Sanders tries to help Financial Backer

Merced Councilman Jim Sanders tried to appoint to a city economic committee a donor connected to his supervisor campaign without disclosing the ties -- a move a public advocacy group called "troubling."

Sanders, who lost to Hub Walsh last week, asked that the City Council appoint Doug Fluetsch, with Fluetsch and Busby Insurance, to the vacancy on the Economic Development Advisory Committee.

The 11-member group advises the City Council, Redevelopment Agency and staff on business matters. The motion failed, with only Sanders supporting him on the final vote.

Instead, Paul Lundberg, a minister with Atwater Baptist Church, was appointed to the eight-year term.

While Sanders didn't break any political disclosure laws because he would have had no direct financial gain had the appointment succeeded, an open-government group official said it's more evidence that elections should be funded with public money.

Sanders said he discussed financial contributions with the city attorney and believes there isn't a conflict, which is why he didn't mention it during the Nov. 3 meeting.

"I'm usually fairly conscientious about that stuff," he explained. "I believe people need to know where support comes from."

At the same meeting, Sanders made a point of stating that he lives near the G Street underpass that's going to be built. He asked City Attorney Greg Diaz whether he should recuse himself from a vote. It wasn't necessary, Diaz said.

Fluetsch is a major donor to Citizens for the Betterment of Merced County, a political action committee that endorsed Sanders and gave $2,583 to his campaign and another $3,750 worth in signs.

From the beginning of the year to June, Fluetsch donated $600 to the political action committee, records show.

While Sanders' vote for Fluetsch doesn't violate any political campaign rules, it still highlights a system in which donors may appear to get special favors, said Derek Cressman, the Western states regional director of Common Cause, a nonpartisan nonprofit accountability group.

"It's a blurry line between donating and buying access," he explained. "It casts doubts on the merit of the appointment."

It's unusual for politicians to point out their dealings with campaign donors, he said. They're only required to file disclosure reports listing contributions, which Sanders did.

Leaders aiming for public office look to their friends for financial support and often turn to them to fill some appointed positions, he said. "It's certainly the way the game is played," he added.

Cities and counties should adopt public financing of elections so there aren't any questions about paybacks, he said.

Sanders has known Fluetsch for years through the Rotary Club and because Fluetsch's business provides insurance to Sanders' nonprofit, the Merced Community Action Network.

Sanders said he's also supported Fluetsch's bids for other committees. He noted he didn't receive any contributions in his bid for Board of Supervisors from the Lyons family, which owned the land where Wal-Mart wants to build a distribution center.

That, he said, would be a donation he'd feel compelled to note before voting on the controversial project.