EXECUTIVE DIRECTOR’S REPORT
TO THE SAN FRANCISCO ETHICS COMMISSION
For the Meeting of August 10, 2009
1. FY 09-10 Budget.
The final numbers for the Ethics Commission for this year appear to be an overall budget of $4,025,406, which includes the operating budget and the annual contribution to the Election Campaign Fund. The operating budget portion is $2,277,668. This is slightly more than a 3% increase over last year. Please note that these numbers are based on office calculations; the final printed budget numbers may be slightly different.
During final consideration of the budget, the Board of Supervisors took two actions that impacted the balance of the Public Finance Fund. First, they restored $1,283,858 of the funds that had previously been de-appropriated by the Mayor’s office. Next, they placed $1,043,160 of funding into a reserve, which can be used either by the Public Finance Fund or by the City’s Convention Facilities managers (either would require a supplemental appropriation). The Mayor signed the budget on Tuesday, August 04, 2009.
2. Investigation and enforcement program.
Since its last regular meeting on July 13, 2009, the Commission has received zero new complaints. There are currently 13 complaints pending in the Commission’s jurisdiction. Staff member Paul Solis has accepted a position as Investigative Counsel with the Office of Congressional Ethics in Washington, D.C. and he will be leaving the Commission in August. Mr. Solis has been a dedicated and diligent colleague, and we wish him the very best.
| Category | # of Complaints |
|---|---|
| Campaign Finance | 5 |
| Conflict of Interest | 3 |
| Governmental Ethics | 1 |
| Lobbyist Ordinance | 2 |
| Campaign Consultant Ordinance | 0 |
| Sunshine Ordinance | 2 |
| TOTAL | 13 |
3. Campaign finance disclosure program.
a. Filing deadline. The most recent filing deadline was July 31, 2009 for the First Semi-Annual statements, which covers the reporting period beginning the day after the closing date of the last statement filed, or January 1, 2009 through June 30, 2009. Staff sent a courtesy notice, as well made phone calls, to filers to remind them of the upcoming filing deadline and to inform them about recent updates to FPPC rules and regulations.
Staff has conducted an initial analysis of campaign finance filings received for this deadline. As of August 4, staff has identified 24 filers who have not yet turned in their required statements. The analysis showed that from July 1 through August 4, the Commission received 410 campaign finance filings (141 electronic filings and 269 paper filings). Staff continues to process campaign statements. The next filing deadline is September 24, 2009 for the First Pre-Election statement.
b. Collection of late filing fees and contribution forfeitures. Campaign finance collections as of August 4th for FY 09-10 totaled $3,038, based on filings made during previous fiscal years. By comparison, campaign finance collections as of August 4th in prior fiscal years were as follows:
| Fiscal year | Collections by Aug. 4 | Total collections in FY |
|---|---|---|
| 02-03 | $20 | $49,322 |
| 03-04 | $1,812 | $51,607 |
| 04-05 | $2,870 | $199,524 |
| 05-06 | $7,304 | $85,390 |
| 06-07 | $14,443 | $119,814 |
| 07-08 | $30,917 | $65,035 |
| 08-09 | $3,773 | $48,673 |
The $3,038 amount is based on prior assessments as follows:
| FY when assessed | Amount collected in 09-10 |
|---|---|
| 06-07 | $480.00 |
| 07-08 | $253.75 |
| 08-09 | $2,303.76 |
| Total: | $3,037.51 |
FY 08-09 waivers, as well as waivers from past years provided for comparison, are as follows:
| FY when assessed | Amount assessed | Amount waived during FY |
|---|---|---|
| 04-05 | $907,069 | $683,086 |
| 05-06 | $546,859 | $342,901 |
| 06-07 | $181,831 | $50,347 |
| 07-08 | $217,444 | $159,880 |
| 08-09 | $322,529 | $107,176 |
| 09-10 | $1,060 | $0 |
To date, the outstanding balance of late fees assessed from the current and previous years, including $72,281 in fees that have been referred to the Bureau of Delinquent Revenues, is $214,097, down from $214,839 as last reported.
The current outstanding balance of contribution forfeitures assessed as a result of the defective reporting of contributor information and contribution limit violations is $71,218, as was last reported. The $71,218 amount consists of forfeitures from the 2005-2006 filing periods and does not include forfeiture assessments from the 2008 filing period. Staff continues to process requests for waiver of late fees and forfeitures. The individual late fees and forfeitures are listed below.
