(March 27, 2010) -- The LB City Clerk's Elections Bureau has sent the Mike Hedges campaign (candidate challenging 5th dist. Councilwoman Gerrie Schipske) a letter seeking disclosure and clarification of campaign finance reporting data for the period July 1-Dec. 31, 2009.

Among the items for which the City Clerk's office seeks an explanation: who paid for a campaign mailing [or some kind of printed material] allegedly disseminated during the July 1-Dec. 31, 2009 reporting period?

Campaign spokesman Alan Gafford returned a call/email inquiry on these issues from LBReport.com on March 26 and indicated that he was replying on Mr. Hedges' behalf (who he said was walking in the district at early evening).

Spokesman Gafford said it was his understanding that a recent U.S. Supreme Court decision had ruled unconstitutional local efforts to regulate/restrict corporate contributions...and Los Angeles and San Diego had rewritten their ordinances to reflect the Supreme Court ruling. When asked if the Hedges campaign is taking the position that the Supreme Court ruling invalidates LB's ordinance requirements for such corporate contributions, spokesman Gafford said "yes."

Spokesman Gafford said the Hedges campaign treasurer or the candidate would be responding to the City Clerk's letter on Monday (Mar. 29).

The latest City Clerk's office letter, dated March 26 and addressed to the "Mike Hedges for 5th District City Council" committee's Treasurer from City Clerk Elections Bureau Specialist Gini Galletta, says the campaign didn't respond to a Feb. 26 letter indicating that amendments were needed to its campaign finance filing for the period July 1-Dec. 31, 2009.

The Feb. 26 letter questioned the campaign's ending cash balance "as it shows you spent more money than you received in contributions." The City Clerk's office sought information on this and other matters, but said it had received no reply to date.

The City Clerk's March 26 letter also attached a copy of a campaign mailing allegedly sent during this reporting period...and asked who paid for it. "A review of schedule E [which is supposed to list campaign expenses] shows no expenditure for the printing and mailing of this campaign material. In the event that this indeed was a mailing, it must be shown as [an] expenditure," the letter states.

So...how much did the alleged mailing cost and who paid for it, LBReport.com asked? Mr. Gafford said he wasn't sure; it may have been some sort of a walk piece and he didn't have a precise figure on the cost or doesn't know who paid. We asked for an approximate figure, Mr. Gafford said Mr. Hedges would probably know but was out walking and the campaign treasurer would know but might not be reachable right away. [We've received no response yet to our voicemail message left with the Treasurer left several hours earlier].

The City Clerk's office March 26 letter also sought a copy of a canceled checking showing that a non-monetary contribution of $1,274.62 by Mike Hedges, CEO of Pacific Striping came from Mr. Hedges' personal account (allowable) and not from a company account (which is limited to $350 under LB's Campaign Reform Act).

"In the event that the contributions were not made from [Mr. Hedges'] personal account, but rather an account controlled by Pacific Striping, any amount over the $350 limit would have to be refunded to Pacific Striping," the City Clerk's office letter says.

The Clerk's office also indicated that the occupation and employer for non-monetary contributions must be disclosed.

Asked for comment on the developments, Councilwoman Schipske (who was also out walking the 5th District talking to constituents on Friday night March 26) returned our call and stated:

"The voters of Long Beach expect and deserve transparency about who is funding elections. The voters also expect and deserve candidates who follow the law. Long Beach campaign finance law limits contributions to $350 from one source and requires full disclosure."

In a follow-up email on March 27, Hedges campaign spokesman Gafford told us, "Mike is gathering the information requested by the City Clerk's office and by Ms. Galletta in yesterday's letter to meet the 30-Day period to amend his 460 forms, if necessary...[T]he 30-Day period to amend his 460 forms, if necessary, ends Sunday, March 28, 2010 according to Ms. Galletta's letter dated yesterday. Because this falls on a day City Hall is closed, the Clerk's office extends this period until the next business day--Monday, March 29, 2010."

So... regardless of the legal deadlines, why not just tell us who provided the money for the Hedges campaign? Gafford: That will be disclosed in Mr. Hedges next campaign report, due April 1. So why not just tell us now? Gafford: You're pretty quick with reporting the campaign filings; I'm sure you'll report it quickly when it's filed.

So...why doesn't the Hedges campaign have a ballot statement, we asked? "The deadline came early in the campaign and at the time we didn't have the money," spokesman Gafford said. He added that "Mike is getting a lot of traction now" and we asked for specifics.

"The Kells [former Mayor/Councilman Ernie Kell and former Vice Mayor/Councilwoman Jackie Kell] are endorsing Mike," he said. (Four years ago, Gerrie Schipske was elected after outpolling then-incumbent Councilwoman Jackie Kell who was seeking a third term via a write-in campaign.

Spokesman Gafford also indicated that former 9th dist. Councilman Jerry Shultz (who moved into the 5th district after his NLB Council tenure) is endorsing Mr. Hedges.

"And we'll have more news coming," spokesman Gafford said.