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Home My WebLink AboutNewport Beach City Charter - Newport Beach City CharterCHAPTER---- Assembly Concurrent'Resolution No. I— Approving the charter of the City of Newport Beach, County of Orange, State of California, ratified by the qualified electors of said city at a municipal election held therein on the eighth day of June, 1954. WHEREAs, The City of Newport Beach, in the County of Orange, State. of California, contains a population in excess of 3,500 inhabitants, as ascertained by the last preceding census taken under the authority of the Congress of the United States or of the Legislature of the State of California; and WHzREAs, Proceedings have been had in and taken by the said City of Newport Beach for -the preparation, proposal, adoption, and ratification of a charter for the government of said City of Newport Beach, all as set forth in the following certificate. of the former mayor and the masyor and city clerk of said City of Newport Beach, to wit: CERTIFICATE OF PROCEEDINGS HAD AND TAKEN BY THE CITY OF NEWPORT BEACH IN FRAMING A CHARTER FOR ITS - OWN GOVERNMENT STATE OF CALIFORNIA COUNTY OF ORANGE . CITY OF NEWPORT` BEACH } f We, the undersigned, Norman Miller, former Mayor, and Dora 0. Hill, Mayor of the City of Newport Beach, County of Orange, State of California, and C. K. Priest, City Clerk of said City and ex -officio Clerk of the City Council of said City, do hereby certify and declare as follows That the undersigned Norman Miller was at all times herein r mentioned prior to and including the 20th day of April, 1954; the Mayor of said City; that the undersigned,. Dora 0. Hill, ' was at all times herein mentioned from and after said date of April 20, 1954, and now. is the Mayor of said City and that the undersigned C. K. Priest was at all times herein mentioned the Clerk of the Legislative Body and City Clerk of the said City of Newport Beach; that on December 22nd, 1953, at a special election duly held in said City pursuant to a petition signed by not less than 15 percent of the registered electors thereof, a board of 15 freeholders was chosen by said electors to frame a charter for its own government consistent with and subject to the Constiti4ion of the State of California; that _4- within one year after the result of, the said election was de- clared, said board of freeholders did prepare and propose a charter for the government of said city which was signed by a majority of said board and filed in the office of the Clerk of the Legislative Body of said City; that within 15 days after such filing and on March 29, 1954, at a regular meeting of said City Council, said City Council by unanimous vote of those members present, 4 being present and 1 being absent, adopted a Resolution calling a special election to be held in the City of Newport Beach on the 8th day of June; 1954, being the date fixed by the board of freeholders before such filing and designated on such Charter for the purpose of submitting to the electors of said City, the proposition of the adoption of said City charter; requesting and authorizing the Board of Supervisors of the County of Orange to consolidate said spe- cial election with the primary statewide elections to be held on June 8, 1954, authorizing said Board of Supervisors to form the precincts, fix the polling places, appoint the precinct boards and canvass the returns of said special election and ordering the City Clerk to cause said proposed charter to be published and placed on the ballot and to do all other things necessary for said special election. That said charter was regularly published within three days after it was filed with the City Clerk once in the official news- . paper in said City and each edition thereof during the day of publication; that on March 30, 1954, at a regular meeting, the Board of Supervisors unanimously adopted a Resolution ordering a consolidation of said special election with the state- wide primary election to be held June 8, 1954; that on the following dates, to wit: April 1, 1954, April 8, 1954, April 15, 1954, April 22, 1954, April 29, 1954, May 6, 1954, May 13, 1954, May 20, 1954, May 27, 1954, and June 3, 1954, notice of said election was published in the Newport- Balboa Press, the official newspaper of said City, and on May 27, 1954 the County Clerk of the County of Orange, State of California, published a notice of said election in the Daily News Tribune, City of Fullerton, County of Orange, State of California, being a newspaper with general circulation in said .County; each publication above mentioned containing a notice,of the proposition to be voted on, the time of the election, a. brief statement of the contents of the charter, the voting precincts, the hours during which the polls would be open, and all other matters required therein. That notice that copies of the proposed Charter for the City' of Newport Beach as prepared by the said duly elected board of freeholders of said City could be had upon applica- tion therefor at the office of the CityoClerk of said City, and the date of said election was duly and regularly published !M40 in said Newport - Balboa Press on the following dates: April 1, 1954, April 8, 1954, April 15, 1954, April 22, 1954, April 29, 1954, May 6, 1954, May 13, 1954, May 20, 1954, May 27, 1954, and June 3, 1954, which said-notice contained a state- ment that copies of said charter could be had upon applica- tion therefor and the date of said election. That the population of the City 6f Newport Beach as ascertained by the last preceding census taken under the authority of Congress of the United States prior to June 8, 1954, showed that the City of Newport Beach had a popula- tion of less than 18,000; that on June 28, 1954, by Resolution regularly adopted by the unanimous vote of the Board of Supervisors of Orange County, said Board regularly declared the results of said special election to be that a majority of the people voting thereon voted yes on the proposition "Shall the Proposed Charter of the City of Newport Beach be Adopted", 3,703 voting yes and 864 voting no; that a majority of all votes cast on said proposition were in favor of the City of Newport Beach adopting said proposed charter. That said election was in all respects called, consolidated with said primary election, and held in accordance with the election laws of the State related to Cities of the Sixth Class; that said proposed charter was framed by said board of free- holders and was adopted, filed, published, presented to the voters of the City of Newport Beach and, adopted by said voters in strict accordance with and in compliance with, all of the requirements of the Constitution and the statutes of the State of California: That said charter so prepared, proposed, submitted, rati- fied, and adopted as herein set forth is in words and figures as followA: CHARTER OF THE CITY OF NEWPORT BEACH TABLE OF CONTENTS Article I. Incorporation and Succession , Section 100 Name and Boundaries Section 101 Succession, Rights and Liabilities Section 102 Ordinances Section 103 Continuance of Present Officers and Em- ployees Section 104 Continuance of Contracts and Public Improvements Section 105 Pending Actions and Proceedings, Section 106 Effective Date of this Charter — 6 _ Article IL Powers of City Section 200 Powers Article III. Form of Government Section 300 Form of Government Article IV. City Council Section 400 Elective Officers Section 401 Eligibility Section 402 Compensation Section 403 Vacancies Section 404 The Mayor. Mayor Pro Tempore Section 405 Powers Vested in the City Council Section 406: Interference in Administrative Service Section 407 Regular Meetings Section 408 Special Meetings Section 409 Place of Meetings Section 410 Quorum. Proceedings Section 411 Citizen Participation Section 412 Adoption of Ordinances and Resolutions Section 413 Ordinances. Enactment Section •414 Ordinances. Publication Section 415 Codification of Ordinances Section 416 Ordinances. When Effective Section 417 Ordinances. Violation. Penalty Section 418 Ordinances. Amendment Section ` 419 Publishing of Legal Notices Section 420 Contracts. Restrictions Section 421 Contracts. Execution Article V. City Manager. ' Section 500 City Manager Section 501 Residence Section 502 Eligibility Section 503 Compensation and Bond Section 504 Powers and Duties Section 505 Meetings Section 506 'Removal Section 507 Manager Pro Tempore Article VI. Officers and Employees Section 600 Officers to be Appointed by the City Council Section 601 Administrative Departments Section 602 City Attorney. Powers and Duties Section 603 City Clerk. Powers and Duties Section 604 City Treasurer Section 605 Director of Finance Section 606 Administering Oaths Section 607 Department Heads. Appointment Powers Section 608, Illegal Contracts. Financial Interest Section 609 Acceptance of Other Office Section 610 Nepotism Section 611 Official Bonds Article VII. Appointive Boards and Commissions Section 700 In General' Section 701 Appropriations Section 702 Appointments. Terms Section 703 Existing Boards Section 704 Meetings. Chairmen Section 705 'Compensation. Vacancies _ Section 706 Planning Commission. Members Section 707 Planning Commission. Powers and Duties Section 708 Board of Library Trustees. Powers and Duties _ Section 709 Parks, Beaches and Recreation Commission Powers and. Duties Section 710 Civil Service Board Section 711 Civil Service Board. Powers and Duties Article VIII. Civil Service System Section 800 Continuance of Present System Section 801 System to be Maintained 'Section 802 Positions Included in the System Section 803 Withdrawal from System Article I%. Retirement Section 900 State System Article X. EL Section 1000 Section 1001 Section 1002 Section 1003 Section 1004 Section 1005 Section 1006 Section 1007 Section 1008 Section 1009 Section 1010 Section 1011 Section 1012 Section 1013 actions General Municipal Elections Special Municipal Elections Procedure for Holding Elections Initiative, Referendum and Recall Electors Signing Nomination Petitions Districts First District Second District Third District Fourth District Fifth District Sixth District Seventh District Territory Not Specifically Described -8.— Article. %I. Fiscal Administration Section 1100 Fiscal Year Section 1101 Annual Budget. Preparation by the City Manager Section 1102 Budget. Submission to City Council Section 1103 Budget. Public Hearing Section 1104 Budget. Adoption Section 1105 Budget. Appropriations Section 1106 Centralized Purchasing Section 1107 Tax Limits Section 1108 Tax Procedure Section 1109 Bonded Debt Limit Section 1110 Contracts on Public Works Section 1111 Purchasing Supplies Section 1112 Cash Basis Fund Section 1113 Capital Outlays Fund Section 1114 Presentation of Demands Section 1115 Registering Warrants Section 1116 Actions Against City Section 1117 Independent Audit Article %II. Board of Education Section 1200 State Law Governs Section 1201 Effect of Charter Article %III. Franchises Section T300 Granting of Franchises Section 1301 Resolution of Intention. Notice and Public Hearing Section 1302 Terms of Franchise Section 1303 Grant to be in Lieu of all Other Franchises Section 1304 Eminent Domain Section 1305 Duties of Grantees Section 1306 Exercising Rights Without Franchise Article %IV. Miscellaneous Section 1400 Definitions Section 1401 Oil Well Drilling Section 1402 Water -Front Property Section 1403 Service and Utility Charges Section 1404 Violations Section 1405 Validity We, the People of the City of Newport Beach, State of California, do ordain and establish this Charter as the organic law of the City under the Constitution of the State. -9— Article I Incorporation and Succession Section 100. Name and Boundaries. The City of New- port Beach, hereinafter termed the City, shall continue to be a municipal corporation under its present name of "City of Newport Beach." The boundaries of the City shall be the boundaries as established at the time this Charter takes effect, and. as such boundaries may be changed thereafter in the manner authorized by law. Section 101. Succession, Rights and Liabilities. The City of Newport Beach shall continue to own, possess and control all rights and property of every kind and nature owned, pos- sessed or controlled by it at the time this Charter takes effect and shall be subject to all its debts, obligations, liabilities and contracts. Section 102. Ordinances. All lawful ordinances, resolu- tions, rules and regulations, and portions thereof, in force at the time this Charter takes effect, and not in conflict or in -_ consistent herewith, are hereby continued in force until the same shall have been duly repealed, amended, changed or superseded by proper authority. Section 103. Continuance of Present Officers and Em- ployees. The present officers and employees shall continue . without interruption to perform the duties of their respective offices and employments upon the same conditions and for the compensation provided by the existing ordinances, resolutions, rules or laws, until the election, or appointment, and qualifi- cation of their successors under this Charter and subject to such removal and control as is provided in this Charter. The terms of office of elective officers whose offices are made ap- pointive under this Charter shall expire upon the appointment of their successors, respectively. Section 104. Continuance of Contracts and Public Im- provements. All contracts entered into by the City, or for its benefit, prior to the taking of effect of this Charter, shall con- tinue in full force and effect. Public improvements for which proceedings have been instituted under laws existing at the time this Charter takes effect, in the discretion of the City Council, may be carried to completion as nearly as practicable in accordance with the provisions of such existing laws or may be continued or perfected under this Charter. Section 105. Pending Actions and Proceedings. No ac- tion or proceeding, civil or criminal, pending at the time when this Charter takes effect, brought by or against the City or any officer, office, department or agency thereof, shall be af- feeted or abated by the adoption of this Charter or by any- thing herein contained, but all such actions or proceedings i may continued notwithstanding that functions, powers and duties'. of any officer, office, department or agency party thereto, by or under this Charter, may be assigned or trans- ferred to another officer, department