The San Diego City Council is expected to approve a settlement with the SEC in the next few weeks over an investigation of the city's finances and the San Diego City Employees Retirement System's $1.4 billion unfunded liability, said Michael Aguirre, city attorney. Mr. Aguirre would not provide details, and Nels Mitchell, associate regional director of SEC in Los Angeles, could not be reached for information on the settlement.
The city council rejected Mr. Aguirre's legal opinion that four of its eight members might have conflicts of interest in participating in a settlement because they were allegedly involved in the events the SEC is investigating, he said. Two council members voluntarily recused themselves from participation.
Bill Harris, deputy press secretary for Mayor Jerry Sanders, declined to comment, citing the ongoing SEC investigation. Doug McCalla, system CIO declined to comment.
