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HomeMy WebLinkAboutItem 2c: Adopt Ordinance 2298: Revision of AMC: Class Action Claims Against the City ORDINANCE NO. 2298 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING SECTION 1903 OF CHAPTER 9 OF ARTICLE I OF THE ARCADIA MUNICIPAL CODE TO PROHIBIT CLASS ACTION CLAIMS AGAINST THE CITY THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 1903 of Chapter 9 of Title I of the Arcadia Municipal Code is hereby amended to read as follows: "1903. — CONTENTS OF CLAIM — REVIEW FOR SUFFICIENCY. A claim shall be in writing, verified by the claimant or by his or her guardian, conservator, executor or administrator, and shall be presented to the City Clerk by the claimant or by a person acting on the claimant's behalf_ and-The claim shall show all information as required by Government Code Section 910. The foregoing reference to Government Code Section 910 shall not be construed to authorize a class action, and no claim may be filed on behalf of a class of persons unless verified by every member of that class. The City Manager, or his or her designee, shall review all claims for sufficiency of information. The City Manager, or his or her designee, may, within twenty (20) days of receipt of a claim, either personally deliver or mail to claimant a notice stating deficiencies in the claim presented. If such notice is delivered or sent to claimant, the City shall not act upon the claim until at least fifteen (15) days after such notice is sent." SECTION 2. This ordinance shall take effect thirty-one (31) days following its adoption. SECTION 3. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of 1 this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. SECTION 4. The City Clerk shall certify to the adoption of this Ordinance and shall cause a copy of the same to be published in the official newspaper of said City within fifteen (15) days after its adoption Passed, approved and adopted this day of , 2012. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch City Attorney 2 of ARC �% Gr1IF0Rni99"f !, .Li h Au`"te+rP Jr If01 R oo\.jeb %unity of N MEMORANDUM Office of the City Attorney DATE: May 15, 2012 TO: Honorable Mayor and City Council . FROM: Stephen P. Deitsch, City Attorney P 4i' SUBJECT: ORDINANCE NO. 2298 AMENDING SECTION 1903 OF CHAPTER 9 OF ARTICLE I OF THE ARCADIA MUNICIPAL CODE TO PROHIBIT CLASS ACTION CLAIMS AGAINST THE CITY Recommended Action: Introduce SUMMARY It is recommended the City Council introduce the attached Ordinance No. 2298 amending Section 1903 of Chapter 9 of Article I of the Arcadia Municipal Code to prohibit class action claims against the City. This Ordinance can enhance the City's fiscal stability by limiting its legal exposure to this potentially costly form of litigation. BACKGROUND Chapter 9 of Article I of the Arcadia Municipal Code sets forth a procedure by which persons may file claims against the City to recover money or damages. Chapter 9 references the California Government Claims Act (Government Code, Sections 900 et seq.) (the "Act"). The Act provides detailed procedures for how and when a claim must be presented, deadlines for when the City must act upon a claim, and statutes of limitations to file a lawsuit after the City denies a claim. Last July, the California Supreme Court ruled that a local tax refund claim filed under the Act could proceed as a class action. Ardon v. City of Los Angeles, (2011) 52 Cal. 4th 241. However, the Court did not address whether class actions could be prohibited by local ordinance. Honorable Mayor and City Council May 15, 2012 Page 2 of 2 Therefore, an amendment to the Municipal Code is being proposed to explicitly state that all claims for money against the City must be filed on an individual basis, and not as a class or group. This amendment is intended to prohibit class action claims for any money against the City, including damages, taxes, assessments, charges and fees. Although it is impossible to predict how future courts will ultimately rule on this language, it can only help in limiting the City's financial exposure. FISCAL IMPACT By prohibiting class action claims against the City, the proposed amendment is intended to limit the City's financial exposure by (i) requiring individual claimants to pursue their own actions against the City and (ii) reducing the financial incentive for class action attorneys to file claims against the City. By doing so, it will increase fiscal stability. RECOMMENDED ACTION It is recommended the City Council introduce Ordinance No. 2298 amending Section 1903 of Chapter 9 of Article I of the Arcadia Municipal Code to prohibit class action claims against the City. CONCUR: ommic Lazza o City Manager Attachment: Ordinance No. 2298