Item 9 Information Recusal Review – Sean Burton

Item 9 Information

Recusal Review – Sean Burton

Executive Summary: This item presents a recusal review under Charter § 707 regarding Sean Burton, President of the Board of Airport Commissioners.

Recommended Action: This item is for informational purposes only.

Authors: David Tristan, Executive Director Heather Holt, Deputy Executive Director Tyler Joseph, Director of Policy

Presenter: Tyler Joseph, Director of Policy

Ethics Commission February 16, 2021

Recusal Review – Sean Burton

A. Introduction

Members of City boards and commissions are required to complete and submit a recusal notification form (Form 51) each time they recuse themselves due to an actual or apparent conflict of interests. Los Angeles Municipal Code (LAMC) § 49.5.6(D). When a board or commission member submits a threshold number of recusal forms in a 365-day period, the Ethics Commission is required to review the recusals and determine whether the member has a significant and continuing conflict of interests. Los Angeles City Charter (Charter) § 707.

This item discusses the recusals of Mr. Sean Burton, the president of the Los Angeles Board of Airport Commissioners (Airport Commission). President Burton has been cooperative with staff throughout the review process, received a copy of this report, and declined to submit written comment.

B. Recusal Requirement

Under Charter § 707, the Ethics Commission is required to “examine the nature and extent” of a board or commission member’s conflicts of interests whenever the member is disqualified in a 365-day period from acting on either of the following:

1. Three or more agenda items, because of the same investment in a business entity, the same interest in real property, or the same source of income; or

2. One percent or more of all items pending before the commission, because of any investments in business entities, interests in real property, or sources of income.

In conducting its examination, the Ethics Commission must determine whether the commissioner has a “significant and continuing” financial conflict of interests. If the Ethics Commission determines that the conflict is significant and continuing, it must order divestment of the interest that causes the conflict. Charter § 707.

When a board or commission member is disqualified from acting on a matter because of an actual or apparent conflict of interests, the member is required to complete a Form 51 and submit copies to the Mayor’s office, the City Attorney’s office, the Ethics Commission, and the executive secretary for the commission on which the member serves. Each of the Form 51s submitted by President Burton during the review period are provided in Attachment C.

Item 9 Ethics Commission 1 of 2 February 16, 2021 C. Facts

President Burton has served on the Airport Commission since January 2008, and was first elected president on September 17, 2013. He was most recently reappointed on May 25, 2020, and his current term will expire on June 30, 2025. As a result of his service on the Airport Commission, President Burton is required to file statements of economic interests (SEIs), including the state’s Form 700 and the City’s Form 60. Copies of his SEIs for the relevant period are provided in Attachment B. The financial disclosure categories required for members of the Airport Commission are identified in Attachment A.

President Burton has been the subject of two prior recusal reviews, in June 2015 and October 2019, both of which were presented for informational purposes only. Those reviews resulted from President Burton’s position as president of Cityview, a residential developer and investment management firm that does business with the City. A copy of the previous recusal review reports are provided in Attachment D and are also available online.

President Burton recused himself from three matters between November 7, 2019, and November 7, 2020. One of those recusals was due to a conflict involving President Burton’s interest in Cityview, which had a business relationship with one of the parties authorized to provide letters of credit for the Los Angeles International Airport Commercial Paper Program.

The other two recusals occurred because President Burton’s father-in-law holds an interest in a firm that was involved in two Airport Commission items concerning revenue bonds. Those items authorized the issuance of a new series of bonds and established a pool of investment banks to provide banking and transactional services, and to participate in future bond issuances. Although neither President Burton nor his wife hold an interest in the firm, he recused himself out of an abundance of caution to avoid a perceived conflict of interests.

D. Analysis

President Burton recused himself from participating in one item because of his financial interest in Cityview and from two items because of his father-in-law’s interest in an underwriting firm. Charter § 707 limits only financial conflicts of interests, and just one of President Burton’s recusals during the review period resulted from a financial interest. Therefore, although a review was triggered, a determination regarding whether President Burton has a financial interest that creates a significant and continuing conflict is not currently necessary or permitted under Charter § 707.

