Curbing Campaign Gifts

Despite a new law imposing the state’s strictest limit on political contributions, some members of the Metropolitan Transportation Authority’s board of directors continue to accept contributions from lobbyists and contractors who do business with Los Angeles County’s transit agency.

An analysis by The Times of campaign contribution reports filed in the last week shows that, in the first half of this year, several members of the MTA board received contributions exceeding the newly adopted $10 limit.

The law passed by the state Legislature and signed by Gov. Pete Wilson last October addresses concerns that the MTA board’s decisions on policy issues and awarding contracts have been “heavily influenced by lobbyists bearing gifts and contributions.”

In an effort to limit special interest influence and restore public confidence in the transit agency, the statute says, it is necessary to strengthen existing laws governing contributions and gifts to MTA directors and employees.

The law says no company that does business or seeks to do business with the MTA can give more than $10 in contributions to the agency’s board members, employees or members of their immediate families.

And no MTA board member, employee, or their immediate family members can accept, solicit or direct a contribution of over $10 from the same sources.

The law specifically mentions construction companies, engineering firms, consultants, and law firms, which have donated generously to the campaigns of some prominent MTA board members in the past.

But the latest campaign contribution reports show that several MTA board members have continued to receive campaign contributions from such sources since the year began.

Los Angeles Councilman Hal Bernson, who is up for reelection next year, received $500 contributions from two MTA contractors and two firms registered as lobbyists at the transit agency. Parsons, Brinckerhoff, Quade & Douglas is a major engineering firm working on subway construction, and Laidlaw Transit operates bus service under contract with the MTA. The prominent lobbying firm of Rose & Kindel and lobbyist Michael Lewis also sent $500 checks to the councilman.

Bernson said he has never knowingly violated the spirit of the law restricting contributions to MTA board members. “We are very careful to screen all the agendas” to make sure there are no conflicts on items before the MTA board, he said.

If it is determined that his campaign committee should not have accepted the contributions from MTA contractors or lobbyists, Bernson said, he will return those donations.

But Bernson, echoing a widely shared view among MTA officials, said the law, written by state Sen. Tom Hayden (D-Los Angeles) is so restrictive as to be “ridiculous on its face.”

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Long Beach Councilwoman Jenny Oropeza, who was reelected in April, received $250 campaign contributions from Aldaron Inc., the Rose & Kindel firm and Woodward Clyde Consultants, all of which are registered with the MTA. Laidlaw Transit gave $100, as did transportation lobbyist Jacki Bacharach.

When contacted, Oropeza initially said she had “not raised one dime from any MTA contractors. I have absolutely zero conflict,” she said.

When read the list of contributors with ties to the MTA, Oropeza said she was surprised that she received checks from those sources. “I made a great effort in my campaign to not take any money from MTA contractors,” she said. “I turned back a lot of money as a result.”

Oropeza said she specifically checked to see if TELACU Industries, Inc. was currently doing business at the MTA before accepting its $250 contribution.

County Supervisor Mike Antonovich, another MTA board member, has not raised any campaign funds this year. Under a campaign reform measure approved by the county’s voters, he cannot do so until 15 months before he faces reelection in the spring of 2000.

But that law did not prevent him from raising $54,155 in the first six months of this year for a separate officeholder account intended to pay official expenses unrelated to campaigning. Antonovich received a $500 check to that account from MTA contractor Parsons, Brinckerhoff, Quade & Douglas.

Antonovich’s chief of staff, Tom Silver, said the contribution was returned within the last week “to avoid any appearance of impropriety.”

The officeholder account report shows that $12,078 from that fund was paid this year to fund-raiser Toni Balian, the wife of Habib Balian, the MTA’s new chief of staff. Habib Balian served as the supervisor’s transportation deputy until he joined the MTA’s team of top executives late last year.

“Prior to accepting the position,” Habib Balian said in a statement, “I sought legal and ethics department advice and was advised that there was no conflict.”

Silver said Toni Balian continues to serve as a fund-raiser for the supervisor and the Michael D. Antonovich Charitable Foundation, a tax-exempt organization created last December just before the new state law restricted contributions to MTA board members. The foundation held a major fund-raising dinner Wednesday night at a Montebello church.

In response to questions from The Times, Silver said Antonovich will ask the foundation’s board of directors to return any contributions that may have been received from MTA contractors. He said the organization is intended to help recruit adoptive parents or foster parents to assist neglected, abused and abandoned children.

