An investigation into a diversion of funds from Stockton’s diversity, equity and inclusion program transformed this week into an issue of whether the City Council can trust is own members to conduct a fair examination into the matter.
On one hand, the city would save bundles of money by using either its own committee or the full council body. On the other, turning councilmembers into investigators raises questions of whether politics or biases could worm their way into the process.
In the end, the council decided Tuesday night the matter should be referred to its three-member Audit Committee, chaired by the member who cares most about the DEI issue: Vice Mayor Jason Lee.
The issue involves the disclosure in May that then-interim City Manager Steve Colangelo had hired a city manager from neighboring Lathrop as a consultant to help him navigate his new duties. The revelation was first reported by Stocktonia.
The following month, it was learned that the arrangement was financed by diverting money from the city’s DEI office.
Lee, who has been the most vocal of the councilmembers about the need to protect DEI, called for an investigation into how it all happened. But at the council’s July 15 meeting, members neglected to designate who or which agency would be in charge. That led to Lee’s call for his committee to take up the matter as a cost-saving measure.
“We just heard from the public how they want us to find money to spend on our police officers, but we’re going to continue to waste money on investigations when we can volunteer the time as a committee,” Lee said.
The Audit Committee would have the power to subpoena witnesses, whether it’s city officials or fellow councilmembers, he said.
Councilmember Michael Blower, who also serves on the Audit Committee with Councilmember Michele Padilla, said keeping the investigation with the internal committee would be more cost-effective. He noted that a couple of years ago, the city hired outside counsel to investigate alleged violations of the Brown Act, which governs how public bodies conduct meetings. He said the counsel cost the city $40,000, and the results weren’t surprising.
“Any one of us could have just read Stocktonia and had the answer,” Blower said, adding that he is “not a fan of wasting money on an investigation” when it’s not necessary.
In February, City Council approved 6-1 new policies providing guidance on why and how council can initiate and carry out its own investigations, including conducting an inquiry themselves, a power given to the council in Stockton’s City Charter.
But Mayor Christina Fugazi, who had voted in favor the council’s new investigative power policies, said she had reservations about councilmembers conducting the investigation themselves and issuing subpoenas for testimony by city employees.
“I think that is a conflict,” she said. An independent auditor would be a better choice, she added.
Councilmember Brando Villapudua questioned the independence of the Audit Committee. “Knowing what’s going on, I just don’t trust it,” he said. He’d also been the lone dissenting vote in February opposing new investigation policies.
But in the end, he joined the others in allowing the investigation to be run by the council’s own members.