Public Meetings - Oakland, California

The Oakland Public Ethics Commission held its regular meeting on Monday, November 5, 2018, at 6:30 PM in Hearing Room 1 of City Hall. Commissioners present included Jonathan Stein (Chair), Jodie Smith (Vice-Chair), Lisa Crowfoot, James E.T. Jackson, Gail Kong, and Krisida Nishioka. Staff included Executive Director Whitney Barazoto, Deputy Director/Chief of Enforcement Milad Dalju, Lead Analyst Suzanne Doran, and Investigator Simon Russell. Consent Calendar - Approval of Minutes: The Commission approved the draft minutes from the October 1, 2018 regular meeting. Public Comments & Testimony - No public comments were recorded in the agenda materials. Discussion Items 1. Campaign Finance Compliance for the 2018 Election Commission staff presented findings from a proactive review of all candidate committees. A total of 5,406 contributions were reviewed, with roughly 25 instances of over‑limit contributions that were proactively corrected by candidates through refunds. Staff recommended closing several specific matters: - Sheilagh Polk “Cat Brooks” for Mayor 2018 (PEC No. 18‑20): Recommended closure with a forfeiture letter for an excess contribution that was refunded. - Desley Brooks for City Council 2018 (PEC No. 18‑27): A $1,600 contribution from LT Liquors was explained as co‑owner funds; staff recommended closure. - Libby Schaaf for Mayor 2018 (PEC No. 18‑22): Staff identified additional overages, including a contribution from Terrence McGrath, and recommended closure with a forfeiture letter. - Pamela Price for Mayor 2018 (PEC No. 18‑33): A $2,500 loan from Ida B. Wells, LLC was deemed a candidate’s own contribution (no limit); staff recommended dismissal. Staff also noted that the proactive compliance review and associated complaints were handled to ensure timely correction before the November election. 2. Investigation – Rich Fielding (Case No. 16-11) Staff presented an investigation summary regarding allegations that Mr. Fielding, a Principal Inspection Supervisor, misused City resources by sending a letter to PG&E incorrectly identifying a property as vacant. The investigation found no evidence of a violation because the letter was never sent to PG&E and was drafted pursuant to department policy. Staff recommended closure without further action. 3. Investigation – Thomas Espinosa (Case No. 16-14) Staff presented a comprehensive investigation report finding probable cause that Mr. Espinosa, a former building inspector, committed 47 violations of the Oakland Government Ethics Act. Violations included: - Soliciting and receiving bribes (e.g., $300 from property owner Ms. Williams for passing inspections). - Making governmental decisions with disqualifying financial interests (e.g., closing code enforcement cases for properties where he had received income). - Misusing City resources (e.g., using a City vehicle, computer, and cell phone for personal matters). - Failing to disclose financial interests (e.g., not reporting $176,179 income from Ms. Williams). The potential administrative penalties total up to $1,151,737. Staff recommended that the Commission refer the matter for an administrative hearing before a three‑member panel of the Commission. 4. Mediation Summary – Oakland Planning and Building Department (Case No. 16-22M) Staff reported that a complaint about failure to disclose records was mediated. The Department provided additional records and the complainant was informed that the specific requested document (signed Conditions of Approval) never existed. Staff recommended closure. 5. Mediation Summary – City of Oakland (Case No. 17-14M) A complaint regarding a public records request to the City Clerk and Councilmembers was mediated. The City provided additional records, and the complainant subsequently requested closure of the mediation. Staff recommended closure. 6. Revised Enforcement Penalty Guidelines The Subcommittee on Penalty Guidelines presented revised guidelines that establish a framework for warning letters, streamlined stipulations, and mainline penalties. The guidelines categorize violations (e.g., late filings, contribution limits) and provide base fine amounts adjusted for mitigating/aggravating factors. The Commission reviewed the guidelines for potential adoption. 7. 2019 Regular Meeting Schedule Staff proposed a schedule of regular meetings for 2019, including dates in October, November, and December. The Commission discussed and accepted the schedule. 8. Disclosure Program Update Lead Analyst Suzanne Doran reported that Open Disclosure (opendisclosure.io) received 12,252 pageviews between September 1 and October 25, 2018 – a 60% increase over 2016. Staff reviewed over 119 campaign statements, 203 late contribution reports, and 104 late independent expenditure reports. Ten filings required amendments, with eight committees coming into compliance. 9. Education and Outreach Update Ethics Analyst Jelani Killings reported that staff had responded to 374 advice requests in 2018 (up from 251 in 2017). The Limited Public Financing (LPF) program provided funds to District City Council candidates; one candidate (Charlie Michelson) withdrew, leaving $3,057 to be returned to the election fund. Staff also trained 23 new City employees on the Government Ethics Act. 10. Enforcement Program Update Deputy Director Milad Dalju provided an update on active cases, including the Fielding and Espinosa investigations, the two mediations, and several campaign finance complaints. Staff continues to prioritize cases based on penalty authority, impact, public interest, and resources. 11. Executive Director’s Report Executive Director Whitney Barazoto highlighted the Commission’s comprehensive election‑related work, including providing public funds, supporting compliance, and quickly investigating campaign finance violations. She commended the enforcement team for completing seven contribution limit cases and the significant Espinosa investigation. Key Outcomes - Approved: October 1, 2018 meeting minutes; 2019 regular meeting schedule; enforcement penalty guidelines (likely approved, though vote not recorded in provided materials). - Accepted Staff Recommendations: Closure of Fielding case (16-11), both mediations (16-22M, 17-14M), and several campaign finance matters (18-20, 18-27, 18-22, 18-33). - Referred to Administrative Hearing: The Espinosa matter (16-14) was referred for an administrative hearing before a three‑member panel, with potential penalties up to $1,151,737. - Ongoing: The Commission continues to recruit for upcoming vacancies and will work with the City Council on a ticket policy resolution.

