$500 Donor Limit : Foe Accuses Bernardi of Skirting Law

Los Angeles City Councilman Ernani Bernardi, co-author of the city’s campaign reform law, was accused by a political foe Thursday of violating the spirit, if not the letter, of a $500-per-donor limit on campaign contributions.

Bernardi denied any wrongdoing, but admitted making an error in reporting one of the questionable contributions. He said he returned another questionable contribution last week.

Lyle Hall, a firefighter who is challenging Bernardi in the April 11 election in the northeast San Fernando Valley’s 7th District, called for a city attorney’s investigation of a possible violation of the city’s elections law. A spokesman for the city attorney said the office has not received the request and would not comment on the allegations.

Hall cited two $500 checks that Bernardi reported receiving Dec. 23 from Gelb Enterprises, a property management firm in Encino. A 1985 voter-approved law limits contributions to council candidates to $500 per source.

$500 Contributions

Hall added that Bernardi reported receiving $500 each on Dec. 14 from Santa Monica developer Ray Watt, his brother Donald, Donald’s wife Florence, Watt/Parker Inc. and Watt Pac Inc.

It is not uncommon or illegal for several employees of a company or several members of a family to contribute $500 each to a council candidate. But if an employer requires an employee to make a contribution or reimburses an employee, it could violate the law, according to the city attorney’s office.

Speaking at a City Hall news conference, Hall accused Bernardi of “using the same tactics that he has publicly denounced.” He was referring to Bernardi’s criticism of his colleagues for accepting $500 contributions from several employees of the same company.

“While this technically may comply with the letter of the law, it clearly defies the spirit,” Hall quoted Bernardi as writing in a letter to the editor of a newspaper.

Bernardi said he erred in reporting two $500 contributions from Gelb Enterprises. He said the contributions were made independently by two employees of the company, which is permitted under the law.

Tickets to Dinner

Rickey Gelb, general partner of Gelb Enterprises, confirmed Bernardi’s account. He said he and his brother each bought two tickets to Bernardi’s $250-a-plate dinner Thursday night at the Sportsmen’s Lodge.

Gelb said he contributed to Bernardi because Bernardi was the only council member who attended a party held several years ago to honor Gelb’s mother.

“I thought it was very nice of him,” he said. Gelb said his firm conducts no business with the city.

Bernardi said he returned $500 to Watt Pac last week after learning that the funds are controlled by Donald Watt, who already had given him $500. But he said he kept $500 contributions from Donald Watt, his wife Florence, his brother Ray and Watt/Parker because “they are all separate accounts.”

Bernardi said he follows the law scrupulously.

“There are some $7,000 in checks over the legal limit that we have returned since we started this fund-raising,” Bernardi said.

“I’m not going to get into a debate with Lyle,” Bernardi added. “He needs to get name recognition and this kind of material makes headlines.”

It was the second attack on Bernardi this week by Hall, who had pledged last year not to conduct a negative campaign. On Monday, Hall criticized Bernardi for his poor attendance at council meetings in the last year. Bernardi said he missed about 21% of the meetings because he and his wife were ill.

Last year, Councilwoman Joy Picus, co-author of the city’s campaign reform law, returned $3,000 she received from six employees of a development firm because of “the appearance of a possible attempt to skirt the law.”

In her case, some of the contributions came from secretaries. She said it is not customary for secretaries to make contributions.