An investigation into the operations of Stockton’s new public relations office found that no laws or city policies were violated by its quiet creation, but a new report paints the process as chaotic.
After questions were raised last year around the formation of the Public Transparency, Information and Communication office, or OPTIC — including allegations of budgetary fraud against then-interim City Manager Steve Colangelo tied to its creation — an outside law firm was brought in to investigate.
OPTIC was created in response to the 2023-24 San Joaquin Civil Grand Jury report, “Crisis in Government,” which called for greater transparency in Stockton. It was formed with money from the city manager’s office that previously had been used for the Office of Performance and Data Analytics, according to OPTIC chief and city spokesperson Tony Mannor.
But the restructuring without a vote from the City Council raised concerns about the move’s legality and legitimacy.
To deal with the fallout, the city contracted with Renne Public Law Group, based in San Francisco, to conduct an independent investigation.
An executive summary of the confidential report from Renne, released April 20 by the Stockton City Council’s Audit Committee, found no direct wrongdoing either in the new office’s founding or the hiring of a new public information officer, or PIO, and other staff.
“The investigation does not substantiate that the City Manager’s office violated city policy or law in funding and forming OPTIC or in appointing OPTIC personnel, including the PIO,” the report states.
Colangelo wasn’t authorized to transfer funds between city departments. The report presented no evidence that he did in the case of OPTIC. He was, however, allowed to shift money within his own office. And that’s how the public relations department shuffle took place.
The report states that OPTIC was funded in part from savings from jobs left unfilled and by delaying recruitment of new personnel, not by tapping into the city’s main pot of money, the general fund.
“Thus, there was no evidence that the general fund was used improperly,” the report states.
While OPTIC wasn’t listed in a proposed city budget book, money to create it was included in Colangelo’s appropriation and it was talked about at public budget sessions last June. The report, however, says that the process of creating the office was “rushed and at times, confusing.”
Under public fire for a string of controversies during his short tenure, Stockton’s City Council ultimately opted not to renew Colangelo’s interim contract in August.
The report also took issue with the hiring process for the OPTIC office. It raised questions about the appointment of positions in the new office without a thorough search. It also said some were hired on the high end of the pay scale.
The process “departed from customary competitive practices” by not having a competitive process for the hiring of three jobs.
Vice Mayor Jason Lee, who chairs the Audit Committee, said the report underscores the need to stick with and not bend hiring rules. He also said that the process was effective in airing the issue.
“All I want is transparency,” he said at the meeting in which the report was discussed.
When reached for comment about the report, Mannor said there would be no statements about it.