Attachments:

A Financial interests President Burton must disclose. B President Burton’s SEIs. C President Burton’s Form 51s. D Recusal review reports dated June 2015 and October 2019, without attachments.

Item 9 Ethics Commission 2 of 2 February 16, 2021 Item 9—Attachment A Ethics Commission 1 of 10 February 16, 2021 Item 9—Attachment A Ethics Commission 2 of 10 February 16, 2021 Item 9—Attachment A Ethics Commission 3 of 10 February 16, 2021 Item 9—Attachment A Ethics Commission 4 of 10 February 16, 2021 Item 9—Attachment A Ethics Commission 5 of 10 February 16, 2021 LOS ANGELES WORLD AIRPORTS CONFLICT OF INTEREST CODE -SCHEDULE B List of Designated Financial Disclosure Filing Positions

General Provision A designated employee is required to disclose that he or she is a director, officer, partner, trustee, employee, or holds any position of management in a business entity if he or she would be required to disclose income from that entity. Income includes loans and gifts.

Category 1 Any investment or income from any person or business entity which supplied within the preceding completed fiscal year goods or services valued at $1,000 or more to the Department of Airports, or is or was during the past 12 months a tenant or subtenant of the Department of Airports, or is or was during the past 12 months a party to a legal proceeding (whether administrative or judicial) involving the Department of Airports, or is or was during the past 12 months a competitor of any person or business entity described above with respect to their dealings concerning the Department of Airports.

Any interest in real property located on or within two miles of the boundaries of any land owned or used by the Department of Airports of the City of Los Angeles, or land jointly held with any of its tenants and concessionaires, or their agents or trusts.

Category2 Any investment in or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide environmental consulting service valued at $1,000 or more for the Department of Airports.

Any investment in or income from any person or business entity which during the past 12 months used or proposed to use property owned or used by the Department of Airports.

Any investment in or income from any person or business entity which during the preceding completed calendar year was or proposed to be engaged in construction, maintenance or information technology services valued at $1,000 or more for the Department of Airports as a contractor or subcontractor or any direct competitor of such person or business entity.

Any interest in real property which is within the jurisdiction.

Item 9—Attachment A Ethics Commission 6 of 10 February 16, 2021 Category 3 Any investment in or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide accounting services including investment counseling or financial auditing services valued at $1,000 or more for the Department of Airports.

Any investment in or income from any person or business entity which during the past 12 months used property owned or used by the Department of Airports.

Category4 Any investment in or income from any person or business entity which sells, leases, rents, or manages property, makes appraisals and title examinations on property, or which sells or purchases land, easements, licenses or land management services valued at $1,000 or more involving property located on or within two miles of land which is owned or used by the Department of Airports.

Any interest in real property which is within the jurisdiction.

Any investment in or income from any person or business entity which during the past 12 months used or proposed to use Department of Airports property.

Category 5 Any investment in or income from any person or business entity which during the preceding completed calendar year supplied or proposed to supply materials, goods, or services valued at $1,000 or more to the Department of Airports.

Category6 Any investment or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide personal or management consulting services valued at $1,000 or more to the Department of Airports.

Income from any individual who is currently employed, seeking employment, or during the preceding completed calendar year sought employment with the Department of Airports.

Category7 Any investment in or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide services valued at $1,000 or more involving the design, construction or maintenance or facilities for the ·Department of Airports.

Item 9—Attachment A Ethics Commission 7 of 10 February 16, 2021 Any investment in or income from any person or business entity which during the preceding completed calendar year was or proposed to be engaged in construction or maintenance services valued at $1 ,000 or more of facilities on land owned or used by the Department of Airports as a contractor or subcontractor or any direct competitor of such person or business entity.

Any investment in or income from any person or business entity which during the past 12 months used or proposed to use property owned or used by the Department of Airports.

Any interest in real property which is located on or within two miles of land owned or used by the Department of Airports.

Any investment in or income from any person or business entity which during the preceding completed calendar year supplied or manufactured or proposed to supply or manufacture materials valued at $1,000 or more for the use in construction or maintenance of facilities on land owned or used by the Department of Airports.

