Los Angeles, CA: In response to a federal judge’s ruling, the Los Angeles City Council approved Friday a budget of up to $2.2 million to hire an outside firm to assess the city’s services for those experiencing homelessness.
The firm appointed by U.S. District Judge David O. Carter to carry out the audit had requested $2.8–$4.2 million, but the commitment was inadequate.
The council failed to explain why it chose to choose the lower amount. The city’s attorneys were about to leave the courtroom when Carter interrupted them to express his dissatisfaction with the offer, even though he had earlier indicated in the hearing that he would accept it.
The L.A. Alliance for Human Rights sued the city and county in 2020, claiming they were negligent in their responsibility to house and assist homeless individuals. The audit is the most recent roadblock in this case.
Since then, the county and city have struck settlements that will provide thousands of additional beds in shelters as well as treatment for substance abuse and mental health issues.
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The need for an audit was first raised in February when the L.A. Alliance, which represents homeowners, company owners, and property owners, moved for Carter to fine the city $6.4 million for failing to meet deadlines.
Carter stated in earlier sessions that he was hesitant to impose fines because the funds would be better utilized to serve the homeless. However, he did say that the alliance’s legal firm should be compensated.
The Los Angeles City Council approved a $725,000 payment to Umhofer, Mitchell & King LLP in a private session on Friday.
While Carter had acknowledged that amount, he had made it plain on multiple occasions that the fees were not the most important part of the sanctions request. Carter shifted his attention to the L.A. Alliance’s request for an audit, despite his earlier statements that he desired greater openness over funding for homelessness.
City and alliance lawyers followed his lead and solicited bids from many external auditing firms. On Thursday, the court heard offers from three different companies.
One claimed it could complete the audit for $320,000, but it failed to persuade the parties that it was up to the task. The second firm’s offer was $1.1 million.
Scott Marcus, the city’s attorney, stated on Friday that he had first given the firm the green light but had since acquired information that disqualified them; he did not provide any further details.
The council settled on a budget of $1.5–$2.2 million to cover the costs of the audit at Friday’s closed session.