ITEM 9-A

Santa Monica, California
City Council Mtg. July 7, 1992

TO:       Mayor and City Council
FROM:     City Staff
SUBJECT:  Charter Review Commission Recommendations

Introduction
This report presents the final report and recommendations of  the
Charter Review Commission for Council review and consideration.

Background

The 15-member Charter Review Commission was appointed by the City
Council to review several specific issues relating to the current
City  Charter.  The accompanying report presents a summary of the
Commission discussions and recommendations on these matters.   An
Executive Summary  is provided at  the front of  the document for
ease of reference.

Commission  and  Staff  members  will  be  present  at the July 7
meeting  to make a brief presentation and to answer any questions
the Council may have.

It should further  be noted that  a letter from  the Rent Control
Board   is  provided  with  these  documents  requesting  Council
consideration of a  change relating to  election of Rent  Control
Commissioners to  fill  vacant,  unexpired  terms.   The  Charter
Review  Commission  received  the  letter  at  their July 1, 1992
meeting   and  asked  that   it  be  forwarded   to  Council  for
consideration at this time.

Recommendation

It  is recommended  that the  Council receive  the report  of the
Charter Review Commission for discussion and provide direction to
Staff as desired.

Prepared by:  Lynne C.Barrette, Assistant City Manager



                                            June 29, 1992


Mayor and City Council:

On July 11, 1990 the  City Council directed the City  Attorney to
prepare  an ordinance creating a Charter Review Commission.  This
ordinance was introduced  and passed by  the City Council  at its
meeting of October 2, 1990.

Nancy Greenstein  was appointed  as Chair  of the  Commission and
Stephen  Alpert,  Abby  Arnold,  Russell  Barnard,  Timi  Hallem,
Christopher Harding, George Hickey, Patricia Hoffman, Ilona Katz,
Tom Larmore, Peggy  Lyons, Herman  Rosenstein, Tom  Soto, William
Spurgin,  Peter  Tigler  were  appointed  as  members by the City
Council at its meeting of February 19, 1991.

We were sworn in at our first meeting on April 3rd, the first  of
twelve  sessions that year.  In the course of our discussions, we
drew on the resources of community members, City Council  members
from other  local municipalities,  academic experts,  City staff,
and extensive  reading and  research in  governmental affairs and
relevant political science books and journals.

In 1992,  with Commissioner  M. Douglas  Willis (after  attending
several meetings) replacing  Commissioner  Soto,  the  Commission
held seven  further meetings  and one  public forum,  extensively
publicized through leaflets, PEN, and the media.

As the enabling  ordinance for this  Commission expired on  March
31,  we   submit  herewith  the  results   of  our  research  and
deliberations.  We feel that the majority of the tasks set before
us  have been  brought to  a satisfactory  closure.  At  the same
time, there remain  questions on the  subjects referred to  us by
Council on which we would have preferred to deliberate at further
length.

In addition, there  were some additional  issues, outside of  our
charge  which we wish  to put forward  for Council consideration.
They are as follows:

Charter-related

1) We recommend that the language in the Charter be revised to be
gender neutral.
2) We recommend that  the method of  appointment to vacancies  on
the  City Council and Rent Control Board be reviewed for possible
modification.
3) Depending on the  outcome  of  the  Council  electoral  system
discussion, we  recommend that  the method  of selection  of Rent
Control Board members be reviewed.
4) We  propose  addition  of  an  Environmental Commission to the
Charter.
5) We recommend that provisions be added to the Charter requiring
periodic  review of the various Charter provisions and amendments
as deemed necessary.

City Council Policy Issues

1) Depending  on  the  outcome  of  the  Council electoral system
issue, the Commission  suggests  that  the  Santa  Monica  Malibu
Unified School District Board  and Santa Monica College  Trustees
be encouraged to review their electoral systems.
2) If the Council should decide to proceed with a  recommendation
to  change the City's electoral system, the Commission recommends
that the Council also examine campaign finance reform, ethics and
the  establishment of a Fair  Political Practices Commission with
greater authority than the previous City Fair Political Practices
Commission.
3) The Commission  further recommends  that the  Council consider
hiring support staff.

We are happy  to discuss, with  members of the  Council, our work
and  our conclusions, and remain ready to assist in whatever next
steps  the  Council  may  feel  are appropriate in concluding the
process of Charter review.

                               Respectfully submitted,

                               Nancy Greenstein, Chairperson
                               Stephen Alpert, Member
                               Abby Arnold, Member
                               Russell Barnard, Member
                               Timi Hallem, Member
                               Christopher Harding, Member
                               George Hickey, Member
                               Patricia Hoffman, Member
                               Ilona Jo Katz, Member
                               Tom Larmore, Member
                               Peggy Lyons, Member
                               Herman Rosenstein, Member
                               William Spurgin, Member
                               Peter Tigler, Member
                               Doug Willis, Member

Assisted by:

Lynne C. Barrette, Assistant City Manager
Joe Lawrence, Assistant City Attorney
Clarice Dykhouse, City Clerk
John Seeley, Sr. Management Analyst


                        Table of Contents


EXECUTIVE SUMMARY..........................................   1a
METHOD OF SELECTION OF MEMBERS OF CITY COUNCIL AND MAYOR...   1
   FOREWARD................................................   1
   PROCESS.................................................   2
   CONCLUSIONS.............................................   4
   RECOMMENDATIONS FOR FURTHER RESEARCH....................   7
   OBJECTIVES AND VALUES...................................   9
      Accountability and Accessibility.....................  10
      Ethnic Diversity.....................................  12
      Neighborhood Empowerment and Voter Participation.....  13
      Reducing Slate Dominance.............................  14
   AT-LARGE ELECTIONS......................................  15
      Mechanics and Usage..................................  15
      Appraisal............................................  18
   DISTRICTS...............................................  22
      Mechanics and Usage..................................  22
      Appraisal............................................  24
   MIXED SYSTEMS...........................................  28
   PROPORTIONAL REPRESENTATION.............................  29
      Philosophy...........................................  29
   SINGLE TRANSFERABLE VOTE................................  31
      Mechanics and Usage..................................  31
      Appraisal............................................  32
   CUMULATIVE VOTING.......................................  36
      Mechanics and Usage..................................  36
      Appraisal............................................  39
   VOTING RIGHTS QUESTIONS.................................  41
COMPENSATION AND BENEFITS FOR CITY COUNCIL.................  48
   Discussion and Recommendation...........................  48
LIMITATION ON TERMS OFFICE OF CITY COUNCIL.................  53
   Discussion and Recommendation...........................  53
SELECTION OF CITY ATTORNEY AND CITY CLERK.................   56
   Discussion and Recommendation..........................   56
ESTABLISHMENT OF BOARDS AND COMMISSIONS...................   58
   Discussion and Recommendation..........................   58
METHOD OF SELECTION OF PLANNING COMMISSION................   59
   Discussion and Recommendation..........................   59
COUNCIL MEETINGS..........................................   66
   Discussion and Recommendation..........................   67
CITY HEALTH OFFICER.......................................   71
   Discussion and Recommendation..........................   71
CLAIMS AGAINST THE CITY ..................................   74
   Discussion and Recommendation..........................   74
COMPETITIVE BIDDING ON PUBLIC WORKS PROJECTS..............   76
   Discussion and Recommendation..........................   77
OFFICIAL BONDS............................................   81
   Discussion and Recommendation..........................   81
CASH BASIS FUND AND CAPITAL OUTLAYS FUND..................   83
   Discussion and Recommendation..........................   84
PRESENTATION OF DEMANDS...................................   86
   Discussion and Recommendation..........................   86


                        EXECUTIVE SUMMARY


The following is provided as a brief summary of the  Commission's
recommendations on the issues requested by City Council:


1.   Question:  The method  of selection of  members of the  City
     Council and Mayor?

     Recommendation:   That  the  method  of selection be changed
     with  first  preference   for   a   form   of   proportional
     representation and second preference for a form of  district
     elections.


2.   Question:  Whether or not City Charter Section 602 should be
     amended  to provide compensation and benefits for members of
     the City Council and  if so, what compensation  and benefits
     should be provided?

     Recommendation:  That the Charter set compensation  ceilings
     in accordance  with the population -  based formula used for
     general law cities  and that voters  be asked as  a separate
     question  to extend  the same  insurance benefits  (with the
     exception  of  participation  in  the  retirement system) to
     Councilmembers as  are available  to the  top administrative
     bargaining unit of Santa Monica City employees.


3.   Question:  Whether or not any limitation should be placed on
     the terms of office of members of the City Council?

     Recommendation:  That there be a limit of three  consecutive
     4-year terms for Councilmembers.


4.   Question:  The method of selection of the City Attorney  and
     City Clerk?

     Recommendation:  That the current method of selection remain
     unchanged.


5.   Question:  Review Article X of the City Charter to determine
     whether  or  not  the  Boards  and  Commissions  established
     thereby should continue to  be mandated by the  City Charter
     and   review  the  method  of   selection  of  the  Planning
     Commission?

     Recommendation:  That the  Boards and Commissions  currently
     listed in the Charter remain with a modification in title of
     the   Recreation   Commission   to   Recreation   and  Parks
     Commission.  That the  method of  selection of  the Planning
     Commission  remain   unchanged  but   that  there   be  some
     modifications in certain other Charter provisions related to
     the Planning Commission.


6&7  Question:   Whether  City  Charter  Section  612 relating to
     special meetings  should be amended to  conform to the Brown
     Act and  whether Section  613 should  be amended  to provide
     more flexibility to  holding  Council  meetings  within  the
     City?

     Recommendation:  That Section 612 and 613 of the Charter  be
     amended to specify that the  Council  can  hold  special  or
     emergency meetings in accordance with procedures established
     by law;  that meetings shall be held in the Council Chambers
     or other locations; meetings shall be open and accessible to
     the public;  and that the Council  shall adopt by ordinance,
     rules insuring adequate  public notice of  and input at  its
     meetings.


8.   Question:  Whether  City Charter  Section 717  relating to a
     City Health Officer should be deleted?

     Recommendation:  The Commission has recommended deletion  of
     this section.


9.   Question:   Whether  City  Charter  Section 1515 relating to
     claims against the City should  be  revised  to  conform  to
     State law?

     Recommendation:   That  the   City  Charter  refer   to  the
     California  Government Code as being the procedural standard
     for City action and that Section 1515 be amended to  conform
     to State law.


10.  Question:   Whether  City  Charter  Section  608  should  be
     amended  to increase the dollar amount requiring competitive
     bidding on public works projects?

     Recommendation:  That specific dollar limits for competitive
     bidding of public works projects be removed from the Charter
     and adopted instead  by ordinance.  Revised  Charter wording
     has been  suggested which states the  intent to preserve the
     integrity of the  bidding process; encourages  participation
     by disadvantaged or  minority persons  or businesses  in the
     bidding process; and  includes requirements that  consultant
     contracts   over   $50,000   be   subject   to   competitive
     requirements.


11.  Question:   Whether  City  Charter  Section 1300 relating to
     official bonds should be amended or deleted?

     Recommendation:   That   provisions  relating   to  official
     performance  bonds be retained in the Charter but be updated
     to   remove   unnecessary   gender   specific  language  and
     identification of specific City positions.


12.  Question:   Whether  City  Charter  Section 1501 relating to
     Cash  Basis Fund and  City Charter Section  1511 relating to
     Capital Outlays Fund should be amended or deleted?

     Recommendation:   That  a  modification  be  made  to  these
     sections  which preserves  the existing  powers of  the City
     Council while simplifying  and modernizing charter  language
     in light  of the passage  of Proposition 13  and the reduced
     reliance of the City on property tax revenues.

13.  Question:  Whether City Charter Section 1513 relating to the
     presentation of demands should be amended or deleted?

     Recommendation:   Deletion   of  this   section  as   it  is
     duplicative of other provisions in the Charter which address
     financial management controls and responsibilities.


                     VOTING RIGHTS QUESTIONS
As an initial step in considering various electoral options,  the
Commission wished to inquire  into  whether  the  federal  Voting
Rights Act compelled any particular choices, or ruled out others.
Accordingly,  two consultants were engaged to investigate aspects
of this question.  Historian J. Morgan Kousser of the  California
Institute of Technology was  asked  to  look  at  the  historical
record to determine whether there was persuasive evidence,  under
the  Voting Rights Act or on other grounds, that Santa Monica had
a discrimination problem.  Urban Planning Professor Leo  Estrada,
of UCLA,  was asked to  study whether (assuming  that there might
well be a voting discrimination problem) there was a legal remedy
for it through a change in electoral arrangements.

The  answers  to  both  questions  are less than conclusive.  Dr.
Kousser's  research,  based  largely  on  newspaper  coverage  of
circumstances surrounding the adoption  of the 1946 Charter  (and
its   maintenance  in  1975  over  a  proposed  district-oriented
revision), and on statistical analysis showing high correlational
association  between supporters of Charter adoption and opponents
of fair employment legislation, offers substantial evidence  that
the  current Charter was,  from a voting  discrimination point of
view, suspect.

The material Dr. Kousser  examined, though it contains  no direct
evidence  of  discriminatory  intent  by  the  Charter's  framers
themselves,  is  in  Dr.  Kousser's  view, sufficient basis for a
prima facie case,  and one which  he maintains "would  have to be
defended vigorously."

Dr. Kousser added, that the evidence of discriminatory intent  in
the adoption of the 1946 Charter was at least as strong as in the
successful  redistricting  case  against  the  Los Angeles County
Board of Supervisors, in which  he  served  as  principal  expert
witness on the intent issue.

However,  the  scope  of  Dr.  Kousser's  research was limited to
approximately 70 hours, he was  not  asked  to  explore  contrary
evidence,  and  he   characterized  his  conclusions   as  "quite
tentative."

In the view of the City Attorney's Office, the evidence presented
is  no "smoking gun", and does  not provide the extensive factual
record that would be required to  prove intent in a case of  this
kind.  Even if  the  Commission  were  to  make  the  worst  case
assumption  on  the  intent  issue,  the  City  Attorney's Office
explained, several  other pre-conditions would need  to be met in
order  for   a  voting   discrimination  suit   to  be  seriously
considered.  The other elements of a successful suit are: a) that
such  discriminatory  intent  was  actually  translated  into   a
discriminatory  effects; and b) that there is a viable remedy for
the  problem.   Specifically,  plaintiffs  would  also  need   to
establish: 1) the existence  of  a  minority  group  sufficiently
large and geographically  compact to constitute  a majority in  a
single-member district; 2) that the minority group is politically
cohesive,  and  3)  that  its  preferred candidate(s) are usually
defeated by votes of the white majority.

On these points, all of  which need to be answered  affirmatively
for an  adverse voting  discrimination judgment  to be  found, we
have at this  point no clear  affirmative answers (though  it has
been established by Professor Estrada's work that combined ethnic
minorities constitute  a majority  of a  compact district).   The
Commission did not pursue answers to the second and third points.
For the Commission's decision-making process, it was unneccessary
to  determine these  answers because  the Commission  was already
committed to  recommending a  system that  would increase  ethnic
empowerment.

Since  the   Commission  was   nearing  consensus   on  proposing
abandonment of the at-large system  for  that  and  other  policy
reasons,  the  legal  consequences  of  remaining  at-large  were
becoming moot points, for our deliberative process.

In  the   further  choice   between  districts   and  the  single
transferable vote,  both of which are  large steps toward greater
ethnic group electoral influence, the relevance of the answers is
marginal.  The degree  of  group  cohesiveness  will  bear  on  a
minority group's success rate  under both systems, and,  short of
virtual unanimity, provides no  iron-clad  guarantee  of  success
under  either  one.   A  mathematically sophisticated examination
comparing  the probable success  rates under districts  or STV of
ethnic-backed  candidates  is  a  project  that  can be done, and
perhaps should  be done before a final  decision is made.  It was
not a project, however, that could be done within the time  frame
and budget of this  report, or  with the  staff available  to the
Commission.

