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Atherton is reviving a long-debated push to become a charter city, even as some city officials acknowledge they are uncertain whether the change would actually help the town avoid some state-mandated housing policies. A series of informational public meetings are kicking off this month and are set to run through April.
In California, there are two types of cities: general law and charter cities. While most operate as general law cities, over 100 are charter cities. A charter city has a voter-approved charter as its framework for governing city affairs, giving it more control over some issues. Even so, the state can override a city charter on any issue that is of “statewide concern,” a loophole that California has used to create rules on housing and vehicle regulations. Recently, the state has declared affordability and housing as a statewide issue of concern in order to pass new regulations.
As for the benefits, under California’s State Constitution, charter cities have control over “municipal affairs,” but defining municipal affairs is not an easy task. The matter has routinely been litigated in courts and the definition may change over time.
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Atherton’s charter city hopes fizzle out
The latest push to become a charter city was started by a coalition of Atherton residents working on the town’s housing element, hoping to avoid some housing requirements imposed by the state. But even if Atherton became a charter city, the town would still need to create state-mandated housing elements, meet its regional housing allocation and be subject to the builder’s remedy, City Manager George Rodericks said in a staff report.
But there are some areas where being a charter city would give Atherton additional control. The town would have greater ability to impose taxes, which would create revenue for the town when property is sold. However, when Atherton officials considered becoming a charter city in 2021 and 2015, hoping to impose a real estate transfer tax, it proved controversial and the council nixed the idea before it came to a vote.
Besides taxes, charter cities have more control over bids for public contracts. They can change the bidding process and implement their own requirements, which could save money. Charter cities can also exempt themselves from “prevailing wage” requirements, which mandate workers on a public project be paid a state-set minimum. On the flip side, removing that requirement could make a charter city ineligible for state funding on some projects.
Atherton council members have been divided on whether to continue pursuing a charter. One of the strongest advocates is Vice Mayor Rick DeGolia.
“We have seen the state of California exercise authority based on certain high falutin’ goals that don’t relate to the local needs and concerns and character of the jurisdictions that are impacted. I’m not just talking about housing … we’re a unique community and we need to have as much control over our community as we can,” DeGolia said about creating a charter during a council meeting in October.
At that meeting, Councilmember Elizabeth Lewis said she was concerned that the charter election could be divisive and distracting.
“(It) puts ice in my veins. That campaign would be distracting to what we need to do to keep the town running,” Lewis previously said.
The Atherton City Council’s charter subcommittee created a brief, “narrowly tailored” four-page draft charter that focuses on the town’s desire for control over local affairs. For comparison, Redwood City’s charter runs to 49 pages and Palo Alto’s is 28.
At the end of the day, some in Atherton see becoming a charter city as a way to avoid potential future state requirements and keep its options open.
“Given the large volume of land use laws being passed by the Legislature and imposed on all cities — general and charter — it is difficult to predict with any meaningful certainty whether these statutes will be determined by future courts not to apply to charter cities,” Rodericks said in a staff report.
“However, there is always the potential that future housing legislation proposed by the state to which the Town objects is not deemed a matter of statewide concern and therefore not applicable to charter cities, he added.
Additionally, there is always the possibility that the courts could someday rule that current state housing laws do not apply to charter cities.
“In some ways, I view this as an earthquake preparedness kit: We’d be happy if we have it and need it, but it might never get used,” said Mayor Stacy Holland. “I keep going back and forth on whether this is worth it.”
Becoming a charter city
In order to become a charter city, the Atherton City Council has to draft a charter, vote on it and submit it to voters, who could then pass it with a simple majority. Once approved, any efforts to modify or remove the town’s charter would also be put to a town-wide vote.
To educate stakeholders about what becoming a charter city would look like and the impacts, Atherton is hosting a “Kick-Off Workshop” at 6 p.m. on Thursday, Jan. 29, in the City Council Chambers.
The town also plans to host a series of community workshops and neighborhood meetings about the charter process through April. Public hearings would be held in May and June in order to put Atherton’s charter on this November’s general election ballot.
Deputy City Manager Anthony Suber emphasized that no decision has been made.
“The town is in an exploratory and educational phase and gathering our communities’ input is an essential component of the process,” Suber said in an email.
For more information about upcoming meetings, go to Atherton.news/Charter-City.
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