Category8 Any investment in or income from any person or business entity which during the preceding completed calendar year was engaged in the construction or maintenance valued at $1 ,000 or more of facilities which is on land owned or used by the Deaprtment of Airports as a contractor or subcontractor or any direct competitor of such person or business entity.

Any investment in or income from any person or business entity which during the past 12 months used property owned or used by the Department of Airports.

Any investment in or income from any person or business which during the preceding competed calendar year supplied or manufactured or proposed to supply or manufacture materials valued at $1,000 or more for the use in construction or maintenance of facilities on land owned or used by the Department of Airports which are normally used in the occupational areas supervised or directed by the designated employee.

Any investment in or income from any person or business entity which during the preceding completed calendar year was engaged in the business of shipping or providing shipping related services valued at $1 ,000 or more for goods which are or were transported through land owned or used by the Department of Airports.

Category 9 Any investment in or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide consulting

Item 9—Attachment A Ethics Commission 8 of 10 February 16, 2021 services valued at $1,000 or more involving plands for use or property owned or used by the Department of Airports.

Any investment in or income from any person or business entity which during the past 12 months used or proposed to use property owned or used by the Department of Airports.

Any investment in or income from any person or business entity which during the preceding completed calendar year was or proposed to be engaged in the construction or maintenance valued at $1,000 or more of facilities within land owned or used by the Department of Airports as a contractor or subcontractor or any direct competitor of such person or business entity.

Any interest in real property which is within the jurisdiction.

Category 10 Any investment in or income from any person or business entity which during the past 12 months provided or proposed to provide secrity services valued at $1 ,000 or more for property owned or used by the Department of Airports.

Any investment in or income from any person or business entity which during the preceding completed calendar year was engaged in the business of shipping or providing shipping related services valued at $1 ,000 or more for goods or passengers which are or were transported through land owned or used by the Department of Airports.

Category 11 Any investment in or income from any person or business entity which during the preceding completed calendar year was or proposed to be engaged in the business of shipping or providing shipping related services valued at $1,000 or more for goods or passengers which are or were transported through property owned or used by the Department of Airports. ··

Category 12 Any investment in or income from any person or business entity which during the preceding completed calendar year supplied or proposed to supply information technology goods or services valued at $1 ,000 or more to the Department of Airports.

Category 13 Any investment in or income from any person or business entity which during the preceding completed calendar year provided or proposed to provide contracts or

Item 9—Attachment A Ethics Commission 9 of 10 February 16, 2021 Item 9—Attachment A Ethics Commission 10 of 10 February 16, 2021 Filed Date: 03/02/2020 02:57 PM SAN: 011300006-STH-0006

Ethics Commission 200 N Spring Street City Hall — 24th Floor Los Angeles, CA 90012 (213) 978-1960 ethics.lacity.org

Elected City officials, general managers and chief administrative officers of City agencies, members of City boards and commissions, and individuals nominated to positions subject to City Council approval must file this form in conjunction with the state Form 700. Please refer to the attached instructions for additional information.  1  Original Filing  Amended Filing (original filed on ____/____/20____) Total Pages: _____

Name: (Last, First, Middle) Burton, Sean O Agency: Airports, LA World Position: Commissioner

Phone: Email:

Type of Statement:  Pre-confirmation Date of nomination: ____ / ____ / 20____

 Assuming Office First day in position: ____ / ____ / 20____

 Annual ____01 / ____01 / 20____19 through December 31, 20____19

 Leaving Office Last day in office: ____ / ____ / 20____

I had the following interests associated with restricted sources during this reporting period:

 1. REAL PROPERTY — section attached. Interests in real property leased from or to, co-owned by, purchased from, or sold to a restricted source.

 2. INVESTMENTS — section attached. Investments (other than real property) co-owned by, purchased from, or sold to a restricted source.

 3. INCOME — section attached. Income received from a restricted source.

 4. GIFTS — section attached. Gifts, cumulatively valued at $50 or more, received from a restricted source.

 5. BOARD POSITIONS — section attached. Positions held on the board of a restricted source.

- Or -

 6. NO INTERESTS I had no interests in real property, investments, income, gifts, or board positions associated with restricted sources during this reporting period.

Certification

I declare under penalty of perjury under the laws of the City of Los Angeles and the state of California that I have read the instructions for this form and the information I have provided is true and complete.

