Oakland Public Ethics Commission Regular Meeting - January 12, 2022

The Oakland Public Ethics Commission held its first regular meeting of 2022 via teleconference on January 12, 2022, at 6:30 p.m. The meeting included the renewal of virtual meeting authorization under AB 361, election of new officers for 2022, approval of a stipulated enforcement case against former lobbyist Jason Overman, and approval of proposed amendments to the Limited Public Financing Act. Commissioners also created a new Public Records Performance Subcommittee and heard year-end reports from staff.

Public Comments & Testimony

• Ralph Kants, a member of the public, commented on issues with the City's redistricting commission, alleging that the December 13, 2021 meeting was not properly noticed (agenda not sent to subscribers) and that a vote was taken without allowing public comment. He stated he filed a complaint with the PEC on December 23, 2021, and expressed frustration that the PEC had not taken action to require the redistricting commission to cure and correct the violation. Chair MacDonald referred him to staff for follow-up.

Discussion Items

• Virtual Meetings Resolution (Item 4): The Commission reviewed Resolution 22-01, determining that conducting in-person meetings would present imminent health risks due to the ongoing COVID-19 pandemic and the Governor's state of emergency (extended to March 31, 2022). The resolution allows continued teleconference meetings under AB 361. Commissioner MacDonald noted the resolution must be renewed every 30 days. Vote: 5-0 to adopt.
• Approval of Meeting Minutes (Item 5): The Commission approved the draft minutes from the December 6, 2021 regular meeting. Vote: 5-0.
• Election of Officers (Item 6): Commissioner Arvon Perteet was nominated and elected Chair for 2022 (vote 4-0-1, with Vice Chair Yan abstaining). Commissioner Michael MacDonald was nominated and elected Vice Chair (vote 4-0-1, Vice Chair Yan abstaining). Commissioner Perteet highlighted his investigative, legal, and management background; Commissioner MacDonald expressed support for a leadership change and commitment to outreach.
• In the Matter of Jason Overman (Case No. 18-14, Item 7): Enforcement Chief Kellie Johnson presented a stipulation for a total penalty of $2,600 ($500 per count for two counts of violating the contractor contribution ban, plus $1,600 as the amount of unlawful contributions). The violation occurred in 2017 when Overman, a former City Council aide and lobbyist, made $800 contributions to Abel Guillen and Mayor Libby Schaaf while his client UrbanCore was still in the prohibited period under the Oakland Campaign Reform Act. Staff cited mitigating factors including the 2017 amendment expanding the contractor definition and Overman's cooperation. Commissioner Micik questioned whether a lower fine could apply given Overman's claimed lack of awareness; Johnson responded that his experience as a lobbyist and knowledge of the larger ban warranted the $500 per count. Vote: 5-0 to approve the stipulation.
• Proposed Amendments to Limited Public Financing Act (Item 8): Executive Director Whitney Barazoto presented two minor amendments from City Auditor recommendations: (1) extending the check deposit deadline for candidates from 3 business days to 30 calendar days; (2) deleting the requirement for mandatory post-election audits of all candidates and replacing it with discretionary audit authority for the City Auditor. Commissioner MacDonald suggested future consideration of lowering the qualification threshold (currently 5% of expenditure ceiling) and using a donor-count approach instead. The amendments were approved. Vote: 5-0.
• Subcommittee Reports and Creation (Item 9): Commissioner Perteet reported on the Enforcement Subcommittee's first meeting, which focused on background and will meet monthly. Chair MacDonald announced the creation of a Public Records Performance Subcommittee (renamed from Sunshine Review) to implement recommendations from the Spotlight on Oakland's Public Records System report. Commissioners MacDonald and Leavitt will serve; the third member appointment was deferred until new commissioners join in February/March 2022. MacDonald also suggested creating an Outreach Subcommittee at a future meeting.
• Information Items (Items 10-12): Lead Analyst Suzanne Doran presented the Disclosure and Engagement year-end report, noting 77 active campaign committees, over 300 filings processed, 3,531 in late fees, and significant data publication milestones. Enforcement Chief Johnson presented the Enforcement year-end report, highlighting the two largest fines in Commission history (fines against Harbaugh and Espinosa), the first-ever diversion agreements, and a total of 365,600 in penalties imposed in 2021. She noted 44 open cases and 14 closed cases in 2021, with a dip in complaints likely due to the pandemic. Executive Director Barazoto presented her year-end report, covering mediation program statistics (19 new mediations in 2021, 16 closed), fine collections (final payment from Colbruno case, bankruptcy plan for Harbaugh), and a tribute to outgoing Commissioners Jerett Yan and Avi Klein. Commissioner Perteet asked Deputy City Attorney Shafie about conflicts of interest if commissioners witness potential violations at other city meetings; she advised recusal if they become witnesses.

Key Outcomes

• Adopted Resolution 22-01 to continue virtual meetings under AB 361 (5-0).
• Approved the December 6, 2021 meeting minutes (5-0).
• Elected Arvon Perteet as Chair and Michael MacDonald as Vice Chair for 2022.
• Approved the stipulated penalty of $2,600 in the Jason Overman enforcement case (Case No. 18-14).
• Approved the proposed amendments to the Limited Public Financing Act (OMC Chapter 3.13) to be submitted to City Council.
• Created a Public Records Performance Subcommittee with Commissioners MacDonald and Leavitt; third member to be appointed later.
• Deferred appointment of third member to Enforcement Subcommittee until new commissioners join.
• Discussed planning for a Commission retreat in March or April 2022, possibly with a consultant.
• Commissioners and staff offered thanks to outgoing Commissioners Jerett Yan and Avi Klein for their service.