Municipality of Anchorage v. Holleman

CourtAlaska Supreme Court
DecidedMarch 28, 2014
Docket6883 S-15315
StatusPublished

This text of Municipality of Anchorage v. Holleman (Municipality of Anchorage v. Holleman) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Municipality of Anchorage v. Holleman, (Ala. 2014).

Opinion

Notice: This opinion is subject to correction before publication in the P ACIFIC R EPORTER . Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts, 303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, e-mail corrections@appellate.courts.state.ak.us.

THE SUPREME COURT OF THE STATE OF ALASKA

MUNICIPALITY OF ANCHORAGE, )

) Supreme Court No. S-15315 Appellant, )

) Superior Court No. 3AN-13-06812 CI v. ) ) OPINION SAM ANDREW HOLLEMAN and ) JASON ALWARD, ) No. 6883 - March 28, 2014 ) Appellees. ) )

Appeal from the Superior Court of the State of Alaska, Third Judicial District, Anchorage, Eric A. Aarseth, Judge.

Appearances: Michael R. Gatti and Mary B. Pinkel, Wohlforth, Brecht, Cartledge & Brooking, Anchorage, and Theresa L. Hillhouse, Assistant Municipal Attorney, and Dennis A. Wheeler, Municipal Attorney, Anchorage, for Appellant. Susan Orlansky, Feldman Orlansky & Sanders, Anchorage, for Appellees.

Before: Winfree, Stowers, Maassen, and Bolger, Justices, and Matthews, Senior Justice.* [Fabe, Chief Justice, not participating.]

MAASSEN, Justice.

* Sitting by assignment made under article IV, section 11 of the Alaska Constitution and Alaska Administrative Rule 23(a). I. INTRODUCTION The Anchorage Assembly passed an ordinance modifying the labor relations chapter of the Anchorage Municipal Code. Two citizen-sponsors filed an application for a referendum that would repeal the ordinance. The Municipality rejected the application, reasoning that the proposed referendum addressed administrative matters that were not proper subjects for direct citizen legislation. The sponsors filed suit in superior court and prevailed on summary judgment. The Municipality appealed, arguing that the referendum is barred because (1) state and municipal law grants exclusive authority over labor relations to the Assembly; (2) the referendum makes an appropriation; and (3) its subject is administrative, not legislative. Following oral argument, we issued an order on January 10, 2014, affirming the superior court’s grant of summary judgment to the sponsors. This opinion explains our reasoning. II. FACTS AND PROCEEDINGS A. The Ordinance On February 12, 2013, Mayor Dan Sullivan and two members of the Anchorage Assembly proposed Anchorage Ordinance No. 2013-37, “An Ordinance Amending Anchorage Municipal Code Chapter 3.70, Employee Relations, with Comprehensive Updates Securing Long Term Viability and Financial Stability of Employee and Labor Relations.” The Assembly approved the final version of the ordinance six weeks later, and the ordinance took effect immediately.1 The ordinance amends the Employee Relations chapter of the Anchorage Municipal Code (AMC).2 It first adds six new subsections to the Declaration of Policy

1 Anchorage Ordinance (AO) 2013-37(S-2) § 6 (2013). 2 AMC 3.70 (2013).

-2­ 6883 in AMC 3.70.020.3 These subsections encourage the development and implementation of a managed competition program,4 cap salary and benefit increases, standardize employee benefits and holidays, limit enhanced pay programs, and require unions to reimburse the Municipality for employee time spent performing services for the union. The ordinance also limits overtime compensation; prohibits strikes; eliminates binding arbitration for police, fire protection, and emergency medical services; bars arbitrators from relying on past practices to alter unambiguous provisions in collective bargaining agreements; allows the Municipality to implement its “last best offer” if the parties are at a bargaining impasse; and expands the definitions of “confidential” and “supervisory” employees, thereby increasing the number of employees who are barred from collective bargaining.5 The ordinance makes other relatively minor amendments throughout the Code for purposes of clarity and consistency. B. Proceedings Below Sam Andrew Holleman and Jason Alward (the sponsors) filed an application with the municipal clerk’s office for a referendum that would repeal the ordinance. The Municipality rejected the application on the advice of its attorney, who concluded that the referendum sought to address administrative rather than legislative

3 Compare AMC 3.70.020 (2013) with former AMC 3.70.020 (2012). 4 A “managed competition program” is defined in the ordinance as “a program intended to procure the delivery of the most reliable, efficient and effective municipal services to the citizens of Anchorage, through municipal sponsorship of regulated competition for the delivery of selected services.” 5 Compare AMC 3.70.010 (2013) with former AMC 3.70.010 (2012).

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matters and therefore violated subject-matter restrictions imposed by law.6 The sponsors filed suit in superior court on May 2, 2013, seeking declaratory and injunctive relief. The Municipality, in its answer, sought a declaratory judgment in its favor. The parties agreed that there were no material facts in dispute and filed cross-motions for summary judgment. The superior court heard oral argument on August 19, 2013, granted summary judgment to the sponsors in a written opinion, and ordered that the referendum application be accepted. The sponsors soon collected enough signatures to place the referendum on the ballot, and the ordinance was suspended pending an election.7 The Municipality filed this appeal. III. STANDARDS OF REVIEW We review a grant of summary judgment de novo and will affirm “if there are no genuine issues of material fact” and “the moving party is entitled to judgment as a matter of law.”8 We review questions of law by “adopting the rule of law that is most persuasive in light of precedent, reason, and policy.”9 We apply our independent

6 This was the sponsors’ second application. Their first was rejected for the same reasons, as well as for “technical defects” that they subsequently corrected. 7 Article III, subsection 3.02(c) of the Anchorage Municipal Charter provides that the “filing of a referendum petition suspends the ordinance . . . if the petition is filed within 60 days after the effective date of the ordinance,” and that the suspension terminates if the referendum is defeated by the voters. 8 Municipality of Anchorage v. Repasky, 34 P.3d 302, 305 (Alaska 2001). 9 Carmony v. McKechnie, 217 P.3d 818, 819 (Alaska 2009) (internal quotation marks omitted).

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judgment when interpreting the Alaska Statutes, municipal charters, and municipal codes.10 IV. DISCUSSION A. Legal Framework Article XI, section 1 of the Alaska Constitution provides that “[t]he people may propose and enact laws by the initiative, and approve or reject acts of the legislature by the referendum.” This right is extended by statute to citizens of home-rule local governments.11 The Anchorage Municipal Charter accordingly “guarantees . . . [t]he right of initiative; the right of referendum; and the right to recall public officers, as herein provided.”12 The right of referendum is not absolute. Under article XI, section 7 of the Alaska Constitution, “[t]he referendum shall not be applied to dedications of revenue, to appropriations, to local or special legislation, or to laws necessary for the immediate preservation of the public peace, health, or safety,” and a state statute requires that local government charters contain the same restrictions.13 The Anchorage Charter explicitly prohibits direct legislation on “ordinances establishing budgets, fixing mill levies, authorizing the issuance of bonds, or appropriating funds.”14

10 Repasky, 34 P.3d at 305. 11 AS 29.10.030(a) (“A home rule charter shall provide procedures for initiative and referendum.”). 12 Charter art. II(1).

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Municipality of Anchorage v. Holleman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/municipality-of-anchorage-v-holleman-alaska-2014.