or agency, but in that event the same may be prosecuted or defended by the head of the office, department or agency to which such functions, powers and duties have been assigned.or transferred by or under this Charter. Section 106. Effective Date of This Charter. This Charter shall take effect upon its approval by the Legislature.. _ Article II Powers of City Section 200. Powers. The City shall have the power to make and enforce all laws, rules and regulations in respect to municipal affairs, subject only to such restrictions and limita- tions as may be provided in this Charter and in the Constitu- tion of the State of California. It shall also have the power to exercise, or act pursuant to any and all rights, powers, privi- leges, or procedures, heretofore or hereafter established, granted or prescribed by any law of the State, by this Charter, or by other lawful authority, or which a municipal corporation might or could exercise, or act pursuant to, under the Con- stitution of the State of California. The enumeration in this Charter of any particular power shall not be held to be ex- clusive of, or any limitation upon, the generality of the fore- going . provisions. Article III Form of Government Section 300. Form of Government. The municipal gov- ernment established by this Charter shall be known as the Council-Manager " form of Government. Article IV City Council Section 400. Elective Officers. The elective officers of the City shall consist of a City Council of seven members. Candi- dates for City Council shall be nominated from and by the electors of each of the seven districts referred to in Article % of this Charter and one shall be elected from each of such dis- tricts by the voters of the City at large at the times and in the manner provided in this Charter. They shall serve for a term of four years and until their respective successors are elected and qualified. -11— The five members of the City Council in office at the time this Charter takes effect shall continue in office until the first Tuesday following the first general municipal election under this Charter. At the first general municipal election under this Charter, the four candidates elected to the City Council with the highest number of 'votes shall serve until the third Tuesday in April, ,1958, and the members of the City Council from the districts 'from which said four candidates were nominated shall be elected at the general municipal election each fourth year thereafter..The remaining three candidates elected to the City Council shall serve until the third Tuesday in April, 1956, and the members of the City Council from the districts from which said three candidates were nominated,shall be elected at the general municipal election each fourth year thereafter. The term of each member of the City Council shall com- mence on the first Tuesday following his election. Ties in vot- ing among candidates for office shall be settled by the casting of lots. Section 401. Eligibility. No person shall be eligible to hold office as a member of the City Council unless he is, and shall have been for at least one year immediately preceding his nomination or appointment, a qualified elector of the dis- trict from which he is nominated or appointed, and for at least . three years immediately preceding his election or appointment, a qualified elector of the City. Section 402. Compensation. The members of the City Council shall receive no compensation for their services as such, but shall receive reimbursement on order of the City Council for Council authorized traveling and other expenses when on official duty. In addition, each member shall receive the sum of Fifty Dollars per month, which amount shall be deemed to be reimbursement of other out -of- pocket expendi- tures and costs imposed upon him in serving as a City Council- man. Absence of a Councilman from all regular and special meetings of the Council during any calendar month shall render such Councilman ineligible to receive such sum for such calendar month. Section 403. Vacancies. A vacancy in the City Council from whatever cause arising, shall be filled by appointment by the. City Council of a qualified person from the district in which the vacancy has occurred, such appointee to hold office until the first Tuesday following the next general municipal election and until his successor qualifies: At the next general municipal election following any vacancy, a Councilman shall be elected from the district in which the vacancy exists to serve for the remainder of the unexpired term. --12— If a member of the City Council absents himself from all regular meetings of the City Council for a period of sixty days consecutively from and after the last regular City Council meeting attended by such member, unless by permission of the City Council expressed in its official minutes, or is convicted of a crime involving moral turpitude, or ceases to be a quali- fied elector of his district, his office shall become vacant and shall be so declared by the City Council. In the event the City Council shall fail to fill a vacancy by appointment within thirty days after such office shall have been so declared vacant, it shall forthwith cause an election to be held to fill such vacancy from the proper district. Section 404. The Mayor. Mayor Pro Tempore. On the first Tuesday following any general or special municipal elec- tion at which any Councilman is elected, the City Council shall meet and shall elect one of its members as its presiding officer, who shall have the title of Mayor. The Mayor shall have a voice and vote in all its proceedings. He shall be the official head of the City for all ceremonial purposes. He shall have the primary but not exclusive responsibility for interpreting the policies, programs and needs of the City government to the people, and, as occasion requires, he may inform the people of any major change in policy or program. He shall perform such other duties consistent with his office as may be prescribed by this Charter or as may be imposed by the City Council. The Mayor shall serve in such capacity at the pleasure of the City Council. In addition to the payment for expenses as a Councilman under SectioiM02, the City Council may provide by resolution for the payment to the Mayor of an allowance of not exceeding Fifty Dollars per month to reimburse him for the additional demands made upon him and expenses incurred by him in serving as Mayor. The City Council shall also designate one of its members as Mayor Pro Tempers, who shall serve in such capacity at the pleasure of the City Council. The Mayor Pro Tempers shall perform the duties of the Mayor during his absence or dis- ability. Section 405. Powers Vested in the City Council. All powers of the City shall be vested in the City Council except as otherwise provided in this Charter. Section 406. Interference in Administrative Service. Neither the City Council nor any of its members shall interfere with the execution by the City Manager of his powers and duties, or order, directly or indirectly, the appointment by the City Manager or by any of the department heads in the ad- ministrative service of the City, of any person to an office or employment or his removal therefrom. Except for the purpose -13- of inquiry,.the City Council and its members shall deal with the administrative service under the City Manager solely= through the City Manager and neither the City Council nor any member thereof shall give orders to any subordinates of the City Manager, either publicly or privately. Section 407. Regular Meetings. The City Council shall hold regular meetings at least twice each month at such times as it shall fix by ordinance or resolution and may adjourn or re- adjourn any regular meeting to a date and hour eertab which shall be specified in the order of adjournment and when so adjourned each adjourned meeting shall be a regular meet- ing for all purposes. If the hour to which a meeting is ad- journed is not stated in the order of adjournment such meet- ing shall be held at the hour for holding regular meetings. If at any time any regular meeting,falls on a holiday such regu- lar meeting shall be held on the neat business day. Section 408. Special Meetings. Special meetings may be called at any time by the Mayor, or by four members of the City Council, by written notice delivered personally to each member at least twenty -four hours before the time specified for the proposed meeting. A special meeting may also be val- idly held without the giving of such written notice, if required to be held by this Charter or if all members shall give their consent, in writing, to the holding of such meeting and, such consent is on file in the office of the City Clerk at the time of such meeting. A telegraphic communication from a member consenting to the holding of a meeting shall be considered a consent in writing. At any special meeting only such matters may be acted upon as are referred to in such written notice or consent. Section 409. Place of Meetings. All meetings shall be held in the Council Chambers of the City Hall, or in such place to which any such meeting may be adjourned, and shall be open to the public. If, by reason of fire, flood or other emer- gency, it shall be unsafe to meet in the place designated, the meetings may be held for the duration of the emergency at such place as is designated by the Mayor, or, if he should fail to act, by four members of the City Council. Section 410. Quorum. Proceedings, A majority of the members of the City Council shall constitute a quorum to do business but a less number may adjourn from time to time. In the absence of all the members of the Council from any regular meeting or adjourned regular meeting, the City Clerk - may declare the same adjourned to a stated day and hour. Notice of a meeting adjourned by less than a quorum or by the Clerk shall be given by the Clerk or may be waived by consent in the same manner as specified in this Charter for the giving or waiving of notice of special meetings of the — 14 — City.Council; but need not specify the matters to be acted upon. The City Council shall judge the qualifications of its members asset forth by the Charter. It shall judge all election returns.. It may establish rules for the conduct of its proceed- ings and evict or prosecute any member or other person for disorderly conduct at any of its meetings. Each member of the City Council shall have the power to administer oaths and. affirmations in any investigation or pro- ceeding pending before the City Council. The City Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and to compel the production of evidence before it. Subpoenas shall be issued in the name of the City and be attested by the City Clerk. Dis- obedience of such subpoenas, or the refusal to testify (upon other than constitutional .grounds), shall constitute a mis- demeanor, and shall be punishable in the same manner as violations of this Charter are punishable. At the demand of any member, and upon the adoption of any ordinance, resolution, or order for the payment of money, the City Clerk shall call the roll and shall cause the ayes and noes taken on such questions to be entered in the minutes of the meeting. Section 411. Citizen Participation. No citizen shall be denied the right, personally or through counsel, to present grievances at any regular meeting of the City Council, or offer suggestions for the betterment of municipal affairs. Section 412. Adoption of Ordinances and Resolutions. With the sole exception of ordinances which take effect upon adoption, referred to in this Article, no ordinance shall be adopted by the City Council on the day of its introduction, nor within five days thereafter nor at any time other than at a regular or adjourned regular meeting. At the time of its introduction an ordinance shall become a part of the pro- ceedings of such meeting in the custody of the City Clerk. At the time of adoption of an ordinance or resolution it shall be read in full, unless after the reading of the title thereof, the further reading thereof is waived by unanimous consent of the Councilmen present. In the event that any ordinance is altered after its introduction, the same shall not be finally adopted except at a regular or 'adjourned regular meeting held not less than. five days after the date upon which such ordinance was so altered. The correction of typographical or clerical errors shall not constitute the making of an alteration within the meaning of the foregoing sentence. No order for the payment of money shall be adopted or made at any other than a regular or adjourned regular meeting. Unless a higher vote is required by other provisions of this Charter, the affirmative votes of at least four members of the City Council shall be required for.the enactment of, any -or- dinance or resolution, or for the making or approving of any order for the payment of money. All ordinances and resolu- tions shall be signed by the Mayor and attested by the City Clerk. Any ordinance declared by the City Council to be necessary as an emergency measure for preserving the public peace, health or safety, and containing a statement of the reasons for its urgency, may be introduced and adopted at one and the same meeting if passed by at least five affirmative votes. Section 413. Ordinances. Enactment. In addition to such other acts of the City Council as are required by this Charter to be by ordinance, every act of the City. Council establishing a fine or other penalty, or granting a franchise, shall be by ordinance. The enacting clause of all ordinances shall be substhntially as follows: "The City Council of the City of Newport. Beach does ordain as follows: ". Section 414. Ordinances. Publication: The City Clerk shall cause each ordinance to be published at least once in the official newspaper within fifteen days after its adoption. Section 415. Codification of Ordinances. Any or all or- dinances of the City which have been enacted and published in the manner required at the time of their adoption, and which have not been repealed, may be compiled, consolidated, revised, indexed and arranged as a comprehensive ordinance code, and such code may be adopted by reference, with the same effect as an ordinance, by the passage of an ordinance ,for such purpose. Such code need not be published in the manner required for other ordinances, but not less than three copies thereof shall be filed for use and examination