The Lodi City Council announced it will convene a special meeting to initiate steps toward removing City Manager Scott Carney, further extending his suspension from the role amid ongoing investigations.
The decision followed a closed-session meeting in which council members agreed to continue his leave and formally begin proceedings to terminate his appointment. The date of the special meeting has not been set.
“This is a decision that’s a heavy decision that has sent ripples through Lodi for quite a few months,” Mayor Cameron Bregman said during the session.
Carney was first placed on paid administrative leave on April 9 after alleging during a special meeting that the city attorney and city clerk had edited staff reports without his approval. He additionally claimed that internal audits revealed widespread misuse of public funds and use of city credit cards for personal purchases.
He accused city staff of obstructing his attempts to investigate. Bregman intervened during Carney’s presentation, citing Brown Act violations when Carney expanded into non-agendized items.
Since that time, Lodi has grappled with conflicting reports. An audit by Lance, Soll & Lunghard LLP, published this summer, found no instances of fraud or regulatory non-compliance during fiscal year 2023‑24.
As part of its internal review, the city’s consultant Moss Adams identified several minor employee spending issues related to city-issued CAL-Card transactions. According to a July city press release, these included a $19 conference T-shirt, a $40 grocery purchase, and meal reimbursements that slightly exceeded allowed limits by amounts ranging from $0.08 to $18.68.
“Most were small errors involving travel reimbursements, accidental charges, or lost receipts. All identified issues have since been resolved, repaid, or documented,” city officials said.
The council has responded by cutting back on the issuance of CAL-Cards, reviewing holiday cash-out reporting with CalPERS, and reassessing prior reimbursements and spending patterns.
Lindsay approaching 960‑hour cap
Acting City Manager James Lindsay is navigating a critical limitation on his interim service tenure: the 960‑hour cap mandated by CalPERS. Under California law, retired annuitants retained by public agencies are permitted to work in temporary roles, but only up to 960 hours per fiscal year.
Lodi’s arrangement with Lindsay has already put him close to that threshold. According to News‑Sentinel, as of October, Lindsay’s allowable hours were “nearly spent” under those rules. If he reaches that limit, the city may be forced to rotate leadership again, reduce his hours, or negotiate an exception.