No Conflict of Interest in Sheridan’s Dealings, Outside Attorney Finds

An outside attorney hired by the city reported Tuesday that Councilwoman Sally Anne Sheridan did nothing improper when her real estate firm sold a home to the city attorney four months after she voted on his contract.

San Francisco attorney Joe Remcho told the City Council that the business transaction between City Att. Roger Grable and Sheridan’s firm was legitimate because escrow on the home did not close until April 13. Sheridan had voted on his contract four months before, on Dec. 12, 1989.

According to Remcho, there is no conflict because Sheridan and Grable’s business relationship occurred before any vote. According to the state Political Reform Act, Sheridan now must abstain from decisions involving Grable and his law firm, Rutan & Tucker, for 12 months after the April 13 escrow date.

“I was vindicated,” said Sheridan, who is involved in a bitter mayoral campaign against incumbent Mayor Larry Agran in the June 5 election. “I want to stop the issues in this witch-hunt and get on with the campaign.”

Sheridan and her husband, Donald Sheridan, have been partners in ReMax Realty of Irvine since 1984. In addition to the Grable deal, the council on Tuesday also discussed Sheridan’s business dealings with other city employees.

Councilman Edward A. Dornan, who first raised the issue of Sheridan’s business dealings, said he still is not convinced that Sheridan did not violate conflict of interest laws.

He cited her business dealings with City Manager Paul Brady Jr. and other city department heads, including some who have left City Hall.

According to a list compiled by Brady at the council’s request, the Sheridans have bought and sold homes for 20 to 25 city employees since Sheridan’s election to the council in 1984.

The Brady transaction occurred in June, 1988, when Donald Sheridan represented Brady in the sale of one home and the purchase of another.

Dornan claims this incident is in conflict with the councilwoman’s March, 1989, vote to hire Brady as the new city manager. Brady had been assistant city manager.

Sheridan said Tuesday that she received no commission from her husband’s transactions with Brady. Although they are married and are business partners, she said, their financial interests are kept separate.

“We resent this entire matter and deplore the attempt to make city staff an issue during this election,” Brady said Tuesday in a prepared statement.

In explaining the law, Remcho stated: “Public officials must avoid placing themselves in a position in which their personal interest may come in conflict with their duty to the public.”