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5 Cal. App. 5th 540
Cal. Ct. App.
2016
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Background

  • In 1990 El Monte voters adopted MTRAP, repealing a prior rent-review ordinance and including section 10 prohibiting the City Council from passing any ordinance relating to mobilehome park rents or spending tax revenues in connection with such ordinances.
  • In 2012 the City Council placed a council-sponsored repeal measure (Measure F / Ordinance No. 2804) on the ballot, voters approved it, and it became effective December 18, 2012.
  • The City then adopted interim rent-moratoria measures and in 2013 enacted Ordinance No. 2829, a rent-stabilization regime applying to parks with 101+ spaces (Brookside owns a 421-space park).
  • Brookside sued, alleging the City Council improperly initiated and advocated repeal of MTRAP in violation of section 10 and Elections Code limits, and that subsequent rent-control ordinances were void (including claims for inverse condemnation and § 1983 due process violations).
  • The trial court granted summary adjudication/summary judgment for El Monte, holding (1) Elections Code § 9222 validly authorizes a city council to submit repeal/amendment measures to voters and did not conflict with the state Constitution, and (2) MTRAP § 10 did not bar the City’s placement of Measure F on the ballot or the ordinary election expenditures made in connection with it.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether MTRAP § 10 barred the City Council from proposing or placing a repeal measure on the ballot MTRAP § 10’s broad prohibition on "passage of any ordinance" and related expenditures forbids any City-initiated hostile action to repeal MTRAP Section 10 bars only the City Council from passing new ordinances on rents or spending city funds on such ordinances, not from submitting a council-sponsored measure to the voters Court: § 10 did not prohibit the City’s act of submitting Measure F to voters or ordinary election expenditures; ballot submission is not the "passage of an ordinance" within § 10’s plain meaning
Whether Article II, § 11 (initiative power) and Elections Code § 9222 forbid a city council from proposing amendment/repeal of a voter-approved initiative absent express authorization in the initiative itself Brookside: historical reasoning in People v. Kelly implies local legislative bodies lack independent authority to propose repeal/amendment unless the initiative expressly allows it El Monte: the 1911 constitutional framework authorized the Legislature to adopt procedures (now § 9222) permitting a city council to submit repeal/amendment measures to the electorate; § 9222 is consistent with the initiative power because ultimate change still requires voter approval Court: § 9222 validly authorizes a city council to submit repeal/amendment propositions; Kelly does not undermine § 9222 because historical context shows the Legislature had authority to enact such procedures for local initiatives
Whether the City’s election-related expenditures violated MTRAP § 10’s prohibition on spending tax revenues "in connection with any such ordinance" Brookside: payments to run the election and publicity, and councilmembers’ advocacy, constitute prohibited expenditures under § 10 El Monte: the expenses were ordinary election costs incurred for placing any measure on the ballot; advocacy by councilmembers did not use public funds Court: expenditures were ordinary election costs and not barred; no evidence public funds were used for advocacy beyond standard election administration
Whether Ordinance No. 2829 (2013 rent stabilization) was invalid because the city unlawfully repealed MTRAP or otherwise effected a taking/due process violation Brookside: repeal was void, so subsequent rent-control actions are void and may constitute a taking/deprivation without due process El Monte: repeal and subsequent ordinances were valid; Brookside conceded that proving repeal unlawful was essential to its challenges to Ordinance 2829 Court: because repeal and ballot placement were lawful, summary judgment for El Monte on remaining claims was proper; Brookside failed to show a triable issue on takings/due process

Key Cases Cited

  • Associated Home Builders etc., Inc. v. City of Livermore, 18 Cal.3d 582 (Cal. 1976) (initiative power is a constitutional reserve and state procedural laws that effectively bar initiatives may be invalid)
  • People v. Kelly, 47 Cal.4th 1008 (Cal. 2010) (historical analysis of amendment/repeal limits on initiative statutes and the 1946 constitutional amendment permitting the Legislature to propose elector-approved amendments)
  • Sherwin-Williams Co. v. City of Los Angeles, 4 Cal.4th 893 (Cal. 1993) (conflict/preemption: local legislation inconsistent with general law is void)
  • Rossi v. Brown, 9 Cal.4th 688 (Cal. 1995) (municipal ordinances and charter limits; initiative power may bind future legislatures but a charter cannot restrict initiative rights)
Read the full case

Case Details

Case Name: Brookside Investments, Ltd. v. City of El Monte
Court Name: California Court of Appeal
Date Published: Nov 15, 2016
Citations: 5 Cal. App. 5th 540; 209 Cal. Rptr. 3d 863; 2016 Cal. App. LEXIS 979; B267081
Docket Number: B267081
Court Abbreviation: Cal. Ct. App.
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    Brookside Investments, Ltd. v. City of El Monte, 5 Cal. App. 5th 540