The Oakland Public Ethics Commission (PEC) held its regular meeting on Monday, October 1, 2018, at 6:30 PM in Hearing Room 1 of City Hall. The meeting included a presentation on the Open Disclosure campaign finance visualization tool, discussion of revised Penalty Guidelines, approval of the 2019 meeting schedule, and updates on enforcement, disclosure, and education programs. The meeting adjourned at 8:32 PM. Consent Calendar - Approval of September 11, 2018, Regular Meeting Minutes: Approved unanimously (6-0) without discussion. Public Comments & Testimony - Courtney Baxter (public speaker on Penalty Guidelines): Expressed concern about the proposed increase in streamlined stipulation baseline penalties from $200 to $400, questioning whether it aligns with state guidelines and whether it might disproportionately affect small campaigns or PACs with limited financial activity. She also requested clarification on whether prior violations in different regulatory areas (e.g., gift limits vs. campaign statements) would be considered aggregated. Presentation - Open Disclosure Project 2018: Commission staff and OpenOakland volunteers demonstrated the updated www.opendisclosure.io website, which visualizes campaign finance data for all Oakland candidates and ballot measures in the 2018 election. The site now shows over $3.6 million in tracked contributions, includes a mobile-friendly interface, and provides detailed contributor tables, independent expenditure data, and ballot measure spending breakdowns. The team reported that the site has already attracted 300 users since launch, with average session duration increasing from 2 to over 5 minutes. Commissioners praised the tool and discussed plans for further outreach to local media and the public. Discussion Items - Penalty Guidelines Revision: Commissioner Lisa Crowfoot, on behalf of the Penalty Guidelines Subcommittee, presented a draft revision of the 2015 Enforcement Penalty Guidelines. Key proposed changes included: - Removing lobbyist violations from the streamlined stipulation program (moving them to mainline penalties). - Reducing the streamlined stipulation tiers from four to two, with baseline penalties increased from $200 to $400 for early compliance and $800-$1,000 for later compliance. - Adding a new "misuse of authority" violation category with a proposed baseline penalty of $4,000-$5,000. - Adding "Education and Support" as a guiding principle. - Consolidating factor lists and clarifying that the guidelines are advisory. - Commissioners discussed further refinements, including whether to allow non-monetary remedies (e.g., public service announcements) in settlements, with most opposing due to administrative complexity. The subcommittee will bring a revised draft to the November meeting. - 2019 Regular Meeting Schedule: The Commission reviewed and approved the proposed schedule of 11 meetings (January through December, with August recess) on first Mondays at 6:30 PM in Hearing Room 1. Staff will reserve rooms and report back any adjustments. - Subcommittee Reports: - Campaign Finance Subcommittee: Chair Stein reported attending a Bay Political Equality Collaborative meeting; the report on campaign finance reform is on hold due to election workload. - Complaint Procedures Subcommittee: Vice-Chair Smith reported a draft is forthcoming. - Ticket Policy Guidance Subcommittee: Executive Director Barazoto reported that Councilmember Dan Kalb has agreed to co-sponsor a resolution to reform the city's ticket distribution policy; if that fails, the Commission may draft a regulation. The subcommittee's work is on hold pending the City Council process. - A new ad hoc Recruitment Subcommittee was formed (Commissioners Stein, Crowfoot, and Nishioka) to review applications for the commission-appointed vacancy. Key Outcomes - Penalty Guidelines: No vote taken; will return for approval in November. - 2019 Meeting Schedule: Approved unanimously. - Recruitment Subcommittee: Created to review applications for the commission-appointed vacancy (deadline October 19, 2018). - Ticket Policy: Staff will pursue a City Council resolution with a sponsor; if not adopted, will consider a PEC regulation. - Expenditure Ceilings: Executive Director Barazoto announced that the expenditure ceilings were lifted in City Council Districts 2 and 4 and OUSD District 4 races due to independent expenditures, allowing candidates to raise and spend unlimited funds in those races. - Public Financing: 11 of 12 candidates opted into the Limited Public Financing Program; staff expects 9-10 will be eligible for approximately $15,000 each. - Disclosure: 98% compliance with the September 27 pre-election filing deadline; over $3.6 million in contributions reported for the November election. - Enforcement: 39 open cases; two new Sunshine Ordinance mediation cases initiated; enforcement priorities remain on serious and repeated violations. - Commissioner Vacancies: No applications received yet for the commission-appointed vacancy; the city attorney's vacancy remains unfilled; the city auditor's vacancy will occur in January 2019.