Los Angeles Councilman Richard Alatorre received a $500 check for his reelection campaign next year from the Rose & Kindel lobbying firm. The company, which lobbies at both City Hall and the MTA, also gave $1,000 to Alatorre’s officeholder account to assist in paying his legal bills. The officeholder fund that Rose & Kindel gave to is specifically earmarked to assist with Alatorre’s legal defense in matters involving the state Fair Political Practices Commission. The Times has reported that Alatorre is being investigated by a federal grand jury and the MTA’s inspector general.

Alatorre’s deputy chief of staff, Luisa Campano, said the councilman’s campaign staff members were given very specific instructions that they could not accept contributions from MTA contractors. “I don’t know how this got through,” she said.

“We have tried to comply with the law in every respect,” added Dan Farkas, Alatorre’s transportation deputy. He said the contributions are screened carefully whenever they involve a lobbying or public relations firm or other contractor seeking MTA business.

Farkas questioned whether lobbyists are covered by the law. In any case, he said, “if the councilman had a conflict, he would not vote on the matter” when it came before the MTA board.

The state law also forbids MTA board members from making, participating in or using their official position to influence a contract decision if the board member has “knowingly accepted” a contribution of more than $10 from the business involved in the past four years. That provision has hampered the MTA board’s ability to vote on contract issues this year, particularly those involving the subway project.

Unable to act because a majority of board members are “conflicted out,” the MTA has had to invoke a special provision that allows the name of one of the disqualified members to be drawn at random. That board member can then participate in the decision.

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The problem has been particularly evident in the MTA Construction Committee, which is chaired by County Supervisor Don Knabe.

When Knabe ran for the supervisor in 1996, he raised significant amounts of campaign money from MTA contractors. He said the newly imposed $10 limit is “very onerous” and is “an insult to the integrity of the board members.” And he questioned the legality of retroactively applying the tougher $10 limit to a time period when candidates were subject to lesser restrictions. But, he added, “If that’s what the Legislature wants--to slap our hands--then we have to live with it.”

Knabe noted the incongruity of state lawmakers, who are prolific fund-raisers, imposing such a tight limit on prominent elected officials who serve on the MTA board. “I’d like to see the Senate and Assembly limited to 10-buck contributions,” he said.

Based on a legal opinion from the county counsel’s office, Knabe has been raising money to pay off the debt from his 1996 supervisorial campaign. In the past six months, Knabe returned a $2,500 contribution from lobbyist Clark Davis.

County Supervisor Zev Yaroslavsky received a $1,000 check for his reelection campaign this year from Southdown, Inc., a company that has supplied concrete for construction of the MTA’s subway system in the past.

Yaroslavsky easily won reelection this spring. Ironically, he is leading a fall ballot campaign to cut off local sales tax funding for any subway construction beyond the line being built to North Hollywood.

Because of that role, the subway supporter turned opponent said he doubted that he would receive any campaign money from MTA contractors.

The supervisor’s spokesman, Joel Bellman, said Southdown does not and did not previously have a direct contract with the MTA. Nor did Southdown show up on the conflict list generated by the MTA Ethics Department before each board meeting. “As far as we know it was not improper or unlawful to accept a contribution from them,” he said.

Los Angeles Mayor Richard Riordan, who chairs the MTA board, did not raise any campaign funds this year because he cannot run for a third term. Riordan did receive $64,700 in contributions to his officeholder account, but none of it came from MTA contractors.

County Supervisor Yvonne Brathwaite Burke, vice chairwoman of the MTA board, is barred by the county law from raising money for her reelection effort until late this year. She did not raise funds for her officeholder account during the past six months.

Burke’s chief of staff, Herb Wesson, is running for the state Assembly and has raised significant contributions from MTA contractors and firms interested in the Alameda Corridor rail project, which will be partly financed by MTA.

MTA board member Jose Legaspi, an appointee of Mayor Riordan, is not an elected official and does not file campaign reports.

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Pinching the Flow of Funds

A new state law has imposed tough new limits on contributions and gifts to the Metropolitan Transportation Authority’s board members and employees. The restrictions flow from state lawmakers’ conclusion that MTA’s policy decisions and contract awards are “heavily influenced by lobbyists bearing gifts and contributions.” But an analysis by The Times of the latest campaign reports shows some MTA board members continue to accept contributions well above new $10 limit.

Richard Riordan / Mayor of Los Angeles

1998 campaign fund-raising: $0

The mayor, who also serves as chairman of the MTA board, cannot run for a third term and has not raised campaign funds this year. None of the $64,700 contributed to his officeholder account came from MTA contractors.

