Minutes – August 18, 2023 – San Francisco Ethics Commission

Minutes of the Regular Meeting of
The San Francisco Ethics Commission
Friday, August 18, 2023

Hybrid meeting conducted in-person in City Hall Room 400, 1 Dr. Carlton B. Goodlett Place, San Francisco, and also held online as a Remote Meeting via WebEx and aired live on SFGovTV

(Approved September 8, 2023)

Note: SFGovTV provides a continuous archive of audio, video, and Caption Notes recordings of Ethics Commission meetings that allows viewers to watch those meetings online in full at the viewer’s convenience. These archives of Ethics Commission meetings may be accessed at SFGovTV at http://sanfrancisco.granicus.com/ViewPublisher.php?view_id=142.

(Note: A complete recording of this meeting can be found on SFGovTv.)

COMMISSION MEMBERS PRESENT: With Chair Yvonne Lee, Commissioner Argemira Flórez Feng, Commissioner Theis Finlev, and Commissioner Yaman Salahi participating, a quorum was present.

STAFF PRESENTING: Ronald Contreraz, Online Meeting Moderator; Steven Massey, Acting Deputy Director; Michael Canning, Acting Policy & Legislative Affairs Manager; Pat Ford, Director of Enforcement, and Linda Fong, Audit and Compliance Review Manager.

REPRESENTATIVES OF THE OFFICE OF THE CITY ATTORNEY PRESENT: Brad Russi, Deputy City Attorney.

REPRESENTATIVES OF THE DEPARTMENT OF HUMAN RESOURCES PRESENT: Paul Green, Principal Human Resources Consultant.

MATERIALS DISTRIBUTED:

Item 1. Call to order and roll call.

Chair Lee convened the meeting at 10:05am and stated that members of the public may participate in-person or remotely. Meeting Moderator Ronald Contreraz summarized the procedures for participation by members of the public for the meeting.

Item 2. Public comment on matters not appearing on the agenda.

Under Item 2, the Commission provided the opportunity for general public comment on matters not appearing on the agenda but within the Ethics Commission’s subject matter jurisdiction. 

Public Comment:

A speaker stated that they have participated in the Ethics Commission and the Commission is engaging in corrupt actions, similar to what’s happening with Donald Trump. The Sunshine Taskforce must do right or the city will fail. The speaker stated they have come in person to pay respects to Charley Marsteller, who passed away.

No further public comment was received and public comment on the item was closed.

Consent Calendar Items 3, 4, 5, and 6

The Commission took up its consent calendar on Item 3, Draft Minutes of the Ethics Commission July 14, 2023, Regular Meeting, Item 4, Acting Director’s Report, Item 5, Proposed Stipulation, Decision and Order In the Matter of Frank Fung, and Item 6, Proposed Stipulation, Decision and Order In the Matter of San Francisco Bicycle Coalition, San Francisco Bicycle Coalition Education Fund, Brian Wiedenmeier, and Janice Li.

Public Comment:

David Pilpel called to correct a couple of edits in the minutes. Michael Canning stated that edits to the minutes could be made.

No further public comment was received and public comment on the item was closed.

Commissioner Finlev motioned to adopt Items 3, 5, and 6 as presented on the consent calendar, with amendment to the draft minutes in Item 3 to correct spelling errors, which was seconded by Commissioner Flórez Feng and approved unanimously (4-0). Item 4 was informational and required no action by the Commission.

Motion 230818-01 (Finlev / Flórez Feng): Moved, seconded, and approved unanimously (4-0) to adopt Items 3, 5, and 6 as presented on the consent calendar.

REGULAR CALENDAR

Item 7. Election of Commission Vice Chair per Ethics Commission Bylaws, Article IV, Section 1.

Steven Massey overviewed the procedure for electing the Vice Chair.

Commissioner Flórez Feng nominated Commissioner Finlev.

Deputy City Attorney Brad Russi confirmed that no second is needed following the nomination. Chair Lee asked Commissioner Finlev if he accepted the nomination, and he stated that he did.

Public Comment:

A speaker stated that the Commission needed candidates that reflect the wishes and standards of San Franciscans. The speaker does not see that. Commissioners still do not do due diligence, that can be seen in the budget.

Carol Harvey called to honor the advocate, Charlie, who recently passed away. Many changes are needed, including a charter amendment to protect the Ethics budget. A recall of all Ethics Commissioners is needed so that their replacements can be highly ethical people.

A speaker stated they are a part of the Anti-Corruption Coalition. They want to honor Charley, who recently passed away. Form 700s are ineffective and corrupt contracts are rampant.