Similarly,   counter-voting   by   the   white  majority,  if  it
exists,(and no  evidence of  its current  existence has  been put
before  us)  would  impinge  on  ethnic  choices succeeding under
either system.  If  there  is  any  significant  degree  of  such
counter-voting it might be more effective in districts than under
STV.  This  is also a matter that  could well be pursued further,
but not one  we were able  to pursue within  our time, skill  and
budget constraints.

What is clear, in contrast to all these unanswered questions,  is
that STV, like districts, brings Hispanics much closer to placing
their  choice  on  city  council.   Unlike districts, it avoids a
forced  choice between a Hispanic and African-American candidate,
and enables  all members  of each  group, regardless  of place of
residence, to unify behind a candidate of its preference - or for
that matter, to join together.  As such, it is hard to foresee  a
basis under which it could be attacked as minority vote dilution.
Likewise,  should  the  Council  choose  to  follow  our   second
preference  and institute districts, the City should, provided it
drew a district that nearly maximized minority voter strength, be
immune to voting rights litigation.

As the Commission on policy grounds recommends discontinuance  of
the  at-large plurality system,we hesitate to step into the shoes
of the City Attorney to advise Council on its voting rights  risk
exposure should it not abolish at-large elections.

There is of course  no pending voting discrimination  litigation,
nor threat of litigation, nor even rumor of a threat.

However, we have heard enough discussion and read enough material
related  to the question that  we can say as  a matter of prudent
management, that it would  be unfortunate and unwise  to maintain
in place a system the City might need to defend at great expense,
notwithstanding  the  likelihood  that  the City might ultimately
prevail.

By contrast, in the City Attorney's view a move to a system  that
offered  increased opportunity for  minority representation would
be a defense  to any such  suit.  This, in  our view, is  yet one
more  reason  - not the most important one, but a significant one
- for choosing one of  the electoral options we have  recommended
in the body of this report.

1)  Question: Whether or not the  City Charter should be  amended
              regarding the method of selection of members of the
              City Council and Mayor?

                            FOREWORD

Winston Churchill, irritated at  some error of his  constituents'
ways,  once proclaimed  that "democracy  is the  worst imaginable
form of government  - except for  any other system  that has been
thought of".

As his statement  implies, no form  of government is  without its
drawbacks.  Even within  an  agreed-upon  goal  of  democracy,  a
variety  of  values  --  not  always  compatible  -- are bundled.
Democratic values  embrace exercise of the  will of the majority,
while at  the same  time protecting  the rights  of the minority.
Responsiveness  to changes in public opinion is a goal, but so is
policy continuity and stability.

In the issue of applied democracy the Commission deals with  here
-  the question of electoral systems - we are likewise faced with
the task of  clarifying our values  and objectives; and  weighing
carefully each  system in terms  of its ability  to express those
values.

We have tried, through our deliberations, and in this report,  to
assess the assets  and liabilities  of various  electoral options
and draw a balanced judgment, realizing throughout that there  is
no  perfect machinery for the translation of the popular will, no
ultimately "right  answer" to  this problem.   We hope,  however,
that  the following is helpful in indicating why some systems are
more  imperfect  than  others,  and  why  we  decided finally, to
recommend the option that we chose.

                             PROCESS

The Commission  began its  deliberative process  on the electoral
system question  in  July  with  a  panel  including  Rick  Cole,
Councilmember elected from a district in Pasadena; Santa Monica's
Councilmember  Herb  Katz,  an  opponent  of  districting;  Peter
Morrison, RAND demographer; and Paul de Santis, a local  attorney
and  district advocate.  A further evening of discussion featured
Richard Fajardo, a staff attorney for the Mexican-American  Legal
Defense  and Education Fund (MALDEF) who  has been active in many
voting rights  cases, (including  the Garza  case, which  brought
about adoption  of a Latino seat on  the Los Angeles County Board
of  Supervisors).   Also  appearing  were  members of CURE, Santa
Monica's election  reform advocacy  group, including  Irene Zivi;
Commission  members  Steve  Alpert  and  Herman  Rosenstein; Pico
resident Doug Willis (who later joined the Commission), and  Norm
Curry of the Santa Monica NAACP.

During this  same period,  the Commission  spent several sessions
identifying  the virtues and liabilities  of the current at-large
system  as  well  as  key  objectives  to  be met by any eventual
recommended electoral  system.  We delved  into numerous articles
and book  chapters from  public affairs  magazines and  political
science  research that offered  a variety of  perspectives on the
procedures involved in, and the impact of all types of  electoral
systems.   A substantial part of this material focussed on ethnic
representation questions.

Dr. Bernard Grofman of U.  C. Irvine, noted expert and  editor of
several books  on electoral systems joined  us in October.  While
introducing us to the fundamentals of more uncommon  proportional
representation options, he advised us to avoid an abstract search
for the theoretically perfect  system.  Instead, he suggested  we
focus on determining what changes are desirable in Santa Monica's
political culture, and then  select a system to  facilitate these
goals.

A visit from long-time  Long Beach City Councilmember  Tom Clark,
who served  in both at-large and  district systems, added another
look at the pros and cons of these alternatives.

In  a  public  hearing  at  the  beginning of February we briefly
outlined the mechanics of and rationale for the various electoral
options, and received a number of useful opinions from  community
members.

A presentation by  UCLA Urban Planning  Professor Leo Estrada  on
his  demographic research gave us a concrete model of districting
for  minority  representation.   The  March  report  of  Cal Tech
historian Morgan Kousser  contended  that  the  current  at-large
system had been no ally of minority empowerment.

We decided on a two-stage process for making our final  decision,
the first matter  at issue  being whether  to recommend  a change
from the status quo.  The Commission almost unanimously (14 to 1)
recommended  doing so.  The Commission then undertook an exercise
to determine preferences among various electoral system options.

                           CONCLUSIONS

In our near-consensus for recommending a shift from the  at-large
plurality  system currently in use, we  were guided in large part
by  a  desire  to  distribute  empowerment  more broadly in Santa
Monica, particularly to  ethnic groups  but to  neighborhoods and
issue groups as  well.  A move  away from the  current system, we
believe, should enhance the responsiveness of representatives and
make  the  electoral  process  more  open  to  new  ideas and new
participants.

In selecting a substitute for the present process, the Commission
was drawn to aspects of  both  the  proportional  method  and  to
district elections.  After several sessions devoted primarily  to
a  thorough  discussion   of   their   relative   merits,   eight
Commissioners selected the  proportional approach as  their first
preference.   Five  Commissioners  selected  districts  as  first
preference.  Districts were selected as second preference by four
Commissioners  as   was   a   mixed   district/at-large   system.
Proportional   was   selected   as   a   second   choice  by  two
Commissioners.  Retaining the current  at-large  system  was  the
first preference of one Commissioner and the second choice of one
other Commissioner.

At  the  end  of  its  deliberations,  the  Commission  voted  to
recommend   that  if  City  Council  decides  not  to  propose  a
proportional method to the voters, then both the district  system
and   a  hybrid  district/at-large  system  should  be  seriously
considered.   It  was  further  recommended  by  a  majority   of
Commissioners  that if a district form were adopted, there should
only  be  one  election,  rather  than  a  primary  followed by a
run-off.

The  districting  approach  has  many  attractive  aspects:   the
restoration of  face-to-face  campaigning  involved  promises  to
dispel  some   of  the   alienation  of   contemporary  political
discourse, and  diminish  the  corrupting  influence  of  special
interest   campaign   funding.    Districting   undoubtedly   has
empowering aspects as well.

What weighed heavily against its several virtues, in many of  the
Commissioners' minds, was its  single  disempowering  side:  that
every voter would lose much  influence over six of seven  council
members.  The  majority of  the Commission  believed this  was an
unacceptable  trade-off  for  whatever  enhanced  influence   and
accountability  would be produced over one member.  Also reducing
the voters' power, some  Commissioners thought, was that  in this
system, one could vote only every four years.

Districts certainly help geographically concentrated  communities
of interest; but for many Santa Monicans, the group with which we
identify is not geographically  defined.  We noted, for  example,
the  gender imbalance on City Council,  and suggest that if women
wanted to aggregate  their support for  a candidate, it  would be
difficult for them to do so through a district format.

Most  members  of  the  Commission  see, in a proportional voting
system (particularly the  single  transferable  vote  method),  a
solution  that  offers  the  empowerment  opportunities  of   the
district method without its major liability.  While it may not go
as  far  in  reducing  the  impact  of campaign contributions, it
offers many of the other dividends of districting.

In our view, proportional representation's primary virtue is  its
flexibility,  an aid to accurately reflecting popular priorities.
If  neighborhood  issues  are  at  the  top  of  the public mind,
district-based   candidacies  will  be  strong;  if  feminist  or
development   issues    rise   to    prominence,   feminist    or
development-oriented candidacies can flourish; when ethnic groups
have an urgent agenda, ethnic candidacies will no doubt do well.
By lowering the threshold of votes needed for electoral  success,
adoption of  a proportional method  will open the  system to more
pluralistic representation; by its flexibility, it will allow the
public  to determine from time to time, as priorities change, the
specific content of that pluralism.

The downside of  a proportional system  is its complexity,  which
would  necessitate a thorough public  education campaign prior to
being put forward as an option for voter consideration.

           VOTES NEEDED TO ELECT UNDER VARIOUS SYSTEMS


             THEORETICAL MINIMUM           MINIMUM VOTE SHARE
             SHARE TO ELECT UNDER          REQUIRED TO ELECT
             BEST CASE ASSUMPTIONS         BASED ON EMPIRICAL
                                               EXPERIENCE
---------------------------------------------------------------
AT-LARGE         no theoretical
Plurality           minimum                    34% - 41%
(current     (depends on # of candidates)
 system)_______________________________________________________
DISTRICTS        none
 with        (depends on # of candidates        5% - 6% of city
Plurality_____________________________________________voters___
  STV        25% when 3 seats up
 with                                           same
staggered    20% when 4 seats up
 terms_________________________________________________________
 STV
with all     12 1/2% (7 seats to fill)          same
elected at
 once___________________________________________________________
CUMULATIVE   13 - 14% when 3 seats up      about 33% if 3 seats
  VOTE                                              up
staggered    10% when 4 seats up           25-27% if 4 seats up
  terms      (assuming each voter has
______________3 and 4 votes, respectively)_____________________
CUMULATIVE   6% if each voter has 7        no data on which to
  VOTE               votes                 base estimate
all elected
at once_________________________________________________________


NOTES: 1)  based on Santa Monica City Council elections 1986,
           '88, '90
       2)  assuming 7 districts, and similar vote distribution as
           in at-large system; i.e. 34 - 41% of electorate within
           district
       3)  highly theoretical assumption that only one candidate
           get multiple votes while none of opponents get any
       4)  assumes (on data from Alamogardo, N. M.) that a
           minority-backed candidate gets approximately 2 votes
           from average supporter, while other candidates get
           approximately 1 1/2 votes per supporter

              RECOMMENDATIONS FOR FURTHER RESEARCH

Most  members  of  the  Commission  felt  that we were making our
decision  with less information than we  would have liked to have
had before us, and several Commissioners would have preferred  to
investigate  several questions before  making our recommendation,
but the time frame in  which we were charged with  completing our
report made that impossible.

We strongly  suggest that  City Council  take steps  to determine
several  unsettled  issues  before  making  its  final  decision,
utilizing experts in this area as needed.  These matters include:

    o While  our  limited  investigation  of  proportional   vote
      counting systems led us to believe that a fair and reliable
      procedure can be designed (which prevents election outcomes
      from  being skewed by the order of ballot counting) further
      development of its application and exploration of  possible
      pitfalls is  still needed.  The  so-called "Boulder system"
      of  transferring  surplus  ballots  avoids  the theoretical
      possibility of close  elections  being  determined  by  the
      order  of  ballot  count,  but  we know of no jurisdictions
      where   this  system  is  in  actual  use.   The  costs  of
      proportional election tabulation, both computer  conversion
      and  ongoing expense, require  more thorough investigation,
      although our cursory research suggested neither cost  would
      be  prohibitive.  A  computer program  for the  counting of
      transferred votes according to the Boulder system could  no
      doubt be  devised fairly easily.   Whether another unbiased
      method  could  be  developed  is  a  question that could be
      explored further.

      o Latino voting strength  in Santa Monica:  what proportion
      of voters  in the proposed  minority-influence district are
      actually members of minorities?  And what proportion of the
      unregistered population can we estimate to be non-citizens?
      Resolving this question  is important to  assessing whether
      we have  been correct  in our  tentative conclusion  that a
      proportional system will work as well for Latino  influence
      on City Council as a district would.

   o  Political  culture  under  a  proportional  system:   is it
      empirically the  case that  independent candidacies  have a
      greater  rate  of  success  than  they do in districts; are
      slates an important presence in proportional elections?

   o  Further research  on the  role of  campaign spending  under
      proportional and district systems:  are  top  spenders,  in
      fact, less  likely to  win under  those systems  than under
      at-large systems?

                      OBJECTIVES AND VALUES

In considering various options for Santa Monica's City Council
electoral system, the objectives considered by the Commission to
be primary were:

o   to guarantee accountability, so that over the long term
    Council members faithfully reflect popular preferences in
    their policy-making.
o   to preserve accessibility, so that over the short run Council
    members are responsive to day-to-day needs of their
    constituents.
o   to ensure that governing bodies reflect the ethnic diversity
    of Santa Monica so that no group is deprived of an
    opportunity to make its voice heard and its choices known.
o   to facilitate the representation of the diverse currents of
    opinion in Santa Monica, and assure a place on the public
    agenda for the varied priorities of many organizations and
    all neighborhoods.
o   to maintain, while broadening the issue agenda to an array of
    individual and group concerns, the centrality of common
    concerns, and assure that Council members approach problems
    with the interest of the whole City foremost in their minds.
o   to encourage the widest possible voter participation.
o   to equalize, as far as possible, the influence of all
    residents, as articulated in the principle 'one person, one
    vote' by minimizing the distorting influence of campaign
    money on the democratic process.
o   and to provide every resident not only equal representation,
    but an equal right to be a representative by maximizing the
    opportunity for independent candidates to compete
    realistically for election.

Accountability and Accessibility

In democratic theory, accountability is the key issue and the
main purpose of having elections of any kind.  It is the quid pro
quo of delegation of power to an elected body and the insurance
against that power's misuse.

In practice, accountability is not present/absent but is a matter
of degree.  How accountable representatives feel varies according
to individual philosophy and conscience but depends ultimately on
their sense of how easy it would be for discontented constituents
to  replace  them.   The  Commission  therefore wished to avoid a
system  which   would   tend   toward   undue   entrenchment   of
office-holders.

It is also  a matter of  direction; accountability to  whom?  The
accountability   to  all  contemplated   by  political  theorists
necessitates  approximately  equal  influence  on outcomes by all
citizens.   To the  Commission, this  is linked  to the  issue of
campaign finance reform, and also  to the issue of maximal  voter
participation.   Voter participation in turn  is discouraged by a
narrow agenda of public issues  and by a Council membership  that
excludes  ethnic   groups   or   leaves   neighborhoods   without
representation.   A   final  dimension   of  accountability   the
Commission considered was how  often  performance  was  reviewed.
Many Commissioners  felt that  biennial elections  were desirable
because  they allow  the voters  to signal  for change  in policy
courses before those courses become irreversible.

In  many  cities,  but  not  necessarily  Santa Monica, much of a
resident's  concern with municipal government is service-oriented
rather  than  issue  oriented.   Potholes, streetlights, traffic,
crime-- matters on  which a  resident wants  prompt action  and a
simple  way  to  get  it.   Many  City Councilmembers may not see
themselves primarily in the  role  of  ombudspersons  or  service
representatives,  but  it  is  a  facet  of  the role and in some
residents' eyes, the central one.  The issue of accessibility can
be viewed  several ways.   Does the  voter with  their own  local
Councilmember get more attention and better service?  Will he/she
have a  better sense  of a  local problem  and be  more concerned
about   it?   Or   is  it   preferable  to   have  a   number  of
representatives, and multiply the points of access for influence?
On balance the Commission leaned toward the latter point of view,
in part because the geographical proximity of a Councilmember was
not  a  guarantee   of  either   shared  concerns   or   personal
compatibility.

