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05-03-2021 CHARTER COMMISSION May 03, 2021 7:00 PM AGENDA Pursuant to Mayor Declaration No. 20-01 and Ordinance No. 1380, the May 3, 2021 Charter Commission meeting will be held via Zoom meeting. Virtual: https://zoom.us/j/95654730728 or call 312-626-6799, webinar ID: 956 5473 0728 Call to Order Roll Call Approval of Agenda Approval of Meeting Minutes 1. Approval of April 5, 2021 Charter Commission Meeting Minutes Administrative Matters 2. Reappointment of Commissioner Brillhart 3. City Charter Commission Presentation, League of Minnesota Cities Old Business New Business Future Meeting Topics/Communications Adjournment 2 Jufn!2/ AGENDA REPORT Meeting Date: May 3, 2021 Meeting Type: Charter Commission Submitted By: Melissa Moore, Staff Liaison Title Approval of April 5, 2021 Charter Commission Meeting Minutes Background Attached are the meeting minutes from April 5, Recommendation Staff recommend the approval of the April 5, 2021 Charter Commission Meeting Minutes. Attachments and Other Resources !April 5, 2021 Charter Commission Meeting Minutes Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!2/ CITY OF FRIDLEY CHARTER COMMISSION MEETING APRIL 5, 2021 CALL TO ORDER Chairperson Nelson called the Charter Commission meeting to order at 7:00 p.m. ROLL CALL Members Present: Commissioners Gary Braam, Kelli Brillhart, Donald Findell, Manuel Granroos, Nikki Karnopp, Ted Kranz, Bruce Nelson, Rick Nelson, Courtney Rathke, Barb Reiland, Val Rolstad, and Cynthia Soule Members Absent: Commissioners Pam Reynolds, and Avonna Starck Others Present: Melissa Moore, Admin. Services Coord./Deputy City Clerk/Staff Liaison Dan Tienter, Finance Director/City Treasurer/City Clerk Deborah Dahl, Director of Community Services and Employee Resources Alyssa Kruzel, Community Engagement Specialist APPROVAL OF AGENDA MOTION by Commissioner Braam approving the meeting agenda. Seconded by Commissioner Brillhart. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON NELSON DECLARED THE MOTION CARRIED. APPROVAL OF MINUTES 1.!Approval of March 1, 2021 Charter Commission Meeting Minutes MOTION by Commissioner Brillhart to approve the meeting minutes of March 1, 2021 as presented. Seconded by Commissioner Braam. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON NELSON DECLARED THE MOTION CARRIED. ADMINISTRATIVE MATTERS 1.!New Member Interviews Ms. Moore introduced Oluwaseyi Olawore who submitted an application for membership. She stated that there was one other applicant that was not able to attend the meeting tonight. 4 Jufn!2/ CHARTER COMMISSION MEETING OF APRIL 5, 2021 PAGE 2 Chairperson Nelson asked why the applicant would like to join the Charter Commission. Mr. Olawore replied that he would like to make an impact in his community. He commented that the Charter Commission provides regulation of the City and believed that this would be a good place for him to provide his input. Commissioner Rathke commented asked if he has any relative experience. Mr. Olawore stated that he works with federal agencies in his occupation and is familiar with writing rules and regulations. He stated that he has written many documents that have been adopted by his previous university. Commissioner Brillhart commented that Mr. Olawore has been in Fridley for about 11 years and asked what he believes has been the biggest improvement in the community during that time. Mr. Olawore stated that what someone sees from the outside is not the same what someone sees from the inside. He used the example of speed limits, as someone may want the speed limit on East River Road lowered but recognized that is not a power the City has because it is a County road. Chairperson Nelson thanked Mr. Olawore for attending and participating in the interview. Commissioner Rathke commented that Mr. Olawore has an impressive background that is detail oriented and would be a good fit for the Commission. She commented that he has also lived in Fridley for over ten years, which makes him educated about the community. Commissioners Brillhart and Nelson agreed. Ms. Moore commented that Mr. Olawore is the Head Election Judge at the location he worked at in 2020 and did a great job. It was also noted that the Charter Commission was his first choice for placement. Commissioner Rathke commented that Mr. Olawore is well informed, qualified, and wants to serve the community on this Commission. MOTION by Commissioner Rathke to direct staff to petition to the Judge to recommend that Oluwaseyi Olawore be appointed to the Charter Commission. Seconded by Commissioner Brillhart. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON NELSON DECLARED THE MOTION CARRIED. Commissioner Soule commented that there was another applicant and asked what would happen with that applicant as she was unable to attend. 5 Jufn!2/ CHARTER COMMISSION MEETING OF APRIL 5, 2021 PAGE 3 Mr. Moore commented that she will reach out to that applicant to inform her that the application will be held on file, as it will be recommended to fill the open position with Mr. Olawore. OLD BUSINESS 2.!Chapter 12 Revisions Chairperson Nelson noted that the changes recommended at the last meeting have been incorporated into the draft included in the Commission packet and provided a breif overview. Commissioner Brillhart stated that the draft aligns with the changes the Commission recommended and would be happy with the draft as is. Commissioner Karnopp asked and received confirmation that this is the typical process to amend the Charter. Mr. Tienter identified a few changes in capitalization and punctuation that staff found when reading through the draft. The Commission agreed that those changes were nonsubstantiative and could be incorporated into the draft. MOTION by Commissioner Braam to approve the changes to Chapter 12 as presented. Seconded by Commissioner Karnopp. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON NELSON DECLARED THE MOTION CARRIED. NEW BUSINESS None. FUTURE MEETING TOPICS/COMMUNICATIONS Mr. Tienter noted that at the next meeting a representative from the League of Minnesota Cities will be present to complete the training. It was confirmed that Mr. Olawore could attend the next meeting. Ms. Moore provided an overview of the appointment process and commented that she believed Mr. Olawore could be appointed prior to the next meeting. 3.!Parks Master Plan Presentation Ms. Dahl presented the Parks Master Plan to the group. 6 Jufn!2/ CHARTER COMMISSION MEETING OF APRIL 5, 2021 PAGE 4 Commissioner Rathke commented that she received the postcard about the park in her neighborhood. She stated that the phrase challenge playground element was used and asked for input from staff on what that would be. Ms. Dahl replied that could be described as a ninja warrier obstacle course items. She commented that there are teens in that area that would most likely use that type of equipment. Chairperson Nelson asked if the projected cost includes inflation. Mr. Tienter commented that this stage the plan has not been phased and does not include inflation. Commissioner Brillhart asked if there are plans to improve the water quality as well. She commented that the water quality of Moore Lake needs to be improved and she would think that should happen if the parks on the sides of the lake are being improved. Ms. Dahl commented that there is an Environmental Planner for the City working with the Watershed District to address those issues, separately from the Parks Master Plan. Commissioner Karnopp commented that she has noticed that the City and School District do not appear to work closely together. She believed that engaging the School District could provide additional opportunities for the entities to work and plan together. Ms. Dahl commented that the City met with the School District one year ago in order to have those programming and planning discussions. She stated that the City has a liaison at the School District and has monthly meetings related to parks maintenance. She stated that they have also reached out to other stakeholder groups, such as sports associations, in order to refresh those relationships and engage those groups. Chairperson Nelson asked if there has been discussion related to the opportunity that could be provided through National Night Out. He stated that perhaps there could be brochures made available with this information that could be passed out at the different events. Ms. Kruzel commented that she has begun discussions with public safety staff related to Night to Unite, but explained that they most likely use the 2022 Night to Unite events to engage the community. Ms. Dahl commented that staff is reaching out to block captains and faith-based organizations in order to engage members of the community throughout the process. Commissioner Braam asked if there has been discussion about petitioning the legislature to grant a small increase in its sales tax to support these improvements. Mr. Tienter stated that they did discuss other possible funding sources in the past. He stated that the State Legislature modified the process a few years ago to include a referendum and projects 7 Jufn!2/ CHARTER COMMISSION MEETING OF APRIL 5, 2021 PAGE 5 would need to have a regional signficiance, therefore the parks projects would not be eligible as most of the improvements are proposed for neighborhood parks. Commissioner Kranz commented that district and state tournaments are good for use of the parks and also provide benefit to local businesses. He noted that in the past the City hosted many tournaments and asked if there is a desire to pursue that type of activity again. Ms. Dahl commented that the City used to have over 132 teams of softball players locally while there have been 10 to 12 teams in the past few years. She commented that there has been a decline in use and therefore that is part of the process to reassess the needs and field use. She stated that they have engaged an organization that brings in national tournaments and staff will continue to work with that group to continue to build the tournament capacity. She stated that when you host tournaments you need concessions and crowd control and there has not been much interest from community groups that used to provide those services in the past. She commented that there has been a lot of interest in cricket, lacrosse, and soccer. She noted that some of the field space may be coverted for that type of activity. Chairperson Nelson thanked Ms. Dahl for the presentation. Ms. Dahl commented that staff would welcome additional input in the future. ADJOURNMENT MOTION by Commissioner Brillhart to adjourn the meeting. Seconded by Commissioner Karnopp. