Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Administration topic
No spam. Unsubscribe anytime.
Department director says she learned of Recology rate‑setting error in February; city will refund $94.5 million to ratepayers under settlement
Summary
Director Deborah Rafael reported on a negotiated settlement that will return $94,500,000 to ratepayers and pay $7,000,000 to the city after a 2017 rate process error; she said she first learned about the error on Feb. 9, 2021 and will participate in a multi‑agency committee to review rate‑setting processes.
Director Deborah Rafael told the Commission on the Environment that the city attorney's office reached a negotiated settlement with Recology stemming from a 2017 rate‑setting error. The settlement will return $94,500,000 to ratepayers and provide a $7,000,000 payment to the city, with interest; refund checks are expected to start going out later in the year.
"The first time I became aware of this error was on 02/09/2021," Rafael said, explaining she immediately contacted Public Works and the City Administrator and was informed that the city attorney's office was handling the confidential settlement discussions. She emphasized that the Department of the Environment performs technical and public‑facing functions in the rates process but does not have decision‑making oversight for rate adoption.
Rafael said a committee will be formed to review the rate‑setting and oversight process, propose guardrails to restore public trust and ensure errors are caught earlier, and that the Department of the Environment has been invited to participate. She pledged to report back to the commission on the committee's work and any recommendations.
The director's report also included brief staffing announcements: three new hires introduced themselves (a policy/public affairs McCarthy fellow, a green building coordinator, and a contracts and grants coordinator). Commissioners thanked staff and noted they will follow any recommendations from the process‑review committee.
Next steps: The process‑review committee will convene to examine safeguards and timelines in the rate process; Director Rafael will update the commission as the committee's work proceeds.