Ethnic Diversity

Demographic    trends,    rising    cultural    sensitivity    to
multiculturalism, maturing  minority political  consciousness and
federal  voting rights legislation are all impelling more serious
consideration  of  the  need  for  multi-ethnic representation on
America's governing  bodies.  In Santa  Monica's particular case,
the size and distribution of  ethnic groups in the City  does not
make the best route to this goal obvious.

While it would be possible to form one district with a voting age
majority of  (multiple) minorities, it is  not clear whether they
would be a majority of actual voters.  Nor is it clearly the most
empowering  option to insure minority influence in Santa Monica's
political life.   Since multiple  minorities are  involved, would
one  group's gain be  another's loss?  Or  would common interests
facilitate coalition?  Would  minorities residing outside  such a
district be empowered or disempowered (gain or lose influence) by
its creation?  We were not able to come to a conclusion on  these
questions.

Neighborhood Empowerment And Voter Participation

For many city dwellers, conditions in their immediate area are
perhaps the foremost concern in thinking about politics, and the
quality of neighborhood life is the yardstick by which they
evaluate local government.  Neighborhood activism is alive and
well in Santa Monica and we wish to encourage it to thrive, for
the solutions to many problems, even those affecting the whole
City, may first be developed in the incubator of intense
neighborhood interactions.

But not all of Santa Monica neighborhoods seem to feel equally
treated, or equally empowered.  There are considerable
differences between various districts in their voter turnouts.
It is no coincidence that the area of lowest turnout (Pico
neighborhood) is also the area feeling most disenfranchised and
least listened to in City affairs.  One cannot point to cause and
effect here, but a cycle:  those who participate less may get
less consideration when decisions are made; those who feel they
and their neighbors have no influence will in turn be disinclined
to bother participating.

In the Commission's opinion, neighborhood activism is a vital
element in civic life, and we believe the City's electoral system
should be one that reinforces it where it is healthy and
stimulates it where it is frail.

A system that gives all neighborhoods reason to feel their
concerns will get attention should encourage voter participation
in all areas, particularly those low turnout areas that have seen
themselves as neglected neighborhoods.

Reducing Slate Dominance

For some Commission members, one important objective in election
reform would be to reduce the central role of slate politics in
Santa Monica's civic life.

The influence of slates was not seen as lacking positive aspects.
The  slating process itself provides a sifting procedure in which
scrutiny  by  a  group  of  politically  interested citizens puts
forward   what  are  presumably  the  more  capable  of  possible
advocates of that group's point of view.  For a variety of people
-  supporters  and  opponents  of  the  endorsing  group  -  such
endorsements can  be an  economic way  of making  choices without
investing  time in  extensive research  of candidate  records and
positions, a real service to many busy people.  Slates were  also
given  credit for drawing  into the political  process groups and
individuals who had previously  been excluded.  Finally, it  must
be  said that slating organizations with continuing post-election
life  can,  and  perhaps  do,  by  their ongoing interaction with
candidates   they   sponsored,   provide   a   form   of   public
accountability between elections.

However,  these  benefits,  in  many  Commissioners' opinion, are
outweighed by serious  liabilities.   The  pre-eminent  place  of
slates in Santa Monica's political process reduces the  prospects
for   independent  candidates  to  get  the  public's  attention,
regardless of their individual merits.

It  is  in  the  nature  of  slate  campaigns, many Commissioners
believe, to  revolve around a very few  issues.  This is, to some
extent,  an   affliction  of   all  contemporary   media-oriented
electoral campaigns,  but is  exacerbated in  the case  of slates
because  of  the  need  to  play  down  issues  on which endorsed
candidates do  not agree.  The  narrowing of the  issue agenda in
the  campaign,   we  believe,   has  a   carry-over  effect  into
week-to-week city government; with attention focussed so brightly
on the "main issues" over which the vote polarized, other equally
important issues tend to be eclipsed.

For many residents, the principal campaign themes may be  matters
of relative indifference, compared  to  other  issues  they  feel
strongly about.  The Commission feels that slate campaigns are in
part  responsible for the difficulty  of developing ongoing civic
dialogue on a broader range of topics.

No  system  we  considered  would  eliminate slate influence, nor
would we consider that a desirable goal.  We would, however, hope
to see the  adoption of a  system in which  slate endorsement was
merely  one   factor,  and  not  the   key  consideration,  in  a
candidate's prospects for success.

                       AT-LARGE ELECTIONS

Mechanics  and  Usage:    The  at-large  system  of  City Council
election  has been  in force  in Santa  Monica since  the present
Charter was adopted, and the three City Commissioners (for public
works, public safety  and finance)  were elected  at-large before
that.  As members of the present City Council were elected  under
this  system, we need not expound here on its mechanics, but only
note that within the genre, there are variations such as majority
vote requirements  (with primary and run-off  if needed), and the
numbered seat system.

In California cities, use of the at-large option is the norm, and
has   been  for  most  cities  since  their  inception.   Of  220
California cities surveyed by the League of California Cities  in
1989, 205 employed it in  contrast  to  15  choosing  members  by
district.

Districts tend to be predominant in the State's largest cities  -
Los Angeles,  San Francisco,  San Diego,  Long Beach  -- although
districts can be  found in a  number of cities  of Santa Monica's
approximate size -- Redondo Beach, Downey and Pasadena.

Across the  nation, too,  at-large elections  prevail, except  in
metropolitan centers.  Yet, this was not always true.

At the end of the  19th century, district (or ward)  election was
the  rule in United States cities, only  to be swept away as part
of the municipal reform  movement package of changes,  which also
entailed non-partisan elections and  the  city  manager  form  of
government.

The upheaval in municipal governance brought about by the  reform
movement was  prompted  in  part,  by,  and  aimed  in  part  at,
wide-spread graft and corruption in city politics.  However,  the
reforms   introduced  (especially   the  abolition   of  district
election),  whatever  they  accomplished  in  expunging political
rackets, had  the consequence of  disempowering ethnic minorities
and the residents of  poorer neighborhoods.  To what  extent this
was a  goal of some reformers, or  merely a by-product, remains a
lively debate among historians, one we need not explore here.

The disempowering effect, nonetheless, has been a recurring issue
since the institution  of at-large  systems, here  and elsewhere.
As late as 1941, the National Municipal League advocated at-large
elections in its Model City Charter, explaining: "It is difficult
to  find  capable  leaders  distributed  throughout  the  city by
wards."

As  our  consulting  historian,  Professor  J.  Morgan   Kousser,
reported  to us, the  adoption of Santa  Monica's current Charter
involved  a  spirited  controversy  between  district  proponents
(including  African American leaders and residents of Ocean Park)
and advocates of at-large, led by the almost all North-of-Montana
"freeholders" who designed the Charter.

Complaints from the  Pico and Ocean  Park areas were  rebuffed by
the  Board of Freeholders, who first  agreed and then declined to
put a district option on  the ballot, and dismissed by  the Santa
Monica   Outlook,  which  editorialized  that  the  "interest  of
minorities is always best protected by a system which favors  the
election  of liberal-minded persons who are not compelled to play
peanut politics."

Dissenters   raised   the   prospect   of   a    North-of-Montana
"dictatorship"  with little  concern for  "the resident  of Ocean
Park, Douglas district, or  Lincoln-Pico" and asked  "Where  will
the Jewish,  colored  or  Mexican  go  for  aid  in  his  special
problems?"

But the Charterites prevailed at the polls (though more  narrowly
in the  above-mentioned  areas),  and  the  controversy  did  not
resurface until  1974, when  Ocean Park  residents spearheaded an
initiative for  a 7-district plan,  collecting 10,000 signatures.
Again opposed  by the  Outlook, incumbent  office-holders and the
Chamber of Commerce, the pro-district  forces  -  backed  by  the
League of Women Voters and Democratic Clubs (according to Outlook
records) - lost the April 1975 vote carrying Ocean Park precincts
but little else in a two-to-one defeat.

The issue of  minority empowerment (generally  in the context  of
ethnicity  rather than class  or neighborhoods as  such) has been
raised repeatedly throughout our  state and nation in  the 1970's
and 1980's and opposition to the at-large method on those grounds
has weakened its  sway.  Under Voting  Rights Act litigation,  or
the  threat thereof, many southern cities were pressed to abandon
the at-large system, usually in favor of district elections or  a
hybrid   arrangement  combining   districts  with   some  members
at-large.   Some   California  cities,   usually  without   legal
pressure, made  the same changes  in response to  both ethnic and
neighborhood pressures to choose their own spokespersons.

Appraisal:   One  major  advantage  of  an  at-large Council, the
Commission felt,  was accessibility.  With  responsibility to all
voters comes an openness to  the needs of all Santa  Monicans and
some incentive to be informed on issues and developments all over
the  City.   We  feel  that  Santa  Monica's  size  makes  this a
realistic expectation.

Some  members  of  the  Commission  feared  that without at-large
constituencies, Council  members would have  little motivation to
meet the  needs and  concerns of  people outside  their immediate
geographic areas.

The Commission evaluated the  at-large system as least  desirable
on the  criterion of  accountability.  Two  facets of  the system
diminish a council member's  vulnerability to removal.  The  only
way to bring  about  the  defeat  of  one  member  who  has  been
unresponsive is by ensuring that three (or four) other candidates
get more  votes.  This was felt to  be an indirect, difficult and
inefficient route to removing the unaccountable.

Exacerbating the  problem is  the expense  of at-large  elections
necessarily associated with reaching the numbers of voters needed
to win in this system.   That sizable amounts of funds  generally
flow  to incumbents  just by  virtue of  their incumbency  is one
problem.  That  the dependence  on large  contributions tends  to
make a Councilmember accountable to their donors, rather than the
electorate as  a whole,  is another  and more  serious flaw.  (It
should   be   noted   that   subsequent   to   the   Commission's
deliberations, revisions were made to the Municipal Code relating
to campaign  contributions, which  may impact  this issue  in the
future.)

For reasons  touched on  in the  above historical  review, and to
which we  will return  in discussion  of districts,  the at-large
system is generally considered an obstacle to ethnic empowerment.
Santa Monica's City Council gained its first minority member when
an African-American police officer, Nathaniel Trives, was elected
in 1971, and a  second  African-American,  Hilliard  Lawson,  was
named by the Council two years later to fill a vacancy opened  by
a death in office.   Between 1979  and the  1990 election  of the
first Latino Councilmember,  Antonio Vazquez,  minorities had  no
presence on the Council.

Santa  Monica  is  fortunate  in  being relatively free in recent
years of ethnically  polarized  voting  --  as  the  approval  of
minority members by an electorate  over 85% white tends to  show.
However,  the Commission is concerned with a more subtle question
- whether it should be the role of a white electorate to make the
ultimate  choice between minority candidates, or for that matter,
between  a  minority  representative  and  a white competitor.  A
minority,  elected to office primarily by a white electorate does
not, by  that process,  become a  representative of  the minority
community or necessarily a proponent of its agenda.

The central issue, in the Commission's view, is not one of having
Council   members  who  are  ethnic,  but  of  empowering  ethnic
communities to choose Council members, and on this criterion, the
at-large system is  felt to  be inadequate.   It should  be noted
that there was  concurrent Commission discussion  which addressed
the role and  responsibility  of  slates  in  promoting  (or  not
promoting) ethnic minority candidates under the current system.
In  this   approach  to   weighing  ethnic   representation,  the
Commission  is in accord with the  Voting Rights Act and judicial
elaboration thereon,  which emphasizes  the ability  of protected
groups  to  elect  "representatives  of  their  choice",  as  the
paramount test, above and beyond the ethnic background as such of
the representative.

A second facet of the question of diversity or representativeness
is the  ideological  dimension.   By  its  nature,  the  at-large
election  tends   toward  homogeneity   of  views,   rather  than
diversity.   With a single electorate  weighing competing sets of
aligned candidates at the same time, those sharing the same  base
and viewpoint would likely all win, or all lose.  Only in a close
overall  contest  would  slight  variation  in  individual appeal
produce a mixed result.

A variety of viewpoints on the Council, the Commission  believes,
serves not only  the popular  sense of  being represented,  but a
decision-making  process  that  avoids  error  by   incorporating
critical perspectives beforehand.

The disempowerment of some neighborhoods is a third dimension  of
the diversity  issue that concerned the  Commission.  As noted in
the  previous  section,  there  was  over-representation from the
North  of Montana area -- perceived as "domination" by some -- in
the  years  following  adoption  of  the  present Charter.  While
contemporary Councils have been more geographically diverse, some
areas  -  notably  the  Pico  neighborhood  -  have  never   been
represented on City  Council.  Some  residents of  that community
expressed to the  Commission feelings of  neglect and a  sense of
disenfranchisement.

The at-large system is not particularly helpful to the  placement
of neighborhood issues on the  civic  agenda  since  a  candidate
oriented  mainly  to  such  an  issue  would  have limited appeal
running  city-wide.  However,  should  an  issue  arouse  intense
concern in  one neighborhood  or considerable  concern in  two or
more, under the at-large system all Council members would have to
listen.

The  at-large  Council  focuses  its  attention  predominantly on
city-wide  issues and (if its composition is not skewed by class,
geography,  race  or  some  other  factor)  is  designed  to make
decisions  from the viewpoint of the city's interests as a whole.
That  the  membership  is  often  skewed,  however,  can bias the
definition of what the city's interests are.

The simplicity and familiarity of the system makes  participation
easy.   Only insofar as it may neglect to address the concerns of
some groups for reasons cited above, might it lead to lower voter
interest and hence participation.

                            DISTRICTS
Mechanics And Usage:  Under this system, the City would be
divided into a number of districts of equal population with a
single representive from each district.  If the Council were to
remain the same size, Santa Monica would have seven districts,
and one Council member would be elected as Mayor by the Council.
Alternatively, if the mayor were to be elected by the people
city-wide (an option not of particular interest to the
Commission), we might wish to change the number of districts to
six or eight, in order to maintain an odd number (7 or 9) of
votes on Council.  A reduction to six districts, however, would
dilute minority influence, perhaps to the point where there was
no "multi-minority majority" district.

Unless  the  City  were  to  adopt  a  two-stage election (with a
primary  and   run-off  between   top  finishers)   the  district
candidates would be elected by plurality vote.

District boundaries would  require revision after  each decennial
census.   The reapportionment process  usually generates friction
among the potential victims or beneficiaries and can be abused to
entrench incumbents  through gerrymandering.  This  task could be
delegated to another body without personal stake in the  outcome,
if the  Council wishes to reduce  controversy and the possibility
of abuse.

It is customary that Councilmembers are required to reside in the
districts they represent, and in practice it would be unusual for
a district to  elect a non-resident.   Some argue, however,  that
the  purpose of  district elections  is to  increase neighborhood
empowerment, and  that restricting  voters' choices  to immediate
neighbors is not a necessary part of that process.

We  discussed  in  the  previous  section  the decline and recent
revival of  the district method  of election and  the reasons for
those changes.  Districts were in fact briefly used in the  first
few years  of Santa  Monica's civic  existence, before  the three
Commissioner arrangement was adopted.  District advocacy in Santa
Monica  has most recently been taken  up by CURE (Citizens United
to Reform Elections) which proposed seven districts, most of them
congruent  with planning areas or otherwise historically accepted
neighborhoods.  The CURE proposal would mandate that  representa-
tives  reside in  their districts.  This particular  proposal was
also  supported   by  members   of  local   chapters  of   MALDEF
(Mexican-American Legal Defense and Education Fund) and the NAACP
(National Association for the Advancement of Colored People).