by the public in the office of the City Clerk prior to the adoption thereof. Ordinances codified shall be repealed as of the effec- tive date of the code. Amendments to the code shall be en -, acted in the same manner as ordinances. Detailed regulations pertaining to the construction of build- ings, plumbing and wiring, when arranged as a comprehensive code, may likewise be adopted by reference in the manner pro- vided in this Section. Maps, charts and diagrams also may be adopted by reference in the same manner. Section 416. Ordinances. When Effective. No ordinance shall become effective until thirty days from and after the date of its adoption, except the following, which shall take effect upon adoption: (a) An ordinance calling or otherwise relating to an elec- tion. _16— (b)• An improvement proceeding ordinance adopted under' some law or procedural ordinance (e) An ordinance declaring the amount of money necessary to be raised by taxation, or fixing the rate of taxation, or levy - ing the annual tax upon property. (d) An emergency ordinance adopted in the manner pro- vided for in this Article. Section 417. Ordinances. Violation. Penalty. A violation of any ordinance of the City shall constitute a misdemeanor and may be prosecuted in the name of the People of the State of California or may be redressed by civil action. The max- imum fine or penalty for any violation of a City ordinance shall be the sum of One Thousand Dollars, or a term of im- prisonment for a period not exceeding six months, or both such fine and imprisonment. The City Council may provide by ordinance that persons imprisoned in the City jail for viola- tion of law or ordinance may be compelled to labor on public works. Section 418. Ordinances. Amendment. The amendment of any section or sections of an ordinance may be accomplished solely by the re- enactment of such section or sections at length, as amended. Section 419. Publishing of Legal Notices. In the event that there is more than one newspaper of general circulation published and circulated in the City, the City Council, an- nually, prior to the beginning of each fiscal year, shall publish a notice inviting bids and contract for the publication of all legal notices or other matter required to be published in a newspaper of general circulation in said City, during the en- suing fiscal year. In the event there is only one newspaper of general circulation published and circulated in the City, then the City Council shall have the power to contract with such newspaper for the printing and publishing of such legal notices or matter without being required to advertise for bids therefor. The newspaper with which any such contract is made shall be designated the official newspaper for the publication of such notices or other matter for the period of such contract. In no case shall the contract prices for such publication ex- ceed the customary rates charged by such. newspaper for the publication of legal notices of a private character. In the event there is no newspaper of general circulation published and circulated in the City, then all legal notices or other matter may be published by posting copies thereof in at least three public places in the City. No defect or irregularity in proceedings taken under this Section, or failure to designate an official newspaper, shall in- validate any publication where the same is otherwise in con- formity with this Charter or law or ordinance. 17 Section 420. Contracts. Restrictions. The City. Council shall not have the power to make or authorize any contract or lease or extension thereof for a longer period than twenty -five years unless said contract, lease or 'extension be approved by a majority of.the qualified electors of the City voting on such question at any election. A contract, lease or, extension for a longer period shall be valid without such approval if it pro- vides for the acquisition by the City at the end of such period of the real or personal property so leased or contracted for. This Section shall not apply'to any franchise granted pur- suant to the provisions of this Charter or to any contract for the furnishing, or acquisition of the products, commodity or services of any public utility. Section 421. Contracts. - Execution. The City shall not be bound by any contract, except as hereinafter provided, unless the same shall be made in writing, approved by the City Conn- cil and signed on behalf of the City by the Mayor and City r Clerk or by such other officer or officers as shall be designated by the City Council. Any of said officers shall sign a contract on behalf of the City when directed to, do so by the City Council. By ordinance or resolution the City Council may authorize the City Manager to bind the City, with or without a written contract, for the acquisition of equipment, materials,-supplies, labor,. service or other items included within the budget ap- proved by the City Council, and may impose a monetary limit upon such authority. The City Council may by ordinance or resolution provide a method for the sale or exchange of personal property not needed in the City Service or not fit for the purpose for which intended, and for the conveyance of title thereto. Contracts for the sale of the products, commodities or serv- ices of any public utility owned, controlled or operated by the City may be made by the manager of such utility or by the head of the department or City Manager upon forms approved by the City Manager and at rates fixed by the City Council. The provisions of this Section shall not apply to the services rendered by any person in the employ of the City at a regular salary. Article V City Manager Section 500. City Manager. There shall be a City Man - ager appointed by the City Council who shall be the chief administrative officer of the City. In the. selection of a City Manager the City Council shall screen all qualified applicants and other qualified persons known by the Council to be avail- able. It shall appoint by a majority vote, the person that it 2-ACR 1 believes to be best qu9lified on the basis of his executive and administrative qualifications, with special reference to his ex- perience in, and his knowledge of, accepted practice in respect to the duties of the office asset forth in this Charter. The City Manager shall serve at the pleasure of the City Council. Section 501. Residence. The City Manager need not be a resident of the City at the time of his appointment, but he shall establish his residence within the City within ninety days after his appointment, unless such period is extended by the City Council, and thereafter maintain his residence within the City during his tenure of office. Section 502. Eligibility. No person shall be eligible to receive appointment as City Manager while serving as a mem- ber of the City Council nor within one year after he has ceased to be a City Councilman. Section 503. Compensation and Bond. The City Manager shall be paid a salary commensurate with his responsibilities as chief administrative officer of the City, which salary shall be established by ordinance or resolution. The City Manager shall furnish a corporate surety bond conditioned upon the faithful performance of his duties in such form and in such amount as may be determined by the City Council. Section 504. Powers and Duties. The City Manager shall be the head of the administrative branch of the City govern- ment. He shall be responsible to the City Council for the proper administration of all affairs of the City. Without lim- iting the foregoing general grant of powers, responsibilities and duties, the City Manager shall have power and be re- quired to: (a) Appoint, and he may suspend or remove, subject to the provisions of this Charter, all department heads and officers of the City except elective officers and those department heads and officers the power of whose appointment is vested by the Charter in the City Council, and approve or disapprove all proposed appointments and removals of subordinate em- ployees by officers or department heads. (b) Prepare the budget annually, submit sneli budget to the City Council and be responsible for its administration after its adoption. (c) Prepare and submit to the City Council as of the end of the fiscal year a complete report on the finances and admin- istrative activities of the City for the preceding fiscal year. (d) Beep the City Council advised of the financial condi- tion and future needs of the City and make such recommenda- tions as may seem to him desirable. (e) Establish a centralized purchasing system for all City offices, departments and agencies. n' —19 —: (f) Prepare rules and regulations governing the eontraet- ing for, purchasing, storing, distribution, or disposal of all supplies, materials and equipment required by any office, 'de- partment or agency of the City government and recpmmend them to the City Council for adoption by it. (g) See that the laws of the State pertaining to the City, the provisions of this Charter and the ordinances of the City are enforced. (h) Exercise control of all administrative offices and de- partments of the City and of all appointive officers and em- ployees except those directly appointed by the City Council and prescribe such general rules and regulations as he may deem necessary or proper for the general conduct of the ad- ministrative offices and departments of. the City under his jurisdiction. (i) Perform such other duties consistent with this Charter as may be required of him by the City Council. Section 505. Meetings. The City Manager shall be . ac- corded a seat at the City Council table and at all meetings of boards and commissions and shall be entitled to participate in their deliberations; but shall not have a vote. Section 506. Removal. The City Manager shall not be re- moved from office during or within a period of ninety days next succeeding any municipal election at which a member of the City Council is elected. At any other time the City Man- ager may be removed only at a regular meeting of the City Council and upon the affirmative votes of a majority of the members of the City Council. Section 507. Manager Pro Tempore. The City Manager shall appoint, subject to the approval of the City Council, one of the other officers or department heads of the City to serve as Manager Pro Tempore during any.temporary absence or disability of the City Manager. If he fails to make such ap- pointment, the City Council may appoint an officer or depart- ment head to serve as such Manager Pro Tempore. Article VI Officers and Employees Section 600. Officers to be Appointed by the City Council. In addition to the City Manager, there shall be a City Attor- ney, a City Clerk and a City Treasurer, who shall be ap- pointed by and serve at the pleasure of the City Council and may be removed only upon the affirmative votes of a majority of the members of the City Council. Section 601. Administrative Departments. The City Coun- cil may provide, by ordinance not inconsistent with this Char - ter, for the organization, conduct and operation of the several 2Q - offices and departments of the City. as established by this Charter, and for the creation of additional departments, divi -, sions, offices and agencies and for ,their consolidation, alters - tion, or abolition. Each new department created by the City Council shall be headed by an officer as department head who shall be appointed and may be suspended or removed by the City Manager. The City Council, by ordinance or resolution, may assign additional functions or duties to offices, departments or agen- cies not inconsistent with this Charter. Where the positions are not incompatible, the City Council may combine in one person the powers and duties of two or more offices created or authorized by this Charter. No office provided in this Charter to be filled by appointment by the City Manager may be con- solidated with an office to -be filled by appointment by the City Council. The City Council shall provide for the number, titles, qualifications, powers, duties and compensation of all officers and employees. y Section 602. City Attorney.. Powers and Duties. To become and remain eligible for City Attorney the person ap- pointed shall be an attorney at law duly licensed as such under the laws of the State of California, and shall have been engaged in the practice of law for at least three years prior to his appointment. The City Attorney shall have power and may be required to: (a) Represent and advise the City Council and all City officers in all matters of law pertaining to their offices. (b) Prosecute on behalf of the people any or all criminal cases arising from violation of the provisions of this Charter or of City ordinances. .