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City Attorney offers restricted settlement funds to expand consumer‑protection work; committee asks for clarification
Summary
The City Attorney told the committee he can use restricted settlement proceeds to staff an expanded consumer‑protection unit and said past code‑enforcement litigation yielded net gains; the budget analyst and supervisors asked the controller to verify restrictions and the committee carried the policy question for follow‑up.
The City Attorney addressed the committee about disagreements over two requested positions tied to a proposed consumer‑protection unit. He said his office had identified roughly $8,000,000 in restricted settlement funds that can be used to support affirmative litigation and asserted two dedicated positions would strengthen interagency enforcement and could produce penalties that offset the cost.
Budget office staff cautioned that some settlement resources are restricted and that dedicating new staff could represent a general‑fund expansion unless existing affirmative‑litigation resources were reallocated. The budget analyst characterized the item as a policy question because it would expand the affirmative litigation effort beyond currently dedicated staffing.
Supervisors asked the controller and city attorney to provide documentation of settlement balances and restrictions. The committee accepted roughly $220,000 of technical reductions the city attorney offered but carried the policy decision on dedicating settlement funds and new positions for further committee review.
City Attorney (Herrera) emphasized accountability and measurable returns for the investment: "If I'm wrong... you're going to have the opportunity to judge me by the results that I deliver." The committee requested follow-up from the controller's office to verify the amounts and allowable uses of the settlement funds.