Appraisal:    Accountability,   the   Commission  concluded,  was
optimized in a districted city  --  in  a  certain  sense.   Each
Council  member  has  a  smaller  electorate which will be fairly
aware  of his/her performance in office - at least as it pertains
to issues of interest to that neighborhood.

Both logic and anecdotal reports  lead to the conclusion that  it
would be easier to replace a district representative than to oust
one elected at-large.  The  limited range of a  district campaign
enables  new candidates  to get  adequate exposure  more quickly;
similarly, the  fewer households  one would  need to  reach could
make  campaign  funds   a  lesser   factor;  human   resources  -
neighborhood  activists  -  can  be  substituted.   Since in this
milieu the incumbent's  funding  advantage  is  less  meaningful,
office-holders   have   more   incentive   to   be  attentive  to
constituent preferences.

In another  sense, accountability  is distinctly  limited by  the
district system; six of seven Councilmembers are beyond the reach
of  every  individual's  vote.   While  nothing stops anyone from
working for  or  contributing  to  an  alternative  candidate  in
another district, the  limited number of  people likely to  do so
makes accountability in this system a parochial one.

A  similar  trade-off  is  apparent  in  accessibility  under the
district  system.  One's local member is likely burdened by fewer
inquiries and requests  for services and  so has more  time for a
constituent's  needs but if he/she is inefficient or inattentive,
one has to turn to  representatives from other districts who  may
be inclined to help, but have no particular incentive to do so.

The  information  put  before  the  Commission  by our consulting
demographer,  Professor Leo  Estrada of  UCLA, suggests  a strong
probability, but not clear evidence, that Latinos could determine
the  selection of one Council member under a seven-district plan.
Latino influence  would be  even stronger  under a  nine-district
format;  the Latino voting age population in one district therein
being 44.6% as compared with 39.6% when there are 7 districts.

It was noted that the potential impact of non-citizen Latinos  on
voting patterns in  Santa Monica is  a question that  needs to be
determined.  If they do, districts may not be the optimum  method
of Latino empowerment in this city, because voting Latinos in the
district might  be too  few to  prevail, and  Latinos outside the
district would  have less influence  on the outcome  than they do
now.

A further  concern to  some Commission  members was  that in  the
proposed  districts   the   preponderance   of   Santa   Monica's
African-American population is included to build a multi-minority
majority.  But the district sends only one representative to City
Hall, potentially setting the  two ethnic groups in  head-to-head
competition.   Moreover, were competing candidacies to develop, a
third non-minority candidate could well emerge the winner,  given
the distribution of ethnic groups.

The  district  system,  for  obvious  reasons, should guarantee a
place   on  the  public  agenda  for  neighborhood  concerns  and
problems.    Some   neighborhoods,   we   were   told   by  local
spokespersons,   feel  particularly  disenfranchised.   One  Pico
resident, for example, complained that their area is host to over
three-quarters  of homeless and drug-treatment facilities, and is
a  "dumping  ground"   for  "all  activities   incompatible  with
residential  life."  No resident  of this district  has ever been
elected to City Council.

As  interest  in,  and  viewpoints  on,  such  current  topics of
controversy  as   development  or   rent  control   vary  between
neighborhoods, we believe that a district-based Council would  be
more ideologically  diverse.   The  priorities  of  organizations
might be advanced in such a system if their bases are  localized,
but for  many groups organized city-wide  its adoption would make
no particular difference.

The Commission discussed a point that in maintaining the goal  of
a  central role for city-wide concerns, the district system could
be counter-productive. Though we  want to see neighborhood  needs
brought  forward, we do not wish to pay a high price in weakening
attention to city-wide perspectives.  Some Commissioners feared a
parochialism generating cycle in which representatives would find
it electorally  useful to  focus on  purely local  issues, giving
short-shrift  to long  range city  planning, the  city's business
climate, or other community-wide considerations.

A district system, in our  view, would be among the  best choices
in  stimulating  high  voter  participation.   It  maximizes  the
likelihood that a candidate - perhaps a friend or neighbor - will
personally be known to the voter; the campaign methods encouraged
by the system facilitate face-to-face contact in any case.   Each
voter, in the smaller  pond of  a district,  is more  entitled to
feel that his/her croak will make a difference.

The relative  ease of  reaching the  voter base  door-to-door has
another  positive   consequence  --  reducing   the  reliance  of
candidates on expensive means of campaign communication, and thus
weaning   the  political  process  from  donor  dependency.   (As
mentioned earlier,  recently approved  changes in  local campaign
financing  laws  may  lessen  the  relative  influence  of  large
campaign contributions in Santa  Monica.)  Of all the  systems we
examined, districts are clearly  the  optimal  approach  to  this
goal.

The same changes  in campaigning styles  led us to  conclude that
district  election would  go far  toward opening  opportunity for
independent candidates.  While  the reduced budgets  needed makes
it easier  to mount  a campaign,  one must  still garner  a large
proportion of the local vote.  Given the substantial influence of
slates,   the  Commission  was  not  confident  that  independent
candidacies would succeed more often under districts than under a
proportional representation format,  but it  is assuredly  a more
open system than at-large.

We do  not suggest,  and have  no reason  to believe,  that slate
politics could not adapt  comfortably  to  the  district  format;
centralized  fund-raising  and  other  co-ordination  might  well
continue,  and slate-endorsed candidates  might emerge victorious
in  all  districts.   We  do  believe,  however, that independent
challenges would be more serious than under the present system.


                          MIXED SYSTEMS

A  number  of  cities  have  responded  to pressures for district
representation by devising a variety of hybrid or mixed district/
at-large combinations.  To some observers, such compromises offer
the  benefits  of  both  at-large  and  district  methods,  while
avoiding the drawbacks of either pure system, i.e., neither areas
deprived  of representation  nor parochialism.   Furthermore, all
citizens  under  a  mixed  system  have  several representatives,
including  one who is particularly  accessible and accountable to
them.

Hybrid  systems  are  in  use  in  over 1,000 cities nation-wide,
including a majority of those over 250,000 population and a third
of those in Santa Monica's range of 50 to 100 thousand residents.
However,  these mixed systems do not enjoy much acceptance in the
Pacific  Coast   region,  where   at-large  elections   are  most
prevalent.   Several  California   cities,   including   Oakland,
Stockton   and   Downey   utilize   some  at-large  and  district
combination.

The Commission  did not  pursue at  length an  evaluation of  the
merits of this  approach,  in  part  because  it  had  no  strong
advocates  in  the  community.   However, the Commission believes
that if Council rejects proportional representation systems, this
option should be given serious consideration as an alternative.

                   PROPORTIONAL REPRESENTATION

Philosophy:  Surprising as it  may seem to Americans,  our method
of  electing representatives, by a simple plurality of votes in a
geographical area, is no longer the standard brand of  democratic
practice.   Indeed,  the  English-speaking  world  is  among  the
minority  of  the  world's  democracies  in its employment of the
plurality, or "first-past-the-post" system.

For over a century, critics have suggested that this method is
flawed as a way of selecting a governing body.  It allows the
largest faction of the population to exclude smaller factions
from any role in governance, creating a deliberative body that
may greatly misrepresent the distribution of views and opinions
among the electorate.  In the worst case, 49% of the voters may
emerge from the process with no elected representatives.

The alternatives proposed by these critics are generically termed
"proportional representation", and rest on the philosophical
principle that the composition of governing bodies should closely
mirror the composition  (i.e., communities of interest) of the
electing population.  The standard against which electoral
schemes are to be judged is one of correspondence between the
proportion of voting support and the proportion of legislators
elected by those supporters.

Underlying this principle and this standard are not only
intuitive notions of "fairness", but pragmatic considerations --
first, that broad popular respect for a governmental process (its
"legitimacy") is enhanced by the widest possible feeling that one
has an advocate for one's views in that process; secondly, that
the opportunity to incorporate some minority perspectives in the
legislative process minimizes the chance of making decisions that
will be ultimately rebuffed by electorate (along with the
decision-makers) come next voting day.

Critics of proportional representation look with alarm at the
system's capacity to spawn numerous small parties or factions,
arguing that this undercuts government's capacity to govern.
That the decision-making process might be slowed by involving
more players can hardly be disputed; whether speedy
decision-making is to be equated with wise decisions is another
matter.  A nation at war might be hamstrung by painstaking
coalition-building; it is hard to envision comparable damage to a
city government.  Concerns have also been expressed over the
relatively small percentage of votes needed for election to a
seat.

Although there are no examples of proportional representation
electoral systems among California municipalities, there are
models of this approach elsewhere in the United States.

                    SINGLE TRANSFERABLE VOTE

Mechanics and Usage:  Among the many methodologies proposed to
allow a gradation of voter preferences among candidates, the
single transferable vote (STV) is one of mostly widely known, and
one suited to municipal non-partisan elections.  (Many other
methods presume the existence of political parties, or a
legislative body of flexible size.)

In STV, the voter marks his/her ballot ranking all (or some)
candidates by preference (first choice "1", second choice "2",
etc.), and a candidate is elected upon attaining a threshold
(called "quota") of n + 1 + 1 votes, where  n  is the number of
seats to be filled -- if four seats are open, one-fifth of the
votes plus one suffices; with seven council members to be
elected, one-eighth plus one.

A first count looks only at each ballot's first preferences, and
this round usually produces some winners, sometimes all of them.
Where seats remain to be filled after the first count, transfers
-- of second preferences -- come into play.  These are taken from
two classes of ballots that would otherwise be "wasted" votes --
those with a first preference for the candidate with the least
votes, and the extra or "surplus" votes of a candidate (if any)
already elected in the first round.

Under the normal rules of plurality election both kinds of
ballots would be "dead" or ineffectual.  In STV, the voters who
cast them are re-enfranchised by bringing their second
preferences to bear on the choice between the remaining
contenders.

STV systems enjoyed some popularity in municipal voting early in
this century, in numerous Eastern cities including Cleveland and
Cincinnati.  Most jurisdictions have since abandoned them, but
commentators have attributed this to the pressure of partisan
politicians,  rather than to grass-roots dissatisfaction.  Used
briefly for selecting New York City's Council, its abandonment in
1947 gave Democrats 24 of 25 council seats in the following
election, though that party's vote was just 52.5 percent.
Cambridge, Massachusetts continues to use STV to select its City
Council and School Committee.  New York City employs it for
selecting its numerous community school boards, though a State
Senate committee recently proposed reverting to a plurality
system.

Appraisal:  While we believe that the STV system, when utilized
by an informed electorate, can be the most effective method of
approaching the goals we identified as desirable in an electoral
system, many Commissioners nonetheless harbor serious doubts
about its practicality.

The complexity of the counting procedure as well as possible
(under some methodologies) influence of the order of counting
makes it difficult for most voters to understand the effects of
their second and later ballot preferences.  While it is fairly
straightforward to choose one's three or more favored candidates,
strategic decisions about how to rank them if some are considered
more likely to win than others would be difficult to calculate.
The rationale for the counting system, like its mechanics, is not
easily explained.

Many Commissioners believe that with a thorough informational
campaign, Santa Monica voters will readily see the system's
benefits and embrace it, despite its unfamiliar character.The
Commission's exposure to public response (at our February forum)
suggested, however, that public education and acceptance might be
more of a challenge than we had imagined.

The objectives of ethnic group empowerment and ideological
diversity should be greatly advanced by a change to the single
transferable vote method of Council election, provided that all
Council members were elected at the same time.  The joint effect
of these adjustments would be to reduce the proportion of voter
support needed to win to about one-third of its present level.
In the 1990 election, 37% support (about three-eighths) produced
a victory; under STV with 7 seats open, one-eighth support would
be "quota", a sufficient number to win.

One can imagine a number of issues around which an eighth of
Santa Monica's electorate might be rallied.  One could also
foresee campaigns arising around neighborhood bases, especially
in any area that has hitherto felt a lack of representation.
Santa Monica's Latino population, estimated to comprise about
one-seventh of the city's voting age population, probably makes
up a large enough base for a successful candidacy  -- even
allowing for a substantial number of non-citizens -- when the
winner needs only 12 1/2 percent of the vote.

Were staggered terms to be maintained, on the other hand, the
expected benefit to ethnic or issue-oriented groups dwindles
significantly.  The threshold of representation becomes 25% when
three seats are open, 20% when four seats are up.  The hurdle
would unquestionably be lowered from its current 37% level, but
it may yet remain impractically high for many groups.

Whether STV is more group-empowering than the cumulative vote
(discussed in the next section), or more so than a district
system, revolves in large part then around the question of how
many Councilmembers are chosen at the same time.

As the STV system, would, we assume, be used in the context of a
city-wide electorate, no absolute reduction in campaign spending
can be expected.  However, to the degree that the size of the
voter base needed becomes smaller, the amount of money needed to
mount a serious campaign may shrink accordingly, as long as the
base of candidate support can be identified effectively.
An increase in independent candidacies of all kinds would be a
logical consequence of STV, as would-be Councilmembers
contemplate the lower hurdle to elective office.  The first
proportional representation vote in Worcester, Mass. in 1949
brought out 152 candidates for 9 seats.

Whether independents meet with success, thereby weakening the
central role of slate politics, is not so predictable, although
we may safely say the probability is greater than under the
current voting structure.  A host of independent candidates,
without agreements to support one another with second
preferences, might do as much to undermine each other as to
weaken slates.

Slating groups could survive in this electoral regime, but would
need to lower their objectives in terms of the number of seats
controlled.  Attempts to spread the group's support between many
candidates could produce defeat for all of them.
New electoral coalitions would be likely to develop on an ad hoc
basis as public interest rose around emerging issues.
A City Councilmember elected under STV could look at any voter in
the city as a potential source of support - or opposition.  In
this sense, STV can make for a responsive and accountable
Council.  At the same time, a broad base of support is not
essential to success under this system; consequently, there is
somewhat less incentive to respond to all constituents,
especially if Councilmembers see their election as resting on a
specific geographic, ethnic or issue base.

While we have emphasized the benefits of STV in facilitating
representation for minorities of all types, we recognize that the
Council may need to weigh against it the philosophical
counter-arguments ('majority rule') central to democratic
tradition, and also the policy consideration of stimulating and
rewarding single-issue candidacies.

STV, like the cumulative vote, affords the possibility of
informal district representation for any large area where
residents' common concerns are high on their political agendas.
Of all systems we considered, STV, despite its complexity, may do
the most to stimulate voter participation.  The relative ease,
compared to the current system, of gaining a spokesperson on City
Council, under this method, brings rewards within reach of
grass-roots groups of many persuasions who may presently feel
political participation to be a fruitless effort.

                        CUMULATIVE VOTING

Mechanics  and  Usage:   An  option  sometimes  described  as   a
semi-proportional voting  method is  the cumulative  vote.  While
not truly proportional in its  outcome, it tends to produce  more
proportional results than do plurality systems.

The cumulative system may be used in any contest where more  than
one  representative is to be elected.  It gives the voter as many
votes as there are winners but allows them to be cast in a number
of ways, depending  on whether the  voter wishes to  focus, or to
distribute, his/her support.

Where, for  example, three  Councilmembers are  to be  elected, a
voter may  cast one  vote for  each of  three candidates,  or all
three votes for a single choice.

The  latter  course  would  be  taken  when  there  is an intense
interest  in getting  one particular  person elected;  or perhaps
just indifference or indecision about the relative merits of  the
other candidates.

Between that strategy and the traditional one vote each for three
candidates, lies still another option;  two  votes  for  a  first
choice  and  one  vote  for  a second.  Sometimes, half-votes are
employed to permit an equal  weighting  (1  1/2  votes)  for  two
preferred choices.

The method allows voters to express the strength of their  desire
for the election of one candidate (or two-less intensely), rather
than restricting  them to  simple choice  of "for"  or "against".
Voters  who see no reason to prefer candidates B or C over D or E
can put votes  to use under  this system that  would otherwise be
"wasted".