(c) Represent and appear for the City in-any or all actions . or proceedings in which the City is concerned or is a party, and represent and appear for any City officer or employee, or. former City officer or employee, in any or all actions or pro- ceedings in which any such officer or employee is concerned or is a party for any act arising out of his employment or by reason of his official capacity. (d) Attend all regular meetings of the City Council and give his advice or opinion in writing whenever requested to do so by the City Council or by any of the boards or officers of the City. (e) Approve the form of all contracts made by and all bonds given to the City, endorsing his approval thereon in writing. (f) Prepare any and all proposed ordinances and resolu- tions for the City and amendments thereto. -21— (g) Devote such time to the duties of his office as may be specified in the ordinance or resolution fixing the compensa- tion for such office. (h) Surrender to his successor all books, papers, files and documents pertaining to the City's affairs. The City Council shall have control of all legal business and proceedings and may employ other attorneys to take charge of any litigation or matter or to assist the City Attor- ney therein. Section 603. City Clerk. Powers and Duties. The City Clerk shall have power and be required to: (a) Attend all meetings of the City Council unless excused and be responsible for the recording and maintaining of a full and true record of all of the proceedings of the City Council in books that shall bear appropriate titles and be devoted to such purpose. (b) Maintain separate books, in which shall be recorded respectively all ordinances and resolutions, with the certificate of the Clerk annexed to each thereof stating the same to be the original or a correct copy, and as to an ordinance requir- ing publication, stating that the same has been published or posted in accordance with this Charter; keep all books,prop- erly indexed and open to public inspection when not in actual use. (c) Maintain separate books, in which a record shall be made of all written contracts and official bonds. (d) Be the custodian of the seal of the City. (e) Administer oaths or affirmations, take affidavits and depositions pertaining to the affairs and business of the City and certify copies of official records. (f) Be ex- officio Assessor, unless the City Council has availed itself, or does in the future avail 'itself, of the provi- sions of the general laws of the State relative to the assessment of property and the collection of City taxes by county officers, or unless the City Council by ordinance provides otherwise. (g) Have charge of all City elections. (h) Perform such other duties consistent with this Charter as may be required of him by ordinance or resolution of the City Council. Section 604. City Treasurer. The City Treasurer. shall have power and shall be required to: (a) Receive all taxes, assessments, license fees and other revenues of the City, or for whose collection the City is re- sponsible, and receive all taxes or other money receivable by the City from the County, State or Federal Government, or from any Court, or from any office, department, or agency of the City. -22— (b) Have custody of allpublic funds belonging to or under coniroliof the City or any office, department or agency of the City::government and deposit all funds coming into his hands Iii such depository as may be designated by, resolution of the City Council, or, if no such resolution be adopted, then in such. ' depository, designated in writing by the City Manager, and in compliance with all of the ' provisions of the State Constitution and laws of the State governing the handling, depositing and securing of public funds. (a) Disburse moneys on demands audited in the manner provided for in this Charter. (d) Prepare and submit to the Director of Finance monthly written reports of all receipts, disbursements and fund bal- anges,icopies of which reports shall be filed with the City' Manager. (e) - Perform such other duties consistent with this Charter as may be required of hi& by ordinance or resolution of the City Council. -Section 605. Director of Finance. There shall be a Di- rector of Finance appointed by the City Manager and subject to suspension or removal by the City Manager who shall have, power. and shall be required to: . . (a) Have charge of the administration of the financial affairs of the City under the direction of the City Manager, and be head of the Finance Department of the City. (b),Compile the. budget expense and income estimates for the City Manager. (c) Maintain a general accounting system for the City gov- ernment and each of its offices, departments and agencies. (d) Supervise and be responsible for the disbursement of all moneys and have control of all expenditures to insure that budget appropriations are not exceeded; ,audit all purchase orders . before- issuance; audit and approve before payment, all bills, -invoices; payrolls, demands or charges against the City government and, with the advice of the City Attorney, when necessary, determine the regularity, legality and correctness; of such claims, demands,or charges. , (e) See that all taxes, assessments, license fees and other revenues, of the City, or for whose collection the City is.re- sponsible, and all other money receivable by the City from the County, State or .Federal Government, or from any court, office, department or agency of the City are collected. (f) Submit to the City Council through the City Manager a monthly statement of all receipts and disbursements in suffi- eient detail to show the exact financial condition of the City; and, as of the end of each fiscal year, submit a complete finan- cial statement and report. _ 23 (g) Supervise the keeping of current inventories of all property of the City by all City departments, offices and agencies.. (h) Perform such other duties consistent with this Charter as may be required of him by ordinance or resolution of the City Council. Section 606. Administering Oaths. Each department head and his deputies shall have the power to administer oaths and affirmations in connection with any official business pertaining to his department. Section 607. Department Heads. Appointment Powers. Each department head and appointive officer shall have the power to appoint, suspend and remove such deputies, assist- ants, subordinates and employees as are provided for by the City Council for his department or office, subject to the provi- sions of this Charter and of any personnel, merit or civil service system adopted hereunder. Any such appointment or removal by a department head appointed by the City Manager shall be subject to approval by the City Manager. Section 608. Illegal Contracts. Financial Interest. No member of the City Council, department head or other officer of the City (except,a member of any board or commission), shall be financially interested, directly or indirectly, in any contract, sale or transaction to which the City is a party. No member of any board or commission shall be financially interested, directly or indirectly, in any contract, sale or trans- action to which the City is a party and which comes before the board or commission of which such person is a member for approval or other official action or which pertains to the de- partment, office or agency of the City with which such board or commission is connected. Any contract, sale or transaction in which there shall be such an interest, as specified in this Section, shall become void at the election of the City when so declared by resolution of the City Council. No member of the City Council, department head or other officer of the City, or member of any board or commission shall be deemed to be financially interested, within the meaning of the foregoing provisions, in any contract made with a corpora- tion where his only interest in the corporation is that of a stockholder and the stock owned by him shall amount to less than three per cent of all the stock of such corporation issued and outstanding. If any member of the City Council, department head or other officer of the City, or member of a board or commission shall be financially interested as aforesaid, upon conviction thereof he shall forfeit his office.in addition to any other pen - alty, which may be imposed for such violation of this Charter. -24— Section 609. Acceptance of Other Office. Any elective.'of- fieer of the City who shall acceptor retain any other elective public office, except as provided in this Charter,. shall be deemed thereby to have vacated his office under the City "Gov- ernment. Section 610. Nepotism. The City Council shall not ap= point to a salaried position under the City government any person who is a relative by blood or marriage within the third degree of any one or more of the members of such City,Coun- cil, nor shall any department head or other, officer having ap- pointive power appoint any relative of his within such degree to any such position. This section, however, shall not apply to the probationary or permanent appointment of any person to a position included in the Civil Service System: Section 611. Official Bonds.. The City Council shall fix liy ordinance or resolution the amounts and terms of the official bonds of all officials 'or employees who are required by thus Charter or by ordinance to give such bonds. All bonds shall be executed by responsible corporate surety, shall be approved as to form by the City Attorney, and shall be filed with the City Clerk. Premiums on official bonds shall be paid by the City. There shall be no personal liability upon, or any right to're- cover against, a superior officer, or his bond, for any wrongful act or omission of his subordinate, unless such superior officer was a party to, or conspired in, such wrongful act or omission. Article VII Appointive Boards and Commissions Section 700. In General. There shall be the following named boards and commissions which shall have the powers and duties, herein stated. In addition, the City Council may create by ordinance such additional advisory boards or com- missions as in its judgment are required, and may grant to them such powers and duties as are consistent with the pro- visions of this Charter. Section 701. Appropriations.. The City Council shall in- clude in its annual budget such appropriations of funds as in its opinion shall be sufficient for the efficient and proper func- tioning of such boards and commissions. ' Section 702: Appointments. Terms. The m e m b e r s of . each of such boards or commissions shall be appointed by the City Council from the qualified electors of the City, none of whom shall hold any paid office or employment in the City government. They shall be subject to removal by motion of the City Council adopted by at least four affirmative votes.- The -25— members thereof shall serve for a term of four years and until their respective successors are appointed and qualified. The members first appointed to such boards and commissions shall so classify themselves-by lot that the term of one of each of their number shall expire each succeeding July first. Where the total number of the members of a board or commission to be appointed exceeds four, the classification by lot shall pro- vide for the pairing of terms to such an extent as is necessary in order that the terms of at least one and not more than two shall expire in each succeeding year. Thereafter, any appoint- ment to fill an unexpired term shall be for such unexpired period. Section 703. Existing Boards. The respective .terms of office of all members of the boards and commissions in existence at the time this Charter takes effect shall terminate upon the effective date, of this Charter. The present members of the boards and. commissions which will continue in effect under this,Chartr shall be deemed reappointed to the respective boards and commissions of which they are members as first appointed members thereof under this Charter. Section 704. Meetings. Chairmen. As soon as practi- cable, following the first day of July of every year, each of such boards and commissions shall organize by electing one of its members to serve as presiding officer at the pleasure of such board. or commission. Each board or commission shall hold regular meetings at least once each month and such special meetings as such board or commission may require. All pro- ceedings shall be open to the public. Except as may be otherwise provided in this Charter, the City Manager shall designate a secretary for the recording of minutes for each of such boards and commissions, who shall keep a record of its proceedings and transactions. Each board or commission may prescribe its own rules and regulations which shall be consistent with this Charter and copies of which shall be kept on file in the office of the City Clerk where they shall be available for public inspection. Each board or com- mission shall have the same power as the City Council to compel the attendance of witnesses, to examine them under oath, to compel the production of evidence before it and to ad- minister oaths and affirmations. Section 705. Compensation. Vacancies. The members of boards and commissions shall serve without compensation for their services as such, but may receive reimbursement for necessary traveling and other expenses incurred on official duty when such expenditures have received authorization by the City Council. Any vacancies in any board or commission, from whatever cause arising, shall be filled by appointment by the City _26_ Council. Upon a vacancy occurring leaving an -unexpired por- tion of a term, any appointment to fill such -vacancy shall be for 'the unexpired portion of such term. If a member of a board or commission absents himself from three consecutive regular meetings of such board or commission, unless by per - mission of such board or commission expressed in its official minutes, or is convicted of a crime involving moral turpitude, or ceases to be a qualified elector of the City, his office shall be- come vacant and shall be so declared by the City Council.. Section 706. Planning Commission. Members. T h e r e shall be a Planning Commission consisting of seven members. The City Engineer and City Attorney, or their %assistants, shall meet with and participate in the discussions of the Plan - ning Commission but shall not have a vote. Section 707. Planning Commission. Powers and Duties. The Planning Commission shall have the power and be re- quired to: (a) After a public hearing thereon, recommend to the +City Council the adoption, amendment or repeal of a Master Plan, or any part thereof, for the physical development of the City. (b) Exercise such control over land subdivisions as is granted to it by ordinance not inconsistent with the provisions of this Charter. (c) Make recommendations to the City Council concerning proposed public works and for the clearance and rebuilding of blighted or substandard areas within the City. (d) Exercise such functions with respect to zoning and land use as may be prescribed by ordinance not inconsistent with the provisions of this Charter. Section 705. Board of Library Trustees. Powers and Duties. There shall be a Board of Library Trustees consisting of five members which shall have the power and duty to: (a) Have charge of the administration of, City libraries and make and enforce such by -laws, rules and regulations as may be necessary therefor. (b) Designate its own secretary. (c) Consider the annual budget for library purposes dur- ing the process of its preparation and make recommendations with respect thereto to the City. Council and City Manager. (d) Purchase and acquire .books, journals, maps; publica- tions and other supplies peculiar to the needs of the library, subject, however, to the limitations of the budget for such purposes. The expenditure and disbursement of funds for such purchases shall be made and approved as elsewhere in this Charter provided. (e) Approve or disapprove the appointment, suspension or removal of the Librarian, who shall be the department head. -27— (f) Accept money, personal property or real estate donated to the City for library