sr-121482-8b~®
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City Council P4eeting 12-14-82 Santa Monica, California
STAFF REPORT
T0: Mayor and City Council
FROt4: City Attorney
SUBJECT: Ordinance Amending Rent Control Law
On June 14, 1982, the City Attorney issued Opinion
Plumber 82-3 concerning the status of the Rent Control Board
within the structure of the City Government.
In addressing the budgetary, personnel, and purchasing
powers of the Rent Control Board, the City Attorney concluded
that the Board has complete authority to raise and expend
revenues without the approval of the City Council, that the
Board is not completely independent in the area of personnel
administration, and that the Board must comply with the
centralized purchasing and competitive bidding requirements of
the City Charter. In addition, the opinion concluded that
only the City Attorney may initiate criminal complaints in the
name of the People.
The conclusions of this opinion require that certain
portions of Article IV, Chapter &, of the Municipal Code be
amended. Accordingly, the accompanying ordinance effectuates
these necessary amendments.
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ANALYSIS
Section 1 of the Ordinance amends Section 4606 of the
Municipal Code in two respects. First, it states that the
financial and personnel affairs of the Board shall be adminis-
tered by the Board's Staff consistent with the City Charter
and Municipal Code. Second, it requires the Board to comply
with the provisions of the City Charter providing for a
centralized purchasing system and competitive bidding.
Section 2 of the Ordinance amends Section 4607 of the
Municipal Code, which concerns the status of Board employees.
As amended, Section 4607 provides that the Board's employees
are within the classified service of the City and shall be
hired in accordance with the City Charter and Municipal Code.
The authority of the Board to classify employee positions, es-
tablish employee salaries and benefits, and evaluate employee
performance is recognized. The amended Section states that
Board employees shall be terminated, suspended, or demoted in
accordance with the City Charter and Municipal Code, which in-
cludes the right to a hearing before the Personnel Board. It
also recognizes the right of the Board to enter into a
memorandum of understanding with its employees, consistent
with the City Charter and Municipal Code.
Section 3 of the Ordinance amends Section 4609 of the
Municipal Code to state that the Board's power to determine
its own financial, personnel, and budgetary policies shall be
exercised consistent with the City Charter and Municipal Code.
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Section 4 of the Ordinance amends Section 4611 of the
Municipal Code, which concerns legal representation of the
Board, by deleting the reference to the Board's authority to
prosecute criminal actions in the name of the People of
California.
RECOMMENDATION
It is respectfully recommended that the accompanying or-
dinance be introduced for first reading.
Prepared By: Robert M. Myers, City Attorney
Stephen S, Stark, Assistant City Attorney
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f f 'f .~
CITY ATTORNEY OPINION NUMBER 82-3
OPINION OF THE CITY ATTORNEY
CONCERNING THE STATUS
OF THE RENT CONPROL BOARD
WITHIN THE STRUCTURE OF
THE CITY GOVERNMENT
INTRODUCTION
The City Attorney's Office has been requested to
render an opinion relating to the status of the Rent Control
Board within the structure of City government. In response
to this request, the City Attorney's Office has engaged in
substantial research and analysis. The accompanying opinion
is concurred in by the City Attorney, Assistant City
Attorney and entire Civil Advisory Division. Because of
threatened litigation, the opinion is limited to our
conclusions and does not contain our underlying legal
analysis.
On April 10, 1979, the voters of the City of Santa
Monica enacted the Santa Monica Rent Control Charter
Amendment. The Santa Monica Rent Control Charter Amendment
added Article XVIII to the City Charter and provided, among
other things, for an elected Rent Control Board.
On June 29, 1979, the City Council adopted Ordinance
Number 1127 (CCS). The expressed purpose of this ordinance
was to "clarify and implement" the Santa Monica Rent Control
Charter Amendment. In so doing, the ordinance provided that
"the City Manager and City Staff shall administer and
supervise the financial, personnel, and purchasing affairs
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[of the Rent Control Board]." Moreover, the ordinance
provided that any dispute between the City Manager and the
Rent Control Board would be finally resolved by the City
Council.
On April 14, 1980, the City Council adopted Ordinance
Number 1153 (CCS}, which extensively amended Ordinance
Number 1127 (CCS). This ordinance is currently codified in
Municipal Code Sections 4601-13. Unlike Ordinance Number
1127 (CCS), this ordinance placed the power to administer
and supervise financial, personnel, and purchasing affairs
with the Rent Control Board, administrator, and staff. In
so doing, the ordinance attempted to preserve the
independence of the Rent Control Board in these areas.
