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Commission directs city attorney to investigate potential recovery of city funds from nonprofit recipients
Summary
Commissioners directed the city attorney to investigate whether funds previously provided to nonprofit recipients can be recovered following accusations of misappropriation; commissioners asked that the directive be generalized to all city fund recipients rather than naming individuals.
The commission voted to direct the city attorney to investigate whether the city can recover funds provided to nonprofit recipients where there are allegations of improper use. The action followed discussion by Commissioner Pepcorn and others about recent embezzlement charges involving local organizations; commissioners agreed to generalize the directive so it applies to any recipient of city funds where the city may have grounds to recover monies.
Commissioner Kolpak asked that the request be generalized and not name specific individuals, noting that one case is alleged and that legal processes must run their course. After a motion and second, the commission approved directing city legal staff to investigate recoverable funds and to outline the legal avenues for potential recovery.
Why it matters: commissioners said the city should pursue recoveries where appropriate and also consider broader policy about clawbacks of incentives or grants when recipients fail to meet terms.
Action and vote: motion to direct the city attorney to investigate was moved, seconded and approved by roll call. Staff said the city attorney and finance staff will pursue available avenues and report back to the commission. No amounts or specific recovery targets were stated in open session.