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON NELSON DECLARED THE MOTION CARRIED AND THE MEETING ADJOURNED AT 8:36 P.M. Respectfully submitted, Commissioner Karnopp, Charter Commission Secretary Amanda Staple, Recording Secretary 8 Jufn!3/ AGENDA REPORT Meeting Date: May 3, 2021 Meeting Type: Charter Commission Submitted By: Melissa Moore, Staff Liaison Title Reappointment of Commissioner Brillhart Background appointment to the Charter Commission expires in September, 2021. The Commission does not meet again until October, so her reappointment must be addressed at this Recommendation Staff request the listed Commissioners consider a motion to reappointment Commissioner Brillhart, if she wishes. Attachments and Other Resources !None Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 9 Jufn!4/ AGENDA REPORT Meeting Date: May 3, 2021 Meeting Type: Charter Commission Submitted By: Daniel Tienter, Staff Liaison Title City Charter Commission Presentation, League of Minnesota Cities Background At the March 1, 2021 meeting, the Charter Commission (Commission) provided consensus to invite a representative of the League of Minnesota Cities (LMC) to the May 3, 2021 meeting to discuss home rule municipalities and city charters generally. Through their Charter Assistance Program, LMC provides education and guidance to charter cities in several areas, including: !General powers of a home rule charter city; !Advantages and disadvantages of a home rule charter; !Essentials of a good home rule charter; !Adopting and amending a home rule charter; and !Functions of a charter commission. Kevin Toskey, a staff attorney for LMC, will provide general information in each of these areas, as well as a brief history of charter law in Minnesota and Fridley. As mentioned during the previous meeting, the presentation will provide useful background information for new commissioners and a helpful reminder for experienced commissioners. As part of the services provided by LMC, they also produce an informational memorandum about home rule charter cities in Minnesota (Exhibit A). Please note that LMC provides viewpointneutral information and does not opine on any particular charter, unless requested by the City and/or Commission. However, Mr. Toskey plans to familiarize himself with the City Charter prior to the presentation. Recommendation None at this time; information only. Attachments and Other Resources !Exhibit A: The Home Rule Charter City !Exhibit B: Statutory Reference for Charter Cities/Potential Charter Cities !Exhibit C: Original Fridley Charter (1957) Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. : Jufn!4/ HANDBOOK FOR MINNESOTA CITIES Chapter 4 The Home Rule Charter City TABLE OF CONTENTS I.Home rule in Minnesota ................................................................................................................................3 II.Distinction between home rule charter and statutory cities ...........................................................................3 III.The home rule charter ....................................................................................................................................4 A.Forms of city organization............................................................................................................................. 4 B.Advantages of a home rule charter ................................................................................................................ 5 C.Disadvantages of a home rule charter ........................................................................................................... 6 D.Essentials of a good home rule charter .......................................................................................................... 6 IV.The charter commission ................................................................................................................................8 A.Creation ......................................................................................................................................................... 8 B.Commission members ................................................................................................................................... 9 C.Purpose and functions ................................................................................................................................. 10 D.Dissolution................................................................................................................................................... 11 V.The charter process ......................................................................................................................................11 A.Drafting ....................................................................................................................................................... 11 B.Election ........................................................................................................................................................ 12 C.Amendments ................................................................................................................................................ 15 D.New or revised charters ............................................................................................................................... 18 E.Abandoning a home rule charter ................................................................................................................. 18 VI.General powers ............................................................................................................................................19 VII.Charter subjects and provisions ...................................................................................................................19 A.Taxes ........................................................................................................................................................... 20 B.Finance ........................................................................................................................................................ 20 C.Utilities ........................................................................................................................................................ 20 D.Ordinances ................................................................................................................................................... 21 E.Elections ...................................................................................................................................................... 22 F.Elected officials ........................................................................................................................................... 22 G.City personnel .............................................................................................................................................. 22 H.Delegation of powers ................................................................................................................................... 23 This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 8/20/2020 Saint Paul, MN 55103-2044 (651)281-1200 or (800) 925-1122 © 2020 All Rights Reserved 21 Jufn!4/ I.Contracts ...................................................................................................................................................... 23 J.Accounting .................................................................................................................................................. 23 K.Licensing and regulation ............................................................................................................................. 23 L.Special assessments ..................................................................................................................................... 24 M.Real estate.................................................................................................................................................... 24 N.Liability ....................................................................................................................................................... 24 VIII.Conflicts with state law ...............................................................................................................................24 A.General rule ................................................................................................................................................. 25 B.Identifying conflicts .................................................................................................................................... 25 C.Resolution .................................................................................................................................................... 26 IX.How charter cities should use the LMC handbook ......................................................................................26 League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 2 22 Jufn!4/ HANDBOOK FOR MINNESOTA CITIES Chapter 4 The Home Rule Charter City Understand the authority to form a home rule charter city, charter city powers and the ways it may be organized. Contrast charter cities to those operating under the statutory city code. These broad categories are the two basic types of city organization available in Minnesota. I.Home rule in Minnesota RELEVANT LINKS: Minn. Const. art. XII, § 4. The Minnesota Constitution permits the Legislature to establish home rule Minn. Stat. ch. 410. charter cities, counties, and other units of local government. State statutes enacted under this constitutional authority authorize cities to adopt home rule charters. Any city may adopt a home rule charter. Of the 853 cities in the state, 107 are currently operating under a voter-approved home rule charter. See Part VIII – Conflicts with Home rule charter cities can exercise any powers in their locally adopted state law. charters as long as they do not conflict with state laws. Conversely, charter provisions can specifically restrict the powers of a city. As a result, voters in home rule cities have more control over their city’s powers. II.Distinction between home rule charter and statutory cities The major difference between home rule cities and statutory cities in Minnesota is the kind of enabling legislation from which they gain their Minn. Stat. ch. 412. authority. Statutory cities derive their powers from Chapter 412 of Minnesota Statutes, commonly known as the statutory city code (“city code”). Home rule cities obtain their powers from a home rule charter. The distinction between home rule cities and statutory cities is one of organization and powers, not differences in population, size, location, or other physical features. Despite this distinction, home rule charter cities are often interested in the See Part IV – The charter statutory city code. For example, a charter commission will often review commission. Minn. Stat. § 410.33. Chapter 412 when drafting amendments to the charter. In addition, when a Minn. Stat. ch. 412. charter is silent on a matter addressed in the statutory city code (or other general law), the home rule charter city can generally use that statutory authority as well. This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West www.lmc.org 8/20/2020 Saint Paul, MN 55103-2044 (651)281-1200 or (800) 925-1122 © 2020 All Rights Reserved 23 Jufn!4/ RELEVANT LINKS: Statutory cities are sometimes interested in home rule charters themselves. This may occur when problems arise that cannot be solved under the statutory city code. When a statutory city finds itself in such a situation, it can either request that the Legislature change the city code (or adopt a special law for that specific city), or it can become a home rule city with a charter provision that provides the necessary authority. III.The home rule charter Home rule charters are, in effect, local constitutions. State laws give cities a wide range of discretion to draft charters that will meet the specific needs of the community. A.Forms of city organization Minn. Stat. § 410.16. The charter may provide for any form of municipal government that is Handbook, Local consistent with state laws that apply uniformly to all cities in Minnesota. Government in Minnesota. Home rule charter cities in Minnesota have operated under the following four forms of city government. An individual charter may, however, alter some of these features. 