REPORT TO CITY COUNCIL
SUBJECT
Title
Ongoing Consideration and Possible Action on the Charter Review Committee’s Recommendation for Placement of a Comprehensive Charter Update Measure on the November 2026 Ballot, Including Consideration of a Possible Stand-Alone Measure that Would Update the City’s Public Works Procurement Rules
Report
BACKGROUND
At the City Council’s June 9th meeting, in a study session format, the City Attorney presented the Charter Review Committee (“CRC”) Charter Project 2026 Final Report to Council (“CRC Final Report”) (Attachment 1). Members of the CRC Presentation Ad Hoc Subcommittee attended this meeting and were on standby to answer Council questions. At the end of the allotted study session time period, with additional information still to be presented, it was agreed that City Attorney would pick up where he left off and complete the presentation at the June 15th special session.
At the City Council’s June 15th meeting, as contemplated, the City Attorney completed his presentation of the CRC Final Report. Members of the CRC were again in attendance to provide support and answer questions. In summary the topics presented included:
1. Charter Project Origins and Objectives. A description of the origins and objectives of the Charter Project.
2. The Process. A summary of the process and approach used to implement the Charter Project. This includes details on: (a) the creation and function of the six CRC Ad Hoc Subcommittee “working groups;” (b) the solicitation and provision of stakeholder input; (c) benchmarking with other “comparable” charters and charter update projects; and (d) the categorization of proposed changes into “levels.”
3. The Results. A summary of the proposed changes resulting from this process. Changes presented include Charter-wide updates and conventions, along with the Article by Article, Section by Section changes, ranging from mere corrections, wording updates and reorganization (“Level One”), changes to clarify ambiguities, deletion of no longer needed provisions, added language to fill gaps or align Charter language with current City/best practices (Level Two), all the way to changes that are recommended, but may be so substantive or in such sensitive areas, they might be better presented as stand-alone ballot measures or left out entirely (“Level Three”).
4. The Final Recommendation. The CRC’s final recommendation on what the City Council should consider placing on the November 2026 ballot. This includes identification of any recommended Level Three changes that may warrant being left out or consideration as a separate ballot measure.
5. What’s Next. Steps required if the Council decides to place a measure on the ballot, including things that could be done to help inform the voters.
At the Council’s June 15th meeting, after deliberating upon the CRC’s recommendation for a comprehensive Charter update, the City Council directed staff to finalize and bring back for Council action by, on, or before July 14th, 2026, a Charter update ballot measure to include all proposed “Level One” and “Level Two” changes. The Council also directed that the CRC’s recommendation for updating the Charter’s Public Works provisions be brought back for further discussion and action, potentially as a stand-alone ballot measure.
In the interim, in preparation for these upcoming Council meetings, and in response to some of the questions and concerns raised by Council at the June 15th meeting, the City Attorney’s office prepared and sent a Memorandum to Council with supplemental information intended to facilitate the Council’s Charter Project evaluation and decision-making process (“Supplemental Memorandum”). That information was provided at the request of the Charter Review Committee (CRC) after their discussions at their meeting on June 17th.
The Supplemental Memorandum included, as attachments, updated versions of the proposed Charter update in both underline/strikeout and clean formats. Both versions contained updated annotations that further explained each proposed Charter modification and identified, on a section-by-section basis, the “Level” of the proposed modifications. To facilitate review the assigned Levels within the annotations were color coded as follows: Level One in green, Level Two in blue, and potential Level Three modifications in yellow. The updated versions of the Charter also include some minor corrections and one proposed new provision for Council consideration based upon input received from the City’s outside bond counsel that would allow for the issuance of Revenue Bonds to finance utility infrastructure, subject to conditions, with a Council resolution, instead of the current Charter requirement for 2/3rds voter approval.
This item is intended to present to Council the information provided in the Supplemental Memorandum, respond to questions, and to receive any Council direction there may be related to such information. In addition, per Council direction at your June 15th meeting, this item is also intended to allow for further deliberations and direction regarding the CRC’s proposed update of the City’s Public Works procurement provisions. Additional information regarding the CRC’s recommended Public Works update will be presented at the July 7th meeting.
DISCUSSION
This item is a continuation of City Council deliberations on the CRC’s Charter Project recommendation for a comprehensive update of the City’s Charter for voter consideration on the upcoming November 2026 ballot.
Consistent with previous direction from the Council and the CRC following the Council’s June 15th meeting, the intended focus of discussion at this meeting will be (1) the Supplemental Memorandum dated July 1, 2026 from the City Attorney, and (2) further discussions and potential action by the City Council regarding the CRC’s proposed update of the City’s current Public Works procurement provisions.
The Supplemental Memorandum (Attachment 2) contains the following information:
1. Clarification on “Levels” of Proposed Changes and Corresponding Updates to Charter Drafts to More Clearly Identify Levels on a Section-by-Section Basis
A summary of the “Levels” used in the development and presentation of the CRC’s recommendation for a comprehensive Charter update, and a summary of how the Charter has been further updated to reflect, in the annotations in the margins, the applicable Level assigned to each proposed change on a section-by-section basis.