purposes, subject to the approval of the City Council. (g) Contract with schools, county or other governmental agencies to render or receive library services or facilities, sub ject to the approval of the City Council. Section 709. Parks, Beaches and Recreation Commission. Powers and Duties. There shall .be a Parks, Beaches and Recreation Commission consisting of seven members. The Parks, Beaches, and Recreation Commission shall have . the power and duty to: I (a) Act in an advisory capacity to the City Council in all matters pertaining to parks, beaches, recreation, parkways and street trees. (b) Consider the annual budget for parks, beaches, recrea- tion, parkways and street tree, purposes during the process of its preparation and make recommendations with respect thereto to'the City Council and the City Manager. (c) Approve or disapprove the appointment, suspension or removal of the Recreation Director who shall be the depart- went head. (d) Assist in the planning of parks and recreation pro= grams for the inhabitants of the City, promote and stimulate public interest therein, and to that end solicit to the fullest -extent possible the cooperation- of.school authorities and other public and private agencies interested: therein. (e) Establish policies for the acquisition, development and improvement of parks, beaches and playgrounds and for the planting, care and removal of trees and shrubs in all parks, playgrounds and streets, subject to the rights and powers of the City Council. (f) Perform such other. duties as may be prescribed by ordinance not inconsistent with the provisions of this Charter. Section 710. Civil Service Board. The Civil Service Board shall consist of five members, none of whom while a member of the board, or for a period of one year after he has ceased for any reason to be a member, shall occupy or be eligible for appointment to any salaried office or employment in the service of the City. The members of the Civil Service Board shall be nominated and appointed in the following manner. Two members shall be appointed by the City Council from a list of five persons to be nominated by vote of the employees in the Classified Service, two members shall be appointed by the City Council directly, and the fifth shall be appointed by the City Council from a list of three persons nominated by a majority of the four thus appointed. The successor of any member of the -25— board shall be nominated and - appointed. in the same. manner ' as such member was nominated and appointed. Section 711. Civil Service Board. Powers and, Duties. . The Civil'Service Board shall have. the power and duty to: (a) Recommend to the City Council, after a public hearing thereon, the adoption, amendment or repeal of civil service rules and regulations: (b) Act in an advisory capacity to the City Council on problems concerning personnel administration. (c) Hear appeals of any person in the City employment relative to any suspension, demotion or dismissal and make findings and recommendations thereon. (d) Make any investigation concerning the administration of personnel in the municipal service and report its findings' to the City Council and City Manager when requested to do so by the City Council, the City Manager or by any organized . City employees' association. (e) Perform such other duties as may be prescribed by ordinance. Article VIII Civil Service System Section 800. Continuance of Present System. The civil service system existing at the time this Charter takes effect, to the extent that the same is not inconsistent with any of the provisions of this Charter, is hereby continued in existence subject to all of the terms and provisions of this Charter and subject to amendment by proper authority as in this Charter provided. Section 801. System to Be Maintained. The City Council shall by ordinance continuously maintain a civil service system for the selection, employment, classification, advancement, sus- pension and discharge of those appointive officers and em- ployees who shall be included in the system. The system shall comply with all other provisions of this Charter. Section 802. Positions included in the System. The civil service system shall include all full time, regular and per- manent positions or employment on the Police and Fire Departments of the City and may, by ordinance, include any other appointive officers or positions in the service of , the City except the following: 1. All elective officers. 2. City Manager, Assistant City Manager, if any, one private secretary to the City Manager, City Attorney, Assistant City Attorney, if any, City Clerk, City Treasurer, Di- rector of Finance, City Engineer, all Department Heads, -29 — and all employees of the Library Department, including the Librarian: 3.'All members of boards and commissions. 4. Positions in any class or, grade created for a special or temporary purpose and which may exist for a period of not longer than six months in any one calendar year. 5. Persons employed to render professional, scientific, tech- nical or expert service: 6. Persons who render part -time service without pay or who are paid on an hourly or per diem basis. Section 803' Withdrawal From System. After inclusion in the system, any departments or appointive officers or em- ployees shall not be withdrawn therefrom, either by an out- right repeal of the civil service ordinance or otherwise, unless such withdrawal has been submitted to the city electors at a special or regular municipal election and approved by a majority of two - thirds of those electors voting on the propo- sition. Article I% Retirement Section 900. State System. Plenary authority and power are hereby vested in the City, its City Council and its several officers,' agents and employees to do and perform any act, and to exercise any authority granted, permitted, or required under the provisions of the State Employees' Retirement Act, as it now exists or hereafter may be amended, to enable the City to continue as a contracting City under the State Em- ployees' Retirement System. The City Council may terminate any contract with the Board of Administration of the State Employees' Retirement System only under authority granted by ordinance adopted by a majority vote of the electors of the City, voting on such proposition at an election at which such proposal is presented. Article X Elections Section 1000. General :Municipal Elections. The first gen- eral municipal election under this Charter, for the purpose of electing the seven members of the City Council, shall be held on the tenth Tuesday following the approval of this Charter by the Legislature unless said day is a holiday in which event said election shall be held on the next following day. There- after general municipal elections for the election of officers and for such other purposes as the City Council may prescribe shall be held in the City on the second Tuesday in April in each even numbered year commencing with the second Tues- day in April, 1956. 30 — Section 1001. Special Municipal Elections. All other municipal, elections that may be held by authority of this Charter, or of any law, shall be ]mown as special municipal elections. Section 1002. Procedure for holding Elections. Unless otherwise provided by ordinance hereafter enacted, all elec- tions shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now exist or hereafter may be amended, for the holding of munici- pal elections so far as the same are not in conflict with this Charter. 1, Section 1003. Initiative, Referendum and Recall. There are hereby reserved to the electors of the City the powers of the initiative and referendum and of the recall' of municipal elective officers. The provisions of the Elections Code of the State of California, as the same now exist or hereafter may be amended, governing the initiative and referendum and the recall of municipal officers, shall apply to the use thereof in the City so far as such provisions of the Elections Code are not in conflict with the; provisions of this Charter. Section 1004. Electors Signing Nomination Petitions. The electors signing any petition for the nomination of any person to the office of Councilman shall be residents of the district from which such person is to be nominated. Only the names of electors who are residents of such district shall be counted in determining the sufficiency of any such petition. Section 1005. Districts. The City is hereby divided into seven districts, the names and respective boundaries of which shall be as hereinafter in this Article provided. In 1959 and each fourth year thereafter the City Council shall appoint a committee to study and report to the City Council on the advisability of redistricting the City. Upon receipt of any such committee report, and at any other time deemed necessary or desirable in order that the district bound- aries be fair and logical, the City Council may by ordinance change and redefine the boundaries of any or all of the seven districts herein established. The boundaries so defined shall be established in such manner that the districts shall, as nearly as practicable, constitute natural areas of contiguous and com- pact territory and provide fair representation on the City Council. Any territory hereafter annexed to or consolidated with the City shall, at the time of such annexation or con- solidation, be added by ordinance of the City Council to an adjacent district or districts. Section 1006 First District The First District shall include all that portion of the City included within the following described boundary line, to -wit: Beginning at an angle point in the boundary line of the City of Newport Beach, said angle point being the intersection of the northeasterly prolongation of the southeasterly line of Summit Street, as said street is laid out and shown upon a map of Seashore Colony Tract, recorded in Miscellaneous Maps Book 7, page 25, Records of Orange County, California, with the northeasterly right of way line of the State Highway ORA -60 -A, being 901 feet'in width; thence generally northerly and easterly along the boundary line of the City of Newport Beach through its various courses to an intersection with the southeasterly line of Superior Avenue, thence southwesterly along the southeasterly line of Superior Avenue to an inter- section with the boundary line of the City of Newport Beach; thence generally southerly and westerly along said boundary line of the City of Newport Beach through its various courses to an angle point in said City Boundary line, said angle point being the intersection of the said northeasterly prolongation of the southeasterly line of Summit Street and a line lying distant 1 foot northeasterly of, parallel to, the said north -. easterly right of way line of the State Highway ORA -60 -A; thence generally easterly along the City Boundary line through its various courses to an intersection with the northerly right of way line of said State Highway ORA -60 -A, one hundred feet (100') in width; thence southeasterly along said City Boundary line and along the said northerly right of way line to its intersection with the center .line of the State Highway ORA -43 -A; thence southerly along said center line of said State Highway ORA -43 -A to an intersection with the "Line of Mean High Tide," designated "North Line" by Superior Court Case No. 23686; thence easterly in a straight line to a point, said point being the intersection of -a line lying north- erly of, parallel to, and distant 350 feet from the U. S. Bulk- head line between U. S. Bulkhead Stations Nos. 175 and 170, and a line lying northeasterly of, parallel to, and distant 300 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 124 and 125; thence southeasterly along said last mentioned parallel line to an intersection with the north- erly prolongation of the center line of 15th Street; thence southerly along said northerly prolongation and along said center line of 15th Street and its southerly prolongation to an intersection with the line of Ordinary,High Tide of the Pa- cific Ocean; thence northwesterly along said line of Ordinary —'32 — High Tide to an intersection with the southwesterly prolonga- tion of the said southeasterly line of Summit Street, said line being in the westerly Boundary line of the City of Newport Beach; thence northeasterly along said Boundary line to the point of beginning. Section 1007 Second District The Second District shall include all that portioit of the City included within the following described boundary line, to -wit: Beginning at the intersection of the ordinary high tide line of the Pacific Ocean and the southerly prolongation of the center line of 15th Street; thence northerly along said south- erly prolongation and along said center line of 15th Street and its northerly prolongation to an intersection with a line lying northeasterly of, parallel to and distant 300 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 124 and 125; thence northwesterly along said parallel line to an intersection with a line lying southerly of parallel to, and distant 500 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 172 and 173; thence southeasterly along said parallel line to an intersection with the northeast- erly prolongation of the center line of 9th Street; thence northeasterly to a point said point being the intersection of a line lying northerly of and parallel to and distant 150 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 151 and 152, and a line lying southwesterly of parallel to, and distant 350 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 256 and 258; thence southeast- erly-along last mentioned parallel line to an intersection with a line lying southerly of, parallel to, and distant 500 feet from the U. S. Bulkhead line between -the U. S. Bulkhead Stations Nos. 256 and 255; thence easterly along said parallel line to an intersection with a line lying easterly of, parallel to, and distant 200 feet from the U. S. Bulkhead Stations Nos. 154 and 255; thence southeasterly in a straight line to a point, said point being the intersection of the southwesterly prolongation of the northwesterly line of Avocado Avenue and a line lying easterly of, parallel to and distant 350 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 108 and 107; thence southeasterly along last mentioned par- allel line to an intersection with the southwesterly prolonga- tion of the northwesterly line of Iris Avenue; thence north- westerly