La Palma to Defend Term-Limits Law in Court Today : Elections: City seeks to overturn ruling that its ordinance is unconstitutional. Outcome will have an impact on other Orange County communities.

A state appeals court will hear oral arguments today from the city of La Palma on why its ordinance limiting council members to two terms should be allowed.

La Palma is defending its 10-year-old term-limit ordinance after a Superior Court judge ruled in July that the law violates the state Constitution.

Councilman Richard Polis had sued the city in an effort to run for a third term on the council in the Nov. 3 election.

This morning, an attorney for La Palma will ask justices in the 4th District Court of Appeal to overturn the lower court’s ruling.

The decision in the La Palma case could bolster or gut similar term-limit laws in several Orange County cities. Although the lower courts have been rejecting term-limit laws, voters and city councils have overwhelmingly embraced them. For instance:

* Dana Point voters approved a law last June limiting council members to two terms.

* The city councils in Westminster and Yorba Linda both placed term-limit laws on the Nov. 3 ballot, although the Yorba Linda law would not take effect until the state adopts a law allowing cities to set term limits.

* The Laguna Niguel City Council gave initial approval to a term-limit law this summer but decided last month to wait for a ruling in the La Palma case before adopting it.

* Villa Park officials did not enforce its voter-approved term-limit law in 1990 when a two-term incumbent filed for reelection, citing the probable illegality of term limits.

In 1989, a state appeals court struck down South San Francisco’s term-limit law. In that case, a two-term councilwoman had filed for and won a third term, despite a city law limiting council members to two consecutive terms. A resident unsuccessfully sued to remove her from office.

The appeals court ruled that term-limit laws are illegal for general-law cities because the state Constitution prohibits cities from adopting laws that conflict with state law. Since state law sets qualifications for candidates seeking local office, cities may adopt no stricter qualifications, the court said.

The appeals court ruling in the South San Francisco case did not affect cities with state charters. Charters allow cities to adopt some local laws that conflict with state codes. In Orange County, only eight of the 31 cities have adopted charters. Five of them have term limits for council members.

So far, La Palma, Villa Park and Dana Point are the only general-law cities in Orange County with term-limit laws in place. La Palma’s term-limit law was the first to be challenged by a candidate.

In the Superior Court ruling, Judge William F. Rylaarsdam cited the South San Francisco ruling in declaring La Palma’s term-limit law unconstitutional.

La Palma Councilman Polis, who will appear on the Nov. 3 ballot, said he challenged the term-limit law because he believes residents should be allowed to decide whom they want on the City Council.

If the appeals court upholds Rylaarsdam’s ruling in the La Palma case, Laguna Niguel will probably let its proposed term-limit law die, Councilman James F. Krembas said Thursday.

“An ordinance would be worth only the paper it’s written on,” said Krembas, who supported the proposed term-limit law. “Why have people believe you have a term-limit law when you really don’t have one?”