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Mr. Jeff Karlson <br />August 1, 2012 <br />--. Page 3 <br />ISSUES <br />1. Are the proposed amendments constitutional? <br />2. If not, is the City Council required to place the proposed amendments on the November <br />6, 2012, ballot? <br />DISCUSSION <br />As an initial matter, the City's bond counsel, .Stephen Bubul, wrote you a detailed letter in <br />which he determined the proposed "tax cap" amendment is likely unconstitutional and violates public <br />policy of the State of Minnesota. Mr. Bubul then advised you that the City Council may lawfully <br />refuse to submit the proposed amendment to the City's voters. Since Mr. Bubul has already addressed <br />the City's concerns with respect to the first proposed amendment, the discussion in this letter will be <br />limited to the second proposed amendment. <br />I. The City Council's Obligation to Submit a Proposed Charter Amendment to the Voters. <br />The Charter Commission is authorized to propose amendments to the City Charter. Minn. Stat. <br />§ 410.12, subd. 1. A proposed amendment must be submitted at least 17 weeks before the general <br />election. Id. Once submitted, the proposed amendment "shall be submitted to the qualified voters at a <br />general or special election and published as in the case of the original charter." Minn. Stat. § 410.12, <br />subd. 4. <br />While "shall" is generally considered mandatory language when used in a statute, Minnesota <br />courts recognize that a city council may refuse to submit a proposed charter amendment to the voters <br />under certain circumstances. These circumstances include situations where a proposed charter <br />amendment is unconstitutional, contravenes public policy, or is preempted by State law. See, e.g., <br />Minneapolis Term Limits Coalition v. Keefe, 535 N.W.2d 306, 310 (Minn. 1995); Haumant v. Griffin, <br />699 N.W.2d 774, 779-81 (Minn. App_ 2005); Housing andSedeveiopment Authority of Minneapolis v. <br />City of Minneapolis, 198 N.W.2d 531, 536 (Minn. 1972); Davies v. City of Minneapolis, 316 N.W.2d <br />498, 504 (Minn. 1982) ("When a proposed charter amendment appears manifestly unconstitutional, the <br />City Council must have the authority to avoid what would amount to a futile election and a total waste <br />of taxpayers' money."). The question is whether the second proposed amendment defining the scope <br />of the Charter Commission's authority falls within one or more of those situations. <br />II. The City Council May Lawfully Refuse to Submit the Second Proposed Charter <br />Amendment to the Voters. <br />The second proposed Charter amendment is, in part, an effort by the Commission to expand its <br />own authority. Because the Legislature is constitutionally vested with the authority to provide the <br />framework for creating charter commissions and has enacted Chapter 410 of the Minnesota Statutes in <br />