in a straight line to an intersection of the ordinary high tide line of the Pacific Ocean at the west jetty of the Harbor entrance; thence westerly along said ordinary high tide line to the point of beginning. The Third District shall include all that portion of the City included within the following described boundary line, to -wit: Beginning at the intersection of the center line of State Highway ORA -43 -A and the center . line of State Highway ORA -60 -A; thence in an easterly direction along said center line of State Highway ORA -60 -A and the center. line of State Highway ORA -60 -B to an intersection with the City boundary line of the City of Newport Beach; thence generally southerly and easterly along the boundary of the City through its vari- ous courses to the most southerly corner of Tract No. 1701 as laid out and,shown upon a map recorded in Miscellaneous Maps Book 52, pages 9 and 10, Records of Orange County, California; thence south 56° 42' west along said City bound- ary line to an angle point in said City boundary line; thence in a straight line to a point, said point being the intersection of a line lying northeasterly of, parallel to and distant 200 feet from the U. S. Bulkhead line between U. S. Bulkhead Sta- tions Nos. 154 and 255 and a line lying northeasterly of, par- allel to and distant 200 feet from the U. S. Bulkhead line be- tween U. S. Bulkhead Stations Nos. 153 and 154; thence north- westerly along said parallel line to an intersection with a line' lying northeasterly of, parallel to and distant 200 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 152 and 153; thence northwesterly along said parallel line to an intersection with a line lying northerly of, parallel to and - distant 150 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 151 and 152;. thence westerly along said parallel line to an intersection with a line lying south- westerly, of, parallel to and distant 3550 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 256 and 258; thence in a straight line to an intersection with the north- erly prolongation of the center line of 9th Street and a line lying southwesterly of, parallel to and distant 500 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 172 and 173; thence northwesterly along said parallel line to an intersection with a. line lying northeasterly of, parallel to and distant 300 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 124 and 125; thence northwesterly along said parallel line to an intersection with a line lying northeasterly of parallel to and distant 350 feet from the U. S. Bulkhead Stations Nos. 170 and 175; thence westerly in a straight line to a point, said point being the intersection of the center line of.State Highway ORA -43 -A and the line of mean high tide designated "North Line" by Superior Court Case 3 —Aca 1 — 34 — No. 23686; thence northerly along the center line of said State Highway ORA -43 -A to the point of beginning. Section 1009 Fourth District. The Fourth District shall include all that portion of the City included within the following described boundary line, to-wit: Beginning at the intersection of the center line of State Highway ORA -43 -A and the center line of State Highway ORA -60 -A; thence northerly along said center line of State Highway ORA -43 -A to an intersection with the northerly line of State Highway ORA -60 -A; thence westerly along said northerly line to an angle point in the City boundary line of the City of Newport Beach; thence generally northerly along said City boundary line through its various courses to an intersection with the southeasterly line of Superior Avenue; thence northerly along said southeasterly line of Superior Avenue to the center line of 15th Street, said point also being an angle point in the Boundary line of the City of Newport Beach; thence generally southeasterly along the boundary line of the City of Newport Beach through its various courses to its intersection with the center line of State Highway ORA- 60-B said intersection lying in a line northwesterly of, par- allel to, and distant 200 feet from the U. S. Bulkhead line be- tween U. S. Bulkhead Stations Nos. 132 and 133; thence generally northwesterly along the center line of said State Highway ORA -60 -B and along the center line of State High- way ORA -60 -A to the point of beginning. Section 1010 Fifth District The Fifth District shall include all that portion of the City included within the following described boundary line, to -wit: Beginning at the intersection of a line lying northeasterly of, parallel to and distant 200 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 154 and 255 and a line lying southerly of parallel to and distant 500 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 255 and 256; thence westerly along the last mentioned parallel line to an intersection with a line lying southwesterly of, parallel to and distant 350 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 256 and 258; thence northwesterly along said parallel line to an intersection with a line lying northerly of, parallel to and distant 150 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. X 1 -� S 35 'and 152; 152; thence "east erly along said parallel line'to an intersection -with a line lying northeasterly of, ,parallel.to' and distant 200 feet- from the U. S. Bulkhead line-between, U. S. Bulkhead Stations Nos. 152 and" 153; thence southeasterly along said parallel line to an intersection with a line lying northeasterly`of, parallel to and distant 200 feet from the U. S. - Bulkhead line.between U. S. Bulkhead Stations Nos. 153 and 154; thence southeasterly along said parallel line to an inter- section with a line lying northeasterly of; parallel to and dis- tant 200 feet from the U. S. Bulkhead line between U. S. Bulk- _ head Stations Nos. 154 and 255; thence southeasterly along said parallel line to the point of beginning. Section 1011 - Sixth District The Sixth District shall include all that portion of the City included within the following described boundary line, to -wit: ' Beginning at the intersection of the northeasterly prolonga- tion of the northwesterly line of Avocado Avenue and the center line of State Highway ORA -60 -B; 100 feet in width, said point of intersection also being in the boundary line of the City of Newport Beach; thence generally northerly, east- erly and southerly along said boundary line of the City of Newport Beach; through its various courses to an intersection with the southeasterly line of Block D, as shown upon a map of Tract No.' 673, recorded in Miscellaneous Map Book 20, pages 17 an 18, Records of Orange County, California; thence, southwesterly along said southeasterly line of Block "D" and along said City Boundary line to an intersection with the ordinary high tide line of the Pacific Ocean; thence generally westerly along said ordinary high tide line of the ' Pacific Ocean to an intersection with the southwesterly pro. longation of the southeasterly line of Poppy Avenue; thence northerly along said southwesterly prolongation and along said southeasterly line of Poppy Avenue to an intersection with the center line of Ocean Boulevard, as said Ocean Boulevard is laid out and shown upon the Re -sub of Corona del Mar re- corded in Miscellaneous Maps Book No. 4, page .67, .Records of Orange County, California; thence northwesterly along said center line of Ocean Boulevard to an intersection with the center line of Marguerite Avenue; thence northeasterly along said center line of Majguerite Avenue to an intersection with the center line of the State Highway ORA -60 -B; thence north- westerly along said center line of State Highway ORA -60 -B to the point of beginning. -36— Section 1012 Seventh District The Seventh District shall include all that portion of the City included within the following described boundary line, to-wit: Beginning at the intersection of the northeasterly prolonga- tion of the northwesterly line of Avocado Avenue and the center line of the State Highway ORA -60 -B; thence south- easterly along said center line of State Highway ORA -60 -B to an intersection with the center line of Marguerite Avenue; thence southwesterly along the said center line of Marguerite Avenue to an intersection with the center line of Ocean Boule- vard; thence southeasterly along the said center line of Ocean Boulevard to an intersection with the southeasterly line of Poppy Avenue; thence southwesterly along said southeasterly line of Poppy Avenue to an intersection with the line of the ordinary high tide of the Pacific Ocean; thence westerly along the said line of ordinary high tide to the intersection with the center line at the east. jetty of the Harbor entrance; thence southwesterly in a straight line to a point, said point being the intersection of the southwesterly prolongation of the north- westerly line of Iris Avenue and a line lying northeasterly, of, parallel to and distant 350 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 108 and 107; thence northwesterly along last mentioned parallel line to an inter- section with the southwesterly prolongation of the northwest- erly line of Avocado Avenue; thenm northwesterly in a straight line to a point, said point being the intersection of a line lying southerly of, parallel to, and distant 500 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 256 and 255 and a line lying northeasterly of, parallel to and distant 200 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 154 and 255; thence northwest- erly along the last mentioned parallel line to an intersection with a line lying. northeasterly of, parallel to and distant 200 feet from the U. S. Bulkhead line between U. S. Bulkhead Stations Nos. 153 and 154; thence northeasterly in a straight - line to an angle point in the boundary line of the City of Newport Beach, said angle point bearing south 56° 42' west from the most southerly corner of Tract No. 1701, as said Tract is laid out and shown upon a map recorded in Miscel- laneous Maps, Book 52, pages 9 and 10, Records of Orange County, California; thence, southeasterly and northeasterly along said City boundary line through its various courses to the point of beginning. Section 1013. Territory Not Specifically Described. Any territory constituting a part of the City and not specifically — 37 included in any district shall be deemed included in the dis- trict' with which it has the longest common boundary line. If there is no common boundary line with any district, then such territory shall be deemed included in the nearest dis- trict to it. Article XI Fiscal Administration Section 1100. Fiscal Year. The fiscal year of the City government shall begin on the first day of July of each year and end on the thirtieth day of June of the following year. Section 1101. Annual Budget. Preparation by. the City Manager. At such date as the City Manager shall determine, each board or- commission and each department'head shall furnish to the City Manager estimates of revenue and ex- penditures for his department or for such board or commission for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager shall review the estimates, hold conferences thereon with the respective department heads, boards or commissions and may revise the estimates as he may deem advisable. Section 1102. Budget. Submission to City Council At least thirty -five days prior to the beginning of each fiscal year, the City Manager shall submit to the City Council the pro- posed budget as prepared by him. After reviewing same and making such revisions as it may deem advisable, the City Council shall determine the time for the holding of a public hearing thereon and shall cause to be published a notice thereof not less than -ten days prior to said hearing, by at least one insertion in the official newspaper. Copies of the proposed budget shall be available for inspection by the public in the office of the City Clerk at least ten days prior to said hearing. Section 1103. Budget. Public Hearing. At the time so advertised or at any time to which such public hearing shall from time-to time be adjourned, the City Council, shall hold a public hearing on the proposed budget; at which interested persons desiring to be heard shall be given such opportunity. Section 1104. Budget, Adoption. After the conclusion of the public hearing the City Council shalt make any revisions of the proposed budget that it may deem advisable and on or before June 30, it shall adopt the budget. A copy thereof, cer- tified by the City Clerk, shall be filed with the person retained by the City Council to perform auditing functions for the Council and a further copy shall be placed, and shall remain on file, in the office of the City Clerk where it shall be available x for public inspection. The budget so certified shall be repro- duced and copies made available for the use of the public and of departments, offices and agencies of the City. Section 1105. Budget, Appropriations. From the effective date of the budget, the several amounts stated therein as pro- posed expenditures shall be and become appropriated to the several departments, offices and agencies for the respective objects and purposes therein named. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. At any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least four members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose or to appropriate available funds not included in the budget or to cancel any appropria- tion not expended or encumbered Section 1106. Centralized Purchasing. Under the control and direction of the City Manager there shall be established a centralized purchasing system for all City departments and agencies, except as otherwise in this Charter provided. Section 1107. Tax Limits. (a) The City Council shall not levy a property tax, for municipal purposes, in excess of One Dollar annually on each One Hundred Dollars of the assessed value of taxable property in the City, except as otherwise pro- vided in this Section, unless authorized by the affirmative votes of three -fifths of the electors voting on a proposition to increase such levy at any election at which the question of such addi- tional levy for municipal purposes is submitted to the electors. The number of years that such additional levy is to be made shall be specified in such proposition. (b) There shall be levied and collected at the same time and in the same manner as other property taxes for municipal pur- poses are levied and collected, as additional taxes, if no other provision for payment thereof is made: 1. A tax sufficient to meet all liabilities of the City for prin- cipal and interest of all bonds and .judgments due and unpaid, or to become due during the ensuing fiscal, year, . which constitute general obligations of the City; and 2. A tax sufficient to meet all obligations of the City to the State Employees Retirement System for the retirement of City employees, due and unpaid or to become due during the ensuing fiscal year. (c) Special levies in addition to the above, may be made annually- for the following purposes in amounts not to exceed the limits hereinafter respectively enumerated in this Section, -39- on each One Hundred Dollars of the assessed value of taxable property in the City: 1. For libraries in an amount not to exceed ten cents., 2. For advertising and promotion in an amount not: to ex teed ten cents; 3. For parks, beaches, civic beautification, recreation and playgrounds in an amount not to exceed fifteen cents. The proceeds of special levies may be used solely for the respective purposes for which such levies have been made. Section 1108. Tax Procedure. The procedure for the as- sessment, levy and collection of taxes upon property, taxable for municipal purposes, may be prescribed by ordinance of the City Council. Section 1109. Bonded Debt Limit: The City shall not incur an indebtedness evidenced by general obligation bonds which shall in the aggregate exceed the sum of fifteen per cent of the total assessed valuation, for purposes of City taxation, of all the real and personal property within the City.. No bonded indebtedness which shall constitute a general obligation of the City may be created unless authorized by the affirmative votes of two- thirds of the electors voting on such proposition at any election at which the question is submitted to the electors and unless in full compliance with the provi- sions of the State Constitution and of this Charter. Section 1110. Contracts on Public Works. Every project for the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks or playgrounds, and every purchase of supplies or materials for any such project, when the total expenditures required for the same exceed the sum of Three Thousand Dollars, shall be let by the City Coun- cil by contract to the lowest responsible bidder after notice by publication in the official newspaper by one or more insertions, the first of which shall be at least twenty days before the time for opening bids. Projects for the maintenance or repair of streets, drains or sewers are excepted from the requirements of this paragraph if the City Council determines that such work can be performed more economically by a City depart- ment than by contracting for the doing of such work. All bids shall be accompanied, by either a certified or cash - ier's check; or a bidder's bond executed by a corporate surety authorized to engage in such business in California, made payable to the City. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount be so speci- fied then in an amount not less than ten per cent of the aggre- gate amount of the bid. If the successful bidder neglects or refuses to enter into the contract, within the time specified in the notice inviting bids or in the specifications referred to therein, the amount of his bidder's security shall be declared forfeited to the City and shall be collected and paid into its general fund, and all bonds so forfeited shall be prosecuted and the amount thereof collected and paid into such fund. The City Council may reject any and all bids presented and may readvertise in its discretion. The City Council, without advertising for bids, or after re- jecting bids, or if no bids are received, may declare and de- termine that, in its opinion, based on estimates approved by the City Manager, the work in question may be performed better or more economically by the City with its own employees or the supplies or materials may be purchased more economi- cally on the open market, and after the adoption of a resolution to this effect by at least five affirmative votes of the Council may proceed to have said work done or said supplies or ma- terials purchased in the manner stated, without further ob- servanee of the provisions of this Section. Such contracts like- wise may be let without advertising for bids, if such work or supplies or materials shall be deemed by the City Council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by resolution passed by at .least five affirmative votes of the Council and containing a _ declaration of the facts constituting such urgency. Section 1111. Purchasing Supplies. The City Council may prescribe by ordinance rules and regulations for the purchas- ing of supplies, materials and equipment. When making pur- chases for the City, merchants maintaining an established place of business within the City shall be given the preference, quality and prices being equal. Section 1112. Cash Basis Fund. The City Council may maintain a revolving fund, to be known as the "Cash Basis . Fund, " for the purpose of placing the payment of the running expenses of the City on a cash basis. A balance may be built tip in this fund from any available sources in ail amount which the City Council deems sufficient with which to meet all lawful demands against the City for the first five months, or other necessary period, of the succeeding fiscal year prior to the receipt of ad valorem tax revenues. Transfers may be made by the City Council from such fund to any other fund or funds of such sum or sums as may be required for the purpose of placing such funds, as nearly as possible, on a cash basis. All money so transferred from the Cash Basis Fund shall be returned thereto before the end of the fiscal year. Section 1113. Capital Outlays Fund. A fund for capital outlays generally is hereby created, to be known as the "Cap- ital Outlays Fund. " The City Council may create by ordinance a special fund or funds for a special capital outlay purpose. 41 The City Council may levy and collect taxes for capital out- lays and may include in the annual tax levy a levy for such purposes in which, event it must apportion and appropriate to any such fund or funds the moneys derived from such levy. It may not; in making such levy, exceed the maximum tax rate provided for in this Charter, - unless authorized by the affirma- tive votes of three - fifths of the electors voting on the proposi- tion at any election at which such question is submitted. The City Council may transfer to any such fund any unencum- bered surplus funds remaining on hand in the City at any time. Once created, such fund shall remain inviolate for the pur- pose for which it was created; if for capital outlays generally, then for any such purposes, and if for a special capital out- lay, then for such purpose only,, unless the use of such fund for some other capitai outlay purpose is authorized by the.af- firmative votes of a majority of the electors voting on such proposition at a general or special election at which such prop- osition is submitted. ° If the purpose for which any special capital outlay fund has been created has been accomplished, the City Council may transfer any unexpended or unencumbered surplus remaining in such fund to the fund for capital outlays generally, estab- lished by this Charter. Section 1114. - Presentation of Demands. All claims for damages against the City must be verified and presented to the City Clerk within ninety days after the occurrence, event or transaction from which the damages allegedly arose, or within such shorter time as is otherwise provided by law, and shall set forth in detail the name and address of the claimant, the time, date, place and circumstances of the occurrence and the extent of the injuries or damages sustained. All such claims shall be approved or rejected in writing by order of the City Council and the date thereof given. All other demands against the City must be in writing and may be in the form of a bill; invoice, payroll, or formal de- mand. Each such demand shall be presented to the Director of Finance within ninety days after the last item of the account or claim accrued, The Director of Finance shall examine the.. same. If the amount thereof is legally due and there remains on his. books an unexhausted balance of an appropriation against which the same may be charged, he shall approve such demand and draw his warrant on the City Treasurer therefor, payable out of the proper fund. Otherwise he shall reject it. Objections of the Director of Finance may be overruled by the City Council and the warrant ordered drawn. -42— The Director of Finance shall transmit such demand, with his approval or rejection thereof endorsed thereon, and war- rant, if any, to the City Manager. If a demand is one for an item included within an approved budget appropriation, it shall require the approval of the City Manager, otherwise it shall require the approval of the City Council, following the adoption by it of an amendment to the budget authorising such payment. Any person dissatisfied with the refusal of the City Manager to approve any demand, in whole or in part, may present the same to the City Council which, after examining into the matter, may approve or reject the demand in whole or in part. Section 1115. Registering Warrants. Warrants on the City Treasurer which are not paid for lack of funds shall be registered. All registered warrants shall be paid in the order of their registration when funds therefor are available and shall bear interest from the date of registration at such rate as shall be fixed by the City Council by resolution. Section 11N. Actions Against City. No suit shall be brought for money or damages against the City or any board, commission or officer thereof until a claim or demand for the same has been presented as in this Charter provided and such claim and demand has been rejected in whole or in part. If rejected in part suit may be brought to recover the whole. Failure to complete action approving or rejecting any claim or demand within sixty days from the day the same is pre- sented shall be deemed a rejection thereof. Section 1117. Independent Audit. The City Council shall employ . at the beginning of each fiscal year, a qualified certi- fied public accountant who shall, at such time or times as may be specified by the City Council, and at such other times as he shall determine, examine the books, records, inventories and reports of all officers and employees who receive, handle or disburse public funds and of all such other officers, em- ployees or departments as the City Council may direct. As soon as practicable after the end of the fiscal year, a final audit and report shall be submitted by such accountant to the City Council, one copy thereof to be distributed to each member,.one to the City Manager, Director of Finance, Tress - urer, and City Attorney, respectively, and sufficient additional copies of the audit shall be placed on file in the office of the City Clerk where they shall be available for inspection by the general public, and a copy of the financial statement as of the close of the fiscal year shall be published in the official newspaper. - 43 Article %II Board of Education " Section 1200. State Law Governs. The manner in which, the times at which, and the terms for which the members of Boards of Education shall be elected or appointed, their qualifications, compensation and removal and the number - which shall constitute any one of such boards shall be as now or hereafter prescribed by the Education Code of the State of California. Section 1201. Effect of Charter.. The adoption of the Chaster shall not have the effect of creating any new school district nor shall the adoption of this Charter have any effect upon the existence or boundaries of any present school districts within the City or of which the City comprises a part, but such present school districts shall continue in existence subject to the provisions of the laws of the State of California as the same now exist or hereafter may exist. Article %III Franchises Section 1300. Granting of Franchises. Any person, firm or corporation furnishing the City or its inhabitants with transportation, communication, terminal facilities, water, light, heat, electricity, gas, power, refrigeration, storage, or any other public utility or service, or using the public streets, ways, alleys or places for the operation of plants, works or equipment for the furnishing thereof, or traversing any por- tion of the City for the transmitting or conveyance of any such service elsewhere, may be required by ordinance to have a valid and existing franchise therefor. The City .Council is empowered to grant such franchise to any person, firm or corporation, whether operating under an existing franchise or not, and to prescribe the terms and conditions of any such grant. It may also provide, by procedural ordinance, the method of procedure and additional terms and conditions of such grants, or the making thereof, all subject to the provisions of this Charter. Nothing in this Section, or elsewhere in this Article, shall apply to the City, or to any department thereof, when fur- nishing any such utility or service. Section 1301. Resolution of Intention. Notice and Public Hearing. Before granting any franchise, the City Council shall' pass a resolution declaring its intention to grant the same, stating the name of the proposed grantee, the character _ of the franchise and the terms and conditions upon which it is proposed to be granted. Such resolution shall fix and set forth 111 the day, hour and -place when and where any persons having any interest therein or any objection to the granting thereof may appear before the, City Council and be heard thereon. It shall direct the City Clerk to publish said resolution at least once, within fifteen days of the passage thereof, in the official newspaper. Said notice shall be published at least ten days prior to the date of hearing. At the time set for the hearing the City Council shall pro- ceed to hear and pass upon all protests and its decision thereon shall be final and conclusive. Thereafter it may by ordinance grant the franchise on the terms and conditions specified in the resolution of intention to grant the same, subject to the right of referendum of the people, or it may deny the same. If the City Council shall determine that changes should be