<div dir="ltr"><p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 16px/normal Helvetica">Dear All,</p><p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 16px/normal Helvetica">
Although charter cities seem like a good idea giving more power to the people, would Ft. Bragg, Ukiah, Point Arena, etc., all need to have their own city public bank? I thought the information on the legality of public banks indicated that a public bank is not contrary to state law, as determined by the Supreme Court in l9l8 (I think that was the year).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 16px/normal Helvetica">Isn't that a better way to go with a Mendocino County Bank?</p><p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 16px/normal Helvetica">
Peace and blessings, Ellen</p><p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 16px/normal Helvetica">Foundational Aspects of Charter Cities<br></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>What is the Constitutional Framework for Charter Cities?</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides such a charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, affirmatively grants to charter cities supremacy over "municipal affairs." However, the California Constitution does not define the term "municipal affair."</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>What are "Municipal Affairs?"</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">The home rule provision of the California Constitution authorizes a charter city to exercise plenary authority over municipal affairs, free from any constraint imposed by the general law and subject only to constitutional limitations. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Const. art. XI § 5(a); <span style="font:normal normal normal 11px/normal Helvetica"><i>Ex Parte Braun</i></span>, 141 Cal. 204, 209 (1903)<span style="font:normal normal normal 11px/normal Helvetica"><i>; Bishop v. City of San Jose</i></span>, 1 Cal. 3d 56, 61 (1969); <span style="font:normal normal normal 11px/normal Helvetica"><i>Comm. of Seven Thousand v. Super. Ct. (City of Irvine)</i></span>, 45 Cal.3d 491 (1988).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>How Do the Courts Distinguish Between Municipal and Statewide Concerns?</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Whether a given activity is a municipal affair over which a city has sovereignty, or a statewide concern, over which the legislature has authority, is a legal determination for the courts to resolve. Thus, the determination of whether a given activity is a municipal affair or statewide concern is done on a case-by-case basis. The court's determination will depend on the particular facts and circumstances of each case. <span style="font:normal normal normal 11px/normal Helvetica"><i>See In Re Hubbard</i></span>, 62 Cal. 2d 119, 128 (1964). Keep in mind that the concept of "municipal affairs" is a fluid one that changes over time as local issues become statewide concerns. <span style="font:normal normal normal 11px/normal Helvetica"><i>See Issac v. City of Los Angeles</i></span>, 66 Cal. App. 4th 586 (1998).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>What Activities Have the Courts Classified As Municipal Affairs?</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">There are some areas that the courts have consistently classified as municipal affairs. Examples include the following:</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Municipal Election Matters. <span style="font:normal normal normal 11px/normal Helvetica"><i>See Mackey v. Thiel</i></span>, 262 Cal. App. 2d 362 (1968). Procedures for Initiative, Referendum and Recall. <span style="font:normal normal normal 11px/normal Helvetica"><i>See Lawing v. Faul</i></span>, 227 Cal.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">App. 2d 23, 29 (1964).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Procedures for Adopting Ordinances. <span style="font:normal normal normal 11px/normal Helvetica"><i>See Brougher v. Board of Public Works</i></span>, 205 Cal. 426 (1928).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Compensation of City Officers and Employees. Cal. Const. art. XI, § 5(b); <span style="font:normal normal normal 11px/normal Helvetica"><i>See Sonoma County Organization of Public Employees v. County of Sonoma</i></span>, 23 Cal. 3d 296 (1979); <span style="font:normal normal normal 11px/normal Helvetica"><i>but see San Leandro Police Officers Association v. City of San Leandro</i></span>, 55 Cal. App. 3d 553 (1976) (labor relations is not a municipal affair; Charter cities are subject to the Meyers-Milias Brown Act. Cal. Gov’t Code § 3500.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Processes Associated with City Contracts. <span style="font:normal normal normal 11px/normal Helvetica"><i>See First Street Plaza Partners v. City of Los Angeles</i></span>, 65 Cal. App. 4th 650 (1998); <span style="font:normal normal normal 11px/normal Helvetica"><i>but see Domar Electric, Inc. v. Cityof Los Angeles</i></span>, 41 Cal. App. 4th 810 (1995) (state law establishing employment policy may preempt local regulation of bidding criteria).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Financing Public Improvements. <span style="font:normal normal normal 11px/normal Helvetica"><i>See City of Santa Monica v. Grubb</i></span>, 245 Cal. App. 2d 718 (1996).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Making Charitable Gifts of Public Funds for Public Purposes<span style="font:normal normal normal 11px/normal Helvetica"><i>. See </i></span>Cal. Const. art. XVI, § 6; <span style="font:normal normal normal 11px/normal Helvetica"><i>Tevis v. City and County of San Francisco</i></span>, 43 Cal. 2d 190 (1954).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Term Limits for Council Members. <span style="font:normal normal normal 11px/normal Helvetica"><i>See Cawdrey v. City of Redondo Beach</i></span>, 15 Cal. App. 4th 1212 (1993); <span style="font:normal normal normal 11px/normal Helvetica"><i>but see </i></span>Cal. Gov't Code § 36502(b) (regulating term limits).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Land Use and Zoning Decisions (with a few exceptions). <span style="font:normal normal normal 11px/normal Helvetica"><i>See Brougher v. Bd. of Pub. Works</i></span>, 205 Cal. 426 (1928).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>What Activities Have the Courts Classified as Statewide Concerns?</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">The following have consistently been classified by the courts as matters of statewide concern:</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">School Systems. <span style="font:normal normal normal 11px/normal Helvetica"><i>Whisman v. San Francisco Unified Sch. Dist.