Scotts Valley City Council candidate Jack Dilles has been the big spender in the 2016 City Council race, spending more than the other four candidates combined in a largely self-funded campaign.
The level of spending by Dilles, the former city finance director, could be the most ever in a Scotts Valley election, according to his opponents and other observers.
The final campaign spending reports filed with the Scotts Valley City Clerk before the Nov. 8 election revealed, however, that the biggest fundraiser in this fall’s City Council election isn’t any of the candidates – it’s a political action committee led by Councilmember Jim Reed, who is not up for reelection.
The committee has a long name, Neighbors for Keeping Scotts Valley Strong Including Councilmember Reed Supporting Councilmembers Bustichi, Johnson and Lind 2016. It has a bank account and has raised more money – $14,000 – than any of the candidates.
The committee’s documents report it was formed to support the three incumbents and to oppose Dilles.
Records filed with the clerk by the committee show that big developers contributed big money, by Scotts Valley standards, to keep the incumbents in office.
A city ordinance limits individual campaign contributions to $100 per candidate. There are no restrictions, however, on what an individual can contribute to a political action committee, and no restrictions on how that committee can spend the money. Individual contributors to the “Neighbors” committee gave from $100 to $3,000.
The Neighbors committee also is required by state law to list its contributors, and the list includes several developers and a number of businesses and individuals either doing business with the city or with pending business before the City Council.
The unlimited fundraising of the committee has allowed the incumbents’ supporters to sidestep the tough campaign financing limits imposed on the candidates themselves.
The committee gives no money to the candidates or their campaigns. It bought advertising and campaign materials in its own name – on behalf of the incumbents and against Dilles.
“They are accusing me of buying the election with my own money,” said Dilles, “yet these folks are able to circumvent all of the rules by using this committee.”
“I had to spend money to get my name out there,” he said. “I don’t feel like I’m beholden to anybody.”
Dilles loaned his campaign $23,225 of his own money, and had spent $29,664 as of the Oct. 27 filing. All of the other candidates – incumbents Dene Bustichi, Randy Johnson and Donna Lind, and challenger Rosanna Herrera, spent a combined total of $26,383 by the Oct. 27 filing deadline.
Bustichi, seeking a fourth term, collected the most campaign contributions, $11,537, in amounts at or below the city $100 limit. Mayor Donna Lind, seeking a third four-year term, has collected $6,167 in contributions. Vice Mayor Randy Johnson, seeking reelection to a sixth four-year term, reported spending $7,351. Rosanna Herrera loaned her campaign $6,000 from her business, Bruno’s BBQ, and reported just $125 in contributions.
Each of the $100 contributors to the city candidates is listed by name in the reports filed with City Clerk Tracy Ferrara.
Until May 2010, the city’s Scotts Valley Campaign Reform Act limited individual contributions to $25 per person per candidate, limited spending to $1 per registered voter, and prevented any business or group of people from contributing to a city candidate.
In 2010, in a signature achievement in his first and only term as mayor, Councilmember Jim Reed led a unanimous council in updating and modifying that ordinance: raising the individual contribution limit to $100, abolishing the limits on spending, and allowing business entities to contribute up to $100 per candidate, just like individuals. The ordinance also specifically did not prohibit a candidate from loaning his or her campaign money, in accordance with state law.
The purpose of the original ordinance and its updated version was clear:
“Large sums of money are often expended to finance election campaigns. Inherent in the high cost of elections is the problem of excessive or improper influence, real or perceived, exercised by campaign contributors over elected officials, and over the electoral process itself.”
Current council members Reed, Bustichi, Johnson, Lind, and Stephanie Aguilar voted for the campaign reform ordinance.
The city’s Campaign Reform Act applies only to individuals running for the office of City Council and their controlled committee. It does not regulate political action committees. Contributions from political action committees would be regulated by state law.
Here is a look at some of the contributors to the Neighbors political action committee, and their relationship to the city.
Michael Tansy, of Tansy Development, based in Santa Barbara with an office in Capitola: $3,000
Tansy developed at least one parcel on Scotts Valley Drive.
Larry Abitbol, president of Bay Photo, and his wife Shannon Durham, $1,500 each: $3,000
Bay Photo moved its headquarters to Scotts Valley in 2013. According to the city, Bay Photo has two active building permits and is in escrow with the City for property on Erba Lane. It also has a pending application for a project on Scotts Valley Drive.
RP &JP Limited Partnership, whose principal Russell Pratt, of Mill Valley, is the developer of the K-Mart Shopping Center on Mt. Hermon Road: $2,000.
He has no projects before the council.
Marilyn Bergman, of Scotts Valley Realty: $1,250
Scotts Valley Realty had a land division and map approved for Meadow Way in late September, according to the city.
Scott Kriens and his wife, Joan Kriens, of Saratoga, founders of the 1440 Foundation, $500 apiece: $1,000.
The Kriens’ 1440 Multiversity project on the former Bethany College campus was approved by the city last year, and, as a continuing project, faces periodic review, modifications and oversight.
Richard Fontana, who lives in the unincorporated section of Scotts Valley, is the former owner of the Ledyard company: $750.
He owns several office buildings in the Scotts Valley Drive area, and his two sons just bought Malone’s restaurant on Scotts Valley Drive.
A principal of Italix Corp., a high-tech manufacturing firm in San Jose; Joseph Appenrodt, an Aptos developer; Ocean Jewell LLC, a Santa Cruz developer; Delaveaga Homes, of Santa Cruz were among other contributors to the committee. None has current business with the city.
One project of the Neighbors committee was the creation and distribution of a flier that accused Dilles of lying about the agreements the 1440 Multiversity project has with the city, and showing a photo of Dilles with piles of wrapped $100 bills superimposed on his photo, up to his chin, saying “he’s trying to buy a seat on the City Council.”
State election law prohibits a candidate or any campaign committee of the candidate from manipulating a photo of a candidate with the intent of creating a “false misrepresentation” of the candidate.
“I recognize they are going to do what they have to do,” Dilles said. “but I clearly find it outrageous.”