made in the terms and conditions upon which the franchise is proposed to be granted, a new resolution of intention shall be adopted and like proceedings had thereon. Section 1302. Terms of Franchise. Every franchise shall state the term for which it is granted, which, unless it be in- determinate as provided for herein, shall not exceed twenty - five years. A franchise grant may be indeterminate, that is to say, it may provide that it shall endure in full force and effect until the same, with the consent of the Public Utilities Commission of the State of California, shall be voluntarily surrendered or abandoned by its possessor, or until the State of California, or some municipal or public corporation, thereunto duly author- ized by law, shall purchase by voluntary agreement or shall condemn and take, under the power of eminent domain, all property actually used and useful in the exercise of such fran- chise and situate within the territorial limits of the State, municipal or public corporation purchasing or condemning such property, or until the franchise shall be forfeited for non - compliance with its terms by the possessor thereof. Section 1303. Grant to be in Lieu of all Other Franchises. Any franchise granted by the City with respect to any given utility service shall be in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any right under such franchise, for the rendering of such utility service within the limits of the City as they now or may hereafter exist, except any franchise derived under •Section 19 of Article XI of the Constitution of California as said section existed prior to the amendment thereof adopted October 10, 1911. The acceptance of any franchise hereunder, shall operate as an abandonment of all such franchises, rights and privileges within the limits of the City as such limits shall at any time exist, in lieu of which such franchise shall be granted. �z -a 45-- Any franchise granted hereundershall not become effective until written, acceptance thereof shall have been filed by the _ grantee thereof with the City Clerk.. Such acceptance shall be filed within ten days after the adoption of the ordinance grant -' ing the franchise, or any extension thereof granted by the City Council, and when so filed, such acceptance shall constitute a continuing agreement of such grantee that if and when the City shall thereafter annex, or consolidate with, additional ter- ritory, any and all franchises, rights and privileges owned by the grantee therein, except a franchise derived under said con- stitutional provision, shall likewise be deemed to be abandoned within the limits of such territory. No grant of any franchise may be transferred or assigned by the grantee except by con- sent in writing of the City Council and unless the transferee or assignees thereof shall covenant and agree to perform and be bound by each and all.of the terms and conditions imposed in the grant or by procedural ordinance and by this Charter. Section 1304. Eminent Domain. No franchise grant shall in any way, or to any extent, impair or affect the right of the City to acquire the property of the grantee thereof either by purchase or through the exercise of the right of eminent do- main, and nothing herein contained shall be construed to con- tract away or to modify or to abridge, either for a term or in perpetuity, the City's right of eminent domain with respect to any public utility. Section 1305. Duties of Grantees. By its acceptance of any franchise hereunder, the grantee shall covenant and agree to perform and be bound by each and all of the terms and con- ditions imposed in the grant, or by procedural ordinance and shall further agree to: (a) Comply with all lawful ordinances, rules and regula- tions theretofore or thereafter adopted by the City Council in the exercise of its police power governing the construction, maintenance and operation of its plants, works or equipment. (b) Pay to the City on demand the cost of all repairs to public property made necessary by any of the operations of the grantee under such franchise. (c) Indemnify and hold harmless the City and its officers from any and.all liability.for damages proximately resulting from any operations under such franchise. (d) Remove and relocate without expense to the City any facilities installed, used and maintained under the franchise if and when made necessary by any lawful change of grade, alignment or width of any public street, way alley or place, including the construction of any subway or viaduct, or if the public health, comfort, welfare, convenience, or safety so demands. (e) Pay to the City during the life of the franchise a per- centage, to be specified in the grant, of the gross annual f receipts of the grantee within the limits of the City, or such other compensation as the City Council may prescribe in the grant. Section 1306. Exercising Rights Without Franchise. The exercise by any person, firm or corporation of any privilege for which a franchise is required, without possessing a valid and existing franchise therefor, shall be a misdemeanor and shall be punishable in the same manner as violations of this Charter are punishable and each day that.such condition con- tinues to exist shall constitute a separate violation. Article XIV. Miscellaneous Section 1400. Definitions. Unless the provision or the con- text otherwise requires, as used in this Charter: (a) "Shall" is mandatory, and "may" is permissive. (b) "City" is the City of Newport Beach and "depart - ment," "board," "commission," "agency," °. officer, " or "employee," is a department, board, commission, agency, officer or employee, as the case may be, of the City of New- port Beach. (c) "County" is the County of Orange. (d). "State" is the State of California. Section 1401. Oil Well Drilling. No drilling for, produc- tion or refining of, oil, gas or other hydrocarbon substances shall be permitted within that area of the City included within the limits of the City of Newport Beach as such limits exist as of the effective date of this Charter. This Section shall not prohibit the drilling for, production or refining of oil, gas or other hydrocarbon substances within any territory annexed to the City after the effective date of this Charter if such drilling, production or refining was being conducted in such territory at the date of the annexation thereof; but no such drilling, production or refining shall be permitted within any territory annexed to the City after the effective date of this Charter if such activities were not being conducted in such territory at the date of the annexation thereof. This Section shall not prohibit the continuance of produc- tion of any well slant drilled under property within the City from a location outside of the City and in existence at the time this Charter takes effect. Nor shall this section preclude the City Council from permitting the slant drilling of wells under the surface of property within the City from surface location§ located either outside the City or within future an- nexations to the City wherein the drilling for and production of oil, gas and other hydrocarbon substances is permitted, provided that such slant drilling shall first be approved by a 47 = majority of the electors voting on such proposition at any special or general municipal election, and provided further that all of the following conditions shall be complied with: - (a) The holding of a public hearing upon any application for a permit to conduct such drilling; (b) The requiring of the removal of all derricks and other surface structures used in the drilling of such well upon eom- pletioin or abandonment of such well; (c) The furnishing of a faithful performance surety bond and the maintenance of public liability and property damage insurance by the permittee in amounts deemed adequate by the City Council; (d) The screening by landscaping and the beautification of any production and maintenance facilities used in the opera- f tion of any such well; (e) Provisions for the payment to the City of such amounts as in the sound discretion of the Council are 'adequate amounts { for the consideration or granting of such permit, the holding, of such hearing, the making of initial and periodic inspections, the granting of easements under City property and for royal- ties or rentals; (f) The requirement that no such well shall traverse any land under the area of the City wherein drilling is prohibited `• at a vertical depth of less than four hundred feet from the surface of the ground; and (g) Such other conditions as the, City Council may pre- scribe by ordinance. Section 1402. Water -front Property. The City Council shall not aell or convey any water -front or beach property, excepting to the State or to the County for use as a public beach or park. No such property owned by the City shall be leased by the ..` - - - - -- City unless and until the leasing thereof shall have been ap- proved by a- majority of the electors voting on such proposi- tion at any general or special municipal election, provided, _ however, that this Section shall not invalidate any lease of such property inexistence at the time of the effective date of the Charter nor the future leasing or re- leasing of any such property under lease at the effective date of this Charter. Section 1403. Service and Utility Charges. All service charges and charges for utilities furnished by the City may be combined upon one or more bills or invoices but each such charge shall be separately stated. No service or utility fur- nished by the City shall be discontinued for failure to pay . any `other service or utility furnished by the City. Section 1404. Violations. The- violation of any provision of this Charter shall be deemed a misdemeanor and be punish - able upon conviction by a fine of not exceeding One Thousand -4g— Dollars or by imprisonment for a term of not exceeding six months or by both such fine and imprisonment: Section 1405. Validity. If any provision of this Charter, or the application thereof to any person or circumstance is - held invalid, the remainder of the Charter, and the applica- tion of such provision to other persons or circumstances, shall not be affected thereby. CERTIFICATE WHEREAS, the City of Newport Beach, for many years last past, has been and now is a city containing more than three .- thousand five hundred inhabitants, as ascertained by the last. preceding census taken under the authority of the Congress of the United States or of the, Legislature of the State of Cali- fornia; and WHEREAS, on the 22nd day of December, 1953, at a munici- pal election duly "and regularly held on that day in said City under and in accordance with the provisions of Section S of Article XI of the Constitution of the State of California, the electors of said City did duly choose and elect Marco P. Anich, George M. Engelke, Lawrence B. Broering, Tom W. Header- );; son, Robert E. Campbell, Marion C. Forrest, C. Lester Jones, j Wallace Calderhead, Ruth S. Fleming, James D. Ray, Ruby G Stevenson, J. Leslie Steffensen, Henry K. Deister, Walter l Gerhardt and Roland Wright; who are all electors of said City and eligible as candidates under said section, as a Board of fifteen Freeholders to prepare a new- Charter for the gov- ernment of said City; and. WHEREAS, the result of said election of Freeholders was duly declared by the legislative body of the City on the 29th day j of December, 1953, and said electors thereafter duly qualified,. , r- as such Freeholders in accordance with law; BE IT KNOWN that in pursuance of the provisions of said Constitution and within the period of one year after the re -' sult of said election was so declared, the said Board of Free - holders has prepared and does- now propose the foregoing Charter as the Charter for the government of the City of Newport Beach; and BE IT FURTHER IfNOWN that said Board of Freeholders hereby requests said legislative body of the City of Newport: Beach to cause the publication of said proposed Charter as pro - vided in said Constitution and does hereby fix and designate Tuesday the 8th day of June, 1954 as the date for the election at which the proposed Charter shall be submitted to the quali- fied electors of the City of Newport Beach for their ratification and adoption; IN WITNESS WHEREAS, .we the undersigned duly elected and qualified Freeholders of the City of Newport Beach, County of _ 49 Orange, State of California, have hereunto set our hands at the City of Newport Beach, County of Orange, State of California, this 29th day of March, 1954. J. Leslie Steffensen, Chairman Ruby Stevenson; Secretary Marco P. Anich Lawrence B. Broering Wallace Calderhead Robert Campbell Henry K. Deister George M. Engelke Ruth S. Fleming Marion C. Forrest Walter Gerhardt Tom W. Henderson C. Lester Jones James D. Ray Roland Wright Freeholders of the City of Newport Beach,, County.; of Orange, F - State of California. ATTEST - Ruby Stevenson We do further certify and declare that the foregoing consti- tutes a full, true and correct statement of the proceedings, had by the City of Newport Beach, the said board of freeholders, and the City Council of said City in the matter of framing, proposal, and submission of said proposed charter for the government of the City of Newport Beach and in calling, the election thereon, voting upon, canvassing the returns and de- claring the results of said elections. IN WITNESS WHEREOF we have hereunto set our hands and hereunto affixed the Seal of the City of Newport Beach this 12th day of November, 1954 (SEAL) - DORA 9. HILL Mayor NORMAN MI LEA Former Mayor C. K. PRIEST City Clerk and, WHEREAS, The said charter as ratified as hereinbefore set` forth, has been and now is duly presented and submitted to the Legislature of the State of California for approval, or re- jection, as a whole without power of alteration or amendment �4 —ACR1l 1 N f i —50— in accordance with Section 8 of Article XI of the Constitution of the State of California; now, therefore,.be it Resolved, by the Assembly of the `State of California, the Senate thereof concurring, a majority of all members elected to each house voting, therefor and concurring therein, That said charter of %he. City of Newport Beach, as presented to, and adopted, and ratified, by the electors of said city and as hereinbefore fully set forth, be, and the same is hereby ap- proved as a whole, without amendment or alteration, as and for the charter of the City of Newport Beach. , j 1 R _1 I