Board delays action on $1.7M settlement tied to alleged contract gifts; orders closed session briefing

The Board of Supervisors on July 27 continued a proposed resolution to approve settlement payments totaling about $1.7 million from the Wong parties and directed that the matter return to closed session for a briefing by the City Attorney’s Office. The settlement, brought to the board without committee recommendation, involves allegations that the Wong parties provided gifts to city officials in connection with unlawful contract awards and failed to report city contracts and campaign contributions as required under city law.

Supervisor Aaron Peskin, who raised objections to the settlement in committee, led calls for a closed‑session briefing and said the five‑year debarment included in the proposed settlement was inadequate. “I do not think that five years of debarment in the context of a settlement is appropriate,” Peskin said on the floor, urging lifetime debarment for wrongdoing of the alleged scope. Deputy City Attorney Anne Pearson told the board that local law currently allows for a maximum five‑year disbarment, a limit supervisors said they wanted to review.

Several supervisors asked for a broader closed‑session discussion to learn more about the city attorney’s ongoing investigation into the Department of Building Inspection, noting news reporting alleging embedded staff access and special treatment for certain private parties. Supervisor Ronan said she wanted to know whether supervisors needed legislation or further procedural actions to receive a closed‑session briefing on the broader investigation. Deputy City Attorney Pearson said that briefing might be appropriate under the litigation exception but that specifics would need to be worked out to determine what could be disclosed.

Supervisor Peskin moved and Supervisor Ronan seconded a motion to continue the settlement to a closed session on Sept. 14 so the full board could be briefed and consider the matter there; the board approved the continuance unanimously. The clerk recorded the motion as a continuation to closed session on September 14; supervisors asked the City Attorney’s Office to provide a privileged briefing at that time on the settlement and, to the extent possible under law, on the broader investigation. Several supervisors pressed for information about whether the settlement applied to individuals only or to corporate entities as well, and whether penalties in the settlement went beyond repayment of improperly obtained contract payments.

The board’s action keeps the settlement off the public consent calendar and requires the City Attorney to consult with supervisors about what information can be provided in closed session and whether additional legislative fixes are needed to expand local debarment authority. The board also asked for options the city could pursue if the City Attorney determined broader briefing on the DBI investigation should be provided to the board in closed session. The vote to continue to closed session was unanimous.