There is no dispute that the Rent Control Board is
part of City government and that employees of the Rent
Control Board are City employees. Likewise, there is no
dispute concerning the independent powers of the Rent
Control Board to exercise its various housing functions free
from City Council interference. What is in dispute is the
administration of a Rent Control Board that is part of City
government yet independent of City Council control.
ISSUES PRESENTED
1. What budgetary powers are vested in the Rent
Control Board?
2. What personnel powers are vested in the Rent
Control Board?
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3. What purchasing powers are vested in the Rent
Control Board?
4. Do employees of the Rent Control Board have the
power to file criminal complaints in the name of the People
of the State of California?
CONCLUSIONS
The City Attorney concludes:
1. The Rent Control Board has complete authority to
raise and expend revenues without the approval of the City
Council. The Santa Monica Rent Control Charter Amendment
provides in Section 1803(n):
The Board shall finance its
reasonable and necessary expenses by
charging landlords annual registra-
tion fees in amounts deemed
reasonable by the Board. The first
annual registration fee shall be set
by the Board within thirty days
after assuming office. The Board is
also empowered to request and
receive funding when and if
necessary, from any available source
for its reasonable and necessary
expenses. Notwithstanding the
preceding provisions of this
paragraph, the City Council of the
City of Santa Monica shall
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appropriate sufficient funds for the
reasonable and necessary expenses of
the Interim Rent Control Board and
Board during the six month period
following adoption of this Article.
As Section 1803 plainly indicates, the Rent Control
Board has complete authority to "finance its reasonable and
necessary expenses." Under the Santa Monica Rent Control
Charter Amendment, the City Council has absolutely no role
to play in the fiscal administration of the Rent Control
Board, except during the initial six month start up period.
2. The Rent Control Board is not completely
independent in the area of personnel administration.
Because of the various aspects to these issue, each subpart
will be analyzed separately.
a. Except for the elected or appointed members
of the Rent Control Board, all employees of the Rent Control
Board, including its administrator and legal staff, are
within the civil service of the City. The City Charter
provides that the classified service of the City is
comprised of all positions not specifically excluded from
the classified service. See City Charter Section 1102.
Since nothing in the Santa Monica Rent Control Charter
Amendment excludes employees of the Rent Control Board from
the civil service, the general provision of City Charter
Section 1102 compels the conclusion that employees are
within the civil service. (City Charter Section 1102
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specifically exempts members of boards and commissions from
civil service and, accordingly, the elected and appointed
members of the Rent Control Board are not within the
classified service.)
b. All employees of the Rent Control Board are
required to be hired following competitive examination in
accordance with City Charter Sections 1100 and 1108. The
responsibility for administering the competitive examination
process rests with the Personnel Director. Direct
appointments (and similar exemptions from the competitive
examination process) must be in accordance with provisions
of the City Charter and Municipal Code.
c. The power of the Rent Control Board to hire
and pay employees as set forth in City Charter Section
1803(f)(6) authorizes the the Rent Control Board to classify
employee positions, establish employee salaries and
benefits, and evaluate employee performance. Accordingly,
the City Council, Personnel Board, City Manager, and
Personnel Director do not have jurisdiction in these areas.
d. The termination, suspension, and demotion of
Rent Control Board employees must be effectuated in the
manner set forth in the City Charter. Any aggrieved
employee of the Rent Control Board can contest any
termination, suspension, or demotion before the Personnel
Board.
e. Consistent with its power to hire and pay
employees, the Rent Control Board may enter into a
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memorandum of understanding with its employees consistent
with provisions of the City Charter.
3. The Rent Control Board is required to comply with
the provisions of the City Charter providing for a
centralized purchasing department and competitive bidding.
4. Employees of the Rent Control Board may not
commence criminal prosecutions in the name of the People of
the State of California. By City Charter and decisional
law, only the City Attorney may initiate criminal complaints
in the name People of the State of California.
The conclusions of this opinion require that certain
portions of Ordinance Number 1153 (CCS) be amended.
Accordingly, the City Attorney will be presenting to the
City Council amendments consistent with this opinion. It is
recommended that this opinion have effect only upon the
adoption of amendments to Ordinance Number 1153 (CCS).
PREPARED BY: Robert M. Myers, City Attorney
Stephen Shane Stark, Assistant City Attorney
Lyn Beckett Cacciatore, Deputy City Attorney
Jonathan Horne, Deputy City Attorney
Carol A. Korade, Deputy City Attorney
Karl M. Manheim, Deputy City Attorney
Lynn Naliboff, Deputy City Attorney
Sarah Shirley, Deputy City Attorney
Martin T. Tachiki, Deputy City Attorney
(Released June 14, 1982)
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