The Way It Is Now:

• The Controller is appointed by the Mayor and confirmed by the Board of Supervisors to oversee the City's financial affairs.
• The Charter requires the Controller to:
  • Receive and investigate complaints concerning the quality and delivery of government services, wasteful or inefficient City government practices, misuse of City funds, and improper activities by City officers and employees.
  • Monitor the level and effectiveness of services the City provides to its residents.
• Other City departments, including the City Attorney, District Attorney and Ethics Commission, have jurisdiction to investigate fraud, abuse and other matters related to public integrity.
• The Department of Human Resources has jurisdiction to investigate employee misconduct.
• The Controller can examine the records of City boards, commissions, officers and departments, but cannot issue subpoenas to require third parties such as City contractors, permittees or lobbyists to produce records.
• State law authorizes employees of the Controller's Office to execute search warrants under certain circumstances, but there is no similar provision in the Charter.
• The Charter establishes a separate department called the Sheriff's Department Office of Inspector General to investigate complaints involving employees of the Sheriff's Office.

The Proposal:

Proposition __ would amend the Charter to:

• Create a new position of Inspector General in the Controller's Office to review and investigate complaints of fraud, waste and abuse.
• The Controller would appoint the Inspector General, subject to the approval of the Mayor and Board of Supervisors.
• The Inspector General would:
  • Consult with the Ethics Commission, City Attorney, District Attorney and Department of Human Resources regarding investigations involving fraud, waste or abuse.
  • Either refer specific matters to those departments, investigate in coordination with them, or conduct its own investigation.
  • Issue public reports at least twice a year on its activities and the outcomes of all investigations by other city agencies into matters concerning public integrity.
• Give the Controller power to issue subpoenas to third parties, including contractors, permittees and lobbyists.
• Allow the Inspector General, the Controller and employees of the Controller's Office to execute search warrants when permitted by State law.
• Rename the Sheriff's Department Office of Inspector General to the "Office of Sheriff's Inspector General."

What Your Vote Means:

• A "YES" Vote: You want to create the new position of Inspector General in the Controller's Office to review and investigate complaints of fraud, waste and abuse, and grant the Controller's Office the power to issue subpoenas and execute search warrants when permitted by State law.
• A "NO" Vote: You do not want to make these changes.

1. The proposed Charter amendment would establish an Inspector General position within the Controller's Office, costing an estimated $725,000 to $775,000 annually, plus variable legal support costs.

2. Funding for the Inspector General would come from the existing City Services Auditor's budget, potentially reducing resources for other monitoring activities.

3. The amendment expands the Controller's investigative powers, including the authority to subpoena witnesses, compel evidence production, and execute search warrants as permitted by State law.

4. Additional costs include one-time office setup expenses of $125,000 to $175,000, and potential costs for subpoenas ($1,000 to $20,000 each) and search warrants ($9,000 to $20,000 each).

5. The scope of whistleblower complaints the Controller can receive would be expanded to include those doing business with the City, which may increase costs by an undetermined amount.