03/02/2020 02:57 PM Date Signature

January 2016 Los Angeles Municipal Code §§ 49.5.2, 49.5.9, 49.5.10

Item 9—Attachment B Ethics Commission 1 of 2 February 16, 2021 Statement of Economic Interests Date Initial Filing Received CALIFORNIA FORM700 Filing Official Use Only Fair Political Practices Commission Cover Page Filed Date: 03/02/2020 02:56 PM SAN: 011300006-STH-0006 Please type or print in ink. A Public Document Name of FileR (Last) (First) (Middle) Burton Sean O 1. Office, Agency, or Court Agency Name (Do not use acronyms) Airports, LA World Division, board, Department, District, if applicable Your Position Commissioner

► If filing for multiple positions, list below or on an attachment. (Do not use acronyms)

Agency: Position:

2. Jurisdiction of Office (Check at least one box) State Judge, Retired Judge, Pro Tem Judge, or Court Commissioner (Statewide Jurisdiction) (Statewide Jurisdiction) Multi-County County of City of Los Angeles Other

3. Type of Statement (Check at least one box) Annual: The period covered is January 1, 2019, through Leaving Office: Date Left / / December 31, 2019. (Check one circle.) -or- The period covered is / / , through The period covered is January 1, 2019, through the date of leaving office. December 31, 2019. -or- Assuming Office: Date assumed / / The period covered is / / , through the date of leaving office. Candidate: Date of Election and office sought, if different than Part 1:

4. Schedule Summary (must complete) ► Total number of pages including this cover page: 1 Schedules attached

Schedule A-1 - Investments – schedule attached Schedule C - Income, Loans, & Business Positions – schedule attached Schedule A-2 - Investments – schedule attached Schedule D - Income – Gifts – schedule attached Schedule B - Real Property – schedule attached Schedule E - Income – Gifts – Travel Payments – schedule attached

-or- None - No reportable interests on any schedule 5. Verification Mailing Address street ity State Zip Code (Business or Agency Address Recommended - Public Document)

Daytime telephone number Email address

I have used all reasonable diligence in preparing this statement. I have reviewed this statement and to the best of my knowledge the information contained herein and in any attached schedules is true and complete. I acknowledge this is a public document. I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

03/02/2020 02:56 PM Date Signed Signature (month, day, year) (File the originally signed paper statement with your filing official.)

FPPC Form 700 - Cover Page (2019/2020) [email protected] • 866-275-3772 • www.fppc.ca.gov Page - 5

Item 9—Attachment B Ethics Commission 2 of 2 February 16, 2021 Item 9—Attachment C Ethics Commission 1 of 3 February 16, 2021 Item 9—Attachment C Ethics Commission 2 of 3 February 16, 2021 Item 9—Attachment C Ethics Commission 3 of 3 February 16, 2021

Recusal Review – Sean Burton

A. Introduction

Members of City boards and commissions are required to complete and submit a recusal notification form (Form 51) each time they recuse themselves from participating in a matter due to an actual or apparent conflict of interests. Los Angeles Municipal Code (LAMC) § 49.5.6(D). When a board or commission member submits a threshold number of recusal forms in a 365-day period, the Ethics Commission is required to review the recusals and determine whether the member has a significant and continuing conflict of interests. Los Angeles City Charter (Charter) § 707.

This memo discusses the recusals of Sean Burton, president of the Board of Los Angeles Airport Commissioners (Airport Commission). Because the recusals in this review are not the result of a conflict with any of Commissioner Burton’s financial interests, this item is for informational purposes only. Commissioner Burton has been notified of this review and informed that he may provide comment to the Ethics Commission in person, in writing, or both. He has been cooperative throughout the process and has not provided a written response to this review.

B. Facts

Commissioner Burton has been a member of the Airport Commission since August 28, 2013. On April 23, 2015, he was reconfirmed for a term that will expire on June 30, 2020. Because of his role as a commissioner, he is a public official under state law and is required to disclose certain personal financial interests by filing the California Statement of Economic Interests (Form 700). The Form 700 that Commissioner Burton filed during the period of this review is provided in Attachment A.

