Oakland Public Ethics Commission Meeting – September 12, 2018

The Oakland Public Ethics Commission met on September 12, 2018 (originally scheduled for September 11 but moved due to holidays). The meeting covered three major enforcement actions: a proposed fine against Councilmember Lynette Gibson McElhaney for ethics violations, and two investigations into city ticket use by McElhaney and Mayor Libby Schaaf. After extensive public testimony, the Commission adopted the findings of the administrative law judge but reduced the penalty for McElhaney, and suspended action on the ticket cases pending policy guidance.

Consent Calendar

• Approval of Minutes: The Commission unanimously approved the draft minutes from the July 30, 2018, regular meeting and the August 23, 2018, special meeting (6-0 vote).

Public Comments & Testimony

• McElhaney Case (Item 6): 48 speakers addressed the Commission. The majority spoke in support of Councilmember McElhaney, characterizing her actions as a good-faith effort to protect the historic character of her West Oakland neighborhood and assist constituents. Speakers included constituents, professional planners, architects, and former city officials. Several argued that the proposed $8,625 fine was excessive and that the case should be a teaching moment rather than a punitive action. A few speakers criticized the use of city tickets for personal benefit.
• Ticket Cases (Items 7 & 8): 7 speakers addressed the McElhaney ticket case and 2 addressed the Mayor’s case. Speakers raised concerns about the high volume and value of tickets used by officials and questioned whether the stated public purposes were genuine. Staff member Bridget Cook explained that the ticket values were inflated and that McElhaney used games for networking and facility oversight.

Discussion Items

• In the Matter of Lynette Gibson McElhaney (Case 15-07): The Commission considered the administrative law judge’s proposed decision finding three violations of the Oakland Government Ethics Act: accepting gifts over $50 from a restricted source, voting on a contract with that source, and failing to disclose the gifts. Staff recommended adopting the proposed $8,625 penalty. The councilmember’s attorney argued the services were not a gift and that the fine was unprecedented. After deliberation, the Commission voted to adopt the findings but reduce the penalty to $2,550, citing mitigating factors including the short time between the law’s effective date and the violations, lack of clear training, and the councilmember’s strong community support. (Note: The official minutes record the reduced fine as $2,250, but the transcript shows the final motion as $2,550.)
• In the Matter of Lynette Gibson McElhaney – City Tickets (Case 16-08(c)): Staff summarized an investigation into McElhaney’s use of 695 sets of city tickets between January 2015 and September 2016. Staff found no violation of the misuse of public resources law because tickets were distributed per the City Ticket Policy. However, 18% of tickets were reported late and 3% were reported only after staff inquiry. Commissioners expressed concerns about the lack of documentation proving public purposes and the large volume of tickets. The item was suspended pending development of advisory guidance.
• In the Matter of Mayor Libby Schaaf – City Tickets (Case 16-08(i)): Staff summarized Mayor Schaaf’s use of 176 sets of city tickets, with 91% reported timely. No violations were found. The Commission similarly suspended this item pending policy guidance.

Other Discussion

• Subcommittee Reports: The Campaign Finance Subcommittee is analyzing survey data on public financing. The Education and Outreach Subcommittee reported successful tabling at the Oakland Museum. The Complaint Procedures and Penalty Guidelines Subcommittees are developing revisions.
• Commissioner Recruitment: The Commission is seeking applicants for one PEC-appointed vacancy beginning January 2019.

Key Outcomes

• McElhaney Case: The Commission adopted the findings of the administrative law judge that Councilmember McElhaney committed three ethics violations. It imposed a total administrative penalty of $2,550 (reduced from $8,625) and indicated interest in working with the councilmember on future education efforts.
• City Ticket Investigations: The Commission suspended action on both ticket cases (McElhaney and Schaaf) and created an ad hoc Ticket Policy Subcommittee (Commissioners Kong and Jackson) to develop enforceable standards for the use of city tickets. The subcommittee will report back at a future meeting.
• Future Meetings: The Commission will continue its policy discussions and bring the ticket cases back for action after the subcommittee provides guidance.

The meeting adjourned at 11:48 p.m.