The Oakland Public Ethics Commission met on September 12, 2018 (originally scheduled for September 11 but moved due to holidays). The meeting covered three major enforcement actions: a proposed fine against Councilmember Lynette Gibson McElhaney for ethics violations, and two investigations into city ticket use by McElhaney and Mayor Libby Schaaf. After extensive public testimony, the Commission adopted the findings of the administrative law judge but reduced the penalty for McElhaney, and suspended action on the ticket cases pending policy guidance. Consent Calendar - Approval of Minutes: The Commission unanimously approved the draft minutes from the July 30, 2018, regular meeting and the August 23, 2018, special meeting (6-0 vote). Public Comments & Testimony - McElhaney Case (Item 6): 48 speakers addressed the Commission. The majority spoke in support of Councilmember McElhaney, characterizing her actions as a good-faith effort to protect the historic character of her West Oakland neighborhood and assist constituents. Speakers included constituents, professional planners, architects, and former city officials. Several argued that the proposed $8,625 fine was excessive and that the case should be a teaching moment rather than a punitive action. A few speakers criticized the use of city tickets for personal benefit. - Ticket Cases (Items 7 & 8): 7 speakers addressed the McElhaney ticket case and 2 addressed the Mayor’s case. Speakers raised concerns about the high volume and value of tickets used by officials and questioned whether the stated public purposes were genuine. Staff member Bridget Cook explained that the ticket values were inflated and that McElhaney used games for networking and facility oversight. Discussion Items - In the Matter of Lynette Gibson McElhaney (Case 15-07): The Commission considered the administrative law judge’s proposed decision finding three violations of the Oakland Government Ethics Act: accepting gifts over $50 from a restricted source, voting on a contract with that source, and failing to disclose the gifts. Staff recommended adopting the proposed $8,625 penalty. The councilmember’s attorney argued the services were not a gift and that the fine was unprecedented. After deliberation, the Commission voted to adopt the findings but reduce the penalty to $2,550, citing mitigating factors including the short time between the law’s effective date and the violations, lack of clear training, and the councilmember’s strong community support. (Note: The official minutes record the reduced fine as $2,250, but the transcript shows the final motion as $2,550.) - In the Matter of Lynette Gibson McElhaney – City Tickets (Case 16-08(c)): Staff summarized an investigation into McElhaney’s use of 695 sets of city tickets between January 2015 and September 2016. Staff found no violation of the misuse of public resources law because tickets were distributed per the City Ticket Policy. However, 18% of tickets were reported late and 3% were reported only after staff inquiry. Commissioners expressed concerns about the lack of documentation proving public purposes and the large volume of tickets. The item was suspended pending development of advisory guidance. - In the Matter of Mayor Libby Schaaf – City Tickets (Case 16-08(i)): Staff summarized Mayor Schaaf’s use of 176 sets of city tickets, with 91% reported timely. No violations were found. The Commission similarly suspended this item pending policy guidance. Other Discussion - Subcommittee Reports: The Campaign Finance Subcommittee is analyzing survey data on public financing. The Education and Outreach Subcommittee reported successful tabling at the Oakland Museum. The Complaint Procedures and Penalty Guidelines Subcommittees are developing revisions. - Commissioner Recruitment: The Commission is seeking applicants for one PEC-appointed vacancy beginning January 2019. Key Outcomes - McElhaney Case: The Commission adopted the findings of the administrative law judge that Councilmember McElhaney committed three ethics violations. It imposed a total administrative penalty of $2,550 (reduced from $8,625) and indicated interest in working with the councilmember on future education efforts. - City Ticket Investigations: The Commission suspended action on both ticket cases (McElhaney and Schaaf) and created an ad hoc Ticket Policy Subcommittee (Commissioners Kong and Jackson) to develop enforceable standards for the use of city tickets. The subcommittee will report back at a future meeting. - Future Meetings: The Commission will continue its policy discussions and bring the ticket cases back for action after the subcommittee provides guidance. The meeting adjourned at 11:48 p.m.