</i></span>, 86 Cal. App. 3d 782, 789 (1978).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Traffic and Vehicle Regulation. Cal. Veh. Code § 21. Licensing of Members of a Trade or Profession. <span style="font:normal normal normal 11px/normal Helvetica"><i>City and County of San</i></span></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial"><span style="font:normal normal normal 11px/normal Helvetica"><i>Francisco v. Boss</i></span>, 83 Cal. App. 2d 445 (1948). Tort Claims Against a Governmental Entity. <span style="font:normal normal normal 11px/normal Helvetica"><i>Helbach v. City of Long Beach</i></span>, 50</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Cal. App. 2d 242, 247 (1942).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Open and Public Meetings. Ralph M. Brown Act. Cal. Gov’t Code §§ 54951, 54953(a).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Exercise of the Power of Eminent Domain. <span style="font:normal normal normal 11px/normal Helvetica"><i>Wilson v Beville</i></span>, 47 Cal. 2d 852, 856 (1957).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>What is a Charter?</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">A city charter is a unique document that, in many ways, acts like a constitution for the city adopting it. It can only be adopted, amended or repealed by a majority vote of a city's voters. The primary advantage of a charter is that it allows greater authority for a city’s governance than that provided by state law. For example, a city may tailor its organization and elective offices, taking into account the unique local conditions and needs of the community.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">A charter transfers the power to adopt legislation affecting municipal affairs from the state legislature to the city adopting it. A city operating under a charter can acquire full control over its municipal affairs. These affairs are unaffected by the general laws</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">passed by the state legislature on the same subject matters. This, in effect, gives the local voters more control over their local government and the affairs of the city. However, a city operating under a charter is still subject to the general laws, as passed by the state legislature, on affairs that are not municipal in nature, and are of statewide concern (e.g., California Vehicle Code).</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">It is the scope of the term "municipal affairs" that provides the opportunity for uncertainty. No easy analytical test exists. The threshold issue is whether there is a conflict between state law and a charter city enactment. The next issue is whether the state regulation addressed an issue of "state wide concern." Courts analyze these conflicts on a case- by-case basis.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>What is in a Charter?</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">While a city charter is not required to have any particular provisions in it, a city will often reserve for itself the greatest amount of power it can when it adopts a charter. To accomplish this goal, the charter must include a declaration that it is the intention of the city to avail itself of the full power provided by the state constitution to charter cities. However, the city is not required to extend the breadth of its charter any further than it wishes.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Some of the common areas that are explicitly regulated in a charter are: The date and conduct of city elections; Regulations on the appointment of municipal officials; The terms and payment of municipal officials;</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">The process for removal of municipal officials;</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Form of government;</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Budget adoption;</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">The number, pay, qualifications, and appointment of deputies, clerks, and other employees that each municipal officer will have;</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Sub-government in all or part of the city; The tenure of office for deputies, clerks, and other employees; The process for removal of such deputies, clerks, and other employees; and The constitution, regulation, and government of the local police force.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">A number of California cities' charters are available online. The National Civic League also has a model charter project.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>Process Used to Adopt a Charter</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">There are two ways to draft and adopt a city charter. The first is to elect a charter commission. The commission then has the responsibility of debating over the provisions and the drafting of the charter. The other alternative allows the governing board of the city, on its own motion, to draft the charter. In either case, the charter is not adopted by the city until it is ratified by a majority vote of the city's voters.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">When using the charter commission approach, the first step is to elect the commission. The vote to elect a charter commission is called for by either a majority vote of the city's governing body or by a petition signed by not less than fifteen percent of the registered voters within the city. If the formation of a charter commission is requested by a petition, the authority in charge of the city's registration records must verify the signatures on the petition. The expense of this verification must be paid for by the city's governing board. If the petition is verified, the city's governing board must call for an election in accordance with sections 1000 and 10403 of the California Elections Code. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34452.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Once it has been decided that a charter commission election will take place, candidates for commissioners must be nominated. Candidates for the office of charter commissioner are nominated either in the same manner as officers of the city or by petition. A candidate for charter commissioner must be a registered voter of the city. After the election of commissioners, any vacancy on the commission will be filled by a mayoral appointment. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34452.