City Council — 2023-06-27

Councilmember Rule Indemnification Request

• Councilmember Rule sought taxpayer-funded legal defense regarding a lawsuit over closed session disclosures.
• The City Attorney advised recusal was required due to the potential material financial benefit.
• Motions to address indemnification and settlement resulted in ties, leaving no action taken.

Rental Rate Disclosure Ordinance

• Mayor Sticks proposed requiring developers to disclose specific rental rates for affordable housing units.
• Council debated balancing transparency for residents against concerns regarding development delays.
• The council voted to direct staff to draft the ordinance and analyze its legal defensibility.

City Manager Report and Priorities

• Interim City Manager James updated the council on upcoming priorities including an interim appointment.
• Councilmembers agreed to discuss prioritizing unfinished items before adding new agenda items.
• Future topics such as fossil fuel divestment and homelessness grants were added to the list.

District Attorney Statement Concern

• Mayor Sticks raised concerns about a news report regarding prior Brown Act violation admissions.
• The City Attorney advised against immediate action to avoid potential legal risk.
• The matter was added to the future agenda without a formal vote.

Ojai City Council Meeting Summary

1. Councilmember Rule Indemnification & Lawsuit

• The meeting was dominated by a contentious debate regarding Councilmember Rule’s request for indemnification (taxpayer-funded legal defense) against a lawsuit alleging she violated the Brown Act and attorney-client privilege by disclosing closed session information.
• Arguments: Councilmembers Whitman, Sticks, and Francina argued that Rule acted against City Attorney advice, potentially maliciously, and that public funds should not cover costs for willful violations. Rule argued her actions were not malicious, were necessary for transparency, and that she was defending herself against attacks from the dais. She noted her legal counsel is pro bono.
• Recusal: The City Attorney advised that Rule must recuse herself from any vote regarding indemnification as it constitutes a material financial benefit.
• Votes:
• Indemnification: A motion to deny the request resulted in a 2-2 tie (Rule recused), meaning no action was taken.
• Settlement: A separate motion to request the plaintiffs drop the lawsuit also resulted in a 2-2 tie (Rule recused), meaning no action was taken.

2. Rental Rate Disclosure Ordinance

• Mayor Sticks introduced an item to require developers to disclose specific rental rates for "affordable" housing units to prevent confusion between the public's understanding of "affordable" and the legal definition (which includes moderate income levels).
• Debate: Councilmember Francina and public commenters (Bill Miley, Larry Steingold) expressed concern that new regulations could slow down development and complicate an already difficult process. Supporters (Whitman, Lange) argued transparency is necessary for displaced residents and voters to understand project impacts. The City Attorney noted the ordinance would regulate information/advertising rather than land use and should be defensible under the First Amendment.
• Outcome: The council voted to direct staff to draft the ordinance and analyze its legal defensibility. The motion passed (4-0 with 1 abstention).

3. City Manager Report & Future Agenda

• Interim City Manager James provided an update on upcoming priorities for the July 11 meeting, including an Interim City Manager appointment and the Paving Management Plan.
• Prioritization: Councilmembers expressed concern over unfinished items (cannabis lounge, tax analysis, homelessness). The council agreed to discuss prioritization on July 11 before adding new agenda items.
• Homelessness: A proposal to form a committee for grant acquisition was discussed. Staff recommended involving them directly with specific direction from the council rather than a separate committee.
• Future Items: Discussions on fossil fuel divestment (investment portfolio), tax options (sales tax, vacancy tax), and speed limit changes were added to the future agenda list.

4. District Attorney Statement

• Mayor Sticks raised concerns regarding a VC Star article where the Deputy District Attorney stated the City Council admitted to Brown Act violations in a prior resolution. The Mayor suggested rescinding or clarifying the resolution to protect the City's reputation.
• Outcome: The City Attorney advised letting the matter rest to avoid legal risk. The item was added to the future agenda but not acted upon tonight.
• Adjournment: The meeting concluded following these discussions.