Late fees & Forfeitures – 8.4.09 quarterly update
Late fees – Table 1
| # | Name | Filer ID | Current balance ( in $) | Status (blank = not yet past-due) |
|---|---|---|---|---|
| 1 | Ahsha Safai for Supervisor | 1305708 | 400.00 | Past-due ($120); Waiver requested ($280) |
| 2 | Bayard Fong for Board of Education | 1290444 | 460.00 | Waiver requested |
| 3 | Bayview Committee for Affordable Housing | 1303906 | 175.00 | Waiver requested |
| 4 | Bill Barnes For District 5 | 1265969 | 3,120.00 | Collections |
| 5 | Bruce G. Windrem | PEN1188 | 30.00 | Past-due |
| 6 | Bruce Wolfe for SF Community College | 1307372 | 50.00 | Past-due |
| 7 | California Nurses Association PAC | 780657 | 3,370.00 | Waiver requested |
| 8 | Calvin Louie for Community College Board | 1228806 | 10.00 | Past-due |
| 9 | Care Not Cash | 1244505 | 5,331.00 | Collections |
| 10 | Clinton T. Reilly & Affiliated Entities | 490376 | 9,000.00 | Waiver requested |
| 11 | Coalition to Elect Chris Jackson to Community College Board | 1302351 | 3,050.00 | Waiver requested |
| 12 | Coleman Action Fund for Children Committee | 1311766 | 6,685.00 | Waiver requested |
| 13 | Committee to Elect Eli M. Horn | 1305634 | 760.00 | Past-due ($80); Waiver requested ($680) |
| 14 | Committee to Elect M. Valle for Treasurer | 1278937 | 5,525.00 | Collections |
| 15 | Committee to Elect Rebecca Silverberg | 1220430 | 21,086.00 | Collections |
| 16 | Committee to Elect Vilma Guinto-Peoro Supervisor District #2 | 1291394 | 10.00 | Collections |
| 17 | Committee to Keep MUNI Accountable – No on P | 1309995 | 4,650.00 | Waiver requested |
| 18 | Committee to Re-Elect Dr. Anita Grier | 1243852 | 140.00 | Waiver requested |
| 19 | Dana Walsh | PEN1249 | 60.00 | Past-due |
| 20 | Edgar "David" Parker, Jr. | PEN608 | 200.00 | Past-due |
| 21 | Elect Anthony Carrasco Sheriff | PEN1395 | 100.00 | Past-due |
| 22 | Eric Mar for Supervisor | 1302394 | 5,865.00 | Waiver requested |
| 23 | Friends of Owen O'Donnell | 1307894 | 45.00 | Waiver requested |
| 24 | Housing Rights Association | 1245525 | 100.00 | Settlement payment schedule since 2006 |
| 25 | James Ryan | PEN1293 | 100.00 | Past-due |
| 26 | Jane Kim for School Board | 1289332 | 245.00 | Waiver requested |
| 27 | Janet Reilly | 1276040 | 1,190.00 | Waiver requested |
| 28 | Jaynry Mak for School Board | 1311133 | 10.00 | Waiver requested |
| 29 | Jill Wynns for School Board | 961189 | 30.00 | Past-due |
| 30 | Johnnie Carter for Community College Board | 1226264 | 7,215.00 | Collections ($6,595); Past-due ($620) |
| 31 | Josh H. Wolf | PEN1391 | 180.00 | Past-due |
| 32 | Joshua Kriesel | PEN1289 | 100.00 | Past-due |
| 33 | Mak 06 | 1287595 | 490.00 | Past-due |
| 34 | Micheas Herman | PEN788 | 100.00 | Collections |
| 35 | Myrna Viray Lim for Supervisor | 1256697 | 3,855.00 | Collections |
| 36 | Myrna Lim for District 11 Supervisor | 1306882 | 1,250.00 | Past-due |
| 37 | Neighbors Against Traffic & Pollution – No on H | 1300072 | 917.52 | Payment schedule |
| 38 | No on K, Committee Against Trafficking and Sexual Exploitation, Committee Against Proposition K | 1310101 | 55.00 | Waiver requested |
| 39 | No Military Recruitment in Our Schools – No on V | 1308856 | 5,649.80 | Waiver requested |
| 40 | Noe Valley Democratic Club | 963103 | 3,625.00 | Waiver requested |
| 41 | Omar Khalif for School Board | 1287030 | 1,800.00 | Past-due |
| 42 | Pat Lakey for Supervisor District 7 | 1255357 | 2,225.00 | Waiver requested in 2004 |
| 43 | People for Tony Hall | 1298419 | 1,575.00 | Payment schedule |
| 44 | Ramiro Maldonado, Jr. | PEN1291 | 100.00 | Past-due |
| 45 | Re-Elect Milton Marks III | 1266541 | 235.00 | Waiver requested |
