Item 7-D
City Council Meeting 7-22-03 Santa
Monica, California
TO: Mayor
and City Council
FROM: City
Staff
SUBJECT: Ordinance Repealing Santa
Monica Municipal Code Section 4.32.040 Related to Automated Teller Machine
Surcharges
Introduction
The attached ordinance repeals
Santa Monica Municipal Code Section 4.32.040 which prohibits financial
institutions from imposing a fee of any kind on a user for accessing an
automated teller machine (ATM) of that institution located in the City with an
access device not issued by that institution.
The ordinance is presented to the City Council for its consideration.
Background
The ATM fee ordinance was
invalidated by the federal district court in San Francisco, and that decision
was affirmed on appeal. During the
course of the litigation, the court directed repeal of the ordinance if
plaintiffs prevailed. They have. Also during the course of litigation, other
banks, not parties to the lawsuit, stopped charging the disputed fees and began
advertising that fact.
Discussion
The attached ordinance will
repeal Municipal Code Section 4.32.040 which establishes a prohibition against
certain fees charged for ATM usage.
Adoption of the ordinance will satisfy the court=s directive.
Financial/Budget Impact
There will be no financial/budget
impact as a result of the proposed ordinance.
Recommendation
It is respectfully recommended
that the accompanying ordinance be introduced for first reading.
PREPARED BY: Marsha
Jones Moutrie, City Attorney