The purpose of such a system is to ensure some representation  to
a  substantial minority bloc  who might otherwise  be "shut out".
It  is  in  common  use  in  American corporate life for electing
boards  of directors,  enabling minority  stockholders to  have a
voice on the board.

In American politics, it has  played a marginal role.  The  State
of Illinois,  sectionally  polarized  by  conflicting  Civil  War
loyalties, instituted cumulative voting for members of its  House
of Representatives in  1870,  with  three-member  districts.   In
practice, this process usually allowed the minority party in  the
area to gain one-third representation, since it would take 75% or
more support to sweep  all three seats.  Despite  the technically
complicated ballot, the system  remained  in  place  for  a  full
century, being  abolished in  1980 by  referendum in  conjunction
with greatly  reducing the size of  the Illinois House.  Opinions
are divided  as to  whether the  vote was  primarily against  the
voting system,  or against a  pay raise the  Legislature had just
voted for itself.

The  cumulative  system  was  revived  for  use in 1987 through a
court-approved  settlement   of  a   voting  rights   lawsuit  in
Alamogordo, New Mexico.  This  city of about 25,000  subsequently
elected a Latino to its City Council.  It had been 19 years since
Latinos, who  constitute just  under 25%  of the  population, had
been able to elect one of their number to the City Council.

Field  research  by  political  scientists  Richard Cole, Delbert
Taebel  and Richard  Engstrom, employing  exit polls  on Election
Day, established that  the multiple votes  of Latinos did  indeed
provide  the margin of  victory for the  Latino winner.  Although
fourth in the number of  voters who supported her, she  was third
in number of votes.

The exit poll  also indicated that  95% of the  voters understood
the  system, and that over two-thirds had cast multiple votes for
a  candidate.   The  City  spent  about  $4,000  on  programs  to
publicize  the   system,   through   meetings   and   explanatory
literature.   No  voting  strategy  aimed  at blocking a minority
candidate was apparent in the voting results.

Appraisal:   With  regard  to  the  goals  of  empowering  ethnic
minorities   and  contributing  to   ideological  diversity,  the
Commission  believes  this  method  would  be  a substantial step
forward.   The ability to aggregate several votes for a candidate
permits a smaller group to reach the threshold of representation.
Based on Santa Monica's most recent election, that threshold, the
proportion of voters needed to elect the lowest-tallying  winner,
is approximately three-eighths (37%).

Had cumulative voting been  utilized to its maximum  potential by
an ethnic or an issue-oriented group comprising one-eighth of the
voters, that group could theoretically have elected one candidate
of its choice.   This model  assumes that  no multiple  votes are
cast for the  other candidates and  so, like the  assumption that
all  supporters cast all  their votes one way, indicates only its
theoretical potential.  But in practice, cumulative voting should
give  a committed  base of  under 20%  a fair  chance to  elect a
spokesperson in  a 3-opening  race, and  a very  good chance in a
four-person race.

Since  no  ethnic  minority  approaches  20%  of  Santa  Monica's
electorate,  this method, while an  improvement over the at-large
system, presents  less opportunity  for a  minority to  elect its
choice of candidate than would a district system.

The minority-empowering  impact of  this method  would be greatly
enhanced  if it were combined with an end to staggered terms.  In
a  seven-way  race,  allowing  each  voter  seven votes, a united
committed base  of as  little as  6% of  the electorate  would be
theoretically  sufficient  to  elect,  assuming  (as  above)   no
multiple  votes for other candidates - an unrealistic assumption.
But,  in  practice,  a  base  of  about twice that size should be
enough to place one candidate in office.

Insofar as the voter base  of a candidacy could be  geographical,
rather than ethnic or  issue-oriented,  cumulative  voting  might
enhance neighborhood empowerment as well.

Because the number  of voters required  for a successful  race is
considerably  reduced, the campaign spending per candidate may be
proportionately  diminished,  even  though  the  unit of election
continues  to be the city  as a whole.  A  campaign focussed on a
geographic area or an ethnic group can be mounted at a much lower
cost than  an appeal  to the  whole electorate.   In the  case of
issue-oriented groups the cost reduction is more questionable; if
the  issue in question is linked to an organization, or the cause
has other ways of identifying its supporters amongst the ranks of
the electorate,  the same economies  apply.  For a  new issue, or
one  without  organizational  linkage,  savings  might  be   more
marginal.  Under  this system, with a  smaller base of supporters
needed to  gain election,  the independent  candidate's prospects
improve,  and  to  that  degree  the  power  of slating groups is
eroded.   However, slates aiming at filling fewer posts than were
open could under this system coordinate their supporters to  cast
multiple votes for two or more candidates.

Since  all  voters  continue  to  be  eligible  to  vote  for all
candidates,  a Councilmember hoping for re-election would be wise
to be accessible to all Santa Monicans, but to the degree that  a
narrower electoral base  is  sufficient  under  this  system,  it
provides  somewhat  less  incentive  to  accessibility  than  the
at-large system.

For  the  same  reason,  it  is possible that neighborhood issues
might  be emphasized over city-wide problems, since one electoral
strategy  might  be  mobilization  against  city  neglect  of   a
neighborhood.   In this sense, cumulative  voting could (as could
the single transferable  vote) result in  district representation
without district elections.

The  impact  on  voter  participation,  we  conjecture, should be
positive, as groups  of  various  kinds  unable  to  contend  for
control of City Council can, with this device of multiple  votes,
realistically contemplate representation.  There is no indication
that  the  novel  aspects  of  the  ballot pose complexities that
confuse the voters or reduce participation.

                     VOTING RIGHTS QUESTIONS

As an initial step in considering various electoral options,  the
Commission wished  to inquire into whether  a legitimate claim of
violation of the federal Voting Rights Act could be made  against
the  City.   Ultimately,  two   consultants   were   engaged   to
investigate  aspects  of  this  question.   Professor  J.  Morgan
Kousser of  the  California  Institute  of  Technology,  Pasadena
examined portions of Santa Monica's history to determine  whether
there is  evidence that the  current City Charter  was adopted or
maintained  so  as  to  disenfranchise  minority residents.  UCLA
Professor Leo Estrada  studied  the  City's  minority  population
distribution to  determine whether  it was  possible to  create a
district that could elect a minority City Councilmember.

As  a  result  of  time  constraints,  Dr. Kousser's research was
limited  and  was   largely  based   on  newspaper   coverage  of
circumstances surrounding the adoption of the 1946 Charter and  a
1975 proposal  to create districts.  In  addition, he conducted a
statistical  analysis  to  determine  whether 1946 voting records
revealed   racially  polarized  voting   between  supporters  and
opponents of the Charter.

In Dr. Kousser's view, the initial evidence of discrimination  is
sufficiently  strong so that the City would have to defend itself
vigorously in order to overcome a claimed violation of the Voting
Rights Act.

Dr. Kousser added that  the evidence of discriminatory  intent in
the  adoption of the  1946 Charter was  at least as  strong as in
successful voting  rights cases  in which  he has  served as  the
principal expert witness.

However,  the  scope  of  Dr.  Kousser's  research was limited to
approximately 70 hours, he was  not  asked  to  explore  contrary
evidence,  and  he   characterized  his  conclusions   as  "quite
tentative."

For his part, Professor  Estrada determined that it  was possible
to create  a minority district  within the framework  of a seven-
district City Council.  Such  a district would largely  encompass
what  is generally regarded as the  Pico Neighborhood with a near
majority of  voters being  Latino.  Combined  Latino and  African
Americans would constitute a majority of voters in this district.
Professor Estrada concluded  that this district  was sufficiently
compact to satisfy Voting Rights Act criteria.

The City Attorney's office noted that the evidence presented must
be  viewed in context, must be  considered as tentative, and does
not compel a particular result.   Even if the Commission were  to
make  the worst  case assumption  on the  intent issue,  the City
Attorney's office  explained, several  other preconditions  would
need  to be met in  order for a voting  discrimination suit to be
seriously  considered.   Specifically,  any  plaintiff would also
need to  establish:   (1)  the  existence  of  a  minority  group
sufficiently  large  and  geographically  compact to constitute a
majority in a single member district; (2) that the minority group
is politically  cohesive, and  (3) that  its preferred candidates
are usually defeated by votes of the white majority.

On these points, all of  which need to be answered  affirmatively
for an  adverse voting discrimination judgment  to occur, we have
at this point  no clear affirmative  answers (though it  has been
established by Professor  Estrada's  work  that  combined  ethnic
minorities constitute  a majority  of a  compact district).   The
Commission did not pursue answers to the second and third points.
For the Commission's decision-making process, it was  unnecessary
to  determine these  answers because  the Commission  was already
committed to  recommending a  system that  would increase  ethnic
empowerment.  Since  the  Commission  was  nearing  consensus  on
proposing abandonment of the  at-large system for that  and other
policy reasons, the legal consequences of remaining at-large were
becoming moot points, for our deliberative process.

In  the  further  choice  between  districts  and  a proportional
representation  plan (such as STV), both of which are large steps
toward greater ethnic group electoral influence, the relevance of
the answers  is marginal.  The degree  of group cohesiveness will
bear on a minority group's success rate under both systems,  and,
short of virtual  unanimity, provides  no iron-clad  guarantee of
success  under  either   one.   A  mathematically   sophisticated
examination  comparing the probable success rates under districts
or STV  of ethnic-backed  candidates is  a project  that could be
done, and perhaps should be done before a final decision is made.
It was not a project, however, that could be done within the time
frame and budget of this report.

Similarly, racially polarized voting by the white majority  could
impinge  on ethnic  choices succeeding  under either  system.  If
there is any significant degree  of such voting it might  be more
effective in districts  than under  STV.  This  is also  a matter
that could well be pursued further,  but not one we were able  to
pursue within our time, skill and budget constraints.

What is clear, in contrast to all these unanswered questions,  is
that proportional methods, like  districts,  bring  Latinos  much
closer  to  placing  their   choice  on  City  Council.    Unlike
districts, they  avoid a possible forced  choice between a Latino
and African-American  candidate, and  enable all  members of each
group, regardless of  place  of  residence,  to  unify  behind  a
candidate  of  its  preference  -  or  for  that  matter, to join
together.  As such, it  is hard  to foresee  a basis  under which
such systems could be attacked as minority vote dilution.

Likewise,  should  the  Council  choose  to  follow  our   second
preference  and  institute  districts,  the  City  would  likely,
provided it drew a district that nearly maximized minority  voter
strength, be immune to voting rights litigation.

As the Commission on policy grounds recommends discontinuance  of
the at-large plurality system, we hesitate to step into the shoes
of the City Attorney to  advise Council on its voting  rights law
risk exposure should it not abolish at-large elections.

There is no pending voting discrimination litigation, nor  threat
of litigation, nor even rumor of a threat at this time.

However, we have heard enough discussion and read enough material
related  to the question that  we can say as  a matter of prudent
management, that it would  be unfortunate and unwise  to maintain
in place a system the City might need to defend at great expense,
notwithstanding  the  likelihood  that  the City might ultimately
prevail.

By  contrast,  a  move   to  a  system  that   offered  increased
opportunity for minority representation would be a defense to any
such suit.  This, in our view, is yet one more reason  - not  the
most important  one, but a significant one  - for choosing one of
the electoral  options we  have recommended  in the  body of this
report.

                            FOOTNOTES

1)  pg. 17  Welch & Bledsoe, "Urban Reform and Its Consequences",
            P. 8.
2)  pg. 18  Kousser Report, P. 14.
3)  pg. 28  Baseline Data Report (International City Management
            Ass'n.) Vol. 19, #6, P. 3.
4)  pg. 32  Petrie and Tuchfarber, "Proportional Representation",
            P. 37.
5)  pg. 39  We assume here that there is no concerted
            counter-strategy by the remaining four-fifths aimed
            at exclusion of this group's candidate.  The
            Commission has not analyzed the likely outcomes of
            such a hypothetical situation.
2) Question:  Whether or not City  Charter Section 602 should  be
              amended  to provide  compensation and  benefits for
              members  of  the  City  Council  and  if  so,  what
              compensation and benefits should be provided?
   Existing City Charter:
              SECTION  602.   Compensation.   The  members of the
              City Council  shall  receive  no  compensation  for
              their   services   as   such,   but  shall  receive
              reimbursement  for   necessary  travel   and  other
              expenses when on official  duty out of the  City on
              order  of the  City Council  and, in  addition, the
              Mayor  shall  receive  the  sum  of One Hundred and
              Fifty ($150.00) Dollars  per  month,  which  amount
              shall   be   deemed   reimbursement   out-of-pocket
              expenditures  and costs imposed upon him in serving
              as Mayor, and all other members of the City Council
              shall receive the sum of Fifty ($50.00) Dollars per
              month,  which   amount  shall   be  deemed   to  be
              reimbursement for  out-of-pocket  expenditures  and
              costs  imposed  upon   them  in  serving   as  City
              Councilmen.

Discussion  and  Recommendation:   The  current  Charter section,
while providing no  compensation  as  such  to  Council  members,
offers them $50  monthly "deemed to  be reimbursement," in  part,
for "costs imposed upon them in serving."

Since Santa Monica's Charter,  with its "reimbursement" limit  of
$50 per  month, was adopted in 1946,  the purchasing power of the
dollar has shrunk  to less than  one-sixth its magnitude  of that
year,   and  median  family  income   has  multiplied  more  than
eleven-fold.  Depending on what formula is chosen as a basis  for
cost-of-living adjustment, the  1946 stipend  would amount  to at
least  $330  per  month  or  as  much  as $570 a month in today's
dollars.   It is no longer reasonable,  we believe, to regard the
sum specified in the 1946 Charter as appropriate  "reimbursement"
for the time and energy required of Councilmembers.

The  responsibilities  of  City  Council  service, as reported in
interviews  with 13 past and present members, are the approximate
equivalent of a half-time job, averaging about 23 hours per week.
Council meetings alone consume almost  5  hours  in  the  average
week, and  preparation time-study  of documents  and consultation
with City employees - consumed  another  4  hours.   While  these
Councilmembers  reported  wide  variation  in  the amount of time
spent on dealing with constituent requests and complaints, on the
average, this activity absorbed more than 6 hours each week.   Ad
hoc meetings, with City staff, with community groups, and liaison
duties with City commissions, took  up another 5 to 5  1/2 hours,
and miscellaneous tasks including correspondence, travel time and
member-initiated projects, was estimated at a further 2 1/2 to  3
hours per week.  The lowest amount of total weekly time  reported
was 11 to 15 hours  and  some  Councilmembers  customarily  spent
upwards of 30 hours.

Time  commitments  of  this  scope  make  City  Council   service
difficult,   if  not  impossible,  to  reconcile  with  full-time
employment  elsewhere.   As  a   result,  in  the  view   of  the
Commission,  the opportunity to serve on City Council is limited,
under the non-compensation provisions of the current Charter,  to
retirees,   dependents,  the  self-employed,   or  other  persons
willing and able to make considerable financial sacrifices.  Such
constraints on Council membership unreasonably exclude many Santa
Monicans who might render the City valuable time and talent.

General  law  cities  in  California  specify  formulae  for city
council  compensation based on the population of the municipality
concerned.  For cities of  Santa Monica's size, Council  salaries
could be set at  any  figure  up  to  $600  per  month,  and  the
California  State  Government  Code  allows  for   cost-of-living
adjustments of up  to 5%  per annum  for subsequent  years.  Many
charter cities  in the  metropolitan Los  Angeles area  appear to
have utilized the general law formula for cities of their size as
a guideline in  adopting their own  Council pay scales,  although
the   largest  cities,  where  council  service  is  deemed  more
burdensome, pay higher salaries.

We asked 15 present and former Council members for their views on
appropriate remuneration levels.  Those who were now retired from
office and thus able to  speak with no prospect of  personal gain
were almost all agreed on  a  range  of  $500  to  $600  monthly.
Several  pointed  out  that  Santa  Monica's  intense  and active
political  culture demanded more  time than would  service in the
average city of the same size.

