Oakland Public Ethics Commission Special Meeting – October 9, 2024
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Oakland Public Ethics Commission Special Meeting – October 9, 2024
The Public Ethics Commission (PEC) held a special meeting on October 9, 2024, starting at 5:30 p.m., to consider proposed settlement agreements in three enforcement cases involving former Mayor Libby Schaaf and several campaign committees active in the 2018 and 2020 elections. The Commission had previously voted at its September 16, 2024 meeting to send the settlements back to staff with a request for a precise breakdown of how much each individual respondent would pay. The respondents returned with that information, and after discussion and two votes, the Commission approved all three settlement agreements in a single package.
Public Comments & Testimony
- Ralph Cannes: Expressed concerns that the meeting was scheduled on short notice and that the public’s written questions had not been answered. He argued that the largest penalties were assessed against committees that no longer have funds, effectively letting serious violations go unpunished. He also questioned the lack of efforts to hold treasurers or other individuals responsible.
- Mr. Hazard: Raised an issue about the legal status of Oakland Promise (a program associated with Measure AA), arguing that it is an unincorporated association and that staff had failed to investigate this, which he believes is central to the case. He indicated he may file a lawsuit.
- Additional written comments: The Chair noted that written comments from Mr. Cannes and two other individuals were available on the PEC website.
Discussion Items
- Follow-up on Settlement Agreements: Enforcement Chief Simon Russell presented the revised settlement agreements for PEC Cases #22-09.01 (Oaklanders For Responsible Leadership), #20-41.01 (Committee For An Affordable East Bay), and #19-01.01 (Oakland Fund For Measure AA). Each agreement now included Exhibit #2, which specifies the minimum amounts each respondent individually commits to paying from the joint penalties.
- Omission of Certain Respondents: The revised agreements no longer include OAKPAC, its president Barbara Leslie, and Robert Zachary Wasserman. Chief Russell explained that OAKPAC’s board could not meet in time to approve changes, but that these respondents will be brought before the Commission at a later meeting (likely December 2024).
- Discussion on Penalty Collection: Commissioners questioned the enforceability of penalties against committees that have terminated and have no funds. Chief Russell acknowledged collection difficulties but stressed the importance of having the penalties on the books as precedent for future cases and to demonstrate the seriousness of the violations. He noted that individual respondents (including Mayor Schaaf) are jointly liable and that the minimum amounts are just a floor—respondents remain liable for the full joint penalties if others fail to pay.
- Individual Penalty Commitments: According to Exhibit #2, the minimum individual payments are: Libby Schaaf ($21,000), Doug Linney ($5,000), Jonathan Bair ($3,300), Ernest Brown ($3,300), Oaklanders For Responsible Leadership ($94,768), Oakland Police Officers Association ($23,930), and Committee for an Affordable East Bay ($230,860). The Oakland Fund for Measure AA is not listed as a separate payer; Mayor Schaaf will cover that portion.
- Concerns About Adequacy: Commissioner Gage expressed that the penalties seemed inadequate and that the structure gave perverse incentives for committees to terminate and avoid payment. She also worried about the absence of counsel for the two largest respondent committees (Oaklanders For Responsible Leadership and Committee for an Affordable East Bay) to provide assurances about payment plans.
- Precedent and Deterrence: Chief Russell emphasized that these are some of the largest penalties the PEC has ever levied, that the respondents are admitting to key facts, and that the cases are being watched by other jurisdictions. He argued that approving the settlements now will allow his successor to focus on other serious cases rather than renegotiating or litigating these.
- Vote: The first motion to approve failed on a 3–1 vote (Commissioner Gage dissenting) because four votes were needed. After further discussion, a second motion was made and passed unanimously (4–0), with Commissioner Gage changing her vote in favor.
Key Outcomes
- Approval of Settlements: The Commission approved the three proposed settlement agreements (PEC Cases #22-09.01, #20-41.01, and #19-01.01) as a package, including the breakdown of minimum individual payments specified in Exhibit #2.
- Future Action on OAKPAC: The respondents OAKPAC, Barbara Leslie, and Robert Zachary Wasserman will be presented in a separate settlement at a future Commission meeting (likely December 2024).
- Payment Deadline: Respondents have 60 calendar days from the date of Commission approval to pay the specified amounts to the City of Oakland general fund, with possible extensions at staff discretion.
Meeting Transcript
Okay, Ktop, we can start recording. The time is five thirty two, and uh we have all the commissioners that we expect to see today. So I think we can go ahead and get started. Uh, my name is Ryan Mitchick. I'm chair of the Oakland Public Ethics Committee. Commission, and welcome to this special meeting of the PEC. The commission works to promote fairness, openness, and integrity in city government. And we will start by taking the role. Here. Commissioner Gage. President. Commissioner Steele, Commissioner Steele is absent. Commissioner Tolak. Here. And I am present, and we have a quorum. Are there any staff announcements or commissioner announcements? We'll move on to item number three, which is open forum. Open forum is a time for members of the public to comment on any matter within the jurisdiction of the PEC that is not otherwise included in tonight's agenda. Under the Sunshine Ordinance, the Commission cannot discuss the substance of any public comment made that does not pertain to an item listed on the agenda. The commission also urges members of the public not to make complaints or ask the commission to investigate alleged legal violations at public meetings, since public disclosure of such complaints or requests may undermine any subsequent investigation undertaken. If you have such a complaint, you can contact staff at Ethics Commission at Oakland CA.gov. Do we have anyone for open forum? Okay, Mr. Cannes, you can state your name for the meeting minutes, and you have three minutes. Good evening, Ralph Cannes. I just want to say the scheduling of this meeting is really looks horrible. And is horrible. You have a regular meeting schedule, and then suddenly at the last minute schedule a special meeting for an item that isn't fully explained. And we'll get into that later. This meeting shouldn't even be happening. And so it looks bad and it is bad. Thank you. Thank you, Mr. Cannes. Any additional public comment for open forum. All right, we're going to move on to our item number four, which is the only item on the agenda for this special meeting. Uh it's uh follow-up from our previous meeting in which we addressed uh proposed settlement agreements for in the matters of Oaklanders for responsible leadership et al. Uh PEC case number 2209.01 in the matter of Committee for an Affordable East Bay et al. Uh number 20-41.01, and in the matter of Oakland fund for measure AA et al. Uh number 19-01.01. And uh our enforcement chief Simon Russell uh is here to walk us through this item. Good evening, Commissioners, and thank you for being here an hour earlier than usual. I know you're all busy people. Um to start off with, I want to note that our executive director, Nicholas Hydorn, has left the room uh because he's recused on the cases we're talking about. Uh he's authorized me to explain why he said to avoid the appearance of bias. Director Hydorn recused himself from these cases because he was friends with one of the respondents, former mayor Libby Schaff, and had volunteered for and contributed to her campaign. So, as Chair Mitchick said, uh the reason we're here tonight is to follow up on some of the proposed settlements agreements that I had brought to you at our prior PEC meeting. Uh I'm sure the memory of that very long meeting is still fresh in your memories, so I won't uh spend too long rehashing the facts and the law of those cases, just very briefly. Um all three of them involved our former mayor Libby Schaff and some campaign committees that she had controlled in the 2018 and 2020 elections and the various violations that flowed from those. Um the resolution of all those cases um kind of turned on the same issue.
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