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City attorney outlines Recology settlement: refunds, injunction and $7 million penalty proposed

Government Audit & Oversight Committee, San Francisco Board of Supervisors · April 15, 2021
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Deputy City Attorneys told the committee the proposed settlement with Recology resolves alleged unlawful gifts and omissions in the 2017 rate-setting process by requiring full repayment of identified overcharges (with interest), a four-year injunction with disclosure and lobbyist-registration provisions, and civil penalties totaling $7 million; the committee then held a closed session and recommended litigation items to the full board.

Deputy City Attorney Yvonne Marais and Special Counsel Ron Flynn briefed the Government Audit & Oversight Committee on a proposed settlement resolving city claims against Recology and related refuse companies.

Marais said the March 4 complaint prosecuted under California’s unfair-competition framework alleged two principal counts: (1) unlawful gifts and related campaign-and-government-conduct code violations tied to a ‘‘cozy’’ relationship between Recology and city officials and (2) omissions in Recology’s 2017 rate application calculations that led to ratepayer overcharges. She said the settlement is intended both…

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