SANTA MONICA—On September 5, two of the Downtown Santa Monica (DTSM) City Council members Leonid Pustilnikov and Jon Farzam, filed suit in Los Angeles Superior Court against the City of Santa Monica for the firing /replacement of DTSM board members. Reports indicate that this was done without knowledge or consent of the council members have called, “a violation of their bylaws.”
Reports indicate that problems arose following a call-to-meeting that occurred on July 29, changing bylaws to read that no individual will be removed without probable cause.
The lawsuit was filed on Friday, September 5, after six board members were dismissed from their positions, and others were appointed in their stead.
This comes at a time when the Santa Monica City Council and the downtown businesses are struggling to survive. It is not clear if the city will declare an emergency or be able to make the most recent 2025-2027 budgeting plans.
On September 9, multiple news outlets reported that the City of Santa Monica will likely declare a fiscal emergency due to financial constraints causing a budget crisis. Santa Monica is reliant on revenue from tourism, and reports indicate that tourism is down by 50 percent since 2019.
The City of Santa Monica has been plagued with a total of $229.8 million in legal settlements from the sexual abuse former city employee Eric Uller who worked with the Police Activities League (PAL).
A total of 124 people alleged they were victims of Uller. 105 individuals were paid $107.3 million. A later settlement added $122.5 million for additional victims.
In addition, in June of 2025, a landlord in Santa Monica agreed to a $685,000 settlement to resolve three other lawsuits stemming from an alleged tenant harassment/discrimination case.
In addition to financial strains, crime is up in Santa Monica. Mayor Lana Negrete, does not welcome the Trump Administration’s help in reducing crime by using the National Guard to assist in immigration sweeps. Negrete has been vocal about her anti-ICE views.
The beaches have had higher bacteria levels due to overflow from flooding following the wildfires just a few months ago. Add some sick sea lions to the mix, and Santa Monica may not be on the agenda for this years vacation.