| 46 | Richmond District Democratic Club | 882390 | 5,000.00 | Waiver requested |
| 47 | Rick Hauptman | PEN1281 | 100.00 | Past-due |
| 48 | Rodney Hauge | PEN593 | 100.00 | Past-due |
| 49 | Rodney Hauge | PEN1084 | 100.00 | Past-due |
| 50 | San Franciscans for Fair & Honest Government | 1258209 | 4,659.22 | Collections |
| 51 | San Francisco Coalition for Responsible Growth – Political Action Committee | 1306077 | 2,880.00 | Waiver requested |
| 52 | SF Forward sponsored by San Francisco Chamber of Commerce (formerly San Francisco Chamber of Commerce 21st Century Committee) | 891575 | 980.00 | Waiver requested |
| 53 | San Francisco Tenants Union | PEN1367 | 1,060.00 | |
| 54 | San Francisco Women's Political Committee | 1243711 | 69,616.26 | Waiver requested |
| 55 | SEIU Local 87 | PEN951 | 14,350.00 | Collections |
| 56 | Shawn Westcott | PEN1102 | 100.00 | Collections |
| 57 | Steve Feinstein | PEN1279 | 50.00 | Past-due |
| 58 | Sunset Community Democratic Club | 901749 | 350.00 | Waiver requested |
| The Committee to End the War in Iraq | 1309075 | 2,000.00 | Waiver requested | |
| 59 | Thomas D'Amato | PEN735 | 100.00 | Past-due |
| 60 | Trevor McNeil for SFDCCC | 1285604 | 100.00 | Past-due |
| 61 | Walter D. Armer | PEN1287 | 100.00 | Past-due |
| 62 | Yes on C, Alcatraz Conversion Project | 1302041 | 3,432.00 | Payment schedule |
| 63 | Yes on K, Committee United for Safety and Protection | 1304971 | 160.00 | Waiver requested |
| 64 | Yes on Proposition G San Francisco | 1311102 | 140.00 | Past-due |
| 65 | Yick Tsun Society, Inc. | PEN1078 | 7,550.00 | Collections |
| Total: | 214,096.80 |
Forfeitures – Table 2 [1]
| # | Name | Filer ID | Current balance ( in $) | Status (blank = not yet past-due) |
|---|---|---|---|---|
| 1 | Alix Rosenthal for Supervisor | 1287650 | 950.07 | Waiver requested |
| 2 | Bayard Fong for Board of Education | 1290444 | 1,900.29 | Waiver requested |
| 3 | Campaign for Paid Sick Days, Yes on Prop F | 1289546 | 276.73 | Waiver requested |
| 4 | Committee to Elect Dwayne Jusino Supervisor | 1286609 | 300.00 | Payment schedule |
| 5 | Committee to Re-Elect Dr. Dan Kelly | 1289595 | 150.02 | Waiver requested |
| 6 | Daly 06 | 1284226 | 1,850.08 | Waiver requested |
| 7 | Dudum for Supervisor 2006 | 1287197 | 800.02 | Waiver requested |
| 8 | Herrera 2005 | 1272195 | 1,200.00 | Waiver requested |
| 9 | Hydra Mendoza for School Board | 1290372 | 2,300.18 | Waiver requested |
| 10 | SF Forward sponsored by San Francisco Chamber of Commerce (formerly San Francisco Chamber of Commerce 21st Century Committee) | 891575 | 9,440.03 | Waiver requested |
| 11 | Truth on Prop H – Concerned Citizens Against Prop H, Sponsored by: Small Property Owners of San Francisco | 1292084 | 25,050.12 | Waiver requested |
| 12 | Yes on Proposition A, Let's Rebuild San Francisco's Schools | 1290214 | 27,000.05 | Waiver requested |
| Total: | 71,217.59 |
c. Status of accounts to San Francisco Bureau of Delinquent Revenues (BDR). The following chart provides details on pending accounts referred to BDR:
| # | Committee/ Filer |
ID # | Treasurer or Responsible Officer | Date referral effective | Original amount referred | Last month’s balance | Current balance (Changes are in bold) |
|---|---|---|---|---|---|---|---|
| 1 | Committee to Elect Rebecca Silverberg | 1220430 | Lucia Paulazzo | 5/6/05 | $21,086.00 | $21,086.00 | $21,086.00 |
| 2 | Yick Tsun Society, Inc. | PEN1078 | Florence Fang | 8/16/05 | $7,550.00 | $7,550.00 | $7,550.00 |
| 3 | SEIU Local 87 | PEN951 | Mike Garcia & Michael Baratz | 8/25/05 | $14,350.00 | $14,350.00 | $14,350.00 |
