R-9547
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City Council Meeting 7-25-00
Santa Monica, California
RESOLUTION NUMBER ...9-.2!l (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA SUSPENDING SANTA MONICA
MUNICIPAL CODE SECTION 4.32.040(C) RELATED TO
THE PROHIBITION AGAINST SURCHARGES TO NON-CUSTOMERS
AT AUTOMATED TELLER MACHINES IN SANTA MONICA
WHEREAS, on October 12, 1999, the City of Santa Monica adopted Ordinance
Number 1958 (CCS) adding Section 4.32.040 to the Santa Monica Municipal Code
prohibiting financial institutions from imposing a surcharge on nonaccount holders from
using their institution's Automated Teller Machines (ATMs); and
WHEREAS, on November 3,1999, Bank of America, N.A., Wells Fargo Bank, N.A.,
and the California Bankers Association filed a lawsuit in federal court in San Francisco,
California challenging Ordinance Number 1958 (CCS) ("the Ordinance") and a similar law
adopted by the City of San Francisco on grounds of federal preemption; and
WHEREAS, at the outset of this litigation, in order to conserve public resources by
avoiding unnecessary legal controversy, the City refrained from enforcing the Ordinance
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pending the District Court's issuance of a ruling; and
WHEREAS, the District Court issued its July11, 2000, judgment that the Ordinance
is preempted, including an injunction designed to prohibit all enforcement of the Ordinance,
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and has expressed its concern that, notwithstanding its ruling and injunction, lawsuits may
be instituted to enforce the Ordinance if it is not suspended; and
WHEREAS, the City has filed a notice of appeal from the trial court's decision and
wishes to focus its efforts on the merits of that appeal and to thereby obtain the speediest
possible, final resolution of the preemption issue; and
WHEREAS, the City continues to believe that the public interest will best be served
by avoiding unnecessary legal controversy relating to any tangential questions of
enforcement raised by the court's injunction,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AND PROCLAIM AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Section 4.32.040(c) is hereby
suspended.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
L~~~
MOUTRIE
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Adopted and approved this 25th of July, 2000.
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby
certify that the foregoing Resolution 9547 (CCS) was duly adopted at a meeting
of the Santa Monica City Council held on the 25th of July, 2000, by the following
vote:
Ayes: Council members:
Holbrook, Rosenstein, McKeown,
Feinstein, Bloom, Mayor Pro Tem
O'Connor, Mayor Genser
Noes: Council members:
None
Abstain: Council members:
None
Absent: Council members:
None
ATTEST:
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Maria M. Stewart