1.Weak mayor-council The weak mayor-council plan is the most predominant form of city organization and is used by 74* of the 107 home rule charter cities. Under this plan, administrative and legislative authority is the council’s ultimate responsibility. The powers of the mayor are generally no greater (or less) than those of any other member of the council. No individual councilmember holds any specific administrative powers. 2.Strong mayor-council The strong mayor-council plan is not very common in Minnesota. This plan is used by only three home rule charter cities: St. Paul, Duluth, and St. Cloud. Under this plan, the mayor is responsible to the council for the operation of all administrative agencies. Under the usual strong mayor- council plan, the mayor can generally appoint and remove subordinates, is not a councilmember but can veto council legislation, and prepares and administers a budget that is subject to council approval. The chief functions of the council are to legislate and set policies. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 4 24 Jufn!4/ RELEVANT LINKS: 3.Council-manager Under the council-manager form of government, the council has policy- making and legislative authority, but the administration is the responsibility of an appointed manager who answers directly to the council. Thirty Minnesota home rule cities use the council-manager plan. 4.Commission Under the commission form of government, each elected councilmember is responsible for a particular administrative department. So, in addition to having duties as a legislative official, the councilmember is also a department head. The commission form has never been very popular. Over the years, it was used by only a few home rule cities. Today, no Minnesota city is operating under a commission. B.Advantages of a home rule charter The home rule charter type of city government has advantages and disadvantages. Some of the advantages of home rule include: One of the principle virtues of the home rule charter is that it allows LMC Charter Assistance Program. each city to tailor its charter to its own individual needs and desires (cities are encouraged to contact the League of Minnesota Cities Charter Assistance Program for model and sample charters, research memos, and advice that will assist in drafting, amending, or adopting a charter). City residents draft, adopt, and amend the city’s charter. A home rule city, unlike a statutory city, has the power to make See Part V-C – Amendments. changes to fit its own needs by amending its charter. These changes can occur locally, rather than waiting (and hoping) for a new law to be passed when the Legislature is in session. The home rule process educates the voters of the city. Some work on charter commissions, while others will learn about the charter and any amendments when they vote on proposed changes. A city charter may cover many functions and procedures, or it may be very similar to the statutory form of city government. If general state laws are silent on a specific subject, local citizens may address them in their city’s charter. See Part VII – Charter A charter may provide for initiative and referendum, recall, and subjects and provisions. election of councilmembers by wards. City charters sometimes include limitations that are more stringent than those in the general state laws. For example, a few home rule charters contain tax and debt limitations. The cost of government under a city charter need not be greater or less than the cost of the statutory city form of government. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 5 25 Jufn!4/ RELEVANT LINKS: C.Disadvantages of a home rule charter A home rule charter also has its disadvantages. Some of these can include: While the cost of preparing a home rule charter should be relatively minor, the smaller the community, the larger the cost in proportion to population. National Civic League Poor charter drafting can be a problem. A charter city can minimize Model City Charter, Eighth these concerns by relying on model charters and consulting competent Edition (2011). professional advice. The process for amending a charter is often time-consuming and cumbersome. Charter amendments can be difficult to pass (particularly when the subject matter is controversial). Sometimes, city advocates will go directly to the Legislature for a solution, in order to bypass local opposition or to avoid dividing the community. This tends to defeat the original purpose of home rule: local control. If the city charter provides for special elections, election expenses may be overly burdensome to city budgets. Anyone looking for the applicable law relating to a home rule charter city must consult not only the state statutes, but the particular home rule charter. Only a few collections of the home rule charters exist. An up-to-date copy of a city charter is of utmost importance to ensure the advice is accurate. The experiences of other cities may be of little help to a home rule charter city. For example, when the Supreme Court or the attorney general gives a ruling that concerns a statutory city, that opinion will, in most instances, be equally applicable to all other statutory cities in the state. Rulings affecting a home rule charter may, however, only be relevant to those cities that have very similar charter provisions. The procedure for abandoning the charter form of city government may be similarly complicated. D. Essentials of a good home rule charter Effective charters maximize the advantages while minimizing the potential disadvantages. In addition, a good home rule charter will also address the following: 1. Comprehensive grant of power The most essential element of a good charter is a comprehensive grant of power that allows the city to exercise all powers legally available under state law and the state constitution. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 6 26 Jufn!4/ RELEVANT LINKS: Because cities are organized to promote the welfare of the people, and city residents are in control through their elected representatives and charter commission members, citizens should not be afraid of entrusting their city government with a wide range of powers. If the citizens feel it necessary, the charter can include initiative, referendum, and possibly recall provisions as additional checks to prevent the abuse of power. An example of a comprehensive grant of power clause in a home rule charter is as follows: “Powers of the City. The city shall have all powers which it may now or hereafter be possible for a municipal corporation in this state to exercise in harmony with the constitution of this state and of the United States. It is the intention of this charter to confer upon the city every power which it would have if it were specifically mentioned. The charter shall be construed liberally in favor of the city and the specific mention of particular municipal powers in other sections of this charter does not limit the powers of the city to those thus mentioned. Unless granted to some other officer or body, all powers are vested in the city council.” 2. Simplicity and brevity Simplicity and brevity are also essential to a good charter. Provisions should be simple and clear, avoiding the possibility of more than one interpretation. A charter should also be brief enough to be read in a reasonable amount of time. 3. Governance fundamentals Because of the difficulty in amending and abandoning a home rule charter, the charter should only deal with governance fundamentals and give the city council the authority to provide more detailed regulations through city ordinances. 4. Responsive organization A good city charter provides for a workable, responsive governmental organization. Its design should eliminate unnecessary “red tape” and makes city government more effective by reducing the number of working parts. 5. Centralize administration Whenever possible, the charter should centralize responsibility for administration in one person: a chief administrative officer. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 7 27 Jufn!4/ RELEVANT LINKS: This encourages and rewards expertise and efficiency in the administration of the city. 6. Representative democracy A charter should emphasize representative democracy. A city should limit the number of elective offices so voters will be able to intelligently cast their ballots. The charter should never ask voters to elect non-policy- making administrative officers. The city should have only a single body elected by voters to legislate and determine policies for the city. This single legislative body, the city council, should be composed of between five and nine members. Councilmember terms should be long enough (up to four years) to gain experience. State law mandates that most council terms be four years, although a two-year mayoral term is allowed. 7. Advisory boards All advisory boards should report directly to the city council. IV. The charter commission A. Creation Every home rule charter begins with the appointment of a charter Minn. Stat. § 410.05, subd. 1. commissionby the state district court.There are three ways a city’s charter commission may be created: First, the chief judge of the district court in which the city lies may Minnesota District Courts. appoint a charter commission if it is deemed to be in the best interest of the city. The court will probably not do this without local interest in the matter. Second, the court must make the appointment if it receives a petition signed by voters who constitute at least 10 percent of the number of voters who voted at the last city election. Smaller cities may find it easier to get the necessary number of signatures. Third, the city council may, by resolution, request the district court appoint a charter commission. Minn. Stat. § 410.05, subd. 5. Once appointed, a charter commission becomes a continuing body. Its membership will change from time to time, but the commission goes on See Section IV-D – Dissolution. indefinitely until it is formally dissolved using statutory procedures. Mere failure of the body to meet, to propose a successful charter for election, or to function does not end its existence. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 8 28 Jufn!4/ RELEVANT LINKS: B.Commission members Minn. Stat. § 410.05, subd. 1. Charter commissions must have between seven and 15 members. The court will determine itssize, unless a petition of the voters or resolution of the city council specifies the size of the commission. Any city with a home rule charter may amend the charter to fix the size of the commission to be between seven and 15 members. 