From: MB Public Affairs, Inc

1215 K Street, Suite 2150 MB Sacramento, California 95814 Phone: 916/441-0934  Fax: 916/441-2651 Public Affairs, Inc.

March 28, 2008

To: Interested Parties

From: MB Public Affairs, Inc.

RE: Denham Recall Signature Gathering ______

This memo provides details regarding the signature gathering effort behind the Denham recall campaign. To date, two committees – the Voter Registration and Education Fund (ID #1255848) and the Democratic State Central Committee of California (ID #741666) – have reported paying Discovery Petition Management Company for petition gathering services pertaining to the recall.

Payments to Discovery Petition Management Company

A review of Form 460s and Form 465s filed by the Voter Education and Registration Fund and the Democratic State Central Committee of California covering the period from July 1, 2007 to March 17, 2008 show payments totaling $246,143.26 made to the Discovery Petition Management Company. These expenditures are detailed below.

From Democratic State Central Committee of CA Discovery Petition Management Company Sacramento, CA 95826 $27,500.00 2/14/2008 Discovery Petition Management Company Sacramento, CA 95826 $55,000.00 1/18/2008 No sub- vendors Discovery Petition Management Company Sacramento, CA 95826 $11,236.26 1/18/2008 Discovery Petition Management Company Sacramento, CA 95826 $15,000.00 1/16/2008 No sub- vendors Discovery Petition Management Company Sacramento, CA 95826 $6,952.00 12/31/2007 Discovery Petition Management Company Sacramento, CA 95826 $955.00 12/31/2007 Discovery Petition Management Company Sacramento, CA 95826 $45,000.00 12/31/2007 Discovery Petition Management Company Sacramento, CA 95826 $45,000.00 11/20/2007 Discovery Petition Management Company Sacramento, CA 95826 $7,000.00 10/17/2007 Sub-Total $213,643.2 6

From Voter Education and Registration Fund Discovery Petition Management Company Sacramento, CA 95826 $32,500.00 10/1/2007 No sub- vendors Sub-Total $32,500.00

Total Paid to Discovery Petition Mgmt Company $246,143.26 As indicated in the chart, sub-vendor information (i.e., individuals paid by Discovery Petition Management Company to gather signatures) has not been made available by these two committees for $102,499.74 of the expenditures made to Discovery Petition Management Company. In other words, the two committees that have paid for the Denham recall effort have failed to itemize sub-vendors payments for about 40% of the total signature gathering expenditures made during the recall campaign.

The notation “sub-vendors to follow” appears on the CA Democratic Party’s electronic Form 460 (Schedule E) for two payments in the period 01/01/2008 through 1/19/2008. The Voter Education and Registration Fund Form 460 for the period 7/1/2007 through 12/31/2007 offers no additional information regarding potential future reporting of sub-vendors.

Payments to Individual Signature Gatherers

The sub-vendor data that has been reported on several CA Democratic Party Form 460s and Form 465s shows that Discovery Petition Management Company paid 56 different individuals a total of $124,654.00 for signature gathering services. An additional $9,292.26 was paid to temporary employment agency, Labor Ready, from Pasadena, CA on January 18, 2008.

Based on the information reported on the various campaign finance disclosure forms, 24 of the 56 individuals reside outside the boundaries of the 12th State Senate district. Reported addresses for these individuals ranged from Stockton to the Bay Area (Oakley, in particular) to as far away as Hollywood, FL. Importantly, these 24 individuals accounted for $79,885 (more than 64%, or nearly two-thirds) of the sub-vendor payments to individuals made by Discovery Petition Management Company that have been identified/reported thus far. The following chart presents the sub-vendor data as reported.

In Full Name City, State Zip Code Amount Date District? 1. Steven Anderman Oakley, CA 94561 $999.00 11/20/2007 No 2. Rob Blaska Oakley, CA 94561 $1,000.00 11/20/2007 No Rob Blaska Oakley, CA 94561 $1,175.00 12/31/2007 No 3. Larry Bradshaw Hollywood, FL 33026 $4,518.00 12/31/2007 No Larry Bradshaw Hollywood, FL 33026 $3,848.00 2/14/2008 No 4. Sheila Coilton Stockton, CA 95209 $794.00 11/20/2007 No Sheila Coilton Stockton, CA 95209 $1,716.00 12/31/2007 No 5. David Crownover Davis, CA 95616 $6,341.00 11/20/2007 No 6. Rick Fenton Fair Oaks, CA 95628 $1,500.00 10/17/2007 No 7. Randy Flower Oakley, CA 94561 $600.00 11/20/2007 No 8. Sergio Garcia Hercules, CA 94547 $1,300.00 12/31/2007 No 9. Laura Hamey Fairfield, CA 94530 $1,465.00 12/31/2007 No 10. Dan Harwig Santa Cruz, CA 95060 $681.00 12/31/2007 No Dan Harwig Santa Cruz, CA 95060 $7,304.00 2/14/2008 No 11. Cliffany Jackson Fremont, CA 94536 $2,000.00 12/31/2007 No 12. Dave Jones Stockton, CA 95201 $1,200.00 12/31/2007 No Dave Jones Stockton, CA 95201 $1,450.00 2/14/2008 No 13. Bennie Jordan Stockton, CA 95201 $800.00 12/31/2007 No Bennie Jordan Stockton, CA 95201 $2,345.00 2/14/2008 No 14. Curtis McGee Oakley, CA 94561 $800.00 11/20/2007 No 15. Grace Meyer Oakley, CA 94561 $12,500.00 11/20/2007 No Grace Meyer Oakley, CA 94561 $7,526.00 12/31/2007 No 16. Skyler Palmer Hercules, CA 94547 $750.00 12/31/2007 No 17. Lee Pryor Stockton, CA 95201 $1,500.00 12/31/2007 No Lee Pryor Stockton, CA 95201 $1,847.00 2/14/2008 No 18. Thomas Reed Stockton, CA 95201 $1,464.00 1/18/2008 No Thomas Reed Stockton, CA 95201 $680.00 12/31/2007 No West Sacramento, CA 19. Modris Seskis 95605 $696.00 11/20/2007 No 20. Terry Tatro Antioch, CA 94509 $600.00 11/20/2007 No 21. Eric Tatro Antioch, CA 94509 $500.00 11/20/2007 No 22. Len Weisberg Redding, CA 96001 $2,278.00 11/20/2007 No 23. Chris Wheaton Vacaville, CA 95687 $2,748.00 11/20/2007 No Chris Wheaton Vacaville, CA 95687 $1,120.00 12/31/2007 No 24. Gilbert Wilbon Stockton, CA 95201 $1,600.00 12/31/2007 No Gilbert Wilbon Stockton, CA 95201 $2,240.00 2/14/2008 No Subtotal $79,885.00