Commissioner Burton is also president of Cityview, a developer and investment management firm that does business in the City. Members of the Airport Commission are required to disclose on their Form 700s investments in or income from interests that do business with the Los Angeles World Airports (LAWA) and interests in real property located within two miles of a LAWA facility. Commissioner Burton’s interest in Cityview does not meet this requirement and is not required to be reported on his Form 700s.

On three occasions between April 16, 2014, and April 15, 2015, the period covered by this review, Commissioner Burton recused himself from participating in matters that affected Wells Fargo Bank NA (Wells Fargo), and the Lee Andrews Group (Lee Andrews), both of which have done business with Cityview. The Form 51s that Commissioner Burton filed during the review period are provided in Attachment B.

Item 9—Attachment D Ethics Commission 1 of 4 February 16, 2021 The City Attorney advised Commissioner Burton that none of the matters affecting Wells Fargo or Lee Andrews presented an actual or apparent financial conflict of interests for him, and the recusals were not mandatory under City or state law. Commissioner Burton stated that he recused himself anyway, out of an abundance of caution.

C. Analysis

The Ethics Commission is required to “examine the nature and extent” of a commissioner’s conflicts whenever the commissioner makes a threshold number of recusals in a 365-day period. Charter § 707. In conducting its examination, the Ethics Commission must determine whether the commissioner has a “significant and continuing” conflict of interests based on a financial interest. Id. If the Ethics Commission determines that the conflict is significant and continuing, it must order divestment of the financial interest that causes the conflict. Id.

Commissioner Burton submitted three Form 51s and, therefore, met the threshold that triggered a recusal review. However, as noted above, none of the recusals resulted from a conflict with a financial interest of Commissioner Burton’s. All three recusals were voluntary and done in an abundance of caution.

Because Charter § 707 limits only financial conflicts of interests, a determination regarding whether Commissioner Burton has a significant and continuing conflict of interests is not necessary or proper at this time. We continue to monitor commissioner recusals and will conduct another review if one becomes necessary in the future.

Attachments: A Commissioner Burton’s Form 700 for the review period. B Commissioner Burton’s Form 51s for the review period.

Item 9—Attachment D Ethics Commission 2 of 4 February 16, 2021

Recusal Review – Sean Burton

A. Introduction

This item discusses the recusals of Mr. Sean Burton, President of the Los Angeles Board of Airport Commissioners (Airport Commission). President Burton has been cooperative with staff throughout the review process. He received a copy of this report and declined to submit written comment.

B. Recusal Requirement

1. Three or more agenda items, because of the same investment in a business entity, the same interest in real property, or the same source of income; or

2. One percent or more of all items pending before the commission, because of any investments in business entities, interests in real property, or sources of income.

Item 9—Attachment D Ethics Commission 3 of 4 February 16, 2021 C. Facts

President Burton has served on the Airport Commission since January 2008, and was first elected President on September 17, 2013. He was most recently reappointed on April 1, 2015, and his current term will expire on June 30, 2020. As a result of his service on the Airport Commission, President Burton is required to file statements of economic interests (SEIs), including the state’s Form 700 and the City’s Form 60. Copies of his SEIs for the relevant period are provided in Attachment B. The financial disclosure categories required for members of the Airport Commission are identified in Attachment A.

President Burton has been the subject of one prior recusal review, in June 2015, resulting from his position as president of Cityview, a residential developer and investment management firm that does business with the City. A copy of the previous recusal review report is provided in Attachment D and is also available online.

President Burton recused himself from three matters between June 14, 2018, and June 14, 2019. One of those recusals was due to a conflict involving President Burton’s interest in Cityview, which had a business relationship with one of the parties competing for an airport development project.

The other two recusals resulted because President Burton’s father-in-law holds an interest in a firm that was involved in two Airport Commission items concerning revenue bonds. Although neither President Burton nor his wife hold an interest in the firm, he recused himself out of an abundance of caution to avoid a perceived conflict of interests.

D. Analysis

Attachments:

A Financial interests President Burton must disclose. B President Burton’s SEIs. C President Burton’s Form 51s. D Recusal review report June 2015.

Item 9—Attachment D Ethics Commission 4 of 4 February 16, 2021