1. Appointment Minn. Stat. § 410.05, subd. 1. The district court usually makes charter commission appointments. The only statutory qualification for members of charter commissions is that Handbook, Election Procedures. they be qualified voters of the city. Commission members may hold some other public office or employment except for a judicial office. City councilmembers may serve on charter commissions. However, the city’s charter may provide that members of the governing body cannot serve on the charter commission. Charter commission members may serve unlimited successive terms. Minn. Stat. § 410.05, subd. 3. The court may receive information from interested citizens concerning these appointments. A city council, the petitioners requesting appointment of a commission or, in the case of new appointments to an existing commission, the charter commission itself, may suggest names of eligible nominees to the district court for consideration. Minn. Stat. § 410.05, subd. 2. The court, acting through the chief judge, makes the charter commission appointments by filing an order with the district court clerk. The district court clerk then notifies the appointees, who have 30 days to file their written acceptances and oaths of office with the district court clerk. Minn. Stat. § 410.05, subd. 2. Appointments are for staggered (or overlapping) four-year terms. Of the initial appointments, half the members plus one will serve two-year terms, with the remainderservingfull four-year terms. Thereafter, the chief judge appoints new members or reappoints existing members every two years The chief judge must make these appointments within 60 days of the expiration of each term. 2. Vacancies The commission will experience vacancies due to various reasons, such as death, inability to perform duties, resignation (including failure to file the Minn. Stat. § 410.05, subd. 2. acceptance and oath of office), or based on moving out of the corporate limits of the city. The district court may remove members from the commission at any time by written order. The order must show the reason for removal. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 9 29 Jufn!4/ RELEVANT LINKS: If any member fails to perform the prescribed duties and fails to attend four consecutive meetings of the commission without satisfactory explanation, a majority of the members may sign a request for the member’s removal and the court must order the removal. Minn. Stat. § 410.05, subd. 2. The commission should always contain its full complement of members. When a vacancy occurs, the chief judge must appoint a new member for the unexpired term. C. Purpose and functions Minn. Stat. § 410.07. The primary concern of a new charter commission in a statutory city is discussing and drafting a home rule charter document to be voted on by Minn. Stat. § 410.05, subd. 5. the city’s residents. Minn. Stat. § 410.10, subd. 4. If the voters reject the first charter proposed by a commission (absent discharge of the commission by a vote of its members or a referendum by the city’s voters), the commission may continue to submit proposals until the voters finally adopt one. Minn. Stat. § 410.05, subd. 2. Within 30 days after its appointment, a newly created charter commission must make rules, including quorum requirements, on its operations and procedures. The commission must file an annual report of its activities with the chief judge on or before Dec. 31 of each year, and must send a copy of the report to the city clerk. After adoption of the charter, the charter commission continues to function. The charter commission’s statutorily prescribed duty is to study Minn. Stat. § 410.05, subd. 4. the local charter and government. The commission is required by law to meet at least once each calendar year. In addition, the commission must Minn. Stat. § 410.12, subd. 1. meet upon presentation of a petition signed by at least 10 percent of registered voters, according to the last annual city election, or by resolution of a majority of the city council. Further, the commission must specifically convene to propose charter amendments upon presentation of a petition of at least 5 percent of the number of votes cast at the last state general election in the city. Minn. Stat. § 410.12, subd. 1. The charter commission is like a standing constitutional convention. It has the power to propose charter changes at any time. If the city’s charter does not work or proves to be faulty in operation, it is the commission’s duty to propose improvements. It should, therefore, meet at regular intervals as required and keep its organization intact should any emergency arise. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 10 2: Jufn!4/ RELEVANT LINKS: Minn. Stat. § 13D.01. Charter commissions are subject to the Minnesota Open Meeting Law DPO 04-059. (OML) and the Minnesota Government Data Practices Act(MGDPA). In Minn. Stat. § 15.17. LMC information memo, addition, as government entities, charter commissions are required by law Meetings of City Councils. to keep a complete record of their activities and affairs. Charter Handbook, Records Management. commission members should familiarize themselves with the requirements of these laws, specifically those that concern the notice and public posting of meetings under the OML. D.Dissolution Minn. Stat. § 410.05, subd. An appointed charter commission in a statutory city(where a home rule 5(a). charter has not been adopted) may be discharged in only one of the following ways: LMC information memo, By a three-fourths vote of the charter commission, if the charter City Special Elections. commission determines that a charter is not necessary or desirable. After a general or special election (called by a petition of registered voters equal to at least 5 percent of the registered voters in the city) where a majority of the votes cast support the discharge of the charter commission. Minn. Stat. § 410.05, subd. If dissolved, another commission may not be formed sooner than one year 5(b). from the date of discharge. See Section V-E – In a home rule charter city, the charter commission cannot be dissolved or Abandoning a home rule otherwise cease to exist unless the home rule charter is abandoned through charter. the statutory process for changing the city form of government. V. The charter process A. Drafting Minn. Stat. § 410.07. In a statutory city without a home rule charter, the new charter commission must deliver to the city clerk the draft of a proposed charter or a report that states a home rule charter is not necessary or desirable. One of these documents must be provided as soon as practicable, and a majority of the members of the commission must sign it. When a majority of commission members approves a charter draft, the commission should make and authenticate at least three identical, clear copies. All the members who approved the draft should sign each of the copies. One copy should go to the clerk of the city, who will deliver it to the city council. The charter commission should keep the second copy in its files. A third copy might be useful for newspaper publication. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 11 31 Jufn!4/ RELEVANT LINKS: 1. Professional assistance Minn. Stat. § 410.06. Drafting a city charter is a complex and difficult job that requires special skill. A charter commission may, subject to the dollar limitations contained in the law, employ an attorney and other personnel to assist in drafting a charter. Before getting too far along in the process, a charter commission should seek advice on what should be included in a charter and should also submit a draft to an impartial expert for final review. LMC Charter Assistance The League of Minnesota Cities Charter Assistance Program can be of Program. assistance in furnishing the commission with pertinent charter materials. National Civic League The charter commission may also find it helpful to have a member of the Model City Charter, Eighth League’s staff attend an early meeting of the commission totalk about Edition (2011). forms of government, drafting procedures, and major policy problems. The League will also provide general advice. For a nominal fee, League counsel will examine and comment on an existing charter, charter draft, or amendment. Most proposed charters have been sent to the League for this kind of review and comment. 2. Community involvement The commission and its committees should collect the informed and interested opinions from citizens and city officials about the existing form of government and the proposed changes. The charter commission should consider criticism or positive experiences with the existing government when drafting the charter. The commission should bring tentative proposals to the attention of the public and city officials before making final decisions. Often, the mayor, city councilmembers, and other city officials may have special insights into the merits or practicality of particular proposals. B. Election Minn. Stat. § 410.10, subd. 1. After receiving the signed draft charter, the clerk notifies the city council LMC information memo, of its receipt andwill typically remind the council to submit the charter to City Special Elections. an election of the voters. If the council fails to do so, the court may order it. The ordinary rules of the conduct of elections apply and the city covers the expense of a charter election. Minn. Stat. § 410.10, subd. 1. The charter commission may recall its proposed charter at any time before the council has fixed a date for the election. The council may authorize the commission to recall the charter at any time prior to its first publication. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 12 32 Jufn!4/ RELEVANT LINKS: Minn. Stat. § 410.10, subd. 1. The council may have options regarding the timingof the election. If no general city election is to occur within six months after the clerk receives the draft, the council must call a special charter election on a date allowable by law. If a general city election will occur within six months, the council may either postpone the election on the charter until that general election, or it may call for a special election prior to the general election. If the election is held at the same time as the general election, the voting places and election officers shall be the same for both elections. Minn. Stat. § 410.10, subd. 2. The notice of election must include the complete charter. The notice must be published once a week for two successive weeks in the official newspaper and may also be published in any other legal newspaper in the city. In first-class cities, the publication must be made in a newspaper having a regular paid circulation of at least 25,000 copies. 1. Charter campaign What is the role of the charter commission in the campaign for adoption of the charter? There are sometimes different views about the role of the charter commission and that of individual commission members. The law does not give the commission any responsibility after the charter has left the commission, nor does it set any restrictions. Some charter commissions have served as the principal sponsoring organization for the charter. Commission members have been responsible for publicity and have made public speeches or written editorialson the commission’s (as well as the proposed charter’s)behalf. In other cities, the commission as a whole has not been involved in the campaign, but sometimes individual members have participated. Because the statutes do not address the subject, what commission members do will depend on their perception of what is or is not appropriate. Surely, no other group is likely to know more about what is contained in the proposed charter and why or is likely to be more interested in the outcome of the charter election. No outsider can give much advice on how to campaign for adoption of the charter. Local conditions and the kind of opposition that might develop will determine the necessary community response. Overconfidence, however, frequently results in the defeat of a charter. The opposition is usually vocal and well organized. It is no easy task, especially at a general election, to get the necessary majority to vote in favor of the charter. Frankness and honesty about the contents of the charter can help “disarm” theopposition. Throughout its entire proceedings, the commission should inform the public of its actions. