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SR-104-000-08 e .- ~CitYOf Santa Moniea@ City Council Report City Council Meeting: July 25, 2006 Agenda Item: ~ To: Mayor and City Council From: Marsha Jones Moutrie, City Attorney Subject: Proposed Charter Amendment Adding Article XXIII to the City Charter Recommended Action It is recommended that the Santa Monica City Council propose to the voters an amendment adding Article XXIII to the City Charter. Executive Summary At its meeting on July 12, 2006 the City Council directed staff to draft a proposal for submittal to the voters, which would amend the City Charter to allow for public financing of City Council elections. Specifically, the City Council requested that the proposal authorize and direct the Council to pass an ordinance permitting public campaign financing and that it set general standards for such an ordinance. Article XXIII has been prepared to do this. The proposed measure takes its cue from so-called "Clean Money" measures in effect in various states and cities as well proposed model "Clean Money" laws. 1 Discussion At the continued City Council meeting held on July 12, 2006 the City Council considered possible "Clean Money" measures for inclusion on the ballot. The Staff Report before the Council contained several hundred pages of proposals and analysis of campaign finance measures. Following public input and Council discussion, the Council determined that the most expeditious way to proceed was to consider placing a proposed measure on the ballot that would direct the City Council to adopt a public campaign financing ordinance. The proposed measure would be general in nature but nonetheless track standards contained in "Clean Money" laws in effect in other jurisdictions as well as a similar ballot measure placed before and adopted by voters in the City of Los Angeles in 1990. City staff has considered Council's concerns and has reviewed various "Clean Money" and public campaign financing measures. The proposed measure would add Article XXIII to the City Charter. As proposed once in effect the amendment directs the City Council to adopt a public campaign financing ordinance for City Council elections. The City Council would have one hundred eighty days after the measure is adopted to pass such a law. The ordinance would need to satisfy the guiding standards set forth in the proposed Charter amendment. These include setting: (a) the amount of public financing available in any election for City Council as well as providing the funding means and sources to be utilized; 2 (b) qualifications for receipt of public campaign funds, including the demonstration of registered voter support; (c) requirements to raise reasonable and limited matching funds; (d) limits on campaign contributions, expenditures and other related requirements; (e) requirements for campaign fund raising, expenditure and other reporting obligations; (f) standards for compliance and monitoring, including enforcement provisions, sanctions and penalties; and (g) such other terms and provisions as are appropriate to advance the pu rposes of the proposed Article XXIII. The City Council may amend the ordinance as necessary to further the purposes of Article XXIII. Budqet/Financiallmpact The cost of adding a measure to the ballot is unknown at this time and is dependent upon the terms of any implementing ordinance that might be adopted by the City Council if the proposed Charter amendment is passed by the voters. Prepared by: Joseph Lawrence, Assistant City Attorney Approved: Forwarded to Council: '} Attachment: Proposed Amendments to Charter 3 ARTICLE XXIII - PUBLIC FINANCING OF ELECTIONS 2300. Title The Article shall be known as the City of Santa Monica Public Campaign Financing Act of 2006. 2301. Findings and Purposes. Many members of the public often believe that money unfairly controls the political process and that it exerts an undue influence on persons who wish to run for elected office. Many people also sense that the personal wealth of candidates or the ability of some persons, including incumbent office holders, to raise substantial campaign funds harms the political process by discouraging qualified persons from seeking office and by ultimately reducing the potential pool of candidates for office. Even if a person decides to become a candidate he or she is often at a disadvantage and unable to campaign competitively unless he or she has significant personal wealth or access to substantial sources of campaign contributions. The enactment of a system of public financing of election campaigns is an important means to protect the integrity of the electoral process and to ensure the maintenance of free and open elections. Public financing of elections will allow the broadest possible participation in the electoral process. A publicly funded system of financing election campaigns in the City of Santa Monica will further democracy and encourage a full discussion of issues by providing a fair and equitable opportunity for all candidates to communicate their views and positions adequately to the voters. Public financing of elections is a neutral source of funds which reduces the appearance of corruption, special influence and undue influence. Through this Article the City of Santa Monica seeks: (a) To publicly fund otherwise qualified candidates for the office of City Council so that candidates will be able to communicate their views and positions adequately to the public without excessive fund raising, campaign expenditures or contributions, and so that the public health and welfare will be promoted through public discussion of the issues involved in local political campaigns without the exertion of undue influence or the appearance of corruption. (b) To limit overall expenditures in campaigns by equalizing the availability of campaign funds and thus reducing the necessity of candidates to separately raise large campaign funds in order to participate in elections and to communicate reasonably with voters. (c) To provide a source of neutral campaign financing in the form of limited public financing. (d) To limit unnecessary campaign fund-raising. (e) To encourage competition for elective office. (f) To help restore public trust in governmental and electoral institutions. 2302 Ordinance Implementing Public Financing of Elections. Within one hundred eighty days after adoption of this Article the City Council shall adopt by ordinance a system of public campaign financing of elections for the office of City Council. The ordinance shall set: (a) the amount of public financing available in any election for City Council as well as provide the funding means and sources to be utilized; (b) qualifications for receipt of public campaign funds, including the demonstration of registered voter support; (c) requirements to raise reasonable and limited matching funds; (d) limits on campaign contributions, expenditures and other related requirements; (e) requirements for campaign fund raising, expenditure and other reporting obligations; (f) standards for compliance and monitoring, including enforcement provisions, sanctions and penalties; and (g) such other terms and provisions as are appropriate to advance the purposes of this Article. The City Council may amend the ordinance as necessary to further the purposes of Article.