Oakland Public Ethics Commission Regular Meeting – January 7, 2019

The Oakland Public Ethics Commission (PEC) held its regular meeting on Monday, January 7, 2019, at 6:30 p.m. in City Hall Hearing Room 1. All seven commissioners were present. The meeting included the election of officers, selection of a new commissioner, reconsideration of warning letters for campaign contributors, subcommittee reports, and annual program updates. The commission also honored outgoing Chair Jonathan Stein and Commissioner Krisida Nishioka.

Consent Calendar

• Approval of December 3, 2018 Regular Meeting Minutes: The minutes were approved 6-0 (Commissioner Butler abstained because she was not a commissioner at that meeting) after amendments correcting redundant text and clarifying the two separate votes taken on the minutes.

Public Comments & Testimony

• Open Forum: Ralph Cannes addressed the commission regarding a public records request to the Mayor’s Office for Nextdoor posts, noting that the response required additional time. He referenced a 2007 article about former Mayor Jerry Brown destroying records and warned he would file a complaint with the PEC if the request was not fulfilled by January 15, 2019.
• New Commissioner Selection Process: A member of the public criticized the selection process, stating that the subcommittee interviews were not open to the public and urging that future processes be fully transparent.
• Agenda Item 7: No public comment was offered on the reconsideration of warning letters.

Discussion Items

• Election of Officers (2019):
  • Chair: Commissioner Jodie Smith was nominated by outgoing Chair Jonathan Stein and elected by voice vote (one abstention). Smith thanked the commission and expressed commitment to working with staff and the public.
  • Vice Chair: Commissioner James E.T. Jackson was nominated and elected by voice vote (one abstention). Jackson expressed enthusiasm for continuing the commission’s work.
• New Commissioner Selection: The recruitment subcommittee received 20 applications, interviewed 19 candidates over three evenings, and presented six finalists. Each finalist gave a four-minute statement and answered commissioner questions. Finalists were: Mark P. Cohen, Daniel Ettlinger, Kimball Lane, Nayeli Maxson, Michelle McGill, and David Roe. After a secret ballot, Nayeli Maxson received a majority of votes in the first round and was appointed to fill the commission-appointed vacancy (term begins January 22, 2019). Maxson is an attorney and former candidate for Oakland City Council District 4, with experience in policy analysis, campaign finance reform, and community engagement.
• Campaign Finance Compliance Reconsideration (Agenda Item 7): Staff recommended rescinding warning letters for four contributors based on new information:
  • Mark Tran (Desley Brooks committee): Was said to have never made the reported contributions; the committee amended its filings.
  • Scott Clifford (Cat Brooks committee): A $25 overage was attributed to him in error by the committee.
  • Katrin Wehrheim and Cassia Stepak (Cat Brooks committee): Both made contributions over the limit by $54.06 and $35.06 respectively due to unknowingly purchasing tickets as in-kind contributions; the committee self-corrected and refunded the overages before any PEC intervention. Commissioners debated whether to issue advisory letters instead of full dismissal. A motion was made to rescind warning letters for Clifford and Tran and to issue advisory letters for Wehrheim and Stepak. The motion passed by voice vote.
• Subcommittee Reports:
  • Campaign Finance Subcommittee: Awaiting a comprehensive policy report integrating public outreach findings; community organizations have expressed interest in partnering on campaign finance reform.
  • Education and Outreach Subcommittee: Praised staff efforts, especially Jelani Killings; roadshow events were highlighted.
  • Complaint Procedures Subcommittee: Completed its review; awaiting hiring of a new enforcement chief to finalize revised procedures.
  • Ticket Policy Guidance Subcommittee: Waiting for City Council to act on a revised ticket distribution policy drafted by the PEC; staff plans to proceed with regulations afterward.
  • Commissioner Recruitment Subcommittee: Dissolved after completing its work.
• Information Items (Program Reports):
  • Disclosure Program: 2018 was the first full election cycle as filing officer. Staff processed nearly 1,000 campaign filings, assessed $2,330 in late fees, and ended the year with all candidate and ballot measure committees in compliance. The Open Disclosure website had 1,808 new users generating 19,664 page views. Lobbyist filings transitioned smoothly. Staff is working on digitizing FPPC Form 803 (bested payments) and exploring e-filing.
  • Education and Engagement Program: 400 advice calls were handled (70% increase over 2017). Online ethics training for Form 700 filers was launched but only 190 employees completed it; staff plans to improve delivery. Joint trainings with the FPPC and candidate resource binders were noted. Limited Public Financing Program had 10 participants, each receiving up to $18,345.
  • Enforcement Program: A record 50 enforcement matters were initiated in 2018 (33 closed). Notable cases included the Thomas Espinosa bribery investigation (47 counts, referred to administrative hearing) and a $2,550 fine against Councilmember Lynette Gibson McElhaney. The enforcement team conducted the first comprehensive contribution limit review before the November 2018 election, obtaining $5,425 in forfeitures.
  • Executive Director’s Report: Staff requested two new positions for the FY 2019-20 budget: a Senior Investigator and an Ethics Analyst III, to address increased workload.

Key Outcomes

• Elected Officers: Jodie Smith (Chair) and James E.T. Jackson (Vice Chair) for 2019.
• Appointed Commissioner: Nayeli Maxson was selected to fill the commission-appointed vacancy.
• Warning Letter Reconsideration: For Mark Tran and Scott Clifford, warning letters rescinded and cases closed with no action. For Katrin Wehrheim and Cassia Stepak, warning letters rescinded and replaced with advisory letters; cases closed.
• Subcommittees: Recruitment subcommittee disbanded; ticket policy subcommittee to await council action; complaint procedures revision pending new enforcement chief.
• Upcoming Actions: Staff will continue budget advocacy for two new positions, pursue campaign finance reform legislation, improve behested payment disclosure, and enhance online ethics training for city employees.