Supervisors move Recology settlement discussion to closed session; Peskin seeks closed-session review of releases

3006348 ยท April 16, 2025

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Summary

Supervisor Aaron Peskin moved to continue consideration of a proposed settlement with Recology and related refuse haulers to a closed session at the May 4 meeting. The motion carried unanimously; supervisors said closed session is appropriate to address litigation and potential releases from future claims.

Supervisor Aaron Peskin asked the Board to continue discussion of a proposed settlement in the lawsuit the city filed against Recology San Francisco, Sunset Scavenger and Golden Gate Disposal and Recycling to a closed session. Peskin said questions remain about releases from future litigation and recommended the board consider the matter in closed session as quickly as possible. The board voted unanimously to continue the item for a closed session at the May 4 meeting (item 25).

Why it matters The settlement described in the agenda would resolve claims the city asserted under California's unfair competition law and San Francisco's campaign and governmental conduct code related to alleged overcharging of rates and unlawful gifts or contributions. The proposed settlement terms read into the record included restitution of at least $94.5 million and $7 million in civil penalties plus a four-year injunction to be entered by the court; supervisors expressed the need for closed-session review on releases and litigation strategy.

Board discussion Supervisor Peskin thanked the City Attorney's Office and Controller's Office for their work and said he had questions best addressed in closed session. He moved to continue the item for one week to a closed session; Supervisor Safai seconded. Supervisor Chan said he would withhold comments pending the closed-session discussion. Several supervisors noted the Government Audit and Oversight Committee had previously received a presentation and that further closed conversation would be useful.

Vote and next steps On roll call the motion to continue item 25 to a closed session at the May 4 board meeting passed unanimously (11 ayes). The board will take up the settlement and any associated releases in closed session per the motion.

Speakers (quoted) - Supervisor Aaron Peskin: "I respectfully... suggest that this item be continued to a closed session of the board of supervisors as quickly as possible... I believe that we would all benefit from a closed session discussion on this item." (paraphrase of remarks in meeting record)

Authorities referenced in agenda description - California Unfair Competition Law (referenced in agenda summary) - San Francisco Campaign and Governmental Conduct Code (referenced in agenda summary)

Ending The board deferred public deliberation and will consider the proposed settlement and any related releases in closed session on May 4.