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sr-062381-8a ~13Ss ~ ~ 191 CA:RMM:SSS City Council Meeting 6-23-81 Santa Monica, California STAFF REPORT To: Mayor and City Council From: City Attorney Subject: Ordinance Limiting Outside Employment of City Management employees. INTRODUCTION The proposed ordinance, requested by City Council on November 11, 1980, would amend Section 2107B of the Municipal Code to prohibit city management officials from engaging in outside employment or consulting engagements related to their professional fields or official functions. BACKGROUND Section 2107B of the Municipal Code governs outside activities of classified city employees. It provides that classified employees may engage in outside activities which will not interfere with the efficient and effective performance of their work for the city. Outside activities must be recommended by the appointing authority (department head) and approved by the Personnel Board. Any outside activity is prohibited if it would "create a conflict of responsibility or duty between the employee's city work responsibility and the proposed Outside Activity," or "would, by its nature, tend to reduce the ability of the employee JU~I ~ ~ tg8a to exercise completely independent and unfettered judgment with respect to effectively discharging city work responsibility.°' The City Council, in directing the adoption of the proposed amendment, was concerned that the current law was susceptible of abuse and that it did not cover unclassified employees. It requested an additional prohibition against outside activity which is in any way related to the professional field or official function of the City Manager, City Attorney, Chief of Police, City Clerk, and all department or division heads. Two exemptions were suggested---teaching activities at accredited institutions and specific activities approved by the City Council. The proposed ordinance effects this direction by amending Section 2107B by adding the following paragraph: Notwithstanding any other provision of law, any Outside Activity in any way related to the professional field or official function of the City Manager, City Attorney, City Clerk, Chief of Police, and any Department Head or Division Manager of the City is prohibited except upon specific application and approval by the City Council. The City Manager shall determine which positions are "Division Managers." Educational activities at accredited institutions are exempted from this prohibition to the extent such _2_ activities do not conflict with the official functions of such employees. The regulation of the terms and conditions of employment of city employees is clearly within the power of the City Council. The ordinance does not absolutely prohibit outside activity; it simply expands the coverage of the existing ordinance and transfers the authority for approval of outside activities of management employees from the Personnel Board to the City Council. Since the authority to approve outside activities is conferred on the Personnel Board by ordinance and not by the City Charter, this transfer of authority is lawful under City Charter Sections 605 and 1303. ALTERNATIVES The City Council may introduce the ordinance as drafted, introduce it with amendments, or reject it. RECOMMENDATION If the City Council desires to implement its previous directive, it is respectfully recommended that the proposed ordinance be introduced as drafted. PREPARED BY: Robert M. Myers, City Attorney Stephen Shane Stark, Assistant City Attorney -3-