No further public comment was received and public comment on the item was closed.

Commissioner Flórez Feng nominated Commissioner Finlev as Vice Chair and the Commission voted unanimously (4-0) to elect Commissioner Finlev as Vice Chair.

Motion 230818-02 (Flórez Feng): The Commission voted unanimously (4-0) to elect Commissioner Finlev as Vice Chair.

Item 8. Discussion and possible action on Executive Director recruitment process, which may include consideration ad action to ratify selection of executive search firm to assist Ethics Commission in recruiting and screening candidates.

Steven Massey overviewed the item, stating that the search for an Executive Director continues and a new search firm will need to be secured in order to continue the search. Paul Green from the Department of Human Resources was present for questions.

Chair Lee stated that 10 meetings with stakeholders were held related to the Executive Director search. She stated that this process has been inclusive and transparent. She thanked stakeholders for engaging with the Commission during this search. The Commission will work with the new firm to ensure that the search stays transparent.

Chair Lee confirmed that the search firm will be employed by DHR, not the Ethics Commission, Paul Green confirmed yes.

Chair Lee stated that the entire Commission will be involved once it becomes time to review, select, and interview candidates. Prior to that, the Chair will work with DHR and the search firm to conduct the administrative activities. No decision will be made without consulting the Commission as a whole.

Chair Lee asked if the Commission would like to see a change to this process moving forward. It has been 8 months since the Commission has had an ED.

Commissioner Finlev stated that he would support a motion to have the Chair continue to work with DHR and the search firm.

Commissioner Finlev made a motion and Commissioner Salahi seconded. Commissioner Finlev asked Brad Russi if the Commission needed a motion. Russi confirmed that no motion was needed. Commissioner Finlev withdrew the motion.

Public Comment:

A speaker stated that the Commission has not done outreach to the public, and this is why they continue to search for an Executive Director. Is this the way of serving San Franciscans? We do not have standards and the City is very corrupt. The Sunshine Taskforce, Ethics Commission, and Controller’s Office don’t work.

No further public comment was received and public comment on the item was closed.

A speaker asked if there is public comment. Chair Lee confirmed that public comment for this item was already held. The speaker made comments about a letter from a founder. Ronald Contreraz stated that the Commission was not taking public comment at this time.

Commissioner Salahi motioned to accept Berkeley Consultants, which was seconded by Commissioner Finlev and approved unanimously (4-0).

Motion 230818-03 (Salahi / Finlev): Moved, seconded, and approved unanimously (4-0) to ratify the selection of Berkeley Consultants.

Item 9. Discussion and possible action on a motion ordering submitted to the voters, at an election to be held on March 5, 2024, an ordinance amending the Campaign and Governmental Conduct Code to 1) expand gift prohibitions for City officers and employees; 2) expand rules prohibiting bribery; 3) require ethics training for Form 700 filers; 4) prohibit members of the public from acting as intermediaries for City officers and employees with respect to certain prohibited gifts; 5) impose personal liability on City officials for failure to disclose certain relationships; 6) create generally applicable incompatible activity rules; and 7) require Ethics Commission and Board of Supervisors super-majority approval for amendments to certain ethics-related ordinances; and appropriating $43,000 from the General Reserve in Fiscal Year 2023-2024 to fun administrative costs required to implement the ordinance and mended Ethics Commission regulations to strengthen gift, training, and other City ethics laws.

Michael Canning overviewed the item for the Commission.

Chair Lee thanked the staff for their work. Chair Lee moved to adopt; Commissioner Finlev stated that he was not prepared to second until public comment happens.

Chair Lee asked if anyone from DPH is present, Canning stated that they may call in.

Public Comment:

A speaker stated that there is clarification needed on who the ethics training deadline in the ballot measure would impact. The new monetary penalty for not completing ethics training by the deadline is not necessary, because officials lose their ability to vote if they miss the deadline. The duty to provide annual reports should lie with the Ethics Commission. Gift rule changes impact long-standing gift rules and the Commission should reach out to multiple departments to consult.

A caller stated that it’s been over a year since the Commission has held a public hearing on the gifts ballot measure. New commissioners were not present to hear original public comments on this measure. The public was not given enough time to review these new changes proposed by Commission staff. Lower-paid workers would be harmed if they need two jobs to make ends meet. Non-profits will suffer with certain City employees not being able to serve on their boards. The caller is requesting that the Commission not vote today and let the public have more time to review and participate in the revision of this measure.

