San Francisco. CA – Today Mayor London N. Breed and City Attorney David Chiu announced new Good Government Reforms targeting the City’s contracting process and partners. These reforms include both new Contract Reform legislation and an Executive Directive to city departments to strengthen internal contracting processes. The legislation is co-sponsored by Supervisor Catherine Stefani.
The Comprehensive Contract Reform legislation will:
- Provide additional oversight, accountability, transparency and controls on City contractors and grantees.
- Ensure that public funds are awarded fairly and managed effectively.
- Protect public funds from being misused for improper purposes such as political activity or lobbying City officials.
The Executive Directive 24-04 will work to meet similar goals by directing Departments and staff on how to implement new laws and strengthen oversight under existing laws, standardizing practices across departments, providing fair processes for selecting grantees, guiding departments in monitoring grantee performance, and retaining records to allow for effective audits and investigations.
“Misconduct from those that would wrongfully take advantage of City resources has not been tolerated during my administration, and these new efforts expand on this commitment,” said Mayor London Breed. “With the City Attorney’s Office and the Controller’s Office we have investigated such activity and have acted swiftly and decisively to bring to account bad actors through enforcing existing laws and regulations and creating new and stricter rules to prevent such abuses. Now, we are putting stronger protections in place and expanding the guidance of our Departments to strengthen the public trust and improve accountability in how our government operates.”
“Those who undermine our contracting processes and exploit public resources are not welcome to do business with our City and will be held accountable,” said City Attorney David Chiu. “I am proud of our attorneys and investigators who have worked diligently to root out corruption and maintain the integrity of City government. We appreciate the collaboration with the Mayor’s Office and Controller’s Office on continuing reforms to prevent fraud and the abuse of City resources.”
“San Franciscans deserve a city government that responsibly manages their tax dollars and ensures that city services are delivered effectively and reliably,” said Supervisor Catherine Stefani. “I'm proud to have authored key reforms to our nonprofit contracting system, codified fair and transparent grant processes, and to now stand with Mayor Breed in advancing these additional good governance policies. This Executive Directive is a crucial step toward restoring and strengthening the public’s trust in our city government.”
More on the Mayor’s Good Government Contract Reform & Executive Directive:
The Good Government Contracting Reform legislation will be introduced at the Board of Supervisors meeting on Tuesday September 10. The legislation sets out the following requirements:
- Prevent City contractors from using City funds for political activities by requiring them 1) to keep separate accounts for such activities; 2) keep strict boundaries around staff time, resources and facilities used for such activities; and 3) require disclosure of shared management and programs with political organizations.
- Bar businesses and nonprofits from receiving contracts or grants if they go outside of the City’s strict competitive solicitation processes in order to try to obtain a contract or grant.
- Prohibit City contractors from using City funds to pay for certain activities, including lobbying of City officials or advertising, media relations or public outreach for the purpose of influencing City officials on legislative or administrative actions.
- Prohibit City contractors from using City funds to affirmatively litigate against the City and allow the City to take steps to bar future contracts for entities that do so.
The Mayor’s Executive Directive is effective Tuesday September 3rd. It will ensure that Departments are following new and existing rules, so that all employees have the training and support to meet the goals of the city’s enhanced contracting processes. This includes ensuring:
- Compliance with the Controller’s updated contracting standards
- Documentation of all procedures so contractors understand these rules
- Adherence to advance payments policies and practices
- Enhanced screening for any conflicts of interest
- Strengthen sole source contracting procedures
- Improved record-keeping and records retention policies
- Stronger guidance and tracking of fiscal sponsorships
Read Mayor Breed’s Executive Directive here.
These efforts announced today build on the work Mayor Breed has done since taking office to reform ethics abuses and create stronger guardrails to ensure transparency, oversight and accountability in the institutions of City government. Since taking office, Mayor Breed has overseen major ethics and good government reforms to prevent actual or perceived conflicts of interest, pay-to-play arrangements and undue influence, and protect against corruption.
These efforts, which have taken the form of legislation, ballot measures, executive directives and administrative actions, include:
- Implementing over 60 good government reforms recommended by the City Controller and City Attorney as part of their multi-year Public Integrity Review
- Issuing five previous Executive Directives to change administrative policies to increase transparency and accountability
- Appointing good government leaders like Carmen Chu to serve as City Administrator and former City Attorney Dennis Herrera to serve as General Manager of the Public Utilities Commission, to bring leadership to our departments.
- Supporting and signing seven laws to ensure fairness and transparency in city contracting and non-profit compliance, and to prevent undue influence and favoritism
- Authoring and passing a ballot measure to reform our Waste Management Rate setting process to be more transparent and better serve the public
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