| 5 | Johnnie Carter for Community College Board | 1226264 | Johnnie Carter | 6/16/06 | $9,520.00 | $7,095.00 | $6,595.00 |
| 7 | Micheas Herman | PEN788 | Micheas Herman | 6/26/06 | $100.00 | $100.00 | $100.00 |
| 8 | San Franciscans for Fair & Honest Government | 1258209 | Erik Howell | 10/20/06 | $4,659.22 | $4,659.22 | $4,659.22 |
| 9 | Myrna Viray Lim for District 11 Supervisor | 1256697 | Jia Jun Chen | 4/27/07 | $3,855.00 | $3,855.00 | $3,855.00 |
| 10 | Committee to Elect M. Valle for Treasurer | 1278937 | Manuel B. Valle | 6/14/07 | $5,525.00 | $5,525.00 | $5,525.00 |
| 11 | Shawn Westcott | PEN1102 | Shawn Westcott | 6/18/07 | $100.00 | $100.00 | $100.00 |
| 12 | Committee to Elect Vilma Guinto-Peoro Supervisor District #2 | 1291394 | Vilma Guinto-Peoro | 6/18/07 | $10.00 | $10.00 | $10.00 |
| 13 | Bill Barnes for District 5 | 1265969 | Alix Rosenthal | 1/3/08 | $3,120 | $3,120 | $3,120 |
| 14 | Care Not Cash | 1244505 | Ronald Jin | 2/29/08 | $5,331 | $5,331 | $5,331 |
d. Electronic filing. On April 30, 2009 staff provided 60 days’ notice that committees subject to the electronic filing requirements under section 1.112(b) will be required to file FPPC Forms 461 (Independent Expenditure Committee and Major Donor Committee Campaign Statement) and 465 (Supplemental Independent Expenditure Report) in electronic format starting July 1, 2009. Electronically filed forms and data will be made available to the public on the Ethics Commission’s web site. This new electronic filing requirement is in addition to the paper filing requirement. Forms 461 and 465 were added to the San Francisco Electronic Disclosure System (SFEDS) through the Commission’s contract with Netfile.
4. Revenues report.
For FY 09-10, the Commission was budgeted to generate $50,000 in revenues. As of August 3, 2009, the Commission received $5,111 as summarized below. The figure represents collection of approximately 10 percent of expected revenues for FY 09-10.
Revenues Received as of August 3, 2009
| Source | Budgeted Amount FY 09-10 | Receipts |
|---|---|---|
| Lobbyist Fees | $8,000 | $1,050 |
| Other Ethics General | $1,000 | $2 |
| Campaign Finance Fines | $22,000 | $2,399 |
| Campaign Consultant Fees | $15,000 | $600 |
| Lobbyist Fines | $1,000 | |
| Statements of Economic Interests Fines | $1,000 | $1060 |
| Other Ethics Fines | $1,000 | |
| Campaign Consultant Fines | $1,000 | |
| Total | $50,000 | $5,111 |
5. Public financing/Campaign finance audit program.
Staff is working on audits of candidates who received public financing in 2008. Staff is also preparing candidate and recipient committee training materials for the 2009 election season.
6. Lobbyist program.
As of August 1, 2009, there are 39 lobbyists registered with the Commission. Lobbyist revenues received in the 2008-2009 fiscal year totaled $36,392: $33,892 in lobbyist fees and $2,500 in fines. In the 2009-2010 fiscal year, $1,050 in lobbyist fees and $150 in fines were collected, for a total of $1,200. All registered lobbyist filed quarterly reports for the second quarter 2009 reporting period. The next filing deadline is October 15, 2009, for the third quarter 2009 reporting period.
Lobbyists on Behalf of the City
The San Francisco Sunshine Ordinance, S.F. Admin. Code Section 67.29-4, requires lobbyists who contract for economic consideration with the City to represent the City in matters before any local, regional, state or federal administrative or legislative body to file quarterly activity reports with the Ethics Commission. These persons and entities are referred to as "Lobbyists on Behalf of the City." Section 67.29-4 does not provide for any fine or monetary penalty for non-filers.
