Oakland Public Ethics Commission Meeting: October 25, 2023

The Oakland Public Ethics Commission held a special meeting on October 25, 2023, due to a lack of quorum at the previously scheduled regular meeting. The commission discussed and took action on several items, including a significant discussion on whether to assume responsibility for setting the mayor's salary, approval of late filing fee waiver guidelines, and pursuit of grant funding for the Democracy Dollars program. The meeting included attendance by City Administrator Justin Johnson.

Public Comments & Testimony

• No public comments were made during open forum or on specific agenda items.

Discussion Items

• Mayor's Salary (Item 10): The commission discussed a proposal to transfer responsibility for setting the mayor's salary from the city council to the PEC. Executive Director Nicholas Hydorn presented a memo outlining options ranging from automated processes (e.g., CPI indexing, pegging to superior court judge salary) to approaches with greater discretion (similar to city attorney/auditor). City Administrator Justin Johnson attended and expressed support for the commission's work. Commissioners generally favored the PEC taking on the role and leaned toward a more automated process with limited discretion to minimize politicization. Options discussed included indexing to CPI, using the current formula (70-90% of average of six nearest city manager salaries) but pegging at 80%, or a hybrid approach with periodic review. No formal vote was taken; staff will bring back a menu of options in December for a vote.
• Late Filing Fee Waiver Guidelines (Item 5): The commission adopted guidelines for waiving $10 per day late fees for campaign finance and lobbying reports. The guidelines include a presumption of good cause for first-time late filers (1-7 days) and strict criteria for subsequent waivers (e.g., hospitalization, stolen documents). The motion passed unanimously.
• Grant Funding for Democracy Dollars (Item 6): The commission approved submitting an application to the Evelyn and Walter Haas Junior Fund for funding to hire an outreach specialist (likely a city employee) and possibly a graduate student for the Democracy Dollars program, which is set to launch in 2026. The motion passed unanimously.
• Amendment to Limited Public Financing Act (Item 7): The commission approved a resolution to remove the $155,000 cap on the 2024 Limited Public Financing Act, allowing the use of potential carry-forward funds (up to $50,000) from the 2022 cycle. The motion passed 5-0, meeting the two-thirds requirement.
• Subcommittee Reports (Item 8):
  • Transparency and Public Records Subcommittee (Commissioner Upton): Reported plans to conduct interviews with police, fire, and planning departments in 2024, developing standard and customized questions, and pursuing a Goldman grant.
  • Public Outreach, Recruitment, Enforcement, Ethics Complaints, and Campaign Finance Subcommittee (Vice Chair Hill): Reported on recruitment videos, social media outreach, and plans to focus on enforcement resources in future meetings.
  • A new Commissioner Recruitment Subcommittee was formed, consisting of Chair Mitchick, Commissioner Upton, and Commissioner Pertit (if available, otherwise Vice Chair Hill), to review applications and conduct interviews.
• Commissioner Recruitment Update (Item 9): The commission received an update that 13 applications had been received (with two days remaining), a 50% increase over previous cycles, attributed to enhanced outreach efforts including 14 meetings, ads in three publications, and an article in Oaklandside.
• Disclosure and Engagement Report (Item 11): Acting Democracy Dollars Program Manager Suzanne Duran reported on the upcoming special election, new independent expenditure disclosure requirements under Measure W, and troubleshooting efforts. She noted that the system is working incrementally and that filers have been able to attach political communications as required.
• Enforcement Program Update (Item 12): Enforcement Chief Simon Russell reported that approximately three-quarters of enforcement cases are on hold due to staffing shortages, but two investigators (one permanent, one limited duration) and two part-time law clerks are being hired. He also outlined a pilot program for enforcing Form 700 filings against senior city officials (department directors, deputy directors, elected officials, certain commissioners) with a grace period until the end of October, followed by diversion training and monetary penalties. The goal is 90% compliance next year.
• Executive Director's Report (Item 13): Nicholas Hydorn reported on staff transitions, including the departure of analyst Anna Laura Franco after seven years and the offer of a replacement. He also noted the formation of an internal equity team, attendance at a Seattle ethics conference, and ongoing staffing challenges. The commission's roadmap from the retreat was highlighted.

Key Outcomes

• Adopted late filing fee waiver guidelines (unanimous).
• Approved grant application to Haas Junior Fund for Democracy Dollars outreach specialist (unanimous).
• Approved amendment to Limited Public Financing Act removing the $155,000 cap (5-0).
• Approved minutes from August 9 and August 25 meetings (unanimous).
• Formed Commissioner Recruitment Subcommittee (Chair Mitchick, Commissioner Upton, and Commissioner Pertit or Vice Chair Hill).
• Staff directed to bring back a menu of options for mayor's salary process in December.
• Enforcement program expanding Form 700 enforcement as a pilot targeting senior officials, with a goal of 90% compliance next year.