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 13 33 Jufn!4/ RELEVANT LINKS: LMC information memo, Charter commissions should keep in mind that the useof public funds to Public Purpose promote a particular election outcome may be questionable. While efforts Expenditures. A.G. Op. 442-a-20 (Jul. 18, to inform voters about the charter and to encourage voters to cast their 1927). A. G. Op. 442-a-20 ballot seem reasonable, a “vote yes” campaign brochure is more (Jul. 10, 1952). A. G. Op. 159-A-3 (May 24, 1966). questionable. Campaign efforts by commission members in their role as See “Statement of Position: private citizens seem acceptable, provided they do not claim to speak for Expenditure of Public Funds on Ballot Issue Advocacy,” the entire commission. Office of the State Auditor. 2. Ballot Minn. Stat. § 410.10, subd. 3. The ballot shall bear the printed words: “Shall the proposed new charter be LMC information memo, adopted? Yes ___ No ____” (with a box after each of the last two words, City Special Elections. in which the voter may indicate his or her choice). If alternative charters or charter provisions are submitted, the ballot shall be so printed as to permit the voter to indicate the preferred language. 3. Ratification Minn. Stat. § 410.11. The majority needed to adopt a charter is 51 percent of those voting on the Minn. Stat. § 410.04. Minn. question at the election. Stat. § 410.121. Bard v. Minneapolis, 256 A three-fourths majority, however, is needed if a proposed charter alters Minn. 581, 99 N.W.2d 468 liquor patrol limits (provisions to remove or amend charter provisions (1959). changing the sale of intoxicating liquor require a 55 percent majority). Statutory provisions specifying the percentage of necessary votes to adopt a new or revised charter or to amend a charter supersede conflicting charter provisions. 4. Filing Minn. Stat. § 410.11. If voters adopt the charter, the city clerk must file copies in the office of the secretary of state, the office of the county recorder, and the clerk’s office. A certificate attesting to the accuracy of the charter giving the date of the election and the vote by which the charter was adopted, must accompany each copy. Although the Minnesota Constitution and laws do not require it, the charter commission should retain at least one copy of the charter. Printed copies of the charter should be sent to the League of Minnesota Cities, the Minnesota Historical Society, and to state and local libraries. These groups will frequently refer to the charter and it will be available to other Minnesota charter commissions considering new or amended charters.If the city has a website, it may want to consider posting an electronic copy of the charter for increased public access. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 14 34 Jufn!4/ RELEVANT LINKS: 5. Effective date Minn. Stat. § 410.11. The charter will take effect 30 days after the election or at another time specified by the charter. The charter supersedes any previous charter of the city. The courts must take judicial notice of the charter. Minn. Stat. § 410.11. The officials elected and appointed under the newly adopted charter may then take control of the city’s records, money, and property at any time specified by the charter. The charter may provide that until an election of officers occurs, the officers under the old charter will continue to function. When the new charter becomes fully operational, the re-organized city corporation is in all respects the legal successor of the corporation organized under the old charter or state law. Existing, consistent ordinances and contracts continue until the council changes them or they expire by their terms. 6. Rejected charters If less than 51 percent of those voting on the question do not vote in favor of the proposed charter: Minn. Stat. § 410.10, subd. 4. The charter commission may choose to modify its proposed charter and re-submit the charter for election. Minn. Stat. § 410.05, subd. The charter commission may choose to disband by a three-fourths vote 5(a)(1). of its members. The city voters may disband the charter commission through a petition Minn. Stat. § 410.05, subd. 5(a)(2). and referendum process. Minn. Stat. § 410.05, subd. When a charter commission disbands itself or is discharged by the city 5(b). voters, another commission may not be formed sooner than one year from the date of discharge. C.Amendments Charter cities will find it necessary to update or otherwise modify their Minn. Stat. § 410.12, subd. charter to reflect current needs and expectations. Amendments must 1a. originate through one of the several ways that are provided in statute: 1. Amendment by proposal a. Charter commission Minn. Stat. § 410.12, subd. 1. A charter commission maypropose amendments to the charter at any time. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 15 35 Jufn!4/ RELEVANT LINKS: b.Citizen petition Minn. Stat. § 410.12, subds. A charter commission must propose amendments upon receiving a petition 1-3. signed by a number of registered voters equal to 5 percent of the total A.G. Op. 59a-11 (Dec. 30, 1981). votes cast at the previous state general election in the city. This percentage cannot be changed by the charter itself. Minn. Stat. § 410.12, subd. 1. All petitions circulated must be uniform in character. The petition must state the proposed amendment to the charterin full. However, if the proposed amendment is larger than 1,000 words, a true and correct copy must be filed with the city clerk, and the petition will contain a summary (between 50 and 300 words) setting forth the “substance and nature” of the proposed amendment. When a summary is used, that summary (along with a copy of the prosed amendment) must be first submitted to the charter commission for its approval as to form and substance. The commission has 10 days to return the summary with any modifications necessary to fairly comply with these requirements. Minn. Stat. § 204B.071. The secretary of state is required to develop rules governing the manner in Minnesota Secretary of State which petitions required for any election in this state are circulated, signed, - Petitions. filed, and inspected. The secretary of state shall provide samples of petition forms for use by election officials. Once received, thecommission must submit the petition to popular vote. c.Process and procedure Minn. Stat. § 410.12, subds. The amendment goes to the city clerk, who notifies the council. The 1, 4. council then provides for the election under the same rules that apply to a Davies v. City of new charter. The council may not refuse to submit or change the Minneapolis, 316 N.W.2d amendment as long as it is constitutional. A city council does not need to 498 (Minn. 1981). Haumant v. Griffin, 699 N.W.2d 774 submit an unconstitutional charter amendment or an amendment that (Minn. Ct. App. 2005). violates state or federal law to the voters. When an amendment to a charter is proposed by the charter commission or petitioned for by the voters of the city, the proposed amendment must be submitted at least 17 weeks before the general election. 2. Amendment by ordinance a. City council Minn. Stat. § 410.12, subd. 5. The city council may propose an amendment by ordinance. The council submits the ordinance proposing an amendment to the commission, which has 60 days for review(which may be extended by the commission an additional 90 days by filing a resolution determining that additional time is necessary with the city clerk). League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 16 36 Jufn!4/ RELEVANT LINKS: After the review period, the commission returns the amendment or its own substitute amendment to the council. The council then submits to the voters eitherthe amendment it originally proposed or the commission’s substitute amendment. b.Charter commission Minn. Stat. § 410.12, subd. 7. The charter commission may recommend the council amend the charter by ordinance. Within one month of receiving a recommendation to amend the charter by ordinance, the city must publish notice of a public hearing of the proposal (which must also contain the text of the proposed amendment). Minn. Stat. § 410.12, subd. 7. The city must hold the public hearing on the proposed charter amendment at least two weeks but not more than one month after the notice is published. Within one month of the public hearing, the city council must vote on the proposed charter amendment ordinance. The vote must be unanimous, including approval by the mayor if the mayor has veto power. The ordinance proposing the amendment is subject to the same publication requirements as other ordinances. The ordinance becomes effective 90 days after passage and publication, unless a later date is provided in the ordinance. Minn. Stat. § 410.12, subd. 7. Within 60 days after passage and publication, a petition signed by registered voters equal in number to at least 5 percent of the registered voters in the city or 2,000, whichever is less, may be submitted to forcea referendum on the amendment. If voters file a proper petition, the city must handle the amendment like any other charter amendment, except the council may submit the ordinance at a general or special election that occurs within 60 days after filing the petition, or it may reconsider its action in adopting the ordinance. c. Cities of the fourth class Minn. Stat. § 410.12, subd. 6. In cities with a population of less than 10,000, the council may propose amendments by ordinance without submitting them to the charter commission. Four-fifths of the councilmembers must vote for the ordinance. Two weeks published notice is necessary before the vote. The council must then submit the ordinance to the voters like any other amendment. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 17 37 Jufn!4/ RELEVANT LINKS: 3. Elections Minn. Stat. § 410.10. Minn. The election concerning proposed amendments and the arrangement of the Stat. § 410.12, subd. 4. Minn. ballot are substantially the same as in the case of the adoption of a new Stat. § 410.121. See Section V-B – Election. charter. An amendment needs the favorable vote of 51 percent of those voting on the question. 