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Board approves ordinance finalizing Recology settlement; supervisors urge oversight on tenant impacts
Summary
The Board of Supervisors adopted an ordinance approving a settlement that seeks roughly $94.5 million in restitution and $7 million in civil penalties from Recology and related companies. Supervisors noted concerns about potential impacts on tenants billed by landlords and reiterated the need for additional oversight and reforms.
The Board of Supervisors voted unanimously on May 11 to adopt an ordinance authorizing settlement of the city's lawsuit against Recology San Francisco, Sunset Scavenger Company and Golden Gate Disposal and Recycling Company, seeking approximately $94.5 million in restitution plus $7 million in civil penalties.
Supervisor Preston raised concerns about how rebates or restitution to account holders might affect tenants when landlords are the account holders but tenants pay billed amounts. Preston said his office had followed up with the City Attorney and planned to coordinate with the Rent Board, which would likely be the venue to adjudicate disputes where landlords receive funds that tenants previously paid. "If there is no recourse," Preston said, "this may be an area we need to legislate on."
Supervisor Haney stressed the distinction between misconduct by Recology management and the company’s frontline employees, who worked through the pandemic and deserve respect. He also noted that reforms — including those anticipated under Proposition B to create a Department of Sanitation — are intended to strengthen oversight and transparency.
The ordinance was finally passed by roll call (11 ayes). The board’s action finalizes authorization to settle and enables the city to collect and distribute restitution and penalties as provided in the settlement documents. Supervisor offices indicated they will follow up with the Rent Board and City Attorney on distribution and tenant protections.
