Oakland Public Ethics Commission Regular Meeting – December 3, 2018

The Oakland Public Ethics Commission (PEC) held its regular meeting on Monday, December 3, 2018, from 6:30 p.m. to 7:33 p.m. in Hearing Room 1 at City Hall. All seven commissioners were present. The meeting covered campaign finance compliance follow-up, the Limited Public Financing Program, subcommittee reports, and routine informational updates.

Consent Calendar

• Approval of November 5, 2018, Meeting Minutes: The minutes were initially approved 7-0, then recalled for public comment after a procedural oversight. After two re‑votes, the minutes were approved 6-0 with Commissioner Butler abstaining (she was not a commissioner at the November 5 meeting). Chair Stein clarified that while the minutes accurately reported 13 applications for a vacancy, the total later grew to about 20–21 after discovering additional applications through the Mayor’s Office online system.

Public Comments & Testimony

• Ralph Cannes (open forum): Criticized the PEC’s handling of his Public Records Act complaint, stating it had been pending over two years without investigation. He argued that the mediation process for Sunshine Ordinance matters is flawed and that the Commission should investigate rather than dismiss.
• Ralph Cannes (Campaign Finance Compliance): Objected that the Libby Schaaf committee had accepted excess contributions in 2014 and again in 2018, questioning why no penalty was imposed beyond disgorgement and a warning letter.
• Kent Lewandowski (District 2 resident, on Limited Public Financing): Asked why candidates with large war chests can still access public funds, suggesting it may be a wasteful use of resources when the amounts are small relative to total spending.
• Ralph Cannes (Limited Public Financing): Argued for lifting contribution limits in light of independent expenditures, and stressed the need for better disclosure of who is funding independent committees.
• Ralph Cannes (Disclosure Program): Alleged that lobbyists rarely report solicited contributions, and urged the Commission to connect data across lobbyists, clients, and contributions to reveal who truly influences the city.
• David Rowe (Disclosure Program): Suggested placing key findings (e.g., top lobbyist clients) on the PEC homepage for easier public access.

Discussion Items

• Campaign Finance Compliance for the November 2018 Election – Follow‑Up Report: Staff (Investigator Simon Russell) presented a follow‑up to the October compliance report. Due to a clerical error, one contributor—Michael Stephens—was omitted from the original list. Stephens made two $800 contributions to the Libby Schaaf for Mayor 2018 committee ($1,600 total, exceeding the $800 individual limit). The committee voluntarily forfeited the $800 overage to the City’s general fund. Mitigating factors included timely and accurate reporting by the committee and no evidence of intent to conceal. The Commission approved a motion to send a warning letter to Mr. Stephens (motion passed 6-0).

• Limited Public Financing (LPF) Program Implementation 2018: Staff provided an overview of the program for the November 2018 election. Key statistics: total available funds $183,459; 12 of 15 certified City Council candidates opted in; 10 candidates ultimately received reimbursements totaling $176,489 (96% of funds). The two‑phase distribution process allowed redistribution of funds from ineligible candidates, increasing each eligible candidate’s maximum from $15,288 to $18,345. Demographic data was collected for the first time: 5 male, 5 female participants; ethnicity and income breakdowns were presented. Commissioner Kong asked about a candidate who dropped out after receiving funds—staff noted funds are reimbursements for actual expenditures, and leftover funds are returned proportionally.

• Subcommittee Reports:

  • Campaign Finance Subcommittee: Chair Stein reported he is working with Executive Director Barazoto on a comprehensive analysis of Oakland’s campaign laws and public financing effectiveness, informed by extensive public surveys.
  • Education and Outreach Subcommittee: Chair Nishioka praised staff for outstanding candidate outreach during the election.
  • Complaint Procedures Subcommittee: Commissioners Smith and Nishioka have a draft revision in process and expect to bring it for discussion at the January 2019 meeting. Ralph Cannes urged a separate public hearing before the full commission review.
  • Penalty Guidelines Subcommittee: Completed its work; disbanded by Chair Stein.
  • Ticket Policy Guidance Subcommittee: Chair Stein noted that previous subcommittee recommendations were referred to the Complaint Procedures Subcommittee for integration; further clarification on status awaits Director Barazoto’s return.
  • Commissioner Recruitment Subcommittee: Commissioner Crowfoot reported interviewing about 21 applicants (13 direct, plus additional from the Mayor’s Board and Commissions portal). Finalists will be publicly interviewed at the January meeting to fill Commissioner Nishioka’s seat.

• Disclosure Program: Lead Analyst Suzanne Doran presented the report. Highlights: All 56 pre‑election campaign statements were filed on time; 66 late contribution reports and 51 late independent expenditure reports were reviewed, with $1,030 in late fees assessed. Lobbyist disclosure: 43 Q3 reports filed, $392,380 in economic consideration reported ($1,610,298 for the year). Top two clients: Harborside ($270,000) and Airbnb ($150,000). Greater reporting standardization is needed. Open Disclosure (opendisclosure.io) saw 1,833 users generating 3,010 sessions from Sept 1 to Nov 6; pageviews increased 40% over 2016. Commissioners discussed the difficulty of accessing lobbyist data (PDF only) and the need for e‑filing to enable better transparency.

• Education and Engagement Program: Report noted 388 advice requests in 2018 (vs. 251 in 2017), LPF administration, and ongoing ethics training for new employees (35 trained Nov 20). Commissioners asked about tracking of mandatory ethics training for all city officials and staff; challenges remain in integrating with city HR systems.

• Enforcement Program: Report listed status changes: several cases (involving Brooks, Schaaf, Guillen) closed with disgorgement letters and warning letters. A dismissal letter for Case No. 17‑17 (complaint against Councilmember Gibson McElhaney and City Attorney Parker) was attached, but Chair Stein announced that this case has been re‑opened for further review. Commissioner Crowfoot requested reinstatement of bar‑chart updates showing caseload trends.

• Executive Director’s Report: The Commission accepted the report. Chair Stein thanked outgoing Deputy Director/Enforcement Chief Milad Dalju (resigned Nov 6) and noted that recruitment for his replacement is open with a Dec 21 deadline.

Key Outcomes

• Approval of Minutes: November 5, 2018, regular meeting minutes approved 6-0 (Butler abstaining).
• Warning Letter Authorized: For Michael Stephens (over‑the‑limit contributor to Libby Schaaf for Mayor 2018), consistent with prior resolutions. Motion passed 6-0.
• Penalty Guidelines Subcommittee Disbanded.
• Case 17-17 Re‑opened: Staff will conduct further investigation.
• Recruitment of New Enforcement Chief: Deadline Dec 21, 2018.
• Subcommittee Direction: Complaint Procedures revision to be presented at January 2019 meeting; Ticket Policy Guidance status to be clarified with Director Barazoto.
• Future Focus: Continued analysis of campaign finance laws and public financing reform, with a report anticipated in early 2019.