Staff discovered that no lobbyist had filed a report with the Commission since the first quarter of 2005. Staff contacted the lobbyist currently contracted by the Mayor’s Office to advise them of their reporting requirements. Staff requested that the lobbyist complete all retrospective filings to bring them into compliance with the law. The lobbyist was unaware of the Sunshine Ordinance requirement but expressed willingness to fully comply with law. All filings will be due at the Commission by 5.00 p.m., August 17, 2009, which is the next filing deadline. The lobbyist has filed all State and Federal reports that are required by law.
Staff responsible for the oversight of the regular lobbyist program will administer this program. Further, staff requested that all other City departments advise the Commission if they independently contract with a lobbyist.
7. Campaign Consultant program.
As of August 4, 2009, twenty-one campaign consultants are active and registered with the Commission. $650 in registration fees have been collected in the 2009-2010 fiscal year.
The next quarterly report is due September 15, 2009. Staff will send reminder notices to all active campaign consultants two weeks prior to the deadline.
8. Statements of Economic Interests.
April 1 was the deadline for designated officers and employees to file their annual Statement of Economic Interests (“SEIs”). Staff continues to process incoming SEIs and Sunshine Ordinance Declarations, by logging them into a database and scanning them for upload to the Commission’s website. A list of filers is viewable on the Commission’s website.
The following table reflects annual statements filed as of August 4, 2009.
| FORM | FILERS | TOTAL # OF FILERS |
|---|---|---|
| Statement of Economic Interests (SEI) | 596 | 621 |
Upon review, the total number of filers dropped from 690 to 621 because staff determined that 69 annual filers left office in 2008 or earlier and are required to file Leaving Office SEIs instead of Annual SEIs.
On May 6, 2009, staff issued 136 non-filer notices. On June 8, 2009, staff issued 48 second non-filer notices to those who were unresponsive to the first notice. On July 8, 2009 staff issued third non-filer notices to 33 non-filers who were unresponsive to the past two notices. As of August 4, 2009, 83 non-filers informed us that they left office, 24 non-filers filed their annual SEIs, five informed us that they hold a position that is not required to file with the Ethics Commission, one filed at the wrong location and is in the process of forwarding the original to us, one informed us that the Annual SEI requirement does not apply because the filer recently assumed office, and 22 non-filers remain nonresponsive.
Enforcement staff continues to audit departments for SEI filing compliance for both 2007 and 2008 calendar years. Staff is also reviewing all SEIs filed with the Commission.
9. Outreach and Education.
On July 17 and 28, 2009, staff held interested persons meetings on possible changes to the Campaign Finance Reform Ordinance. The Commission will consider the proposals at its August 10, 2009 meeting.
Ethics staff continues to provide trainings on conflict of interest laws and the Statements of Incompatible Activities (SIA) to City departments. The following trainings are currently scheduled for 2009:
- Candidates’ Training (Web Training Video): August 2009
- Non-Candidate Recipient Committee Training (Web Training Video): August 2009
- Building Inspection Commission, Access Appeals Commission, Board of Examiners and Unreinforced Masonry Building Appeals Board SIA Training: September 30
10. Statements of Incompatible Activities.
In response to both the May 26, 2009 and July 10, 2009 memos to all departments, boards and commissions requesting that they provide copies of advance written determinations (AWDs) and summaries of complaints filed under the 53 respective Statements of Incompatible Activities, the Commission received 47 replies. No complaints were reported; 36 AWDs were reported, with disposition as follows:
| Department | Number of AWDs Received | Number granted | Number denied |
|---|---|---|---|
| Public Health | 1 | 1 | 0 |
| Office of Citizen Complaints | 2 | 0 | 2 |
| Child Support Services | 1 | 1 | 0 |
| Planning | 5 | 4 | 1 |
| Municipal Transportation Agency | 1 | 1 | 0 |
| Public Utilities Commission | 3 | 3 | 0 |
| District Attorney’s Office | 6 | 5 | 1 |
| City Attorney’s Office | 6 | 6 | 0 |
| Public Defender’s Office | 3 | 3 | 0 |
| Office of the City Administrator | 5 | 5 | 0 |
| Port of San Francisco | 1 | 1 | 0 |
| Planning | 1 | 1 | 0 |
| Arts Commission | 1 | 1 | 0 |
Respectfully submitted,
_________________________
John St. Croix
Executive Director
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