Venezia: Peotter campaign finances latest wrinkle

You could say newly elected Newport Beach Councilman Scott Peotter is “the gift that keeps on giving,” at least for those of us who follow local politics.

First, there was his campaign to remove the bunny sculptures at the Civic Center — a crusade he’s since given up.

He’s publicly feuding with fellow Councilman Keith Curry in ugly and unbecoming email blasts. And he’s on a mission to slash city funding to the Arts Commission.

Now a new wrinkle. On April 7, resident Jeff Herdman wrote a letter to Newport City Attorney Aaron Harp asking that a special prosecutor be appointed to look into Peotter’s 2014 campaign finances.

Herdman claims campaign contributions by Newport Councilman Marshall Duffield and Duffield’s campaign committee to Peotter exceeded the legal limit of $1,100.

Herdman says Duffield contributed $500 on Aug. 11 and the Duffield for City Council Committee made several non-monetary contributions to the Peotter for City Council 2014 Committee: on Oct. 2 for $150, Oct. 15 for $200, and Oct. 18 and 22 for $150 each.

I asked respected county political watchdog Shirley Grindle for her opinion.

Grindle tells me Newport’s municipal code on campaign contributions implies that a candidate and the candidate’s controlled committee are essentially one and the same.

“If Scott Peotter (candidate) and Scott Peotter for City Council (candidate-controlled committee) are considered one and the same for purposes of accepting contributions, then you would think that contributions from candidate (Duffield) and Duffield for City Council 2014 (candidate-controlled committee) would also be aggregated,” she said. “In that case, Duffield and Duffield for City Council have exceeded the contribution limit … and Peotter should refund $50 to Duffield.”

Indeed, Peotter told a Daily Pilot reporter that he reimbursed Duffield the $50 this week.

Grindle also told me that Newport’s code leaves too many loopholes.

“By contrast, the County Campaign Reform ordinance (TINCUP) clearly states that no county candidate can accept contributions from other candidate-controlled committees,” she said.

The Herdman letter also takes aim at Peotter’s campaign consultant, Newport resident Dave Ellis, and donors to committees Ellis had a hand in, including the Neighborhood Preservation Coalition.

Since the Neighborhood Preservation Coalition engaged in direct mail on behalf of Peotter and was controlled by Ellis, Herdman’s crying foul.

But the practice appears to be allowed by city code, which Grindle said “does not consider contributions made to a committee that is not controlled by the candidate, to be a contribution to the candidate in spite of the fact that the receiving committee supports the candidate. I don’t believe there is any violation here, although it is obvious what was going on.”

I couldn’t reach Peotter or Ellis for comment.

In Herdman’s letter to Harp, he also raised the legality of Peotter’s continued use of the city seal in his email blasts.

Harp continues to call the municipal code here “ambiguous,” which I feel is crazy since it specifically states you can’t use the seal without council approval. However, the council will take up the issue this month.

Newport isn’t taking action regarding the rest of Herdman’s complaints.

On April 10, Harp responded to Herdman, basically saying the city did not have the authority to appoint a special prosecutor.

So Herdman has taken his complaint to the Orange County district attorney and the Fair Political Practices Commission, the state’s political watchdog agency.

Herdman’s been concerned about Peotter’s performance since he took office and doesn’t feel the councilman has the right “temperament.”

“His positions are extreme, and from reading City Council meeting minutes, he just brings things up with little or no thought, study or reason and appears to have very little respect for the rules,” Herdman said.

I have a feeling this won’t be the last controversy of Peotter’s that I’ll be following.

BARBARA VENEZIA lives in Newport Beach. She can be reached at bvontv1@gmail.com.