4. Notice Minn. Stat. § 410.12. Minn. Amendments, like charters, need the clerk’s certification. Copies must be Stat. § 410.11. filed in the offices of the secretary of state and county recorder, as well as in the clerk’s office. Amendments take effect either at the end of 30 days after the election, or at some other time if the amendment so specifies. The law also allows for alternative proposals. LMC Charter Assistance The League of Minnesota Cities Charter Assistance Program would Program. appreciate a copy in order to keep the LMC charter collection up to date. State and local libraries and the Minnesota Historical Society are also suggested recipients. A city may also want to consider posting charter amendments to its website to keep the online charter up to date. D. New or revised charters Any city having a home rule charter may adopt a new or revised charter in the same manner as an original charter. If a new or completely revised charter is to go to the voters, the preparation of the ballot and other procedures are substantially the same as for the original charter. E.Abandoning a home rule charter Minn. Const. art. XII, § 5. Any home rule city may abandon its charter and become a statutory city. Since the state was formed, only three cities—Jordan, Isanti, and Sauk Minn. Stat. § 410.30. Centre, all since 1989—have abandoned their charter form of government. These three cities are now Plan A statutory cities. A city may abandon its charter by presenting a proposal, adopting it, and having it become effective in the same manner as a charter amendment. Accordingly, abandonment would require the approval of 51 percent of those voting on the question. Minn. Stat. § 410.30. The proposal must include a schedule containing necessary provisions for transition to the statutory city form of government in order to place the city on a regular election schedule as soon as practicable. The proposal may provide for continuation of specified provisions of the home rule charter for an interim period andmust specify the plan under which the city will operate as a statutory city. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 18 38 Jufn!4/ RELEVANT LINKS: VI. General powers Minn. Stat. § 410.16. A city charter should deal only with the fundamentals of the governmental organization of the city, leaving the council free to exercise a broad grant National Civic League of authority by ordinance. Modern charters contain provisions that claim Model City Charter, Eighth for the city all powers that the home rule provision of the constitution Edition (2011). permits a city to assume. Older charters contain a long list of specific grants giving various powers to the city. The strong statements of intent found in League and National Civic League model charters should be adequate to ensure that the omnibus grant gives the city all the municipal power it might receive through more specific grants. Park v. City of Duluth, 134 Minnesota Supreme Court decisions generally have given a liberal Minn. 296, 159 N.W. 627 construction to all-powers grants in city charters. In addition to powers (1916). State v. City of Duluth, 134 Minn. 355, 159 granted by the charter, various state statutes may give additional powers to N.W. 792 (1916). City of a city and regulate certain activities. For example, authority for planning, Duluth v. Cerveny, 218 Minn. 511, 16 N.W.2d 779 police civil service commissions, and municipal forest maintenance is (1944). included in laws dealing specifically with these subjects. A home rule charter may provide any municipal powers the Legislature could have delegated to the city, as long as the powers are consistent with state statutes. A number of city charters have attempted to do this. Under such a grant, the charter may authorize the city to provide for medical clinics, public transit, and industrial parks. It may authorize any of a range of public enterprises as long as they do not involve the use of public funds for an unconstitutionally private purpose. The limits depend more on public policy than on the lack of home rule charter power. Minn. Stat. § 410.33. If a charter is silent on a topic that Chapter 412 or another statute Minn. Stat. ch. 412. addresses for statutory cities, home rule cities may usually apply the In re HUC Pipeline Condemnation Litig., No. general law on the subject. If, however, general law prohibits a charter A03-1125 (Minn. Ct. App. from addressing the matter or provides that the charter prevails over May 4, 2004) (unpublished decision). general law, the home rule city may not apply the general law. Nordmarken v. City of No city, however, even one organized under a city charter, has inherent Richfield, 641 N.W.2d 343 powers. A city may only exercise such powers that are expressly conferred (Minn. Ct. App. 2002). Lilly v. City of Minneapolis, 527 by statute or are implied as necessary in aid of those powers. If a matter N.W.2d 107 (Minn. Ct. App. presents a statewide problem, the implied necessary powers to regulate are 1995). narrowly construed unless the Legislature has provided otherwise. VII. Charter subjects and provisions The following list of powers are addressed within many home rule charters is not complete or all-inclusive. Many provisions contained within a city charter are also discussed in more detail in other chapters of the LMC Handbook for Minnesota Cities. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 19 39 Jufn!4/ RELEVANT LINKS: A.Taxes Handbook,Property Tax Presumably, a charter may grant a home rule city power to tax although Levy. the state has largely pre-empted two local non-property taxes: the sales tax and the income tax. State law has historically provided some differences between home rule charter cities and statutory cities in property tax levy authority. Minn. Stat. § 275.75. For example, the Legislature allows charter cities to exceed their charter limits or referendum requirements for levy increases if the increased levy was needed to offset reductions in city local government aid (however, any state-imposed levy limits still apply). B. Finance Handbook, Municipal The charter may, but does not need to, require a budget system (however, Budgeting. current truth-in-taxation laws require all cities to prepare a budget). Handbook, Property Tax Levy. The charter may regulate the payment of claims and may also limit or broaden the purposes for which the city may spend money beyond the limits set for statutory cities. For example, a charter could allow appropriations to private agencies performing work of a public nature, while statutory cities probably could not. The law limits statutory cities in their issuance of warrants in anticipation of the collection of taxes. A charter may broaden or curtail this authority. Minn. Stat. § 410.325. Both statutory and home rule charter cities may use a system of anticipation certificates. A charter may lower the debt limit applicable to Handbook, Debt and Borrowing. cities, but it may not raise the limit. A charter can also restrict the purposes for which the city may issue bonds, and it can make the procedure easier or more difficult. C.Utilities 1. Municipal utilities Minn. Stat. § 412.321. While statutory cities may establish electric, gas, light, and power utilities only after a vote by the people—regardless of the method of financing—a charter may provide for acquisition without a vote or may require a A.G. Op. 624a-3 (June 28, different majority from the majority necessary in statutory cities. A charter 1999). may give the right of condemnation without a time limit. A charter may also allow the city to use surplus utility funds to support general funds. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 20 3: Jufn!4/ RELEVANT LINKS: Minn. Stat. § 444.075, subd. Charters may not attempt to set utility rates for water, sewer,and 3(b). stormwater utilities. Charter provisions may not artificially inflate or LMC information memo, Securing Payments of Utility suppress rates. Authority to set rates is vested exclusively in the city Charges. council by state statute. 2. Regulation The Minnesota Public Utilities Commission and the Department of Commerce regulate the service and rates of private gas, electric, and Handbook, City Regulatory Functions. telephone utilities. However, charters may acquiregas and electric Minn. Stat. § 410.09. franchises and may adopt regulations, including requirements for a gross earnings tax or similar fees. Strict limitations on the use of franchises, taxation, and fees for the use of public rights-of-way exist, whether or not a city has a charter. D. Ordinances 1. Procedures Minn. Stat. § 412.191, subd. Statutory cities may pass an ordinance on a single reading at the same 4. meeting that the ordinance first comes before the council. The ordinance must be published in full or in summary form in the local newspaper. Statutory cities may, but do not need to, require several Minn. Stat. § 410.20. readings and a lapse of time between readings. Charters may or may not provide for publication, and they may impose other restrictions on the ordinance process. 2. Initiative and referendum Statutory cities may not submit ordinances to the people for approval Minn. Stat. § 410.20. under the initiative and referendum process. Only home rule charter cities may provide for initiativeand referendum through their charter. Hanson v. City of Granite Only ordinances that are “legislative in character”may be enacted through Falls, 529 N.W.2d 485 the initiative and referendum process. Legislative actions are those that are (Minn. Ct. App. 1995). general in nature and lay down a permanent and uniform rule of law. HRA v. City of Minneapolis, Administrative actions, on the other hand, are those of a temporary and 293 Minn. 227, 198 N.W.2d special character. They merely carry out existing laws and relate to the 531 (Minn. 1972). A.G. Op. 858 (Oct. 26, 1970). A.G. daily administration of municipal affairs. Administrative actions include Op. 858 (August 5, 1970). the settlement of lawsuits, entering of contracts, acceptance or rejection of But see City of Cuyahoga Falls v. Buckeye Cmty. Hope bids, sale of municipal bonds, appointment of city officials, levying of Found, 538 U.S. 188, 123 S. taxes, granting of licenses and permits, and the adoption of budgets. Ct. 1389 (U.S. 2003). A.G. Op. 185b-2 (Mar. 8, 1962). League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 21 41 Jufn!4/ RELEVANT LINKS: E.Elections Minn. Stat. § 205.02, subd. 2. State statutes regulate many phases of election procedure, but some may Minn. Stat. § 205.07, subd. 1. be open to city regulation through the charter. State law fixes the date of city elections in both statutory and home rule cities for the first Tuesday after the first Monday in November in even or odd years. In charter cities, Minn. Stat. § 205.10, subd. 3a. special elections may only be held on the days allowable by law. F. Elected officials 1.Wards Minn. Stat. § 410.16. The charter may use proportional representation and may set up different nomination procedures from those in statutory cities. The charter may provide for ward representation, which is generally not available to statutory cities. 2. Removal by the council Minn. Stat. § 351.02. State law establishes the specific situations that create vacancies in A.G. Op. 59a-30 (Jul. 24, elective office. A charter may not provide for removal of councilmembers 1996). by the council for any reason not explicitly stated in statute. 3. Recall Minn. Stat. § 410.20. Home rule charter cities have some limited authority to provide for recall Minn. Const. art VIII, § 5. elections of the city’s elected officials. The Minnesota Constitution and Jacobsen v. Nagel, 255 Minn. 300, 96 N.W. 2d 569 state court decisions have restricted the recall of elected city officials to (1959). cases of serious malfeasance or nonfeasance during the term of office in the performance of the duties of the office. Recall does not exist in statutory cities. 4.Term limits Minneapolis Term Limits A charter may not impose term limits on city elected officials. Coalition v. Keefe, 535 N.W.2d 306 (Minn. 1995). G. City personnel In home rule cities, the charter may establish procedures for the appointment and removal of non-elective officers and employees at the discretion of the council. The charter may include restrictions, such as a formal civil service system, and it may authorize the council to fix administrative salaries subject to the limitations and procedures provided by the charter. