Goodman feels vindicated after ethics panel ruling

Sito Negron

Friday, May 14, 2004 | 11:06 a.m.

The state Ethics Commission hearing was set up with much sound and fury, with Las Vegas Mayor Oscar Goodman lashing out at the charges, the process, and the commission's executive director.

But, despite its unanimous finding that Goodman broke ethics rules by using his office to promote his son's business, the hearing ended Thursday with what appeared to be mutual public admiration.

Commission Chairman Rick Hsu said he thought Goodman's conduct warranted a fine, but added, "It pains me to say that, because in the last two days I've become a fan of the mayor."

Another commissioner said Goodman had done "an outstanding job" at the city.

And at the conclusion of the hearing into Goodman's conduct, the mayor told the commission that "Nevada is very lucky to have dedicated, bright servants such as you."

The commission dismissed all of the complaints against Goodman except one: The members found Goodman violated the law by helping his son's business by hosting a cocktail party during a U.S. Conference of Mayors meeting in January.

The four commissioners who heard the case split on whether Goodman made a willful decision to break the law. That split meant Goodman was not fined.

After the hearing, Goodman told reporters that "the process was very thorough, and I would have preferred it to have a finding of no violation, but there was no willfulness, and that does satisfy me."

Goodman said he would not appeal the decision.

"I said I'll take it like a man and that's what I'm doing," Goodman said.

The commission members dismissed charges related to a $100,000 contract Goodman has to be a spokesman for a gin company, his appearance in a Jane Magazine promotion, and his use of a Cadillac loaned to the city.

The commission focused on a cocktail party for a business partly owned by the mayor's son and Councilman Michael Mack.

The party took place Jan. 22 in Washington, D.C., during the U.S. Conference of Mayors meeting attended by the mayor. Goodman said that he told his son about the conference, which featured exhibits about the use of technology in elections.

His son's business, iPolitix, produced a computer disc that contained various speeches and issues. Analysts could use that to track a user's attitudes by following which speeches or issues they spent the most time with, or which they clicked on first.

The violation

The commission found that by telling his son about the event, allowing his name to be used on the invitation to the cocktail party, handing out some invitations, and telling other mayors at the party about the product, Goodman secured for his son a benefit that would not otherwise be available.

However, to assess a penalty, the commission had to find that the violation was willful, which could have brought the sting of a $5,000 fine.

Chairman Hsu and Vice Chairwoman Caren Jenkins argued that the violation was willful.

"As a lawyer, perhaps I'm holding him to a higher standard," Hsu said.

Jenkins pointed out that when Goodman took office he signed a form acknowledging he had read and understood the state's ethics rules.

"I'd like to believe that Mayor Goodman acted carelessly, or with poor judgment. However, he's charged with knowing the ethics laws," she said.

Commissioner Mark Hutchison "respectfully disagreed."

He contended there had to be intent to break the rules.

"I don't see that level of intent," he said. "I do believe it was the result of carelessness."

Hearing's impact

Testimony during the hearings showed some disagreement among city officials as to how to handle the mayor.

Wednesday, the mayor's chief of staff, Stephanie Boixo, said that the public information office balked at helping promote events in which they thought Goodman was crossing the line into "self-aggrandizement."

During a line of questioning by Goodman, Boixo also dropped what to insiders was a stunning public admonition of former mayoral spokeswoman Elaine Sanchez. Boixo said that in the final days of her tenure at City Hall, Sanchez had been banned from the mayor's office because the mayor's inner circle didn't trust her.

After the hearing, Goodman declined to answer questions about the Boixo's comments. Boixo also declined further comment.

David Riggleman, the city's communication director, also appeared a target. While the mayor said that he was trying to get the public information office to make a press kit for him since he was elected, Riggleman testified that the first he heard about it was recently.

The press kit became an issue because the mayor said that the tapes he loaned to an iPolitix representative were meant for the press kit, not for the iPolitix promotional disc that was part of the Jan. 22 cocktail party. Goodman said his campaign was paying $20,000 for the press kit, because it was something the city needed even if the public information office was dragging its feet on the project.

"We had some problems with the (public information) office, with all due respect," said Goodman. "I had that conversation with (City Manager) Doug Selby and he approved that my office will handle all national media."

Selby, reached later Thursday, said that the mayor is free to have his staff coordinate his appearances. He said that it would not involve the use of city resources for such things as producing press releases or tapes, and would be coordinated with the Public Information Office, one of two divisions in the Communications Department.

The other is Video Services, which produces programming for KCLV Channel 2 and also operates an enterprise fund, which creates material for various departments and charges them if it's something that wouldn't ordinarily be produced for Channel 2.

A city policy forbids staff in the Communications Department from promoting things that are not connected to the city. For example, in the case of the gin contract, commissioners questioned -- but ultimately did not deem unethical -- a promotional event meant to announce the contract.

In that case, members of the Communications Department were drafted to help write a press release, tape the event, prepare a video news release, and send the release to media outlets across the country at a total cost of more than $800.

Riggleman defended that work as proper, because in the case of the press release, the city was going to receive $50,000 for use on homeless issues, making the contract a value to the city.

In the case of the video services, he said, it was not his position to judge whether it was a proper use of city resources in regard to promoting the commercial nature of the event, because the mayor's office was going to pay the staff and equipment costs.

Reached after the hearing Thursday, Selby said the city would address the issue by creating a policy "defining in particular what is a city event and what is a commercial event and at what point do we decide a line has been crossed."

Goodman said "in the future there will be no commercial enterprises."

Mutual admiration

The hearing participants managed a few humorous and offbeat exchanges during the two-day hearing, but the constant current was admiration for Goodman, by the commissioners and especially by city staffers.

Commissioner Jenkins joked at one point about the irony of money from the Goodman gin contract going to the city's contribution toward a county "chronic inebriate" program, given the mayor's boasting about his drinking.

And commissioners' comments indicated that they bought much of Goodman's defense, which leaned heavily on his love for the city.

"I don't know how I'm personally benefiting from this job. I made $2 million a year as a defense lawyer; I make $50,000 a year as mayor," Goodman said. "It sounds corny ... but I do it because I love this city. The city has been so good to me."

City employee after city employee reinforced that. City Attorney Brad Jerbic said during testimony Thursday morning that Goodman is the mayor "24-7."

"The mayor is the mayor 24-7, and he's also Oscar Goodman 24-7, and the city gets a benefit," said Jerbic.

Hutchison said he thought the mayor's promotion had been good for the city.

"I don't think there's any question you've done an outstanding job," he said to Goodman.

Hsu said he thought the event was an opportunity for the mayor to learn more about the commission, and gently chided him for Goodman's earlier aggressive stand against the executive director, the charges, and the process. Goodman had said the executive director had a "screw loose."

"I hope (Goodman) got a clearer picture of what commission does, as well as the executive director, and through the process, as difficult as it has been, you get an appreciation for the manner in which the material has been well organized to prepare us," Hsu said.

Goodman, in his closing remarks, said "it's been a meaningful experience. I'm the kind of person who has character in a lot of ways and sometimes what is taken for arrogance is really righteousness and self-confidence. There's nothing more important to me than my reputation."

He hesitated for a moment, then said, "that's it."

After the hearing, Goodman was pursued by reporters through the door, past the metal detector, down the elevator and into the parking lot.

As Goodman got to his car, his son, Ross, came up alongside him and Goodman was asked for the umpteenth time about whether he wished he hadn't tried to help his son and whether he would continue to help his son.

Appearing a little exasperated by having to repeatedly answer the same question, the mayor again said he loved his son, then hugged and kissed him to emphasize his point.

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