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">At an election for charter commission members, the voters will vote first on the following question: "Shall a charter commission be elected to propose a new charter?" After voting on this question, the voters will then vote for the charter commission candidates. If a majority of the voters vote for the formation of a charter commission, then the top fifteen candidates for the office of charter commissioner will be organized as the city's charter commission. No commission will be formed if a majority of voters vote against the election of a charter commission. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34453.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">Once formed, the charter commission will have the responsibility of developing the city's charter. After a simple majority of commissioners have decided that the proposed charter is appropriate, they file the charter with the city's clerk in preparation for a vote by the city's electorate. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34455. However, instead of sending the whole charter at once, periodically the commission may send portions of the charter to the city's electorate for a vote. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34462<span style="font:normal normal normal 11px/normal Helvetica"><i>.</i></span></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">After the charter (or portions of it) has been filed, it must be copied in type greater than 10 point and either mailed to all the voters of the city or made available to those citizens who wish to review it before the election. The city may show the difference between existing provisions of law and the new charter through the use of distinguished type styles, but this is not required. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34456.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">After the charter has been filed with the city clerk, the city's governing board must decide whether to call a special election or to wait until the next established municipal election to submit the charter to the voters. If the city's governing board determines that a special election should be held, then they must call for that special election within 14 days of the charter being filed. The special election must be set at least 95 days after the date from which the special election was called. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34457. In any case, the charter commission must send the charter to the voters within two years of the vote</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">that formed the commission. Upon the expiration of the two-year time period, the commission is abolished. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34462.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">The alternative to electing a charter commission is to have the city's governing board develop and draft the charter. An election to decide on the adoption of a charter may be called by initiative or the city council. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Const. art. XI, § 3. On its own motion, the city's governing board may propose a charter and submit it to the voters for adoption. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34458. With this option, the governing board can call a special election or allow the charter to be voted on at any established election date, as long as that election date is at least 88 days after the proposed charter was filed with the city clerk. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34458. As a practical matter, an election may have to be called sooner than 88 days before the election in order to meet certain notice and ballot printing deadlines.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">In either case, the majority of voters must vote in favor of the proposed charter for it to be ratified. The charter will not go into effect until it has been filed and accepted by the Secretary of State. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34459. After a charter is approved by a majority vote of the voters, the mayor and city clerk shall certify that the charter was submitted to the voters of the city and that it was approved by a majority vote. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34460. One copy of the approved charter shall be filed with the County Recorder's office and one shall be kept in the City's archive. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34460. A third copy of the charter must be submitted to the Secretary of State with (1) copies of all publications and notices in connection with the calling of the election; (2) certified copies of any arguments for or against the charter proposal which were mailed to the voters; (3) a certified abstract of the vote at the election on the charter. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Gov't Code section 34460.</p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Helvetica"><b>How to Amend/Repeal a Charter</b></p>
<p style="margin-top:0px;margin-right:0px;margin-bottom:0px;margin-left:0px;font:normal normal normal 11px/normal Arial">If a citizens group, or the city's governing body, wishes to amend or repeal a portion of the city's charter, the steps remain largely the same as they are for drafting a charter. There are, however, two notable exceptions. First, the petition calling for the repeal or amendment needs only ten percent of the electorate's signatures, instead of the previous fifteen percent. <span style="font:normal normal normal 11px/normal Helvetica"><i>See </i></span>Cal. Elec. Code sections 9215 and 9255. The other notable difference has to do with the charter itself. A city charter may establish different rules for the municipal elections process than those laid out by the state legislature in the Elections Code. If this is the case, the city's charter will govern the elections process used to appeal or amend the city's charter, instead of the general laws laid out in the Elections Code.</p>
</div><div class="gmail_extra"><br><br><div class="gmail_quote">On Wed, Jun 5, 2013 at 11:05 PM, <span dir="ltr"><<a href="mailto:agnes@mcn.org" target="_blank">agnes@mcn.org</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
Hi Occupy,<br>
This is an important fact I learned at the Public Banking Conference with<br>
a panel of elected officials, at which Supervisor Dan Hamburg spoke and he<br>
took note of this. If we vote to become a charter county we can establish<br>
a public bank without violating the CA Constitution.Yes!!!<br>
<br>
Cheers!<br>
Agnes<br>
<br>
<br>
<br>
Oakland / Alameda County<br>
<br>
Kathe, did you hear S. F. County Supervisor Avalos' announcement of the<br>
opinion by the county counsel? Charter cities, if they establish a public<br>
bank, are not in violation of the CA Constitution. O... read more »<br>
<br>
Kathe Welch and Marc Armstrong contributed to this conversation.<br>
<br>
<br>
<br>
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