Public Ethics Commission Regular Meeting – April 12, 2023

The Oakland Public Ethics Commission (PEC) held its regular meeting on Wednesday, April 12, 2023, at 6:30 p.m. in Hearing Room 1 at City Hall. All six commissioners were present. The meeting addressed several action items including setting salaries for the City Attorney and City Auditor, approving minutes, and advancing lobbyist fee proposals. Discussions covered Measure W implementation, budget challenges, enforcement staffing, and subcommittee updates.

Public Comments & Testimony

• David Shore, Money and Politics Manager at Common Cause California, introduced himself and expressed enthusiasm for collaborating with the commission on Measure W and the Democracy Dollars program.

Discussion Items

• Approval of Minutes: The Commission approved the January 11, 2023 regular meeting minutes (4-0 vote, with two abstentions from Commissioners Gage and Steele who were not present at that meeting), the February 27-28, 2023 special meeting minutes (6-0), and the March 8, 2023 regular meeting minutes (5-0, with one abstention from Commissioner Upton due to technical issues).
• City Attorney Salary (Resolution 23-04): The Commission unanimously adopted a resolution setting the City Attorney’s annual salary at $306,990.63, effective the first payroll period of Fiscal Year 2023-2024. The adjustment reflects a 15% differential above the highest paid subordinate in the office and comparability with Bay Area city attorney salaries, including a 2.5% negotiated wage increase effective July 2023. Vote: 6-0.
• City Auditor Salary (Resolution 23-05): The Commission unanimously adopted a resolution setting the City Auditor’s annual salary at $213,137.51, effective the first payroll period of FY 2023-2024. The adjustment provides an 18% differential above the highest paid subordinate and aligns with Bay Area auditor salaries. Vote: 6-0.
• Lobbyist Registration and Late Filing Fees: The Commission authorized staff to request that the City Council add a $500 annual lobbyist registration fee and a $10 per day late filing fee to the Master Fee Schedule, effective January 2024. Staff will develop a waiver policy for 501(c)(3) nonprofits and community-based organizations demonstrating hardship. Vote: 6-0.
• Executive Director Recruitment: Chair Micik reported that the search for a permanent Executive Director is nearly complete, with an announcement expected at the May meeting.
• Subcommittee Reports:
  • Transparency and Public Records Subcommittee (Upton, Perteet): Not yet met; staff has been working on mediation and public records improvements.
  • Measure W Equity and Outreach Subcommittee (Hill, Gage, Steele): Met to define goals, drafted talking points for commissioners, and launched a Measure W webpage with a subscription list and speaker request form.
  • Measure W Implementation Subcommittee (Perteet, Hill, Micik): Discussed budget constraints and delays from the February ransomware attack. Staff reported that the city requested over $2 million in cuts to the PEC’s budget, and a hiring freeze is in place through June 30, 2023.
• Measure W Implementation Update: Acting Executive Director Doran provided a timeline: the program is scheduled to launch in January 2024 with Democracy Dollars distributed by April 1, 2024. Challenges include a citywide $120 million operating deficit, slowed IT and finance processes due to the ransomware attack, and a 43% vacancy rate in PEC staff. The commission will participate in a SPUR panel on April 20.
• Disclosure and Engagement: Analyst Ana Lara-Franco reported that staff trained 86 new employees in February and March, conducted a Form 700 training for 24 employees, and published an advisory on SB 1439 (pay-to-play restrictions). The lobbyist registration portal is back online after the ransomware attack.
• Enforcement Program: Chief Simon Russell reported 66 total active matters, including 5 formal complaints (1 opened for investigation, 4 under preliminary review), 21 informal complaints (15 rejected, 6 under review), and 3 proactive complaints. New part-time law clerk Chris Nardi has been hired to assist with legal analysis and mediation.
• Executive Director’s Report: Acting Director Doran highlighted the hiring of Chris Nardi and new Commission Assistant Chris Gonzales, who started April 1. The mediation program has 27 open mediations; a backlog reduction plan is underway. The city’s hiring freeze and budget shortfall continue to impact staffing; a hardship exception request for temporary hires has been submitted.
• Future Meeting Business: Commissioner Perteet raised concerns about potential conflicts of interest where vendors might gain unfair advantage by partnering with outreach organizations. The Deputy City Attorney advised case-by-case review and offered conflict training for commissioners. The commission agreed to be vigilant about transparency in communications.

Key Outcomes

• Approved minutes for January 11, February 27-28, and March 8, 2023.
• Adopted Resolutions 23-04 and 23-05 setting the City Attorney salary at $306,990.63 and the City Auditor salary at $213,137.51, effective FY 2023-2024.
• Authorized staff to propose adding a $500 annual lobbyist registration fee and $10/day late fee to the Master Fee Schedule, with a waiver policy to be developed.
• Executive Director recruitment to be resolved by May 2023.
• Subcommittees will continue work on Measure W outreach, implementation, and transparency.
• Enforcement program continues with 66 cases; new hires are assisting.
• Budget proposal under review; city facing $120 million general fund deficit.