No further public comment was received and public comment on the item was closed.

Ronald Contreraz asked if all public commenters should receive equal time, Brad Russi confirmed yes.

Chair Lee asked Canning to respond to public comment.

Canning stated that there is no substantive changes have been made to the measure in the last year, just procedural changes. The regulations regarding annual training have been in the ballot measure since the beginning and the public has had ample time to review.

Commissioner Salahi asked if language on secondary employment could be applied to City employees who substantially engage in contracts instead of Form 700 filers. Canning stated the proposed amendment would limit the scope to Form 700 filers.

Commissioner Finlev stated that he doesn’t know who is a Form 700 filer in each department. It’s hard to vote when he doesn’t know who is “in” and who is “out.” He doesn’t have a sense of who it will impact.

Pat Ford stated that 11% of the Department of Public Health employees file a Form 700. Ford stated that there is the benefit of a list of Form 700 filers with the bi-annual code review required of departments. Ford explained the process by which it is decided who will be a Form 700 filer or not.

Commissioner Finlev asked what positions are Form 700 filers in DPH.

Ford stated that supervisors and managers tend to be Form 700 filers, generally.

Commissioner Finlev asked if the Commission had reached out to DPH regarding these amendments.

Canning stated yes, they’ve spoken with DPH’s COO this week. The COO seemed enthusiastic about the amendments and supportive.

Commissioner Finlev asked if the COO stated that the amendments address the department’s concerns.

Canning stated that all concerns may not be addressed, but there was support.

Commissioner Flórez Feng asked about other concerns.

Canning stated that if the Commission acts today, there’s still one year to work on additional regulations before the ballot measure goes in front of voters.

Commissioner Flórez Feng asked about the final deadline for the Commission to act. Canning confirmed that it’s December 1.

Chair Lee stated that this ballot measure was not the Commission’s idea, but rather, came from members of the public who wanted the Commission to do something within its power.

Canning stated that if the Commission delays today, it could create complications down the line.

Commissioner Salahi stated that he’s prepared to second Chair Lee’s motion.

Chair Lee calls for public comment. Brad Russi stated that the Commission has already taken public comment on this item. Public comment is re-opened.

Public Comment:

A speaker stated that this is a convoluted subject. We are sending mixed signals to the citizens San Francisco. Department Heads do not properly understand the Form 700, and there is no orientation. There are some Department Heads who haven’t filled out their Form 700 in years.

A caller stated that the Form 700 is a weak net for catching anything that’s going wrong. More training and information on the Form 700 is needed. Charley was very concerned about the super majority clean up.

No further public comment was received and public comment on the item was closed.

Commissioner Finlev stated that this measure eliminates dual employment for many employees, and he doesn’t know who it will impact. He will not be able to support this measure today.

Chair Lee asked Commission staff to walk through Commissioner Finlev’s concerns and what options there are for moving forward without delaying the progress that’s been made so far.

Canning stated that removing the phrase “having a financial interest in” from two places in the ballot measure, would get rid of the financial interest rule. Canning also stated that Supervisor Safai has put forward legislation addresses dual employment, which the Commission could consider as an alternative way to address additional employment.

Commissioner Flórez Feng asked if members of the public or DPH would be ablet to participate if this issue when through Supervisor Safai’s legislation.

Canning stated yes, working with Supervisor Safai’s team to have an open meeting or other opportunity for public engagement. Also that Supervisor Safai’s legislation would be subject to meet and confer with City bargaining units.

Commissioner Flórez Feng stated that the opportunity to vote today may have inspired the public to look closer at this ballot measure and that there’s tension between wanting to act and wanting to listen to all.

Chair Lee stated that the Board of Supervisors and the Ethics Commission have had joint public hearings in the past.

Chair Lee called for a vote. Canning stated that someone would need to make a different motion from Chair Lee’s original motion before voting. Chair Lee stated that she amends her motion to include the amendments stated by Canning.

Chair Lee motioned to approve the amended ballot measure and draft regulation amendments, which was seconded by Commissioner Salahi and approved unanimously (4-0).

Motion 230818-04 (Chair Lee / Salahi): Motioned, seconded, and approved unanimously (4-0) to approve the amended ballot measure and draft regulation amendments.

Item 10. Request for waiver of post-employment restrictions for Tracey Packer (Continued Discussion and Possible Action).

Tracey Packer thanked the Commission for hearing her waiver request and stated why they are requesting the waiver.

