What are the consequences when companies bidding for city business knowingly break the rules?

According to a letter from Oakland City Auditor Courtney Ruby to Daniel Purnell, head of Oakland's Public Ethics Commission, that OL has obtained, Ana Chretien and her ABC Security Company made donations totaling $1,800 to Councilwoman Jane Brunner and several other Council members, which violated the city's municipal code.

Why were the donations illegal?

Under city Municipal Code 3.12.140, organizations  that are bidding for a contracts with the city must refrain from contributing to political campaigns - and sign agreements to that effect.

City records show that on March 8, Brunner was the Council member on the Finance  and Management Committee who moved that the city hire ABC Security for a new contract, rather than the firm city staffers had originally recommended as cheaper and more qualified.

It was Brunner's vote, along with that of long-time Chretien pal Ignacio de la Fuente that by-passed the original staff recommendation 2-1 to  go with ABC (Pat Kernighan voted against, Brooks was absent). The full council votes on awarding the contract next Tuesday.

So, did Chretien's illegal $600 contribution lead Brunner to overrule city staff's recommendation about which company to hire to run security at City Hall?  

According to Jane Brunner, absolutely not.

Brunner said that the campaign donations had nothing to do with her recommendation that ABC be awarded the contract. In fact, she said she didn't even know about them and did not break any laws. 

"It's the responsibility of the donor to make sure their contributions are legal," Brunner explained. "In this case, as in many others, when they aren't legal, we just give the money back."

According to Ruby's office, the City Auditor is concerned not just with Brunner's behavior, but with city tolerance of practices that violate the municipal code - specifically the illegal campaign donations.

Is this going to scuttle awarding a new contract to ABC Security? In Oakland, one never knows.

For a copy of the letter and a list of who received the checks see below.

ABC Security Public Ethics Violations-1