Brief

The City Attorney submitted a report concerning Darling Ingredients Inc. on July 28, 2026. The Budget and Finance Committee approved the item on September 1, and Council adopted a motion by Councilmembers Blumenfield and McOsker on September 9 with an 11-0-4 vote. The file was transmitted to the Mayor on September 15, with a deadline of September 25 for mayoral action.

Full summary

The underlying matter involves a business tax overpayment dispute with Darling Ingredients Inc. The City Attorney's office, citing significant exposure to potential litigation, recommended that the Council discuss the case in closed session before taking action. The case was handled under California Government Code Section 54956.9(d)(2), which permits closed-session legal consultations when a public agency faces meaningful litigation risk. The Council's adopted motion authorizes two specific actions: approving a refund of $206,471.02, plus legally required interest, to Darling Ingredients Inc. for tax years 2024 through 2025, and directing the City Attorney to draw the payment from Fund No. 100/62, Revenue Source 3081, the city's Business Tax fund. The City Attorney submitted the report on July 28, 2026, and it was referred immediately to the Budget and Finance Committee. The committee reviewed the matter in closed session on September 1 and recommended approval, with members Blumenfield, Hutt, McOsker, and Hernandez voting yes and Yaroslavsky absent. The full Council adopted the motion on September 9 by a vote of 11-0-4, with the motion presented by Councilmember Bob Blumenfield (3rd District) and seconded by Councilmember Tim McOsker (15th District). The action is subject to mayoral approval and remains open to reconsideration under Council Rule 51.

Activity (7)

• 2026-09-15 City Clerk transmitted file to Mayor. Last day for Mayor to act is September 25, 2026.
• 2026-09-09 Council adopted Motion (Blumenfield - McOsker) in Open Session, subject to reconsideration, pursuant to Council Rule 51.
• 2026-09-04 City Clerk scheduled item for Council on September 9, 2026.
• 2026-09-01 Budget and Finance Committee approved the item in Open Session.
• 2026-08-28 Budget and Finance Committee scheduled item for committee meeting on September 1, 2026.
• 2026-07-29 City Attorney document(s) referred to Budget and Finance Committee.
• 2026-07-28 Document submitted by City Attorney, dated July 27, 2026.

Documents (2)

• 2026-09-09 Motion (Blumenfield – McOsker) · motion
• 2026-07-27 Report from City Attorney · report

Council votes (1)

• 2026-09-09 Vote — 11-0-4 · Regular