Michael Canning stated that the Commission does have the authority to grant the waiver. Commission staff recommend that if denying the waiver would create significant hardship, then the Commission should grant the waiver. If the waiver is granted, it should be done narrowly and apply only to this position.

Commissioner Salahi thanked Packer for their service and patience.

Commissioner Finlev stated that the AIDS Foundation would be lucky to have Packer.

Commissioner Flórez Feng renewed her motion from last meeting and thanked everyone for coming.

Chair Lee asked about the term of the employment. Packer confirmed that is would be for about six months.

Chair Lee confirmed that the waiver would be approved for the six-month period, and Packer could return to the Commission if additional time is needed.

Commissioner Salahi asked if six months was sufficient to avoid Packer having to come back. Packer stated that they can’t be sure if someone can be hired to fill the position permanently in six months.

Commissioner Salahi amended his motion to be for a nine-month period of time.

Commissioner Salahi asked Canning for how long a waiver would be necessary. Canning stated that the waiver would only be necessary until the 12-month anniversary of the contract being entered into, which would be January of 2024.

Commissioner Salahi amended his motion to extend through the end of January 2024.

Public Comment:

A speaker stated that they want to speak in support of granting the waiver for this instance. There are thousands of people suffering from and at risk of contracting HIV. There is a complex system of care related to supporting those with HIV. Tracey Packer is considered a hero.

A speaker, who previously supervised Packer, stated that they support Packer’s request for a waiver. Packer served the City during the COVID pandemic and supports their pursuit to support the AIDS Foundation in this role.

A caller stated that they’ve worked with Packer for over 30 years and that Packer operated with the utmost professionalism. The caller hopes that the waiver is granted.

A caller, Vince, stated that Packer has served their community and greater San Francisco. The caller would like the Commission to grant the waiver.

Laura Honeybrooks stated that Packer is available and qualified to fill this necessary bridge while they are out. The staff deserves leadership like what Packer could provide in order to continue their important work.

Laura Thomas, of the AIDS Foundation, stated that they worked with Packer in DPH for a number of years. Packer’s work has been valued by the community for many years. Packer brings a unique perspective and expertise to this work. Thomas asked for the approval of the waiver.

A caller stated that Packer’s experience and passion make them more than qualified for this role. The caller asked for the approval of the waiver.

A speaker, Ben, stated that Packer has had a big impact on their leadership development, and they support the approval of the waiver.

A speaker spoke of community and trust and needing a strong team, which hopefully includes Packer.

A speaker stated that they do not know Packer but spoke of uplifting others and helping those in need.

No further public comment was received and public comment on the item was closed.

Commissioner Salahi motioned to grant the waiver through the end of January 2024, which was seconded by Commissioner Finlev and approved unanimously (4-0).

Motion 230818-05 (Salahi / Finlev): Motioned, seconded, and approved unanimously (4-0) to grant the waiver though the end of January 2024.

Item 11. Audit Division Update Highlighting Division Operations.

Linda Fong provided an overview of the Audit Division. This is the same overview that they gave last time they provided an audit, for which Commissioner Salahi was not present.

Fong stated that the division has been focused on the backlog of campaign finance audits, primarily mandatory audits.

Commissioner Finlev asked if the lack of discretionary audits was because of a staffing issue. Fong confirmed that when they started, staffing was at 25%. Implementation of BLA recommendations also added to the issue. Fong stated that audits look for compliance with laws and regulations.

Chair Lee asked what division staffing would look like with new budget. Fong stated that the current staffing structure is considered fully staffed.

Chair Lee asked if more than one lobbying firm is possible considering the division is fully staffed. Fong confirmed, yes, six lobbying audits were conducted and just one is not sufficient.

Public Comment:

No public comment was received and public comment on the item was closed.

Item 12. Discussion and possible action on items for future meetings.

Public Comment:

No public comment was received and public comment on the item was closed.

Item 13. Additional opportunity for public comment on matters not appearing on the agenda pursuant to Ethics Commission Bylaws Article VII Section 2.

Public Comment:

A speaker asked if there would be public comment on the adjournment in honor of Charley.

Chair Lee stated that the speaker could make public comment after the statement is made under agenda item 14, adjournment.

No further public comment was received and public comment on the item was closed.

Item 14. Adjournment.

Chair Lee adjourns meeting in honor of Charley Marsteller.

Public Comment:

A speaker thanked Chair Lee for their comments. The speaker was a neighbor and friend of Charley. They spoke of Charley’s coin collecting and trading.

No further public comment was received and public comment on the item was closed.

The Commission adjourned at 12:49pm.