Among the 11 mid-sized Southern California cities we examined  in
studying compensation and benefit levels, the base monthly salary
ranged from  $100 to  $1,625, with  a median  figure of  $483 and
average of $543 per month.

Because  of  the  obsolescence  of  the  current Charter's figure
(enacted  almost half  a century  ago), because  we want  to open
Council service  to all,  because Santa  Monica's practice  of no
Council  compensation  is   out   of   step   with   almost   all
jurisdictions, and because the time demands of Council service in
Santa  Monica are equivalent  to a part-time  job, the Commission
recommends removal of Section 602 of the Charter.

In  lieu  of  the  current  Charter  provisions,  the  Commission
recommends that  the Charter set  compensation ceilings according
to the population-based formula  for general law cities  (i.e. up
to $600/month), thus allowing  the  Council  to  set  an  initial
figure within that specified  range.  Should the Council  wish to
create  differential remuneration  for the  Mayor, it  would have
discretion to do so within the range limit set forth above.

The  Commission   further  recommends   that  the   Council  give
consideration to developing a method by which there would be some
electoral  controls  over   approving  or  disapproving   of  any
subsequent increases  in compensation above  the figure initially
set.  Although State law  provides for City Councils  to increase
their compensation based on CPI  factors,  we  advise  against  a
system in which  the Council proposes  its own pay  raises.  Such
procedures, while not uncommon, tend to generate public antipathy
and acrimonious debate.  Alternatively, an independent commission
could review remuneration,  or  recommend  guidelines,  (such  as
CPI-based increases).

Further, since in our judgment, adequate performance in  elective
office is often incompatible with a full-time job elsewhere, past
and prospective  members of  City Council  have found  it and may
find it  difficult to  receive or  maintain health  insurance and
related benefits.

It is  in the  City's interest  to see  that City Councilmembers,
like  any City employee,  are afforded adequate  access to health
and  dental  care,  in  order  that  their  performance  not   be
interrupted or curtailed by illness.  We note that both the Santa
Monica - Malibu Unified School Board members and the Santa Monica
Community College Trustees have medical insurance coverage.

The Commission  requested a  survey be  made of  benefits offered
Council members in 11 Southern California cities, ranging in size
from El  Segundo to  Long Beach.   All cities  provided city-paid
health insurance contributions ranging from approximately $200 up
to $658 a month (except for an $837 maximum for combined  health,
dental,  psychological and life insurance coverage offered by one
city).  Dental coverage with a city contribution was available in
all 11 cities.  With  one  exception,  life  insurance  was  also
offered, with benefits rising, in three cities, to $100,000.

In  addition  to  these  benefits,  about  half  of  these cities
provided  their Councils with auto allowances - from $125 to $450
monthly  -  or  with  use  of  city vehicles.  In determining the
benefits available, the city administrators interviewed explained
the benefits extended to city department heads is often used as a
basis.

We recommend that Councilmembers  be extended the same  insurance
benefits as the  top  administrative  bargaining  unit  of  Santa
Monica City employees, with the exception of participation in the
Public  Employees  Retirement  System.   Due  to  differences  in
perspectives  related  to  the  issues  of  benefits  and pay, as
represented  by  the  opinions  of  the  Commissioners,  and  the
likelihood that  the electorate  may have  different positions on
these two issues, we  recommend  that  they  be  separate  ballot
measures if submitted to the electorate.

3) Question:  Whether or not any  limitation should be placed  on
              the terms of office of members of the City Council.

Discussion  and  Recommendation:   The  Commission  was   closely
divided  on the question of term limits for City Council members.
A majority  (7 of  13) of  Commission members  supported limiting
City Council  members  to  three  consecutive  4-year  terms.   A
smaller  group  would  have  left  the  tenure  of members to the
discretion of the  electorate  on  a  case-by-case  basis.   Both
supporters and opponents of the policy justified their  positions
as being  in line with  various  tenets of  democratic theory and
tradition.

Proponents  suggested  that  the  opportunity  for more people to
serve on Council would encourage citizens to participate in civic
life and to serve on  boards and commissions as training  grounds
for Council.   This conjecture is supported  by the experience of
at least one  city - Kansas  City, Missouri -  where the election
following the institution of term limits produced a record number
of Council candidates.

It was also  suggested that greater  turnover of Council  members
would  stimulate voter interest in Santa Monica's political life.
Some  limit  advocates  believe  that  lengthy  service permits a
Council  member to become removed from the experience of everyday
residents.  This was countered by the suggestion that long tenure
in  office allows independence from blocs and pressure groups, in
part because  the understanding  of civic  affairs developed over
years   of  service   provides  an   independent  check   on  the
self-interested arguments of special interests.

Advocates of limits suggested that frequent infusion of new blood
into  the Council would be beneficial  in creating an openness to
new ideas.  Veteran office-holders, some suggested, are sometimes
too  concerned  with   maintaining   established   routines   and
justifying  past  performances,  rather  than  looking at current
problems with a fresh eye.

Finally,  some  misgivings  were  held  regarding  the  long-term
incumbent's electoral  advantages.  A  level playing  field, some
felt,  was  impossible  in  a  contest  against  a  veteran whose
longevity made his/her name a household word.

A substantial minority of Commissioners rejected any  limitation,
largely  for two reasons.  Some felt  long service was a valuable
thing  in  itself,  in  so  far  as  experience  contributed   to
efficiency in decision making, added to the collective storehouse
of civic knowledge and was a resource for novices on the council.
It  was pointed out  that government has  many technical aspects,
which cannot be learned overnight, so the constituents may suffer
from the inexperience of elected officials.

Others, while  not necessarily  advocates of  long service,  felt
that a  prohibition on it  would be an  unwarranted imposition on
the  public's  right  to  choose  their  representatives,  and  a
curtailment of the democratic process.  As the California Supreme
Court said in the context of striking down a candidate  residency
requirement:

         "...in judging the validity of a restraint upon
         eligibility for elective office, we must be
         mindful that the restraint is upon the right to
         vote as well..."
                     (Zeilinga v. Nelson, 4 Cal 3d at 721)

Term limits have recently  been imposed for state  legislators in
Colorado  and Oklahoma, and in California, by a narrowly approved
1990  initiative.    It  was   argued  that   gerrymandering  and
incumbents'  massive   campaign  war  chests   combined  to  make
legislators virtually immune to electoral competition.  It was  a
fact that in recent  years  less  than one  incumbent in  ten was
successfully challenged.

However, some Commissioners questioned whether the case made  for
term limits  in the California Legislature  can be fairly applied
to  Santa  Monica's  City  Council.  Santa Monica, not subject to
gerrymandering continues  to have competitive  elections.  Nor is
long tenure on City Council pervasive.  Among the 57  individuals
who have served on Council since the current Charter was adopted,
only 10 served more than eight consecutive years.  A single  term
was the most common experience, and the average length of service
for  the  50  who  have  completed  their terms was just over six
years.

Among neighboring jurisdictions, only Redondo Beach was found  to
have a  locally adopted  term limit,  that being  two consecutive
terms.

In the minority's  view, not only  are there points  of principle
against term limits, but the persuasive theoretical arguments for
them  do  not  apply  compellingly  to  Santa  Monica's  concrete
circumstances.  Ultimately, the prevailing view on the Commission
was  to  recommend  the  adoption  of  a Charter section limiting
continuous  service on council to three four-year terms.  After a
period of  absence from  office, a  person who  had served  three
terms would be again eligible for election.

4)  Question:   The method of selection of the City Attorney  and
                City Clerk
     Existing City Charter:
                SECTION 700.  Officers to be Appoint-
                ed by the City Council.  The City
                Council shall appoint the City Manager,
                City Attorney and Health Officer, which
                positions shall not be in the Classified
                Service and who may be removed by motion
                of the City Council adopted by at least
                five affirmative votes.
                It shall also appoint the City Clerk,
                which position shall be in the Classified
                Service.
     Discussion  and  Recommendation:   The  Commission  examined
     selection  practices for City Clerks and City Attorneys in a
     number  of  neighboring  jurisdictions.   We also reviewed a
     recent survey  by the  International Institute  of Municipal
     Clerks, covering  241 California  cities.  The  latter study
     indicated a two-to-one preference for appointed (160 cities)
     over elected  (81) City  Clerks.  Previous  data gathered in
     1983 suggests a trend away from the election option may well
     have taken place in the past decade.  In general, it is  the
     smaller cities where  election of  Clerks occurs,  which may
     reflect unwillingness on the part of larger jurisdictions to
     accept the  criteria   used  in  the  electoral  process  as
     appropriate to filling a professional position.
     Appointment of the Clerk is usually made by City Council  in
     charter  cities, although  in some  smaller cities  the City
     Manager makes the appointment.  This practice often  evolved
     because, at  an earlier time,  the City Manager  served in a
     dual  capacity  as  City  Clerk.   A  survey of 29 cities in
     Southern   California  revealed   only  four   instances  of
     appointment by City Managers, one of these requiring Council
     approval.   Santa Monica's  selection process  is consistent
     with the practice of most jurisdictions, and the  Commission
     saw no persuasive reason for amending it.

     City Attorneys in  California are overwhelmingly  appointed;
     there are approximately 10 elected City Attorneys among over
     400 in the state.

     In view of the above information, and of recent voter action
     on  the question of an elected City Attorney, the Commission
     did  not  see  a  need  to  change  the  existing appointive
     procedure.   We recommend retention of  Section 700 with its
     current provisions  for appointment  of City  Clerk and City
     Attorney.

     For a discussion of the Health Officer, please see  Question
     8.

5a)  Question:  Should  Boards  and  Commissions  established  by
                Charter remain so mandated?

     Discussion  and Recommendation:   The City's  sixteen boards
     and  commissions  are  established  in  two ways - eleven by
     ordinance and five by Charter mandate.

          Charter                  Municipal Code
     Airport Commission          Accessibility Appeals Board
     Library Board               Architectural Review Board
     Personnel Board             Arts Commission
     Planning Commission         Building and Safety Commission
     Recreation Commission       Commission on Older Americans
                                 Commission on Status of Women
                                 Electrical Board of Appeals
                                 Housing Commission
                                 Landmarks Commission
                                 Plumbing & Mechanical Board
                                    of Appeals
                                 Social Services Commission

     Those advisory bodies created by the Charter tend to  relate
     to  activities/functions  that  will  always  be  under  the
     purview of  the City.   Those created  by ordinance  reflect
     responsiveness over  time to changing  conditions and issues
     in the City.  The advantages of the ability to create boards
     and   commissions  by   ordinance  include   timeliness  and
     flexibility  in  establishing  advisory governing structures
     which best meet the current needs of the community.

     The Commission recommends no substantive changes be made  in
     the Charter's  formula for  establishment authority  of City
     boards and commissions.  However, to conform with  currently
     used nomenclature, the Charter's reference to the Recreation
     Commission should be  redesignated the Recreation  and Parks
     Commission.

5b)  Question:  Should  the  current   method  of  selection   of
                Planning Commissioners be retained?

     Existing City Charter:
                SECTION 1007.  Planning Commission.
                There   shall  be  a   City  Planning  Commission
                appointed by the City  Council, one member to  be
                elected from its own membership to provide active
                liaison  with  the  Commission,  but  who   shall
                neither  have  a  vote  nor  be  eligible  to  be
                chairman  thereof,  and  seven  members  from the
                qualified electors of  the  City,  none  of  whom
                shall hold any paid  office or employment in  the
                City government.   The  City  Engineer  and  City
                Attorney,  or  their  assistants,  shall  be   in
                attendance   at  all  regular   meetings  of  the
                Commission.

     Discussion and Recommendation:  At the Commission's request,
     the Planning Division  contacted  20  California  cities  of
     various  sizes  throughout  California  to inquire about the
     process  used to select planning commissioners.  And attempt
     was made to include cities with a reputation for innovation.
     As  well  as  ascertaining  the  mechanics  of the selection
     process, this survey  inquired  into  the  views  of  senior
     planning staff about the merits of that city's system.
     In  each  city  we  sought  to  find  out:  whether planning
     commissioners are appointed  or  elected;  whether  selected
     at-large   or   by   district;   who  actually  selects  the
     commissioners; whether there are any minimum requirements or
     qualifications   for   the   position;   how  vacancies  are
     advertised;  whether commissioners receive any compensation;
     whether there are term limits; and how often the  commission
     meets.

     The survey findings, and comments made by city staff persons
     about various  aspects  of  the  selection  process  can  be
     summarized as follows:
     Appointment vs. Election:
     All of the cities contacted utilized appointments as opposed
     to elections.  Many  interviewees felt that  elections would
     further politicize a  process  that  was  already  political
     enough.

     Procedures for Appointment:
     The 20 cities  polled  rely  upon  three  basic  models  for
     appointing  commissioners:  by  the  mayor,  by   individual
     councilmembers,  and by majority  council vote.  Appointment
     by the mayor occurs in just under half the cities  examined.
     In  most cases, however, the  mayor's appointment is subject
     to City Council approval.   Likewise,  in  the  one-third of
     the  cities  in  which   each   Councilmember   appoints   a
     commissioner, these are usually  subject to approval by  the
     entire  Council.  Some staff considered the latter system to
     be   likely   to    constrain   independent   thinking    by
     commissioners.

     Other Issues:
     o   Compensation  and term limits were not regarded as major
         issues in most cities.
     o   Some  staff  believed  that  professional  knowledge  or
         experience  requirements  would  be  beneficial  to  the
         commission in  areas such as  architecture, planning and
         real estate development.
     o   Only  two  of  the  20  cities  appoint commissioners by
         district--Inglewood and Pomona.

             Santa Monica Planning Commission's Views

To deepen our understanding of these issues as they have
confronted Santa Monica, we also asked that the Planning Division
discuss them with our own Commissioners.  They interviewed four
current and three past members of the Planning Commission.  In
short, they support the current method of Planning Commission
selection.  Their reasons for this are summarized below:
Advantages of the Existing Selection Process

o    Open Process:  Several commissioners commented that the
     current practice of noticing Planning Commission vacancies
     to the general public represents a fair, open approach
     which--in theory, at least--permits diverse backgrounds and
     ideas on the commission.
o    Independence:  Many felt that appointing commissioners
     at-large and subject to City Council approval lends greater
     independence to the Commission than would  individual
     Council appointments and/or appointments by district.

Disadvantages of the Existing Selection Process

o    Theory  vs. Practice:  Several  commissioners commented that
     the  current  selection  process  is  open and democratic in
     theory but  in practice is subject  to back room deal-making
     and generally reserved for the politically "connected."
o    Noticing:   Some felt that an  inadequate public noticing of
     Commission vacancies contributes  to the "political"  nature
     in  Planning Commission  appointments.  They  suggested that
     more effort should go into noticing vacancies widely to  the
     general public.
o    Insufficient  Criteria/Requirements:   It  was  the  view of
     several       commissioners      that      the      existing
     application/screening  process  for  Commissioners  was  too
     arbitrary   and  should  be  strengthened  by  incorporating
     certain criteria for  background, skills, and  experience in
     such areas as development, architecture, planning, business,
     and/or community  organizing.  Commissioners  generally felt
     that a  more rigorous  screening would  bring more  relevant
     expertise to the  commission,  and  make  the  process  less
     "political" and more objective.

Overall Rating of System/Alternatives

The general  sentiment of the commissioners  can be summarized as
follows:  that  the requirement  for a  majority council  vote to
appoint commissioners  is  good;  that  making  applications  for
Planning  Commission  seats  available  to  the general public is
good;  but that the  public noticing and  screening processes for
Commission appointments are inadequate.

Alternatives to a majority vote by Council--such as  appointments
by mayor, subject  to  mayoral  approval,  or  by  district--were
considered  too  prone  to  "politics".  Some Commissioners added
that the staggering of Commission and Council terms lends greater
independence to commissioners.