1. John Affourtit Salinas, CA 93906 $900.00 11/20/2007 Yes 2. Ray Banchui Merced, CA 95348 $1,000.00 11/20/2007 Yes Ray Banuchi Merced, CA 95348 $950.00 12/31/2007 Yes 3. Gary Barnard Atwater, CA 95301 $747.00 12/31/2007 Yes 4. John Blackburn Salinas, CA 93906 $594.00 12/31/2007 Yes John Blackburn Salinas, CA 93906 $1,386.00 2/14/2008 Yes 5. Tiffany Blaska Hollister, CA 95023 $825.00 12/31/2007 Yes 6. Chuck Burgess Salinas, CA 93906 $800.00 11/20/2007 Yes 7. Curtis Crawford Merced, CA 95348 $900.00 11/20/2007 Yes 8. Brian Fabian Salinas, CA 93906 $1,312.00 2/14/2008 Yes 9. Matt Frederick Merced, CA 95341 $975.00 12/31/2007 Yes 10. Stephen Guiry Modesto, CA 95354 $578.00 11/20/2007 Yes Stephen Guiry Modesto, CA 95354 $1,028.00 12/31/2007 Yes 11. Kenneth Hawkins Salinas, CA 93906 $800.00 12/31/2007 Yes 12. Albert Hernandez Turlock, CA 95382 $753.00 12/31/2007 Yes 13. Anthony Hodge Modesto, CA 95358 $610.00 11/20/2007 Yes Anthony Hodge Modesto, CA 95358 $1,053.00 12/31/2007 Yes 14. Chris Holder Modesto, CA 95355 $1,012.00 11/20/2007 Yes 15. Ken Hopper Modesto, CA 95355 $606.00 12/31/2007 Yes Ken Hoppers Modesto, CA 95355 $6,250.00 11/20/2007 Yes 16. Tiontee Johnson Salinas, CA 93906 $1,075.00 12/31/2007 Yes 17. Mark Jones Merced, CA 95348 $700.00 11/20/2007 Yes 18. Willis Lewis Turlock, CA 95380 $1,012.00 11/20/2007 Yes 19. Paula Mangarrez Los Banos, CA 93906 $600.00 11/20/2007 Yes 20. Steven Milone Turlock, CA 95382 $738.00 12/31/2007 Yes 21. Al Rivera Atwater, CA 95301 $1,131.00 12/31/2007 Yes 22. Norma Robinson Salinas, CA 93906 $500.00 12/31/2007 Yes 23. Michael Romero Modesto, CA 95354 $549.00 12/31/2007 Yes 24. Florencio Rojas Salinas, CA 93906 $1,485.00 2/14/2008 Yes 25. Kris Schwegel Atwater, CA 95301 $2,538.00 12/31/2007 Yes 26. Nicholas Sicko Salinas, CA 93905 $1,050.00 12/31/2007 Yes 27. Anton Singleton Salinas, CA 93906 $1,100.00 12/31/2007 Yes 28. Dan Stallings Atwater, CA 95301 $804.00 12/31/2007 Yes 29. David Strohm Salinas, CA 93906 $1,300.00 11/20/2007 Yes David Strohm Salinas, CA 93906 $1,000.00 12/31/2007 Yes 30. Roslyn Washington Merced, CA 95340 $1,894.00 12/31/2007 Yes 31. Seth Wilhelmsen Salinas, CA 93907 $1,000.00 11/20/2007 Yes Seth Wilhelmsen Salinas, CA 93907 $1,950.00 12/31/2007 Yes 32. Willis Williams Newman, CA 95360 $628.00 11/20/2007 Yes Willis Williams Newman, CA 95360 $636.00 12/31/2007 Yes Subtotal $44,769.00

Labor Ready Pasadena, CA 91110 $9,292.26 1/18/2008 unknown Subtotal $9,292.26