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SR-104-084 (6) CMO:F:\CMO\STAFFREPORTS\charterfines.doc Council Meeting: July 25, 2000 Santa Monica, CA To: City Council From: City Staff Subject: Recommendation to Direct Staff to Prepare Resolutions to Place a Measure on the November 2000 Ballot So That Fines May Be Set by Ordinance Introduction This report recommends that the City Council direct staff to prepare the necessary resolutions to place a measure on the November, 2000 ballot amending Sections 620 and 1701of the City Charter, so that fines may be set by ordinance and the deterrent effect originally intended in the Charter is not lost. Background The City Council requested that staff determine if a Charter amendment is required to change the current $500 limit on fines that can be imposed for violations of City ordinances and if so, whether it would be appropriate to place a measure on the ballot to amend the Charter. Section 620 of the City Charter provides that violation of any ordinance of the City shall be a misdemeanor and that the maximum fine or penalty for any violation of a City Ordinance shall be the sum of Five Hundred Dollars, or a term of imprisonment for a period not exceeding six months, or both. Section 1701 of the City Charter provides 1 that violation of any provision of the City Charter shall be deemed a misdemeanor with maximum penalties as noted above. To change the $500 limit on fines, a charter amendment would have to be placed on the ballot. Discussion The $500 limit on fines is apparently the limit set in the City Charter adopted in 1946 and may date back to 1907. The present value of 1907’s $500 would be $9500. Consequently the deterrent effect of the fine as originally intended by framers of Charter has greatly diminished. For example, Santa Monica’s Charter-limited $500 fine is unlikely to occasion a change in behavior by a corporate entity whose jet violates the airport noise regulations. In contrast, a recent survey shows that Van Nuys airport fines curfew violations at $750 to $3000 and South Lake Tahoe airport fines noise violations at $1000 to $2500. Should a Charter amendment pass, it is unlikely that future City Councils would set unrealistic fines. The courts routinely signal when they find fines unreasonable. The setting of administrative fines is generally preceded by surveying other municipalities to gauge common practice. 2 Budget/Financial Impact It is difficult to predict the budget and financial impact of setting fines by ordinance rather than limiting them by the Charter. Fines would likely be reviewed on an as- needed basis. Increased fines could result in greater revenue, but that could be minimized if the deterrent effect is in fact increased. Recommendation It is recommended that the City Council direct staff to prepare the necessary resolutions to place a measure on the November 2000 ballot amending the City Charter so that fines may be set by ordinance. Prepared by: Susan E. McCarthy, City Manager 3