To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Payment to Bay Area Legal Aid
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Auditor-Controller or designee to reissue payment, on behalf of the Department of Conservation and Development, in the amount of $10,610 to Bay Area Legal Aid for tenant legal services, due to the fraudulent redemption of the original payment and only partial recovery.
FISCAL IMPACT:
Approval of this action will result in a one-time expenditure of $10,610 and will be funded by the Department of Conservation and Development’s 10% administrative portion of the Measure X Housing Fund.
BACKGROUND:
On June 13, 2023, the Board of Supervisors (Board) approved an award of Measure X Housing Funds to Bay Area Legal Aid (BALA) to provide tenant legal services throughout Contra Costa County. As part of that Board action, the Department of Conservation and Development (DCD), on behalf of the County, was authorized to execute a contract with BALA for that award and for BALA to carry out the tenant legal services throughout the County. The executed contract between the County and BALA had an effective term beginning October 1, 2023, and ending on September 30, 2024.
On November 1, 2024, BALA submitted a request for reimbursement (invoice #2456804) to DCD in an amount of $184,349.16 for services provided during July 1, 2024, through September 30, 2024. DCD staff reviewed the request for reimbursement and submitted it to the County Auditor-Controller’s Office to finalize the reimbursement and payment process. The payment (payment #216791) was issued on November 13, 2024, and redeemed on November 19, 2024.
On August 4, 2025, BALA contacted DCD staff to inform them that they never received payment for invoice# 2456804. On August 21, 2025, the Auditor-Controller’s Office confirmed the payment had been stolen, altered, and fraudulently redeemed. Per protocol, they contacted Wells Fargo, the County’s banking institution, and initiated a fraud claim pending Wells Fargo’s investigation, which typically takes 90 days.
On October 29, 2024, DCD was notified by the Auditor-Controller’s Office that Wells Fargo was able to recover an amount of $173,739.16 for payment #20241113. Wells Fargo was unable to recover $10,610 of the $184,349.16 total payment amount. DCD and the Auditor-Controller’s Office are filing a police report and seeking information from Wells Fargo to recover the full amount.
BALA is entitled to payment for the services provided, pursuant to the contract executed between the County and BALA. DCD is currently able to provide payment for the $173,739.16 that was recovered but needs Board approval and authorization to pay the $10,610 that was not recovered. As such, DCD recommends that the Board authorize the Auditor-Controller to allow a payment to BALA that would include the $10,610 that Wells Fargo was unable to recover. The $10,610 would be paid out of DCD’s FY 2024/25 or FY 2025/26 10% administrative portion of the Measure X Housing Fund.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, BALA will not be paid for the full value of services provided. Failure to provide payment would be a violation of the contract executed between the County and BALA.