The Los Angeles City Council on Oct. 31 approved a contract with Deloitte & Touche to pursue fuel-tax rebate claims and established a trust to hold any recovered funds, amending the committee report to allow claims beyond a three-year lookback and to earmark recovered funds for the city’s emissions-reduction programs.

Leonard Applebaum, chief accountant in the Department of General Services, told the council the firm will be paid only from funds recovered and “we pay them nothing if we don't get a rebate.” He said the draft agreement calls for a 30% contingency fee and seeks roughly four years of back revenues. Applebaum estimated the city could increase savings by “about 10% or roughly about $70,000 to $90,000 annually.”

Councilmember Padilla moved to change the committee report language so the consultation is not limited to the last three years; the motion was seconded and approved. Councilmember Callender moved to require that monies sent to the trust be used for the city's emissions-reduction programs; that amendment was also adopted. The full, amended item was then approved by the council.

Why it matters: the contract directs a private accounting firm to pursue refunds the city may be owed for fuel excise taxes and related entitlements. The council added two policy constraints: giving Deloitte & Touche a contingency-based fee only if funds are recovered; and routing any recovered money into a trust explicitly for emissions-reduction work rather than into the city's general fund.

Key details: Applebaum told the council the state provides a 20% formula used as a baseline and that Deloitte believes it can increase recovery beyond that baseline. The contract structure is contingency-based: if no rebate is secured the city pays nothing; if funds are recovered Deloitte would receive an agreed percentage (the draft calls for 30%). Council directed staff to alter the committee report language so claims may include periods earlier than the previous three years.

Council action: the council approved the contract and both amendments by recorded roll calls (amendments and final approval recorded as 14 ayes on the transcript). No votes opposing or abstentions were recorded on the floor during those roll calls.

What remains: the contract authorizes staff to pursue the described rebate work and to set up the designated trust; the transcript does not record any additional requirements for reporting timelines, dollar caps, or a specific implementation schedule for how recovered funds will be allocated within emissions programs.