Terms and Term Limits

Almost all  Commissioners felt that the  existing  term limits of
two four-year  terms were  adequate.  Several  commented that  it
takes at least one year just to become acquainted with the issues
and procedures.  One  Commissioner noted that  most Commissioners
"burn out" before ever reaching the end of their eighth year.
Compensation

Most Commissioners  considered the current  compensation level of
$25  per  meeting  adequate  and  found  the real reward to be in
community  service.    At  the  same  time,   some  of  the  same
commissioners felt  there should  be greater  recognition by  the
city for their work.   Several  commissioners  felt  the  current
stipend was not enough, suggesting alternatives from $50 or  $100
- up to a professional salary.

In addition to giving the Charter Review Commission its views  on
selection   and  compensation,   the  Planning   Commission  also
recommended changes with respect  to other ramifications of  this
Charter  section.    Among  the   recommended  changes   are  the
following:

     o   City  Council Liaison:  Section 1007 of the City Charter
         states that the  City Council shall  appoint one of  its
         own  members to be  a non-voting member  of the Planning
         Commission   to   "provide   active   liaison  with  the
         Commission".   While  a   majority   of   the   Planning
         Commission  supports  the  liaison  role, it opposes the
         liaison being a  member  of  the  Planning  Commmission.
         Commissioners  felt  that   the  City  Council   already
         exercises  ample veto authority over Planning Commission
         actions,  and  that  the  liaison as Planning Commission
         member  tends  to  undermine  the  independence  of  the
         Commission.

         Accordingly, the Planning Commission's first  preference
         would be  that any reference to  City Council liaison be
         removed entirely from City Charter, and that the Council
         continue to assign a liaison informally; or, if the City
         Council wishes to maintain the reference to the  liaison
         in  the City Charter, that at least the reference to the
         liaison as member of the Planning Commission be removed.
         The   Charter  Review  Commission   adopted  the  latter
         proposal and incorporates such language in its  proposed
         revision.

     o   "Qualified Elector":  Section  1007 of the  City Charter
         requires the  members  of  the  Planning  Commission  be
         "qualified  electors"   of  the   City.   The   Planning
         Commission   recommended   that   the   Charter   Review
         Commission and  City Council  carefully reconsider  this
         requirement.  Several  commissioners felt  strongly that
         while members should be required to be residents of  the
         City,  it is in their opinion not necessary that they be
         citizens of the country.  The Charter Review  Commission
         concurred and have  incorporated  this  concept  in  the
         proposed revision.

     o   Attendance by City  Engineer at Meetings:   Section 1007
         of the City Charter stipulates that the City Engineer or
         his  assistant  shall  attend  all  Planning  Commission
         meetings.  The Commission recommended that this language
         be  removed,  as  the  City  Engineer  typically attends
         meetings only when  his expertise  is required.   In our
         proposed revision, we incorporate this recommendation.

     Two other  items go  beyond the  parameters set  by the City
     Council  in its direction to  the Charter Review Commission,
     but as the Planning Commission felt them to be  sufficiently
     important to forward to the City Council, the Charter Review
     Commission does so below, without recommendation.

     o   Term Expiration:  Section 1002 of the City
         Charter  stipulates  the  Planning  Commissioner's  term
         shall expire on July  1st.  Because the City  Council is
         usually  occupied with the  City budget at  that time of
         year,  the  Planning  Commission  recommended moving the
         expiration date up to March or April.
     o   Annual  Adjustment  to  Monetary  Compensation:  Section
         1005 of  the City  Charter stipulates  that compensation
         for Planning Commissioners may be increased by an amount
         equal  to the increase in the Consumer Price Index (CPI)
         for each calendar  year.  The Commission  requested that
         this be  changed to say that  the amount of compensation
         will be  automatically adjusted  each year  by an amount
         equal to the increase in the CPI.

On  the  basis  of  the  data  learned  from the two studies, the
Charter  Review Commission concludes that the manner of selecting
Planning Commissioners now in force should be retained, with  the
minor modifications specified above.

Proposed Wording
     SECTION 1007.  Planning Commission.
         There  shall be a City  Planning Commission appointed by
         the City Council, and  composed of seven members  chosen
         from  the residents of the City, none of whom shall hold
         any paid  office or  employment in  the City government.
         The City Council  may  select  one  of  its  members  to
         provide  active  liaison  with  the  Commission, but the
         Councilmember chosen shall  neither have  a vote  on the
         Commission nor be eligible  to be its chairperson.   The
         City Attorney, or his  or  her  designee,  shall  be  in
         attendance at all regular meetings of the Commission.

6 &
 7)  Question:  Whether City Charter Section 612 relating to
                special meetings should be amended to conform to
                the Brown Act and whether Section 613 should be
                amended to provide more flexibility in holding
                Council meetings within the City?

     Existing City Charter:

                SECTION 612. Special Meetings. Special
                meetings may be called at any time by
                the Mayor, or by four members of the
                City Council, by written notice deli-
                vered personally to each member at least
                three hours before the time specified
                for  the proposed meeting.  A special
                meeting shall also be validly called,
                without the giving of such written
                notice, 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 holding such meeting.  A tele-
                graphic 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 613.  Place of Meetings.  All
                meetings shall be held in the Council
                Chambers of the City Hall and shall be
                open to the public.  If, by reason of
                fire, flood or other emergency, 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 desig-
                nated by the Mayor or, if he should fail
                to act, by four members of the City Council.

     Discussion and Recommendation:   The  Brown  Act,  found  in
     Government Code  Section 54950 et  seq., is the  core of the
     state's  commitment  to  make  public  most  of the official
     business of government.  This  law  applies  to  all  cities
     including Santa  Monica.  Among  the law's  features are the
     requirement  that agendas be published  in advance of public
     meetings, restrictions on closed or executive sessions,  and
     mandated opportunities for members of the public to speak.
     In 1990, the state deleted from its budget any obligation to
     fund cities  for their  expenses related  to the  Brown Act.
     This had  the effect  of making  the City's  compliance with
     some provisions  of the Act voluntary.   In response to this
     change, the City  Council adopted Ordinance  #1556 mandating
     that the City comply with the Brown Act.

     Ordinance 1556 governs notice procedure for regular meetings
     of  City Council, or any City  board or commission, and also
     for special or emergency meetings of any of these bodies.
     For regular meetings, 72-hour prior posting of time,  place,
     and   agenda  items  is  required;   the  body's  action  is
     restricted  to  posted  agenda  items,  except  in   unusual
     circumstances: 1) by majority declaration of a public health
     or safety emergency; 2) if by a two-thirds or more  majority
     vote the  body agrees that  the need for  action arose after
     the agenda was posted; 3)  in the case of an  item continued
     from a meeting in  the  five  days  before  the  meeting  in
     question.

     Ordinance 1556 also  addresses notice procedure  for special
     and emergency meetings, requiring posting of time, place and
     agenda  of  special  meetings   24  hours  prior  to   their
     occurrence;  restricting the agenda to posted items (barring
     a health or safety emergency); and prescribes notice to  the
     body's  members   as  in  Government   Code  Section  54956.
     Finally, this  section mandates  emergency meetings  of City
     bodies  to  be  called  and  conducted  in  accordance  with
     Government Code Section 54956.5.

     Charter  Section  612  sets  forth  various  provisions  for
     calling  special meetings which vary from, or conflict with,
     the provisions of the Brown Act and terms of Ordinance 1556.
     It permits, among other things special meetings to be called
     on  three  hours  advance  notice  while  Ordinance 1556, in
     conformity with the Brown Act, suggests 24 hours notice.
     The Commission concluded that this section should be revised
     to prescribe  that the calls for  such meetings conform with
     State law.

     The Commission  considered the  inclusion in  the Charter of
     other specific requirements for  public  notice  and  public
     input covered by the Brown  Act but, noting that there  were
     few  if  any  cities  inserting  such  provisions  in  their
     charters,  recommends  instead   that  the  Charter   simply
     enunciate the  principles  of  timely  and  adequate  public
     notice,  and  of  sufficient  provisions  for  public input,
     leaving  the City Council to articulate from time to time by
     ordinance, the exact definitions of these terms.

     It should be noted that neither original nor proposed  texts
     of Section 612 or 613 regulates the operation of City boards
     or commissions as Ordinance 1556 does.
     Regarding the  matter of  meeting location,  we reviewed the
     regulations  of a number of jurisdictions in the Los Angeles
     metropolitan  area.   In  all  cases,  charter provisions or
     ordinances  designate  Council  Chambers  as  the  place  of
     regular   meetings.    However,   a   majority  provide  for
     flexibility by specifying alternate locations, providing for
     adjournment to another place, or allowing change of  meeting
     place by ordinance.

     Under the rewritten section,  Council would be able  to hold
     meetings in  larger  quarters,  when  the  level  of  public
     interest warrants it, or  to take meetings to  neighborhoods
     when the issues  to  be  dealt  with  might  be  of  primary
     interest to residents of one area.

     We propose  the following  substitutes for  Sections 612 and
     613,  which, we believe, will  adequately protect the public
     right to  access and  input while  allowing flexibility with
     regard to meeting locations.

     Proposed Wording

         SECTION 612.  Special and Emergency Meetings.
                The City  Council may  call special  or emergency
                meetings   at  locations,  upon  notice,  and  in
                accordance with procedures as permitted by law.
         SECTION 613.  Open Meetings.
                Unless  otherwise permitted  by federal  or state
                law,  City  Council  meetings  shall  be open and
                accessible to all members  of  the  public.   The
                City Council  may hold  its meetings  in the City
                Council Chambers of the  City  Hall  or  at  such
                other  locations  as  the  City  Council  may  by
                ordinance or resolution designate.
                The  City  Council  shall  by ordinance establish
                procedures   for  informing  the  public  of  its
                meetings.  The  ordinance shall  ensure that,  to
                the   maximum  extent  feasible,  the  public  is
                provided with timely and adequate notice of  City
                Council agenda  and that  the public  is provided
                with the opportunity to comment on proposed  City
                Council actions.

8)   Question:  Whether City  Charter Section  717 relating  to a
                City Health Officer should be deleted?

     Existing City Charter:
                SECTION 717.  Health Officer. Powers
                and Duties. To be eligible for appoint-
                ment to the position of Health Officer,
                the appointee shall be licensed to
                practice medicine in the State of
                California and shall be selected on
                the basis of his qualifications or
                experience in public health work. The
                Health Officer shall have power and
                be required to:
                  (a) Exercise general supervision
                over conditions of health and cleanli-
                ness in the City and take all necessary
                measures for the preservation and pro-
                motion thereof; and
                  (b) Enforce all laws, ordinances
                and regulations relative to the preser-
                vation and improvement of public health,
                including those provided for the preven-
                tion of disease, the maintenance of
                sanitary conditions and the inspection
                and supervision of the production,
                transportation, storage and sale of
                foodstuffs.
                The City Council may contract with the
                County of Los Angeles, or any other
                public health organization, for the
                performance of any or all functions in
                connection with public health matters.

     Discussion  and  Recommendation:   Currently,  City  Charter
     Section 717  provides the option for  a Health Officer.  The
     section also allows  the City Council  to contract with  the
     County  of  Los   Angeles,  or   any  other   public  health
     organization,  for  the  performance  of  any  or all public
     health functions.  We recommend  deletion  of  this  Charter
     section.  At  least since  the 1950's  there has  not been a
     City  Health Officer,  the City  opting instead  to contract
     with  the  County  of  Los  Angeles  for  all  public health
     functions.

     A number  of City  departments utilize  the services  of the
     County  of Los Angeles Health Department.  The City Building
     Division looks to County health inspectors for certification
     of restaurant  occupancy  requirements;  as  does  the  Fire
     Department  for  licensing  of  large  day  care centers and
     retirement or  nursing homes.   The City  Business Licensing
     Office similarly relies  on Health Department  certification
     of food vendors.   The  City's  environmental  officers  use
     County   Health   services   for   laboratory  analysis  and
     investigations of some hazardous or toxic materials.

     These various City departments  have cited no problems  with
     services  provided by the County.   Both the Fire Department
     and the Environmental Programs Division view County response
     to hazardous materials spills, in particular, as excellent.
     Because  of  this  cooperative  and satisfactory arrangement
     between  Santa Monica and the County, there appears to be no
     need  for  the  appointment  of  a  Health  Officer  nor for
     establishment of a City health department.

     Three California cities (Long Beach, Berkeley and Pasadena),
     currently   operate   their    own    health    departments,
     administering public health  clinics and disease  prevention
     and  mental health programs, as well as environmental health
     and hazardous materials services.  While the majority of the
     funding of  these programs comes from  the State, cities are
     increasingly  required  to  rely  on  their own resources to
     continue programs which are being cut back by the State.
     The commission does not believe it would be prudent to  take
     over  the  health   function,  nor   does  it   believe  the
     appointment of a health officer is necessary to oversee  the
     County  of Los Angeles.  The City  would not be able, within
     the current  allocated resources,  to perform  all functions
     currently carried out by the County.

     In  consideration  of  the  County's  performance record, we
     recommend  the health  officer section  be deleted  from the
     Charter.   Reference  to  the  Health  Officer position also
     occurs  in Section  700, where  it should,  for the  sake of
     consistency, be deleted as well.

     It is important to note that deletion of this position  from
     the  Charter would in no way  preclude the City Council from
     future creation of  such a position  by ordinance or  in the
     annual  budget process,  if this  were warranted  by changed
     conditions or  desire to  undertake expanded  health-related
     responsibilities.

9)   Question:  Whether  City  Charter  Section  1515 relating to
                claims against the City  should  be  required  to
                conform to State law?

     Existing City Charter:
                SECTION 1515.  Actions Against City.
                No suit shall be brought on any claim
                for money or damages against the City
                or any board or commission thereof until
                a demand for the same has been presented
                as herein provided and rejected in whole
                or in part.  If rejected in part, suit
                may be brought to recover the whole.
                Except in those cases where a shorter
                time is otherwise provided by law, all
                claims for damages against the City
                must be presented within six (6) months
                after the occurrence, event or transaction
                from which the damages allegedly arose,
                and all other claims or demands shall be
                presented within six (6) months after the
                last item of the account or claim accrued.
                Every claim for money or damages against
                the City or any board or commission thereof
                shall be filed with the City Clerk, who shall
                thereupon present the same to the City Council,
                officer, board or commission authorized by
                this Charter to incur or pay the expenditure
                or alleged indebtedness or liability repre-
                sented thereby.  In all cases such claims
                shall be approved or rejected in writing and
                the date thereof given.  Failure to act upon
                any claim or demand within sixty (60) days
                from the date the same is filed with the City
                Clerk, shall be deemed a rejection thereof.

     Discussion   and   Recommendation:    Charter  Section  1515
     provides  a procedure for the presentation of claims against
     the  City  which  at  one  time  mirrored  in large part the
     requirements of California State  law.   However,  over  the
     years, the government tort liability acts have been modified
     while the Charter provisions have remained frozen.
     Under recent court decisions it is unclear to what extent  a
     charter  city's tort claims provisions may differ from state
     law  obligations.   An  argument  could  be  made that these
     procedural  prerequisites to  the filing  of lawsuits  are a
     matter of local concern and therefore a city need not comply
     with state law.

     The City does, however, comply with State law.  Claims  made
     against  the  City  are  administered  by  the  City's  Risk
     Management Division.  This division adheres to the  detailed
     procedures  listed in the California Government Code.  While
     the  Risk  Management  Division  is currently in conformance
     with the procedures in the Santa Monica Charter, it complies
     with an even  more rigorous methodology  as outlined in  the
     California  Government Code.  This procedure is the standard
     of most municipalities.

