Oakland Public Ethics Commission Regular Meeting – March 8, 2023

The Oakland Public Ethics Commission (PEC) held its regular in-person meeting on Wednesday, March 8, 2023, beginning at 6:30 p.m. in Hearing Room 1 at Oakland City Hall. Present were Chair Ryan Micik, Vice-Chair Charlotte Hill, and Commissioners Alea Gage, Arvon Perteet, and Vincent Steele; Commissioner Francis Upton IV joined by telephone. Staff included Acting Executive Director Suzanne Doran, Commission Analyst Ana Lara-Franco, Enforcement Chief Simon Russell, an intern, and Deputy City Attorney Trish Shafie. The agenda included approval of prior meeting minutes, subcommittee and staffing updates, Measure W implementation, disclosure and engagement, enforcement litigation activity, the Executive Director’s monthly report, and a closed session on selecting the next Executive Director.

Action Items: Meeting Minutes

• The January 11, 2023 regular meeting minutes, which had been carried over because of a quorum issue at the February 15 special meeting, were approved 4-0. Commissioners Gage and Steele abstained because they had not been seated at the January meeting.
• The February 15, 2023 special meeting minutes were approved unanimously after an amendment changed Vice-Chair Hill’s arrival time on page one from 7:46 p.m. to 7:54 p.m.

Public Comments & Testimony

• Gail Wallace introduced herself at the open forum on behalf of the BayPac coalition, and the Chair deferred her comments to the Measure W discussion so they could be addressed in context.
• During the Measure W discussion, Ms. Wallace, also representing the League of Women Voters of Oakland, said BayPac supports the PEC’s work and wants first-year success to be treated as one stage in a longer process. She listed three priorities: outreach to Oakland’s diverse communities through multiple languages and partners, thorough candidate training, and a smooth interface for residents and candidates. She also recommended tracking district-level voter participation and first-time local donors, and using both quantitative and qualitative data, including candidate and participant interviews. Wallace said BayPac would keep submitting comments as the program develops.

Discussion: Subcommittee and Commissioner Assignments

• The Executive Director Selection Subcommittee was disbanded because its selection work was complete and decision-making had moved to the full Commission.
• The Commission disbanded the existing Outreach Subcommittee and formed a new Measure W Equity and Outreach Subcommittee to build an equity-driven community engagement and education plan for Democracy Dollars. Vice-Chair Hill agreed to chair it, and other commissioners volunteered.
• The Commission also formed a Sunshine and Public Records Request Subcommittee to assist with mediation, public-record request processes, and recommendations for improving city responses. Commissioner Upton agreed to lead it, and Commissioner Perteet volunteered to serve.
• On the existing Measure W Implementation Subcommittee, Chair Micik joined the group; Commissioner Upton agreed to step aside temporarily and later said he would be happy to rejoin. The working arrangement was not fully finalized because of a meeting-quorum issue and was expected to be revisited when all commissioners could attend in person.

Discussion: Measure W Implementation and Democracy Dollars Program

• A staff memorandum updated the Commission on Measure W, the Oakland Fair Elections Act passed by voters on November 8, 2022.
• The Commission’s budget proposal was submitted to the City administration on February 21, 2023, requesting full funding for the Democracy Dollars program and five new PEC staff positions. The city budget process will go to the City Council in May.
• Staff has drafted a business-requirements document for the Democracy Dollars technology system and is working to issue a Request for Information (RFI) and Request for Proposal (RFP) to potential vendors.
• The implementation timeline includes a preliminary phase in 2023 and a launch phase in 2024. It calls for Democracy Dollars vouchers to be distributed by April 1, 2024; candidates to apply in early 2024; and PEC staff to process vouchers and disburse funds from May through November 2024, followed by audit and performance evaluation.
• The performance measures table in the staff memo was presented as a sample and not as a final set, and staff invited feedback on which metrics to track.
• Commissioner Perteet expressed concern that the primary goal must be getting Democracy Dollars out to voters, not creating premature metrics, and he recommended a “pre-mortem” planning exercise for potential budget, hiring, or vendor delays. Other commissioners emphasized collecting baseline data, measuring both program input and outcome improvements, and considering a research or academic partner for evaluation.

Discussion: Disclosure and Engagement Report

• Campaign finance statements covering October 23 through December 31, 2022 had a January 31 deadline; 90 percent of active campaign committees filed, and outreach to four non-filers was continuing.
• Lobbyist annual registrations and quarterly activity reports were due in late January. As of the report date, there were 63 registered lobbyists and 63 fourth-quarter reports on file, with three possible non-filers being contacted.
• The report noted that the OakApps system and lobbyist registration portal were offline because of the city’s ransomware incident; staff said good-faith filing problems and paper back up would be considered.
• Regarding Form 700 compliance, staff are working with the City Clerk and Human Resources to share data, update the conflict-of-interest code, and improve department-level action, especially after City administration rejected a Grand Jury recommendation to transfer Form 700 oversight to the PEC.
• Commissioner Perte filed a cautionary request for the Commission to cooperate with city departments when possible and to avoid making a takeover recommendation without current sufficient resources.

Discussion Item: Enforcement Program Report

• Enforcement Chief Simon Russell said the ransomware attack had disrupted access to electronic case-load data, although he also confirmed he had recently regained access to the files and could work on cases again. A later report covering case trends since December 21, 2022 was still anticipated.
• The Commission received the dismissal notice for Complaint No. 22-19: In the Matter of Carroll Fife. Enforcement staff found insufficient evidence or lack of jurisdiction on each allegation, including an alleged Form 700 reporting failure, alleged PPP fraud, and an alleged conflict of interest in a July 2022 vote. The complaint was dismissed, the case was closed, and the PEC took no action on it.
• Enforcement litigation updates included: two matters against Mark Hung Tran and Margaret Tran, both dismissed at the PEC’s request; one case, City v. Charlie Ngo, had a March 29, 2023 hearing on contempt; and in the Matter discussed in the report, the presiding judge granted the PEC’s petition to enforce an investigative subpoena. The report noted that no allegations in pending cases had been proved or admitted.

Discussion Item: Executive Director’s Report

• Acting Executive Director Doran outlined 2023 priorities, including implementation of Measure W, public-records improvements, digital complaint forms, enforcement backlog reduction, and preparation of the Commission’s 2022 annual report.
• Staff completed interviews and made offers for several positions, including an Administrative Assistant, a Temporary Investigator, and a Management Intern/Law Clerk. The hiring process was continuing.
• Commissioner orientation for Alea Gage and Vincent Steele is planned. One PEC seat remains open and will be filled by appointment; references at the the Mayor’s office were continuing.
• Staff has begun work on the salary-setting process for the City Attorney and City Auditor created by Measure X, and a phased memo to the Commission was planned.

Key Outcomes

• Approved the January 11, 2023 regular meeting minutes.
• Approved the February 15, 2023 special meeting minutes, with the arrival-time amendment.
• Disbanded the Executive Director Selection Subcommittee and the former Outreach Committee.
• Established a Measure W Equity and Outreach Subcommittee, chaired by Vice-Chair Hill, and a Sunshine reports investigation and Public Records Requests Subcommittee led by Commissioner Upton was announced.
• Agreed to continue developing Measure W performance metrics, procurement, staffing, outreach, and evaluation planning.
• Moved into closed session under California Notice Code section 54957(b) to consider the appointment or employment of the next PEC Executive Director. No action was reported after the closed session, and the meeting then adjourned.