2. Further Thoughts on How to Factor in “Levels” in Determining What Should Go Into Any Proposed Ballot Measure
A summary of the CRC’s recommendation to include all Level One and Level Two recommendations within one comprehensive ballot measure proposal, and also to include in that comprehensive proposal such Level Three proposals that the Council thought desirable and likely to be well received by voters so as not to compromise support for the Level One and Level Two recommendations.
3. Proposed Charter Update Provisions Requiring the Development of New City Ordinances and Policies.
A list of items, five in total, of the proposed Charter updates requiring Council to adopt implementing ordinances and/or policies including: (1) Redistricting Ordinance (Section 304); (2) Policy for Appointment, Renewal and Removal of Boards and Commission Members (Section 602.1); (3) Policy for Excused Absences for City Council and Boards and Commission Members (Sections 205.1(7) and 602.3); (4) Public Works Update Ordinance (Section 802.2); and (5) Enhanced Legal Noticing (Section 904.2).
4. Additional Proposed Language and Updates
A summary of proposed additional Charter updates including (1) a number of minor modifications/corrections identified by CRC members and professional staff since the last Charter draft circulated; (2) updates to the Civil Service sections to reflect the final agreement with labor groups after completion of the meet and confer process; and (3) based upon recent input from outside bond counsel, proposed changes that would authorize revenue bond financing of utility infrastructure by Council resolution instead of a 2/3rds vote of the electorate.
Please see the complete version of the Supplemental Memorandum for a full explanation of these items (Attachment 2), along with the updated versions of the proposed Charter language reflecting all of the items described above (Attachment 3).
Additional information on the CRC’s proposed update of the existing Charter provisions regarding Public Works procurement (old Section 1310 and new Charter Section 802.2) will be presented at the July 7th meeting. As a reminder, consistent with core Charter Project principles, staff’s objective in this area, supported by the CRC, is to replace outdated Public Works procurement provisions with more modern provisions that align with current/best practices. The existing Charter thresholds for Council approval, formal bidding requirements and allowed use of City forces for the implementation of public works are set at $1,000. This is a very low number for a City of Santa Clara’s size and the sophistication of its operations. Further, there is currently no provision that would allow for alternative procurement mechanisms (like design-build) that are commonly used throughout the state to implement complex public works procurement. Alternative procurement mechanisms would be very useful to implement certain Measure I projects and complex SVP utility infrastructure projects in a manner expected to save time, money, and improve the quality of projects through dynamic value engineering.
Conclusion/Next Steps
The CRC recommendation is obviously substantial. The hope is that the amount and types of information presented will allow the Council to digest and evaluate the proposal efficiently and with a full understanding of the context in which the recommendation is being made. If the Council proceeds with the CRC’s recommendation to place one or more measures on the November 2026 ballot, additional information will be developed and made accessible to voters in order to enhance their understanding of the full scope and breadth of the measure as well.
As a reminder, if Council desires to proceed to place one or more Charter Project measures on the ballot, the full ballot package would need to be delivered to the County Registrar by no later than August 7, 2026. In order not to intrude on the Council’s scheduled summer recess, that means any final City Council action on a Charter update ballot proposal would need to occur at the Council’s currently scheduled July 14, 2026 meeting.
FISCAL IMPACT
There is no fiscal impact to the City for this item other than staff time and administrative resources. Depending upon Council direction, additional staff time and resources would be needed to prepare any item for placement on the November ballot. If a measure passes, substantial additional staff time and resources would also be necessary to implement the Charter section reference changes throughout existing City documents that reference the Charter, and to prepare any contemplated ordinances or policies. Ultimately, it is expected that the modernized terms of any approved comprehensive Charter update will result in net savings to the City in staff time and resources.
COORDINATION
This report has been coordinated with the City Attorney’s Office with input from the CRC Report and Presentation Ad Hoc Subcommittee.
RECOMMENDATION
Recommendation
Hear the presentation, pose questions, deliberate and provide direction to staff on desired next steps to prepare for City Council final action on the CRC’s proposed Charter Project update at the City Council’s July 14th meeting.
Staff
Reviewed by: Courtney Mohammadi, Legal Executive Assistant, City Attorney’s Office
Approved by: Glen Googins, City Attorney
ATTACHMENTS
1. Charter Review Committee Charter Project 2026 Final Report to Council, including the following attachments:
a. Charter Review Committee Bylaws
b. City Charter (current)
c. Assembled History of Previously Proposed and Approved Charter Amendments (1952 through 2024)
Note: The versions of the Charter attached to the Final Report (attachments “d” and “e” dated June 5, 2026) have been further updated (now dated July 1, 2026) and are attached separately as Attachment 3, below.
2. Memorandum to Council dated July 1, 2026, providing:
3. Latest Versions of Proposed Charter Update Language:
d. City Charter with Proposed Modifications, Underline/Strikeout with Annotations (updated per the Memorandum to Council from the City Attorney dated July 1, 2026)
e. City Charter with Proposed Modifications, “Clean” Version with Annotations
(updated per the Memorandum to Council from the City Attorney dated July 1, 2026)