     The Commission  recommends that  the Charter  be modified to
     make clear that  the  relevant  California  Government  Code
     sections shall be the procedural standard for the filing  of
     claims against the City, and ensuing action thereupon.
     In  addition,  the  Commission  considered  it reasonable to
     include in  this section  a statement  that any  decision by
     City staff to deny a claim may be appealed to City Council.
     The Commission proposes the following draft as a replacement
     for Section 1515 as currently written:

     Proposed Wording

         Section 1515.  Actions Against City.
                No suit shall be brought on any demand for  money
                or damages against  the City  unless a  claim has
                been filed with the City Clerk in accordance with
                the procedures established  by  state  law.   The
                City  Council  may  establish  additional  claims
                procedures by ordinance.
                In  addition  to  other  procedures  as  may   be
                established by law, any  person  aggrieved  by  a
                City decision that rejects or denies, in whole or
                in part, any demand or claim for money or damages
                may  request  the  City  Council  to  approve the
                demand or claim.

10)  Question:  Whether  City  Charter  Section  608  should   be
                amended  to increase the  dollar amount requiring
                competitive bidding on public works projects?

     Existing City Charter:

                SECTION 608.  Contracts  on Public Works.   Every
                contract  involving an  expenditure of  more than
                Five   Thousand   ($5,000.00)   Dollars  for  the
                construction    or     improvement     (excluding
                maintenance  and  repair)  of  public  buildings,
                works,  streets, drains, sewers, utilities, parks
                and playgrounds,  and each  separate purchase  of
                materials or supplies for  the  same,  where  the
                expenditure  required  for  such  purchase  shall
                exceed  the  sum  of  Five  Thousand  ($5,000.00)
                Dollars, shall be  let to the  lowest responsible
                bidder   after  notice  by   publication  in  the
                official newspaper by two or more insertions, the
                first  of which shall be at least ten days before
                the time for opening bids.
                The  City  Council  may  reject  any and all bids
                presented and may re-advertise in its discretion.
                After rejecting bids, or if no bids are received,
                the City  Council may declare  and determine that
                in  its  opinion,  the  work  in  question may be
                performed better or more economically by the City
                with its own employees, or that the materials  or
                supplies may be purchased at a lower price in the
                open  market,  and   after  the  adoption   of  a
                resolution  to  this  effect  by  at  least  five
                affirmative votes,  it may  proceed to  have said
                work done or such materials or supplies purchased
                in the manner stated, without further  observance
                of the provisions of this section.  Such contract
                may  be  let  and  such  purchases  made  without
                advertising   for  bids,  if  such  work  or  the
                purchase of such  materials or supplies  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 at least
                five affirmative votes.

     Discussion  and  Recommendation:   Section  608  of the City
     Charter  requires competitive bidding for every public works
     expenditure greater than Five Thousand Dollars  ($5,000.00).
     Cities vary widely in  their  bid  threshold  amounts.   For
     instance, the  charters of  Torrance, Inglewood,  Long Beach
     and Glendale merely  indicate  that  their  respective  City
     Councils may by ordinance establish limits beyond which bids
     are required.   Burbank  and  Redondo  Beach  establish  the
     limits  in  their   charters  at  Thirty   Thousand  Dollars
     ($30,000.00)  and  Fifty   Thousand   Dollars   ($50,000.00)
     respectively.  State law does not control the amount where a
     bid is necessary.   Santa  Monica's  present  $5,000.00  bid
     threshold has not been changed in 40 years, and is unusually
     low in today's contract environment and as compared to other
     cities.

City                         Formal           Type        Limit
                            Bid Limit       Government    Set By
Burbank                      $30,000       Charter     Charter
Glendale                     $15,000       Charter     Charter
Inglewood                    $40,000       Charter     Ordinance
Long Beach                   $50,000       Charter     Ordinance
Pasadena                     $25,000       Charter    *Ordinance
Redondo Beach                $50,000       Charter     Charter
Torrance                     $24,999       Charter     Ordinance
Bev. Hills, El Segundo
Hawthorne, Manhattan Beach,                General     State
West Hollywood               $10,000       Law         Law

     * Charter sets the formal bid limit at an amount not to
     exceed $75,000. The Council has set the limit at $25,000.
     The  Commission  recommends  modification  of the Charter by
     deleting  the dollar amount  for the formal  bid limit.  The
     City  Council  would  then  be  given  the responsibility to
     establish by ordinance  an  expenditure  limit  above  which
     competitive bidding would be required.  This limit could  be
     revised  when necessary by ordinance of the City Council and
     would  abide  by  State  limits.   This  modification to the
     Charter  would allow the City to  conduct business in a more
     efficient and cost-effective  manner.  Allowing the  Council
     to set the limits  would  save  the  resources  required  to
     conduct  a  public  vote  over  an  issue which is basically
     technical  and administrative in nature, and which will need
     to  be  adjusted  from  time  to  time without a substantive
     change in policy merely because of monetary inflation.
     The City's  Finance Director  has currently  determined that
     raising  the City's formal bid threshold from $5,000.00 will
     require no  change in  the City's  accounting procedures  to
     satisfy State law.

     While  favoring  a  reduction  in  the scope of this Charter
     Section  by raising the  dollar threshold at  which it comes
     into force, the  Commission felt this  Section's application
     should be  broadened  to  cover  personal  and  professional
     services contracts,  an area  not mentioned  in the  current
     Section 608.   The Commission feels  that explicit inclusion
     of  such  contracts  in  this  Section  would bolster public
     confidence  in  the  integrity  of  the  City's  expenditure
     procedures.   The  Commission   also  felt  that   different
     threshold  dollar limits are appropriate for different types
     of expenditures.

     Finally, the Commission felt that Santa Monica's  commitment
     to opportunity for minorities and other disadvantaged groups
     should be expressed here in a clause mandating that  bidding
     procedures be tailored toward this goal.
     To  meet  the  objectives  discussed  above  the  Commission
     proposes that Section 608 be revised as follows:

     Proposed Wording

         Section 608.  Public Contracts.
                The  City  Council  shall,  by  ordinance,  adopt
                procedures  and requirements for  the purchase of
                supplies  and  equipment;  for  the  provision of
                personal  services, including without limitation,
                professional consultant  agreements in  excess of
                $50,000;  and for  the award  of bids  for public
                works   projects.    Such   an  ordinance  should
                preserve  public confidence in  the integrity and
                openness of the City contracting process, protect
                public funds,  and insure  that the  City obtains
                materials or services of appropriate quality.  To
                the extent permitted by  law,  the  City  Council
                shall adopt procedures which encourage the  award
                of  City contracts  to disadvantaged  or minority
                persons.
                Pursuant to an ordinance duly adopted by the City
                Council, the personal services agreements subject
                to the dollar requirements of this Section may be
                adjusted   by  an  amount  no  greater  than  the
                cumulative  percentage  increase  in the Consumer
                Price Index  as measured from  the operative date
                of the last  such adjustment, provided  that such
                adjustments shall occur only  once  in  any  five
                year  period.   The  Consumer  Price  Index (CPI)
                shall  be the CPI for All Urban Consumers for the
                Los  Angeles,  Long  Beach,  Anaheim Metropolitan
                Area (All  Items), provided by  the United States
                Bureau of  Labor Statistics  or other  comparable
                index determined  to be  appropriate by  the City
                Council.

11)  Question:  Whether  City  Charter  Section  1300 relating to
                official bonds should be amended or deleted?

     Existing City Charter:
                SECTION 1300.  Official Bonds.  The
                City Council shall fix by ordinance
                the amounts and terms of the official
                bonds of all officials or employees
                who are required by this Charter or
                by ordinance to give such bonds. All
                bonds shall be approved as to form by
                the City Attorney, and, with the
                exception of the bond of the City
                Controller, shall be filed with the
                City Controller.  The Controller's
                bond shall be filed with the City
                Clerk.  Premiums on official bonds
                shall be paid by the City.
                In all cases wherein an employee of
                the City is required to furnish a
                faithful performance bond, there
                shall be no personal liability upon,
                or any right to recover against, his
                superior officer or other officer or
                employee, or the bond of the latter,
                unless such superior officer, or
                other officer or employee is a party
                to, or has conspired in, the wrongful
                act causing directly or indirectly
                such loss.

     Discussion  and  Recommendation:   Section  1300 of the City
     Charter is a broad provision authorizing the City Council to
     establish by ordinance  the terms and  amounts of any  bonds
     that city employees shall be required to furnish.
     Official Bonds

     Many cities (for example, Burbank, Redondo Beach, Inglewood,
     Torrance and Glendale),  include a similar  performance bond
     provision in  their  charters.   The  various  city  charter
     provisions either identify specific officials and  employees
     who  will be subject  to performance bonds  or delegate this
     responsibility to the City Council.

     Section 2612b  - Faithful  Performance Bonds,  of the  Santa
     Monica  Municipal Code lists those  officials for whom bonds
     must  be  posted  to  the  City, and includes all department
     directors, the Assistant City Manager and the City Manager.
     The Commission  believes performance  bonds are  in the best
     interests  of the City.  The bonds provide protection in the
     event of an official's or employee's failure, which could be
     intentional, such as embezzlement, or unintentional, such as
     an incorrect payment.   Above all, the  faithful performance
     bond protects the City and ultimately the taxpayer from loss
     of public money or  property.  The Commission believes  this
     provision  should remain in the  City's charter, though with
     the  removal  of  gender-specific  language  and deletion of
     specific formulae governing  the  approval  and  posting  of
     bonds,  matters  which,  in  the  Commission's  view, may be
     better left  to City  Council to  set from  time to  time as
     circumstances warrant.  We propose the following language as
     a substitute for Section 1300 as now written:

     Proposed Wording

         Section 1300.  Official and Employee Bonds.
                The City Council shall establish by ordinance the
                amounts, terms and  conditions  of  any  official
                bonds   required   of   officials  or  employees.
                Premiums  on official bonds shall  be paid by the
                City.

12)  Question:  Whether  City  Charter  Section  1509 relating to
                Cash Basis Fund and  City  Charter  Section  1511
                relating to Capital Outlays Fund should be
                amended or deleted?

     Existing City Charter:
                SECTION 1509.  Cash Basis Fund.  The
                City Council shall 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 sufficient
                reserve shall be built up in this fund
                from any available sources 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 pur-
                pose of placing such funds, as nearly as
                possible, on a cash basis.
                All moneys so transferred from the Cash
                Basis Fund shall be returned thereto
                before the end of the fiscal year.
                SECTION 1511.  Capital Outlays Fund.
                A fund for capital outlays, generally,
                is hereby created, to be known as the
                "Capital Outlays Fund." The City Council
                by ordinance may create a special fund
                or funds for a special capital outlay
                purpose.  The City Council may levy and
                collect taxes for capital outlays 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 de-
                rived from such levy.  It may not, in
                making such levy, exceed the maximum
                tax rate provided for in this Charter,
                unless authorized by the affirmative
                votes of a majority of the electors
                voting on the proposition at any
                election at which such question is
                submitted.  The City Council may
                transfer to any such fund any unen-
                cumbered surplus funds remaining on
                hand in the City at any time.
                Once created, such fund shall remain
                inviolate for the purposes for which
                it was created; if, for capital
                outlays, generally, then for any such
                purposes and if for a special capital,
                outlay, then for such purpose only,
                unless the assent of the voters is
                expressed to the use of such fund for
                some other purpose by majority vote
                of the electors voting in favor there-
                of at a general or special election
                at which such proposition is submitted.

     Discussion  and  Recommendation:   Both  sections  currently
     contain pre-Proposition  13 language which  assumes that the
     City's primary revenue source  is the Property Tax  and that
     the  City Council still  has the ability  to directly revise
     the annual Property Tax levy.  Neither assumption holds true
     today since:

     1)   The City has other  major local tax sources  of revenue
          (e.g.  the Sales Tax, Utility  Users Tax, Real Property
          Transfer  Tax,  Transient  Occupancy  Tax  and Business
          License  Tax), receipts from which are received monthly
          rather than having to wait five months into the  fiscal
          year to receive the first distributions of the Property
          Tax; and
     2)   Any  increase in the Property  Tax above Proposition 13
          limits must be voter approved.

     Because  substantial  city  income  now  flows  on a monthly
     rather than annual  basis,  the  Commission  recommends  the
     deletion of language in Section 1509 tying cash reserve size
     to specific time periods.  Much  of  Section  1511  must  be
     deleted to bring its  provisions into conformity with  Prop.
     13's restrictions on property tax levies.     To    preserve
     existing  powers  of  City  Council  while  simplifying  and
     modernizing  Charter  language,  the  commission  recommends
     adoption of the following modifications in these sections.

     Proposed Wording

          Section 1509.  Cash Liquidity Reserve.
                The City Council shall maintain a Cash  Liquidity
                Reserve Account  in  the  General  Fund  for  the
                purpose of assuring the payment of the  operating
                expenses   of  the  City  on  a  cash  basis.   A
                sufficient  reserve  shall  be  built  up in this
                account from any  available  sources.   Transfers
                may be made by the City Council from this account
                to any other fund of such sums as may be required
                for the purpose of placing such funds, as  nearly
                as possible, on a cash basis.
                All monies so transferred from the Cash Liquidity
                Reserve  Account shall be returned thereto before
                the end of the fiscal year.

         Section 1511.  Capital Expenditures Fund.
                The  City Council by ordinance may create capital
                expenditure funds.  The City Council may transfer
                to any  such fund any  unencumbered surplus funds
                remaining on hand in the City at any time, or any
                other funds  which the City  Council may lawfully
                raise.

         There was a suggestion  to add language to  Section 1511
         which would  give voters  the right  to vote  on capital
         expenditure funds in the event that Proposition 13  were
         to be revised or  repealed.   The  Commission  concluded
         such a revision should be  submitted to the voters as  a
         separate   charter   amendment,   if   and   when   such
         circumstances arise.

13)  Question:  Whether the portion of City Charter Section  1513
                relating to the presentation of demands should be
                amended or deleted?

     Existing City Charter:
                SECTION 1513.  Presentation of Demands.
                All demands against the City for which
                appropriations have been made, before
                being paid, shall be presented to and
                approved by the City Manager.  Demands
                for which no appropriations have been
                made shall be presented to the City
                Council for approval.   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 examin-
                ing into the matter, may approve or
                disapprove the demand, in whole or in
                part.

     Discussion and Recommendation:   Charter   Section    1513's
     first section is  concerned  with  the  payment  of  demands
     whether  from  funds  previously  appropriated  by  the City
     Council   or  from  unappropriated  reserves.   The  Section
     provides that  the City  Manager is  to approve  all demands
     from  appropriations while any demands for which there is no
     appropriation must be approved by the City Council.

     In practice, once an appropriation has been made by the City
     Council and  an  account  established,  payment  of  demands
     against  the  account  must  be  approved  by the individual
     department  concerned with the payment  and then the Finance
     Department.   The  City  Manager  rarely  becomes   directly
     involved   in  this  approval   process.   Under  accounting
     controls  established  by  the  City  Manager,  the  Finance
     Department must give final  approval  for  all  appropriated
     funds.  Thus, the financial control and accounting system is
     self-executing without the specific  approval  of  the  City
     Manager.

     With respect to  demands against unappropriated  funds, this
     situation does require City Council approval.

     City Council  approval of  claims is  either individual  and
     specific or general and delegated to staff, depending on the
     amount involved.   This Charter  Section's prescription  for
     the  involvement of the City Manager is not a practical one,
     given the  volume of  claims made  against the  City arising
     from the vastly expanded range of government activity.

     From a practical point of  view, there appears to be  little
     need for the specific language of this part of Section 1513.
     Under  Section  704  of  the  Charter,  the  City Manager is
     already responsible for the finances of the City and for the
     administration of budgetary  matters.  These general  duties
     would  seem to encompass the  particular tasks enumerated in
     Section 1513.  Further, Charter Sections 1503 - 1506 discuss
     budget appropriation requirements.

     The Commission, therefore, recommends deletion of  paragraph
     one   of  Section  1513  as  duplicative  of  other  Charter
     provisions which adequately address the matter of  financial
     management controls and responsibilities.