Panel’s decision is expected by Thursday
PUBLIC SAFETY BUILDING — A decision is pending for the man fired from Santa Monica’s public cemetery for questionable ethical behavior and financial boondoggling, after attorneys on both sides made closing remarks in his case last week.
Members of the five-person personnel board have heard the appeal regarding Michael Steen, the former funeral director at Woodlawn, a municipal cemetery located between Pico Boulevard and Michigan Avenue, from 14th to 17th streets. City Hall fired Steen in July after an eight-month investigation concluded there was no criminal wrongdoing on his part regarding financial discrepancies discovered in the cemetery’s books.
The personnel board serves as an advisory panel to the City Council and City Hall’s human resources director. It’s a quasi-judicial review body for employee appeals of disciplinary actions. It consists of individuals with legal backgrounds who neither hold public office nor work for City Hall.
The personnel board has 10 days to make a decision regarding Steen’s appeal. The group is expected to announce a decision by Feb. 2.
Steen was terminated last July after three audits revealed the management of Woodlawn Cemetery’s finances was not in line with general accounting practices. In addition, city officials believe Steen was acting unethically by promoting and benefiting from his domestic partner’s monument-making business at the cemetery.
Steen appealed City Hall’s decision to fire him on the grounds that his dismissal was unjust. According to his attorney, William Becker, City Hall should have done more to address issues it had with Steen’s management of the cemetery before letting him go. Instead, City Hall set up false expectations by giving Steen positive performance reviews up until the time of his dismissal, Becker argued. In addition, Becker said City Hall could have corrected particular issues it had with Steen — such as the business relationship he had with his domestic partner — which would have been more effective than firing him.
Officials haven’t said specifically how much money might not be accounted for at Woodlawn or what revenue might be realized. They have, however, paid outside firms for two audits, as well as conducted their own extensive internal audit, all of which is believed to have cost City Hall tens of thousands of dollars.
The audits have shown there to be some discrepancies in Woodlawn’s financial books.
The cemetery brings in about $450,000 a year in revenue, but it’s subsidized by City Hall because it operates at a loss. Because Steen’s firing is a personnel matter, city officials won’t elaborate on circumstances surrounding the criminal investigation, or his termination — beyond what is said in the appeal hearing, a matter of public record.
Steen was placed on paid administrative leave in December of 2004 while City Hall investigated his financial management of the cemetery. Although City Hall has concluded he committed no criminal wrongdoing, city officials believe they had grounds to terminate him.
As a result of his termination, Steen has taken private funeral jobs that pay between $200 and $300 a week — a fraction of the $100,000-plus annual salary he’s believed to have earned as Woodlawn’s top administrator. Steen’s also the author of Celebrity Death Certificates, a series of popular books that trace the lives and passing of some of Hollywood’s most famous stars.
Becker, Steen’s attorney, indicated in his closing argument that although Steen was partially responsible for any mismanagement at the cemetery, City Hall was at least equally to blame. Had financial discrepancies at Woodlawn required serious attention, City Hall had years to step in and fix the problem, but didn’t.
Instead, Becker said City Hall’s “hands-off” approach to the cemetery hampered its operations. In addition, City Hall misled Steen for years with positive performance reviews, then terminated him once it had decided Steen was not performing up to the standards expected, Becker said.
Based on these reasons, Becker said that, in the very least, City Hall should reinstate Steen.
“Mr. Steen served Santa Monica for 14 years on an exceptional level,” Becker said. “The city missed the point in this case. There has been no violation of city code. Under Mr. Steen’s admission, he sought advice from his managers before making any major decision.
“There’s never been a discussion of alternatives to termination...Mr. Steen should be reinstated.”
Irma Rodriguez-Moisa, City Hall’s attorney, indicated in her closing argument that Steen’s mismanagement of the cemetery, although it may not have been criminal in nature, was certainly unethical and inappropriate. She said Steen failed to put in place tighter financial controls, which he was expected to do. If he had difficulty putting the financial controls in place, he could have requested assistance, but he didn’t, she said. Either way, his behavior wasn’t management material, she argued.
More over, Moisa indicated Steen should have taken better responsibility for his actions. Instead, he deferred responsibility to City Hall.
The final factor that seemed to make Steen’s termination inevitable, however, was the discovery that for years he referred business to Woodlawn Monument, a private grave marker business owned by Steen’s domestic partner. According to testimony, 90 percent of Woodlawn Monument’s revenues came through referrals from Woodlawn cemetery.
Moisa said Steen violated the public trust by associating with Woodlawn Monument. Because of that, reinstatement is not an option, she said.
“Because Mr. Steen didn’t get it, Mr. Perkins (Steen’s boss) said he couldn’t trust Steen,” Moisa said. “With the evidence for this lack of trust, (the personnel board) should back the termination.”
Originally published in the Santa Monica Daily Press print edition on January 30, 2006. Read the original PDF.