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 22 42 Jufn!4/ RELEVANT LINKS: H.Delegation of powers A.G. Op. 624a-3 (June 28, Absent specific statutory or charter authority, the council of a charter city 1999) . A.G. Op. 1001-a may not delegate powers and duties that require the exercise of judgment (Sept. 15, 1950). Muehring v. School District No. 31, 224 and discretion to other persons or bodies. Specific language must exist in Minn. 432, 28 N.W.2d 655 the charter for any delegation to occur. (1947). Minneapolis Gas and Light Co. v. City of Minneapolis, 36 Minn. 159, 30 N.W. 450 (1886). I. Contracts Minn. Stat. § 471.345. State law establishes bidding procedures and uniform dollar limits for all city contracts for the purchase, sale, or rental of supplies, materials, or A.G. Op. 59-a-15 (Aug. 22, equipment, or the construction, alteration, repair, or maintenance of real or 1969) personal property. Queen City Constr., Inc. v. While the language leaves some doubt about the application of the law to City of Rochester, 604 home rule charter cities, the attorney general was of the opinion that the N.W.2d 368 (Minn. Ct. App. 1999). statute supersedes all charter provisions concerning uniform dollar Handbook, Expenditures limitations. Presumably, the charter may regulate some phases of the Purchasing and Contracts. contracting procedure, but most charters deal only with subjects not covered by the state law. J. Accounting Minn. Stat. § 412.222. Under the law, statutory cities may employ a public accountant or the state auditor to perform an audit. By charter, cities may require an annual audit Minn. Stat. § 6.54. Minn. by the person designated to perform the audit. Charter cities are also Stat. § 6.55. subject to the law that requires the state auditor to examine a city’s records on the initiative of the council or a petition of citizens. Minn. Stat. §§ 471.695-.698. All cities are required to publish their annual financial statements. In home rule cities, the charter may require additional reports and publication of the reports depending on the desires of the community. The number and kinds Handbook, Property Tax of funds, and the authority to transfer between funds, may come under Levy. charter regulation with minimum statutory restriction. In statutory cities, the law is more restrictive on this subject. K. Licensing and regulation Handbook, City Licensing. While statutory cities must find a specific statute authorizing the licensing Handbook, City Regulatory or regulation of an activity before they can regulate that activity, a charter Functions. city can often rely on an all-powers provision in its charter to license or regulate activities within its borders. Without such an all-powers or other broad grant of authority, a charter city must find a specific charter provision or state law authorizing the regulation. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 23 43 Jufn!4/ RELEVANT LINKS: L.Special assessments Handbook,Financing Public Both statutory and home rule cities may finance local improvements by Improvements. special assessments against benefited property under a uniform Minn. Const. art. X, § 1. Minn. Stat. ch. 429. constitutional and statutory procedure. While most home rule cities follow Minn. Stat. § 429.111. state law, a city charter may provide a different procedure or authorize the Minn. Stat. § 429.021, subd. council to adopt a different procedure and may require the city to use that 3. method exclusively. A charter city, however, must conform to certain requirements of state law. The charter can require the city to use general Minn. Const. art. X, § 1. funds or service charges, rather than special assessments, for local improvements. Any special assessments used must comply with the constitutional requirement that the amount of the special assessments cannot exceed the increased market value of the property as a result of the benefit due to the local improvement. Some charters with special assessment provisions authorize the city council to choose between utilizing the charter provisions or state law Curiskis v. City of Minneapolis, 729 N.W.2d when imposing special assessments. A court case has validated such 655 (Minn. Ct. App. 2007). charter provisions. However, when a city elects to use its charter provisions for a special assessment project, the charter provisions must be followed throughout the entire project. The city cannot later elect to use the state law provisions for the same special assessment project. Likewise, the city cannot commence a special assessment project under the procedure in state law and then later elect to utilize the charter procedure. M. Real estate Handbook, Expenditures Charter and statutory cities may acquire real estate that is needed for Purchasing and Contracts. public purposes, and the council can dispose of it when it is no longer LMC information memo, Purchase and Sale of Real needed. State law does not require bids or approval of the voters, but a Property. charter may impose such restrictions. N. Liability Handbook, Liability. Both statutory and home rule cities are subject to the same tort liability imposed by statutes and court decisions. Home rule charter cities may not attempt to extend or curtail the city’s liability to any extent. VIII. Conflicts with state law Harmonizing general statutory language and charter provisions that deal with the same subject can be difficult. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 24 44 Jufn!4/ RELEVANT LINKS: Cities can resolve potential conflicts between state laws and charter provisions through the following process: A. General rule Nordmarken v. City of The general rule is that when a charter provision is in conflict with the Richfield, 641 N.W.2d 343 state statutes, the statutory provisions prevail and the charter provision is (Minn. Ct. App. 2002). ineffective to the extent it conflicts with the state policy. B. Identifying conflicts Mangold Midwest Co. v. When state law is silent on an issue covered by charter and the issue is one Village of Richfield, 274 that the Legislature has the power to delegate to a city, the assumption is Minn. 347, 143 N.W.2d 813 (Minn. 1966). State v. that there is no conflict with state policy. On the other hand, when a Kuhlman, 729 N.W.2d 577 charter provision and state law deal with the same issue, the possibility for (Minn. 2006). conflict or preemption occurs. Charter provisions or charter city Bicking v. City of ordinances conflict with state law when they contain express or implied Minneapolis, 891 N.W.2d 304 (Minn. 2017). terms that are irreconcilable with each other. State law preempts charter provisions or charter city ordinances when state law fully occupies a particular field of legislation. State v. Burns, No. A05-2554 Rather than requesting an attorney general’s opinion or having a court (Minn. Ct. App. Mar. 20, resolve the possible conflict, a city council can, by resolution, rely on the 2007) (unpublished decision). opinion of its attorney as to whether a conflict exists. In making this decision, the attorney should consider the following points: Is there a court case or attorney general opinion that deals with the same or similar provisions? If so, the city must follow the court ruling. Even though attorney general opinions are only advisory, a city should seriously consider the reasoning behind the opinion. In the absence of a court decision or attorney general ruling, does the state law clearly outline or imply a policy decision by the Legislature that the law applies to charter cities as well as to statutory cities? Minn. Stat. § 410.015. For laws passed by the Legislature since 1976, this determination is easy. In any law taking effect after July 1, 1976, the word “city” means statutory city only. After that date, in order for a law to apply to charter cities, the law itself must clearly state it applies to both statutory and home rule charter cities. A mere reference to all cities would not be sufficient to include charter cities. For laws enacted prior to July 1, 1976, cities should look for phrases such as, “all cities shall” or “unless the council determines to proceed under charter provisions” for clues of legislative intent. Generally, laws enacted by the Legislature for the purpose of protecting the public prior to July 1, 1976, probably apply to all cities. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 25 45 Jufn!4/ RELEVANT LINKS: C.Resolution Columbia Heights Relief Even if a general state law applies to charter cities, it does not necessarily Ass’n v. City of Columbia supersede a charter provision. If both the charter and state law direct the Heights, 305 Minn. 399, 233 N.W.2d 760 (1975). State v. city to take certain actions or follow certain procedures, it may be Kuhlman, 729 N.W.2d 577 advisable to follow both the charter provision and the state law, in order to (Minn. 2006). State v. Burns, No. A05-2554 (Minn. Ct. resolve any conflicts between the two provisions. State law supersedes App. Mar. 20, 2007) charter provisions only to the extent the charter provisions conflict with (unpublished decision). state policy. IX. How charter cities should use the LMC handbook This handbook is written for both statutory and home rule charter cities. Each chapter includes a section on how the chapter relates to charter cities. Because of the differences in city charters, it is difficult to generalize about how an individual charter city will be impacted by any particular state law. The handbook does, however, address statewide laws and rules, court decisions, and attorney general opinions that apply to charter cities. League of Minnesota Cities Handbook for Minnesota Cities 8/20/2020 The Home Rule Charter City Chapter 4 | Page 26 46 Jufn!4/ Exhibit B STATUTORY REFERENCE FOR CHARTER CITIES/POTENTIAL CHARTER CITIES This resource summarizes the most important provisions of Chapter 410 of the Minnesota Statutes, which governs procedures regarding home rule charters. More detailed information can be found in Chapter 4 of the League Handbook for Minnesota Cities, available here: https://www.lmc.org/media/document/1/thehomerulechartercity.pdf?inline=true. Questions and requests for information about general city government can be submitted to the League Research Service at 651-281-1200 or online www.lmc.org. materials, general advice, analysis and input, and charter review. There is a fee for review and commentary of an existing charter, draft charter, or charter amendments. Contact Kevin Toskey, Staff Attorney, at 651-281-1292 or ktoskey@lmc.org for more information. The Charter Commission Formation of Charter Commission (410.05) Formation of commission occurs in three ways: !Dist. Ct. chief judge may appoint charter commission if in best interest of the city. !Dist. Ct. chief judge must appoint charter commission if a petition is signed by 10% of voters in the city from last city election. !Dist. Ct. chief judge must appoint charter commission if requested by resolution of city council. Size of Charter Commission (410.05) !Must be between 7 and 15 members, determined by the court unless appointed pursuant to petition or council resolution, then size shall be as specified. !Size of charter commission may be fixed by charter provision, but must be between 7 and 15. Commissioners (410.05) !Appointed by Dist. Ct. (half to two year terms, half to four year terms) court may receive information on interested commission members. !Must be qualified voter of the city !May be councilmembers (unless charter says otherwise) 47 Jufn!4/ !Can hold