Oakland Public Ethics Commission Special Meeting Summary - October 26, 2023

The Oakland Public Ethics Commission (PEC) held a special meeting on October 26, 2023, due to a lack of quorum at the prior regular meeting. The commission addressed a full agenda including the potential transfer of mayoral salary setting authority from the city council to the PEC, approval of routine items, pursuit of grant funding for the Democracy Dollars program, and updates on enforcement and outreach. All votes were unanimous where taken.

Consent Calendar

• Approval of Minutes: The commission unanimously approved the minutes from the August 9, 2023 regular meeting and the August 25, 2023 retreat. (Vote: 5-0).
• Late Filing Fee Waiver Guidelines: Adopted staff's proposal for waiving per diem late fees for campaign finance and lobbying reports. The policy presumes good cause for first-time late filers (1–7 days), requires proof of incapacitation for repeat offences, and sets an appeal process to the commission. (Vote: 5-0).

Public Comments & Testimony

• No public comments were made during open forum or on any agenda item.

Discussion Items

• Mayor's Salary Setting Authority (Agenda Item 10 moved up): The commission discussed whether the responsibility for setting the mayor's salary should be transferred from the city council to the PEC. Executive Director Nicholas Hydorn presented a memo outlining options: keep the current formula (benchmarking against six nearest cities, salary at 70–90% of average), use a more automated approach (e.g., CPI adjustment or pegging to a Superior Court judge's salary), or a hybrid with periodic reviews. City Administrator Justin Johnson attended to answer questions. Commissioners expressed general support for the PEC taking on this role but favored a more automated, less discretionary process to depoliticize salary setting. Commissioner Gage suggested pegging at 80% of the average of three highest and three lowest population cities. Vice Chair Hill favored CPI adjustments with periodic reviews. Chair Mitchick summarized a consensus toward automation with limited discretion. No vote was taken; staff will bring a menu of options in December for a formal recommendation.
• Democracy Dollars Grant Funding (Agenda Item 6): Staff requested authorization to apply to the Evelyn and Walter Haas, Jr. Fund for a grant to hire an outreach specialist (likely a city employee) and possibly a graduate student to support the Democracy Dollars program, which is set to launch in 2026. The grant would cover salaries and outreach activities. The commission unanimously approved the application and authorized the executive director, in consultation with the chair and vice chair, to execute necessary agreements. (Vote: 5-0).
• Amendment to Limited Public Financing Act of 2024 (Agenda Item 7): Staff proposed removing the $155,000 cap on the limited public financing program to allow use of up to $50,000 in carry-forward funds from previous cycles. The commission unanimously adopted a resolution recommending the city council adopt the amendment, with a minimum allocation of $155,000. (Vote: 5-0, met two-thirds requirement).
• Subcommittee Reports:
  • Transparency and Public Records Subcommittee (Commissioner Upton reporting): The subcommittee has met twice. Plans include applying for a Goldman grant, inviting police, fire, and planning departments for presentations in early 2024, and developing standard and customized questions for each department. A vision statement is pending.
  • Outreach and Resources Subcommittee (Vice Chair Hill reporting): The subcommittee reviewed staff's outreach plan for commissioner recruitment, produced short video introductions from commissioners, and plans to address enforcement resource needs. Future meetings will focus on a calendar of speaking events for commissioners.
• Commissioner Recruitment Update (Agenda Item 9): Staff reported 13 applications received so far (50% more than prior cycles), with the deadline on October 28. Outreach included 14 meetings, ads in three publications, and an Oaklandside article. Staff will provide a demographic breakdown after the deadline. A new subcommittee (Chair Mitchick, Commissioner Upton, and Commissioner Pertit if available, else Vice Chair Hill) was formed to review applications, conduct first-round interviews, and forward finalists to the full commission for a December vote.
• Disclosure and Engagement Report: Acting Democracy Dollars Program Manager Suzanne Duran reported that the new independent expenditure disclosure system under Measure W is being tested during the November special election. Filers have been able to attach communications, and the system is working well despite additional staff steps to publish data. Contribution limits ($600 for individuals, $1,200 for qualifying PACs) are in effect.
• Enforcement Program Update: Enforcement Chief Simon Russell reported that approximately three-quarters of enforcement cases are on hold due to lack of permanent investigators. Hiring is underway for two investigators (one permanent, one limited-term) and two part-time law clerks. The office is piloting Form 700 enforcement: senior city officials (directors, deputy directors, elected officials, certain commissioners) who have not filed will receive a grace period until end of October, then face progressive penalties. The goal is 90% compliance next year. No enforcement files were compromised in the city's ransomware attack. Starting next month, caseload reporting will be more detailed by violation type and stage.
• Executive Director's Report: Nicholas Hydorn reported on staff transitions (loss of analyst Anna Laura Franco to another department; replacement offer extended) and positive progress on hiring. The equity team (staff volunteer group) is meeting monthly to apply a racial equity lens to commission activities. Hydorn also attended a peer exchange in Seattle to learn from their Democracy Dollars program.

Key Outcomes

• The commission reached consensus on supporting PEC authority to set the mayor's salary with an automated process; staff will return with specific options in December.
• Unanimously approved minutes from two prior meetings.
• Unanimously adopted late filing fee waiver guidelines.
• Unanimously authorized grant application to Haas, Jr. Fund for Democracy Dollars outreach capacity.
• Unanimously approved amendment to limited public financing program (remove $155k cap).
• Formed a Recruitment Subcommittee (Chair Mitchick, Commissioner Upton, plus one more) to review applications and interview candidates for an open PEC seat.
• Enforcement team is actively piloting Form 700 compliance and hiring new investigators and law clerks.
• Next regular meeting scheduled for November (date to be determined).