Oakland Public Ethics Commission Regular Meeting – July 10, 2024

The Oakland Public Ethics Commission (PEC) held its regular meeting on Wednesday, July 10, 2024, at 6:31 p.m. in Hearing Room 1, City Hall. Commissioners present: Ryan Micik (Chair), Francis Upton IV (Vice-Chair), Alea Gage, and Karun Tilak. Commissioner Vincent Steele was absent. Commissioner Charlotte Hill resigned prior to the meeting, creating a vacancy. Staff present included Executive Director Nicolas Heidorn, Enforcement Chief Simon Russell, and Lead Analyst Alex Van Buskirk. The meeting addressed consent calendar, public comments, presentations, enforcement updates, budget impacts, a hearing officer appointment, a case closure, and subcommittee reports.

Consent Calendar

• Approved the draft minutes from the June 12, 2024 regular meeting (moved by Commissioner Tilak, seconded by Commissioner Gage, passed 4-0). A correction was noted reflecting that Commissioner Gage joined the meeting at 6:35 p.m.

Public Comments & Testimony

• Ralph Kanz (Open Forum and multiple items): Stated that the City Council violated the Sunshine Ordinance by not providing agenda-related materials in a timely manner; claimed the Fire Department delayed public records requests; urged the Commission to improve the mediation process and impose a 30-day time limit; argued that the Democracy Dollars program lacks a guaranteed funding source given the city's budget deficit.
• Gene Hazard (Open Forum and multiple items): Repeatedly alleged that Oakland Promise (a city-affiliated nonprofit) is not a valid 501(c)(3) organization; claimed it owes the city $4 million and that the PEC has failed to investigate; said he would file another formal complaint.

Discussion Items

• Democracy Dollars Outreach Presentation (Item 5): Trishia Claudine Lim, UC Berkeley Goldman School graduate, presented her capstone report “(Small) Money Talks: Strategies to Implement the Democracy Dollars Program in the City of Oakland.” Key findings: The program distributes four $25 vouchers ($100 total) to every eligible Oakland resident; currently, donors at the maximum contribution level represent less than 1% of the adult population in each neighborhood. Three communities identified as likely to have lower participation without targeted outreach: young voters, non-English speakers, and residents with disabilities. Recommended strategies include school-wide demonstrations in Oakland public high schools (McClymonds, Fremont, Castlemont), usability testing for the program website, and partnerships with transit agencies, libraries, churches, and labor unions. Commissioners discussed cost constraints, the need to prioritize low-cost high-impact activities, and how to avoid appearing to favor one political side.
• Disclosure and Engagement Report (Item 6): Staff reported compliance activities: 54 lobbyists registered for 2024; 50 completed mandatory online training; first-quarter lobbyist reports documented 135 contacts with public officials. Campaign finance data from the Open Data portal was restored after the 2023 ransomware attack.
• Enforcement Program Report (Item 7): Chief Russell reported: since the last meeting, six formal complaints received (five in intake/review, one dismissed), three informal complaints rejected, six investigations opened, three dismissed. Total open caseload: 135 (including 41 Form 700 non-filer cases). Of these, 42 are on hold due to staffing shortages. Legal actions: 10 subpoena enforcement cases listed, with nine closed via stipulated dismissal; one new action initiated against Oakland United to Recall Sheng Thao.
• Executive Director’s Report (Item 8): Heidorn provided updates:
  • Budget: The adopted mid-cycle budget cut $245,000 from PEC, including $97,790 from Democracy Dollars startup funding and elimination of $50,000 for candidate education. Council restored $155,000 for the Limited Public Financing (LPF) program. Staff’s requests for an additional investigator and full restoration of Democracy Dollars funds were not granted.
  • Democracy Dollars (Measure W): The PEC is moving forward with preparing an online platform via a contract with MapLight (authorized up to $700,000 over five years). However, due to budget reductions, user testing and automation may be scaled back. A pilot or phased implementation is being considered for 2026, but funding remains uncertain.
  • Charter Amendment: A ballot measure incorporating several PEC-recommended charter amendments (including adding one enforcement investigator starting July 2026) was placed on the November 2024 ballot, though a provision about mayoral salary-setting was removed.
  • Mediation Program: Six mediations closed since last meeting; 10 remain open.
• Limited Public Financing (LPF) Update (Item 9): Staff confirmed $155,000 allocated for the 2024 LPF program for City Council district candidates. A special meeting in August will determine per-candidate maximum amounts. The updated LPF Guide incorporates a mandatory debate requirement and uniform expenditure limits.

Key Outcomes

• Motion to select hearing officer for In the Matter of Michael Dabney (PEC #23-28) (Item 10): Approved unanimously (4-0). The motion authorized the Executive Director to appoint a hearing officer from a list of former PEC commissioners who are attorneys, with Commissioner Karun Tilak designated as the backup hearing officer if no outside candidate is secured by early August.
• Motion to close case In the Matter of Manuel Altamirano (PEC #20-04) (Item 11): Approved unanimously (4-0). Staff recommended closure in the interests of justice because: key witnesses no longer wish to testify (citing safety concerns), the case is four years old, the respondent is no longer a city employee, the alleged bribe was de minimis ($100 and perfume), and enforcement resources are severely constrained.
• Subcommittee Updates (Item 12):
  • Public Outreach Subcommittee: Reported plans for National Night Out on August 6, 2024, and development of commissioner talking points. The subcommittee will sunset on August 25, 2024.
  • Charter Review Subcommittee: Held no meetings; the ballot measure approved by Council incorporates some but not all PEC recommendations. The subcommittee will meet once more to finalize a closing statement and post the full recommendation on the PEC website.
• Formation of Commissioner Recruitment Subcommittee (Item 12): Chair Micik announced a new ad hoc subcommittee (Commissioners Micik, Gage, Tilak) to lead the recruitment and selection of finalists to fill the vacancy created by Commissioner Hill’s resignation. The recruitment will also cover the upcoming full term. Application period expected mid-July to early September 2024.
• Future Meeting Business (Item 13): Enforcement Chief Russell suggested revisiting and clarifying the PEC’s complaint procedures to explicitly allow delegation of hearing officer selection to the Executive Director and to address subpoena enforcement processes. Commissioners agreed to consider these tweaks later in the year.

Meeting adjourned at approximately 9:53 p.m.