment Agency was different and would still be controlled by State law, the Health and Safety Code. He said the Redevelopment Agency was technically a State agency that is created in each city, with the Council passing an ordinance to activate it. He said the fact that we are a charter city does not change the Redevelopment Agency. He added that there were no cases dealing with Redevelopment Agencies with regard to charter cities. He said he did not know if Palm Desert wanted to be a test case, particularly with some of the legislation that is trying to eliminate redevelopment agencies. Councilman Ferguson noted that on February 15th when the Redevelopment Agency turned over Desert Willow to the City, his understanding was that: 1) the Redevelopment Agency could only develop, not operate; and 2) the City could operate but not develop. He asked whether that had changed. Mr. Erwin responded that it may have changed. He said the expenditures of funds was where the City gets into development. He said that potentially, as a charter city, the City has more latitude in the development process, for not only the golf course but in economic development. Councilman Ferguson stated that under a charter, if increasing reforms are passed on redevelopment agency law, that would give the City more flexibility. Mr. Erwin agreed and stated that the City may well be able to have some flexibility, and the City could pick up some .of that, although perhaps not all of it. Mr. Diaz added that the City might get the tax increment in that if it's in a redevelopment project area where we, as a City, choose to do something, that increases the value, and we would get the increment. Councilman Ferguson stated that the City would just not get the County's share. Mr. Diaz stated that it would be part of any pass -through agreements the City has with the County. Councilman Ferguson stated that he was thinking conceptually if redevelopment agencies are done away with, as there has been some talk about doing. Mr. Diaz stated that Councilman Ferguson was correct if that were to happen. 5 MINUTES ADJOURNED PALM DESERT CITY COUNCIL MEETING JANUARY 13, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Mr. Erwin noted that some of the things the courts had decided were not municipal affairs were the enforcement of criminal laws and penal statutes and regional airport master plan. He said there had been a lot of cases relative to contracting and prevailing wages, and all of the cases indicated that this would be considered a municipal affair. Councilman Ferguson asked if there was a test and how the courts determined whether these were municipal affairs. Mr. Erwin responded that the court looks at the case and basically says, first, does it conflict with a State law. If there is a conflict with a State law, they then look at the factual circumstances and the effect of the municipal regulation to see whether it is something that deals specifically with local as opposed to regional or Statewide. He said there were a number of cases that deal with that, and the courts indicate that in each case they have to look at the circumstances of it, the municipal regulation, the State regulation, and determine whether it is something that should be regulated and preempted on a Statewide basis. He stated that in most instances, different from general law cities where if there is an inconsistency or conflict between local regulations and State law, State law controls general law cities. This would not necessarily be the case for charter cities. If there is an inconsistency, it does not automatically go in favor of the State law. If it is even, it is in favor of the municipal affair. Councilman Spiegel stated that the area affected the most seemed to be the property taxes. He said he did not know what this would mean in terms of dollars and whether the City should pursue it or not. Mr. Erwin stated that he had no problem in looking at this issue to see what he can find out. Councilman Crites asked how many other no -low cities were also charter cities. Mr. Erwin responded that La Quinta and Rancho Mirage fell into this category. Mr. Wohlmuth added that he had a list of all of the charter cities. Mr. Gibson stated that his department had a list of the no -low cities. Councilman Crites asked that staff compare the two lists to see if there are any no -low cities that have been a charter city for a number of years. Mr. Erwin stated that he would compare the lists and contact the attorneys in those cities. Councilman Crites asked whether there was any data available from the Contract Cities Association relative to contract cities as charter cities. Mr. Erwin responded that he would look into this matter. Mr. Diaz asked whether, in terms of annexations, we have any more strength in negotiating the revenue agreements with the County. Mr. Erwin responded that he was not sure but would look into this issue. 6 MINUTES ADJOURNED PALM DESERT CITY COUNCIL MEETING JANUARY 13, 1998 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Upon question by Mayor Benson relative to procedures for changing current regulations such as compensation, Mr. Erwin responded that the Council would need to adopt an ordinance. Mr. Ortega stated that an item that would be coming to the Housing Authority at its next meeting was the bylaws and that the issue of compensation had not yet been addressed. Mr. Erwin stated that the Council could decide and could also make the compensation retroactive to the time when the Authority started. Mayor Benson asked whether all of the compensation items could be done as one package (for example, Housing Authority, Planning Commission, etc.) if the Council wishes to do so. Councilman Ferguson noted that the ordinance passed last Thursday specifically stated there would be no compensation. He asked why the Council enacted that ordinance if it was considering providing compensation. Mayor Benson stated that it was stating there would be compensation for the Housing Advisory Committee. Mr. Ortega added that there are two bodies: the Housing Authority (which is the Council) and the Advisory Committee (which is the Housing Commission pursuant to the Health and Safety Code). He stated that when the Housing Authority was formed, he advised the Council that the Health and Safety Code does not provide for compensation to the Authority members; however, now that Palm Desert is a charter city, it was a municipal affair and was covered under that. Councilman Ferguson stated for clarification that the ordinance enacted by the Council last Thursday was the Commission and not the Authority. Mr. Ortega agreed. VI. ADJOURNMENT Upon motion by Crites, second by Spiegel, and unanimous vote of the City Council, Mayor Benson adjourned the meeting at 10:10 a.m. ATTEST: / SHEILA R GILLIGAN, ,e CLERK CITY OF PALM DESER , CALIFORNIA M. BENSON, MAYOR 7