Lodi City Manager Scott Carney, who has been on paid administrative leave since April 9, may pursue legal action against the city, following claims of retaliation for what his attorney describes as the actions of a “whistleblower.”
Earlier this year, Carney was put on leave after publicly accusing senior city staff of misconduct, including misusing public funds.
During a closed session Tuesday, the Lodi City Council met with legal counsel to discuss potential litigation and personnel matters, as outlined in the meeting’s agenda.
No public disclosure was made about the outcome of the session. State law only requires public governing bodies, such as a city council, to announce actions taken in closed session, not discussions.
According to city records, the closed session followed a legal correspondence from Carney’s attorney dated April 12.
In the email, Carney’s attorney referred to him as a “whistleblower,” someone who reports alleged wrongdoing within an organization. The attorney claimed the city retaliated against Carney for raising concerns and requested a “litigation hold,” a legal instruction requiring the city to preserve all relevant records and communications. This step is often taken when a lawsuit may be filed to ensure no evidence is destroyed or altered, according to guidelines from the American Bar Association.
The city cited the letter as a potential threat of litigation under state law, which allows public agencies in California to meet in closed session to discuss matters related to potential or existing lawsuits. This section is meant to help cities and other government bodies get legal advice and prepare for litigation without revealing sensitive legal strategies to the public.
During Tuesday’s meeting, Mayor Cameron Bregman emphasized the city’s commitment to conducting a thorough review.
“More than anything else in this investigation, we’re focused on the quality,” he said, adding that public updates would be provided when possible.
On April 10, Bregman said in a video posted to social media that an investigation would be launched and promised the outcome would be shared publicly within 45 days. Based on that timeline, the findings were expected by May 25, but Bregman said during the meeting that the city is focused on “quality over time” in the investigation.
Carney was placed on leave days after alleging during a council meeting April 1 that senior city staff had tampered with official reports and misused public funds. Since then, the city has expanded its contract with the law firm Meyers Nave to lead a personnel investigation into the claims. The amended agreement raised the firm’s compensation to $210,000, authorizing it to hire outside investigators.
Council appointed retired Saratoga City Manager James Lindsay May 8 to step in as Lodi’s acting city manager by a 4-1 vote. Lindsay is serving under a temporary contract that allows him to work for up to six months at $140 per hour, without benefits, as allowed under state laws for retired government employees with specialized experience.
A prior special council meeting that was scheduled for last week to discuss the issue was canceled due to lack of quorum. The meeting has not yet been rescheduled.