News Digest News Digest (October 06, 2004)

Kleinberg's job creates possible conflict of interest

Palo Alto City Councilwoman Judy Kleinberg could be prevented from voting on city contracts with hundreds of high-tech companies, thanks to the wide membership of her employer. However, the job will not prevent the city from entering into contracts with those companies, according to the city attorney, who refuted a story that ran in the Mercury News.

In May, Kleinberg took a job as the executive director of the Bay Area Council of the American Electronics Association, a high-tech trade association whose members include Agilent, Stanford University and SGI. Since then, she and the city's legal team have examined the ramifications of her new position.

City Attorney Gary Baum said he was seeking an opinion from an outside attorney and hoped to hear within two weeks.

Correcting the report in the Mercury News, Baum said that even in a worst-case scenario the conflict of interest would not prevent the city from entering into contracts with AEA's member companies. It would only prevent Kleinberg from voting on such contracts, he said.

The Mercury News' confusion probably arose because the state law in question, California Government Code Section 1090, makes a distinction between council members who have direct financial ties to companies, and those with more "remote" connections. If a council member has a remote connection to a company, like Kleinberg might, then the council member is preventing from voting on matters concerning those companies, Baum explained. If a council member has a more direct connection (as an employee, for instance), then the city cannot enter into a contract.

Earlier this year, that state code gained local notoriety because it and freshman Councilwoman LaDoris Cordell's job as a vice-provost for Stanford effectively prevented the city from entering into new contracts or modifying existing ones with the university. That ended, after the city lobbied the state to amend the government code to exempt the university, as other colleges and nonprofits are exempted.

Cordell still cannot vote on Stanford issues under a different state law. So Kleinberg's new conflict would leave only six of the nine City Council members able to vote on Stanford contracts. Councilwoman Dena Mossar's husband also works for Stanford.

Kleinberg has regularly excused herself on such contracts, as the Weekly first reported in May. The full extent of her potential conflict was unknown at the time of the Weekly's report.

Hewlett-Packard Co. is another AEA member. The city, however, was already prohibited from entering into contracts with HP since Councilman Vic Ojakian works for the company, Baum said.

In October 2003, the council approved a $245,000 contract with HP for computer maintenance. The city did so under the "rule of necessity," said Baum, who wasn't city attorney at the time. Basically, he explained, the city got around the apparent obstruction because only HP could provide the required maintenance, and the city's computer servers would have shut down without it.

"It was an extraordinary circumstance," Baum said. Ojakian abstained from the council's vote, according to the city's official minutes. --Bill D'Agostino
Two injured outside Palo Alto restaurant

Two people were injured in Palo Alto Friday night when a woman parking her car apparently hit the accelerator by mistake.

Her car jumped on the sidewalk on University Avenue and struck two people sitting outside at the La Strada restaurant. Both were treated and released at a local hospital.

A dog belonging to an injured man was also struck and lost an eye, according to Palo Alto Police Agent Rich Bullerjahn. -- Don Kazak

EPA vice mayor is sentenced EPA vice mayor is sentenced (October 06, 2004)

East Palo Alto Vice Mayor David Woods was sentenced last Friday to 45 days in San Mateo County jail for domestic violence arising out an incident in January when he struck his wife.

He was also sentenced to three years probation, 104 hours of domestic violence counseling, and may not own or possess a weapon, according to San Mateo County Chief Deputy District Attorney Steve Wagstaffe.

Woods will not be forced to resign his City Council seat because he will not miss more than 60 days of council meetings without an excused absence.

He is scheduled to begin his sentence on Nov. 13. .

-- --Don Kazak

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