City Council to Consider Toughening Lobbying Ordinance

  • September 8, 2024, 10:18 am America/Los_Angeles

On Tuesday, September 10, the City Council will consider adding teeth to Irvine’s Lobbying Ordinance, as first proposed by Councilmember Kathleen Treseder more than a year ago. Treseder’s proposal came on the heels of an independent report commissioned by the City of Anaheim in response to the federal investigation of corruption in that city. It also came in the aftermath of the Irvine City Council’s rejection of the highly controversial Live Nation amphitheater agreement, which lobbyist Patrick Strader helped negotiate.

According to the staff report prepared by City Attorney Jeff Melching, Agenda Item 7.3 would strengthen the existing Lobbying Ordinance in the following ways:

  • Expand the Scope of Regulated Activities: Broaden the list of “municipal questions” over which lobbying can occur, and expand the list of “public officials” that can be lobbied. Modernize the definition of “contact” to recognize that all electronic and social media platforms can serve as communication channels for lobbying.
  • Regulate “Expenditure Lobbyists”: Require that “expenditure lobbyists” – e., individuals or entities that spend money on public relations and/or advertising designed to urge other persons to communicate with city officials to influence proposed City actions – report on their clients and their activities on behalf of their clients.
  • Modify Compensation Thresholds. Under the City’s current ordinance, no reporting is required from an individual that receives less than $10,000 per quarter for lobbying activities. Consistent with City Council direction, the updated Lobbying Ordinance (i)reduces the threshold to $1,000 per calendar month, (ii) removes any compensation threshold for in-house lobbyists and instead requires registration whenever there is more than one lobbying contact per City official per municipal issue, and (iii) adds a $5,000 per year threshold for spending by expenditure lobbyists.
  • Capture Success Fee and Contingent Fee Arrangements. Revise the definition of “compensation” to clarify that deferring payment through a success fee or contingent fee arrangement will not delay the obligation to report on lobbying activities.
  • Enhance Reporting Requirements. Increase the detail in the description of lobbying activities that must be provided in lobbyist reports, and require campaign contribution disclosures.
  • Penalties and Enforcement. Add administrative fines, misdemeanor enforcement (not to be used for first offenses), and public reporting of violations as remedies for violations; prohibit retaliation against anyone reporting a violation in good faith.

Treseder originally proposed these and other reforms in memo dated September 5, 2023. In that memo, she noted that the City of Anaheim had “commissioned an independent review of corruption and inappropriate conduct in the proposed sale of Angel Stadium following the federal investigation of [former Mayor] Harry Sidhu.” On July 31, 2023, the law firm selected to investigate released a 315-page report in which, according to Treseder:

“[T]he City of Irvine was named 11 times in the context of a cannabis-related proposal in April 2018. In connection with this proposal, Melahat Rafiei, a political consultant, was indicted and pleaded guilty to a felony charge for attempting to defraud one of her political consultancy firm’s clients. She further admitted in court documents that she agreed to bribe two members of the Irvine City Council in 2018 on cannabis-related matters.”

Treseder listed key recommendations from the Anaheim report, and based on those recommendations, requested that “the Irvine City Council consider adding safeguards to increase transparency and undue political influence here in Irvine.” She elaborated:

“I am asking the City Council to direct the City Manager to review the recommendations in the Anaheim report and develop for City Council consideration the establishment of an Ethics Committee, along with provisions that would strengthen disclosure and procedural requirements associated with our own Lobbyist Ordinance. This review should be conducted within 60 days of the passage of this item and brought back to the Council.”

Treseder’s memo then stated that at minimum, “the Lobbyist Ordinance should be strengthened to include” ten listed elements. Some of those elements, such as establishing an Ethics Committee, are not included in the current proposal. However, several of Treseder’s key elements are included, such as reducing the compensation threshold, capturing “success fees,” and increasing penalties for violations.

Public comments may be made in person, via Zoom, or electronically. Instructions are here.

Disclosure: The writer is a member of the Community Services Commission appointed by Councilmember Treseder.