elective office, except judicial. Those holding other elective offices may serve as commissioners, unless as provided in charter. !All term of office are four years. ! !Must provide written acceptance and oath of office within 30 days, or creates vacancy. !Commissioners shall receive no compensation (410.06). Vacancies (410.05) !Members may be removed at any time by written order of Dist. Ct., showing reasons for removal. !Dist Ct. shall remove member if member fails to perform duties and misses four consecutive meeting and commission secretary files certificate to that effect in Dist. Ct. !Vacancies are filled by Dist. Ct., unless Dist. Ct. fails to appoint or indicate intent to appoint within 30 days. Meetings (410.05) !Must meet at least once per year. !Must meet by council resolution or upon petition of 10% of voters of last city election. !After initial appointment, makes rules of procedure to include quorum requirements, elect !Meetings subject to Open Meeting Law and MN Gov. Data Practices Act. !Must submit annual report to chief judge of district court before Dec. 31 of each year, outlining its activities for the year. If Voters Reject First Charter/Dissolution of Commission (410.05) !Charter commission can modify proposals and continue to submit to voters (410.10), or !Charter commission be discharged upon vote of ¾ of its members, if determined charter is not necessary. !Referendum may be requested on discharge by 5% of all qualified voters in city. Election is held, and majority of votes will discharge charter commission. !Another commission cannot be formed sooner than one year from discharge. The Charter Drafting Process Drafting Process !Commission must deliver to clerk, as soon as practicable, a report determining that charter is not needed/desirable or a draft of proposed charter (410.07). !Charter draft must provide for a mayor, and council to be elected by the people (410.07). !Commission may employ an attorney and other personnel to assist in drafting a charter or charter amendments (410.06). !The commission may direct the city to pay for (1) the reasonable compensation of personnel, (2) printing costs, and (3) the cost of informing the citizens of the charter or charter amendments. (410.06). 48 Jufn!4/ !The amount of costs the city must pay is the general tax levy or $1,500, not to exceed $20,000 in any year, unless authorized by the council. The council may levy a tax in excess of charter limitations to pay the expenses. (New in 2020). Charter Election (410.10) !Upon delivery of initial charter, council shall cause election at general election if within six months, or must call for a special election. !Notice of election must contain complete charter and shall be published once per week for two weeks in a legal newspaper of the city. !Charter is adopted if 51% of those voting vote in favor (410.11). !Charter takes effect 30 days after election unless another time specified in charter (410.11). !If rejected, commission can modify others until one is adopted. !Alternative provisions may be submitted and voted on separately (410.14). Amending the Charter Amendment by Proposal (410.12) !Charter commission can propose amendments at any time. !Citizen Petition amendment must be proposed when petition by 5% of total votes cast in registered voters identified as responsible for circulating the petition. !Citizen petitions require specific affidavit language for circulators. !Petitions must be uniform and must state charter amendment in full (summary may be used if too long). !Proposed amendment goes to council, who can only refuse to call election if charter amendment is unconstitutional. !Charter amendments proposed by citizen petition or commission must be submitted at least 17 weeks prior to general election. !Charter amendments can be submitted to voters at general or special election. !Requires 51% approval of voters to take effect. Amendment by Ordinance (410.12) !City Council may propose an amendment by ordinance by submitting proposed ordinance to the commission, which has 60 days to review (and can be extended for additional 90 by charter commission by resolution). ! The council then submits either version to the voters for election. !Charter Commission may recommend that council amend charter by ordinance. Public hearing is required; must publish notice of public hearing. !Public hearing must be held at least two weeks and not more than one month after notice. !Within one month of hearing, council must vote on proposed amendment ordinance. 49 Jufn!4/ !Vote must be unanimous !Ordinance not to take effect until 90 days after passage and publication. Referendum on Ordinance Amendment when Charter Commission Proposes to Council that Charter be Amended by Ordinance (410.12) !Within 60 days after passage and publication of ordinance, petition signed by 5% of registered voters in city or 2,000, whichever is less, may force referendum. !Council may submit ordinance to voters at any general or special election held at least 60 days after submission of petition, or reconsider its action. Fourth Class Cities (410.12) !In cities with population less than 10,000, council may propose amendments by ordinance without submitting them to charter commission. !4/5 vote is required for the ordinance, with two weeks published notice before the vote. !If adopted, council submits the ordinance to voters like any other amendment. Abandoning Charter (410.30) !Charter may be abandoned and city can revert to statutory city process is same as for amending a charter (several ways). !Proposal must state which statutory city configuration city reverts to, and also include a transition schedule. 4: Jufn!4/ Common Charter Structure/Provisions Comprehensive Grant of Power to City The city has all powers which it now or hereafter is authorized to exercise for a municipal corporation in this state in harmony with the constitutions of this state and of the United States. The intention of this charter is that every power which the people of the city can lawfully confer upon themselves, as a municipal corporation, by specific enumeration in this charter is deemed to have been so conferred by the provisions of this section. This charter is to be construed liberally to promote the health, safety and welfare of the city and the conferring of particular powers in the charter is not to be construed as limiting in any way the generality of the power conferred Bloomington Charter 1.02 The City shall have all powers which it may now or hereafter be possible for a municipal corporation in this state to exercise in harmony with the constitution of the State of Minnesota and of the United States. This Charter shall be construed liberally, and the specific mention of particular powers in the Charter shall not be construed as limiting in any way the general powers herein conferred White Bear Lake Charter 1.03 The city shall have all powers of local self-government and home rule and all powers possible for a municipal corporation to have under the Constitution of the State of Minnesota. The city shall have all powers possessed by municipal corporations at common law and that now or hereafter may be granted to municipalities by the laws of the State of Minnesota. All such powers shall be exercised in the manner prescribed in this Charter or by the laws of the State of Minnesota, or if not so prescribed, as shall be provided by ordinance or resolution of the city council. The provisions of this Charter shall be construed liberally in favor of the city, to the end that it may have all the powers necessary for the efficient conduct of its municipal affairs. The specific mention of particular municipal powers in other sections of this Charter shall not be construed as limiting the general powers of the city to those specifically mentioned. Chatfield Charter 2, 3 Form of Government !Elective Offices (description, terms, election) !When vacancies occur; how filled. !Wards or at-large (redistricting after census) !Duties of mayor (voting, non-voting, voting only if tie) !Incompatible offices (no employment or other office, waiting period after term ends) !Investigation of city affairs Meetings, Ordinances, Etc. !Council Meetings !Quorum requirements !Rules of Procedure 51 Jufn!4/ !Ordinance passage !Signing of resolutions/ordinances !Emergency ordinances City Admin. Officials !Executive official other than council !City Manager or Admin. (authority to purchase and contract) !Powers of city manager or admin. !City Clerk and duties !City departments !City attorney Initiative !Reservation of initiative to the electors of the city (may except appropriation or taxation issues) !Formation of initiative committee (Typically 5 registered voters or more) !Petition and signature requirements, prior review by city attorney, form of petition !Percentage requirements for petition based on votes in past elections. !Action of council upon receipt of petition adopt, put to voters, regular or special election Referendum !Reservation of referendum to the electors of the city (except appropriation, budget, etc.). !Deadline for referendum -before ordinance takes effect, or after it becomes effective !Formation of referendum committee (Typically 5 registered voters or more) !Petition and signature requirements (Percentage of voters required) !Ordinance suspended upon petition !City council action upon receipt re-pass ordinance, reconsider ordinance !Election and effect majority vote for or against. Recall !Reservation of recall to the electors of the city. !Basis for recall (must be based on malfeasance/non-feasance per MN Constitution) !Formation of recall committee (Typically 5 registered voters or more) !Petition and signature requirements (submission to clerk of basis of recall prior to petition circulation, percentage requirement for petition maybe higher). !Recall election at special election or general election (fill vacancy at same time by election?) Finance and Taxation !Presentation of budget (by Manager/Admin. or someone else) !System of taxation !When budget to be addressed by council (Sept., Oct., Nov.) !Emergency expenditures/outlays 52 Jufn!4/ !Establishment and maintenance of Funds !Bonding requirements !Expenditures of city funds !Tax anticipation certificats !Emergency debt certificates Assessments !Grant of power to levy special assessments for any purpose. !Grant of assessments for services (snow removal, rubbish removal, sidewalks, etc.). Public Utilities !Grant of power to city to own and operate any public utility. !Power to fix rates and provide regulations for payments rates must be just and reasonable. !Question to operate new utility put to voters? !Purchase in bulk !Lease of utility can contract with any person for operation. !Disposition of the public utility issue put to voters? Franchises !Franchise required to operate public utility. !Term of franchise !Public hearing for franchise !Council power to regulate Eminent Domain !Grant of power to acquire, by purchase, gift, device, condemnation, any real property for public use. !Requirement of resolution stating the necessity for taking the property. Misc. Provisions !Designation of official newspaper for publication of notices !Bonds to be required of appointed officials !Vacation of streets !Intoxicating liquor !Punishment for violations of city code 53 Jufn!4/ 54 Jufn!4/ 55 Jufn!4/ 56 Jufn!4/ 57 Jufn!4/ 58 Jufn!4/ 59 Jufn!4/ 5: Jufn!4/ 61 Jufn!4/ 62 Jufn!4/ 63 Jufn!4/ 64 Jufn!4/ 65 Jufn!4/ 66 Jufn!4/ 67 Jufn!4/ 68 Jufn!4/ 69 Jufn!4/ 6: Jufn!4/ 71