The headline in the Lookout for the article about the final financial reports for the 2014 City Council election was “Himmelrich Spent $160,000 of Her Own Money to Win Santa Monica Council Seat,” but even though $160,000 was a record for self-financing a City Council campaign here, I was less interested in how much money Susan Himmelrich spent to win election and more interested in how she spent some of it.
What the article did not report was that Himmelrich paid nearly $30,000 to Dennis Zane and to PZ Associates, an entity that Zane formed. Here’s the breakdown: Himmelrich paid Zane $15,000 for political consulting, plus $4,475 for office expenses, including one flat $3,000 payment. She paid PZ $9,255 partly for consulting services and partly in a category called “campaign paraphernalia/misc.” (PZ is known for running door-to-door campaigns.)
These payments are not out of line for these kinds of services. Why am I focusing on them? For one reason: the payments were breaches of Zane’s fiduciary duty to Santa Monicans for Renters’ Rights (SMRR). As a member of the SMRR Steering Committee, Zane was guilty of self-dealing, by taking money from a candidate seeking the SMRR endorsement. Self-dealing cannot be made good by disclosure or recusal (not that Zane in fact recused himself).
The SMRR endorsement is crucial to getting elected, especially for anti-development candidates, as no candidate for City Council running on an anti-development platform has ever been elected without the SMRR endorsement. As a follow up to my post in January where I wrote about how Himmelrich finally got the endorsement from the Steering Committee (in a deal where Himmelrich got the committee votes she needed in return for her supporters voting to endorse Andrew Walzer for College Board), I can report that I received a message from Walzer the next day defending the “trade off in voting for [him] and Sue.” Apparently, according to Walzer, it was “complicated,” which naturally made me feel better about it. But in case you had doubts, it did happen.
I’m not the only one still taking a look back at the election, although not everyone has the same motivations. The Santa Monica Democratic Club (SMDC) had a panel discussion last week about it. I didn’t go, but according to the Lookout, the gist of the meeting was that the election of the anti-development Himmelrich had, in the words of SMRR Co-Chair Patricia Hoffman, “‘flipped the balance of power on the City Council.’”
Apparently, though, the struggle continues. Hoffman went on to say that “‘[w]e have a lot more work to do . . . . If we can work together and spend the next few years selecting candidates, that, I think, can make our City Council even better.’”
“Even better.” Given that all seven city council members were elected at least initially with the SMRR endorsement, I guess Hoffman is saying that the old SMRR, the one that based its progressive politics on issues beyond blocking development, is history. And I expect that if the Steering Committee, given its demographics, continues to make the endorsements, the old SMRR will be history.
That’s right, let’s throw out all those bums we supported before who care about housing for all, including the middle-class, and good union jobs and city and social services and childcare and public transportation, etc. You know the ones who understand that Santa Monica is not an island. They’re not sufficiently deferential to our new friends in the Santa Monica Coalition for a Livable City and Residocracy.
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Given the record-breaking $160,000 Himmelrich spent on her campaign, one might wonder why her husband, Housing Commissioner Michael Soloff, had to make campaign contributions, each of $10,000, to SMRR and the SMDC. Why didn’t Himmelrich make the contributions herself? The reason is based on campaign finance law: SMRR and SMDC were running independent campaigns on Himmelrich’s behalf, and because there is a contribution limit for City Council races, the campaigns could not coordinate with Himmelrich. Otherwise, contributions an individual or company might make to SMRR and the SMDC could be counted against the contributor’s limit. Giving money to an independent campaign is a form of coordination, and so Himmelrich couldn’t write the checks. Both she and Soloff are attorneys, and so one expects that they did legal research (but separately, not coordinated!) to satisfy themselves that it’s not coordination if the money comes from a spouse. But let’s face it—even if it’s legal, it’s a dodge. I wonder if the Santa Monica Transparency Project will investigate?
There’s another aspect to this. The old SMRR prided itself on a policy of rarely accepting individual contributions that were more than the limit for council races, which is now $325. The new SMRR not only accepted Soloff’s $10,000, but also $10,000 from the Huntley Hotel, the primary bankroller of anti-development campaigns in the city. Back in July, before the SMRR convention where she’d be seeking the SMRR endorsement, Himmelrich herself gave $1,000. There is no law limiting the amount of contributions to SMRR, and the limit was voluntary, but the limit was once a point of pride. So much for that.
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One footnote: the Lookout piece I quote from above about campaign expenditures got the numbers for my campaign wrong. The article said that I contributed $20,000 and my total campaign expenditure was $75,000, but those numbers are incomplete. The reason the reporter was mistaken is that my campaign accountant had us wrap up our finances in 2015, and the final numbers are in a statement for the period Jan. 1-5 that we filed a few weeks ago. The complete numbers are that I contributed $36,920.90 to my campaign and the total expenditure was $96,128.90. I understand the Lookout will be running a correction, but I wanted the record to be correct.
Thanks for reading.