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Richard Alatorre / Councilman, Los Angeles

1998 campaign fund-raising: $35,260

The councilman received $500 from the lobbying firm of Rose & Kindel, which represents clients at both City Hall and the MTA. Alatorre, who has received $20,351 for his officeholder account, got $1,000 from the same lobbyists to help pay his legal bills.

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Larry Zarian / Councilman, Glendale

1998 campaign fund-raising: $0

Zarian has not raised funds this year and does not have an officeholder account.

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James Cragin / Councilman, Gardena

1998 campaign fund-raising: $0

The veteran councilman has not raised campaign funds this year. He did receive a $200 check from MTA contractor Fluor Daniel last year. Cragin has no officeholder account.

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John Fasana / Councilman, Duarte

1998 campaign fund-raising: $0

The three-term councilman has done no fundraising this year and does not have an officeholder account.

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Gloria Molina / County Supervisor

1998 campaign fund-raising: $1,350

Molina was reelected to another term this year with no opposition. She received only two contributions to her campaign fund in the first half of this year. Molina has not raised money for her officeholder account this year.

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Don Knabe / County Supervisor

1998 campaign fund-raising: $120,599

Based on a legal opinion from County Counsel, Knabe has been raising money to pay off the debt from his 1996 supervisorial campaign. During that race, Knabe received significant contributions from MTA contractors. He is now chairman of the MTA’s Construction Committee. In the past six months, Knabe returned a $2,500 campaign contribution from lobbyist Clark Davis. The supervisor has raised $5,500 for his officeholder account this year.

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Zev Yaroslavsky / County Supervisor

1998 campaign fund-raising: $129,719

Yaroslavsky was reelected this spring. One of his $1,000 contributions came from Southdown, Inc., a major supplier of concrete for subway construction. He returned a $250 contribution from MTA contractor Fluor Daniel. His reelection campaign has provided $358,563 to fund his initiative cutting off subway construction once the Red Line to North Hollywood is finished. Yaroslavsky does not have an officeholder account.

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Jenny Oropeza / Councilwoman, Long Beach

1998 campaign fund-raising: $41,422

A number of present or former MTA contractors and lobbyists donated to Oropeza’s re-election campaign this year despite the contribution limits. She received $250 contributions from Aldaron, Inc. $250, lobbyists Rose & Kindel and Woodward Clyde Consultants. Transit lobbyist Jacki Bacharach and Laidlaw Transit, Inc. gave $100 each. Oropeza does not have an officeholder account.

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Mike Antonovich / County Supervisor

1998 campaign fund-raising: $0

Antonovich raised $54,155 for his officeholder account in the first half of the year, He received, but returned a $500 check from MTA contractor Parsons, Brinckerhoff, Quade & Douglas. The supervisor established the Michael D. Antonovich Charitable Foundation last December just before new state law restricted contributions to MTA board members. Its supporters paid $175 each to help celebrate Antonovich’s birthday Wednesday night.

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Yvonne Brathwaite Burke / County Supervisor

1998 campaign fund-raising: $0

Burke, who is vice chairwoman of the MTA, cannot raise campaign funds until 15 months before she seeking reelection in 2000. Burke’s campaign did provide a $20,000 loan to assist her chief of staff, Herb Wesson, in a race for the state Assembly. Wesson has raised significant funds from MTA contractors. Burke has not raised money for her officeholder account this year.

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Hal Bernson / Councilman, Los Angeles

1998 campaign fund-raising: $120,198

Bernson, up for reelection next year, is rebuilding his campaign treasury. Major MTA contractor, Parsons, Brinckerhoff, Quade & Douglas, gave$500. So did Rose & Kindel, lobbyist Michael Lewis, and Laidlaw Transit. He also raised $5,750 for his officeholder account.

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THE LAW’S PROVISIONS

A new state law prohibits construction companies or other businesses seeking MTA contracts from contributing more than $10 to any of the agency’s board members, its employees or members of their immediate families. This limit also applies to contributions to political candidates or their campaign committees.

Neither board members nor MTA’s employees nor their immediate family members can accept, solicit or direct a contribution of more than $10 from any business that has contracted with the MTA in the preceding four years.

To avoid conflicts of interest, no MTA board member or employee can participate in a contract decision if they have knowingly accepted a contribution of more than $10 from the business involved during the previous four years.

For three years after they leave the agency, neither MTA’s board members nor its employees may work for a company, if they were involved in preparing, evaluating, awarding or implementing a contract with that firm.

Source: Public Utilities Code

Researched by JEFFREY L. RABIN / Los Angeles Times