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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 February 16, 2021 4 of 10 Item 9—Attachment A Ethics Commission February 16, 2021 5 of 10 Item 9—Attachment A Ethics Commission 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. 6 of 10 Item 9—Attachment A Ethics Commission 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.
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