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City attorney says council referred former manager's $350,000 settlement to Attorney General for possible 1090 violation
Summary
City Attorney Costanzo told Selma council he will refer the settlement paid to former city manager Fernando Santillan to the California Attorney General, citing potential violation of Government Code section 1090 and seeking recovery of public funds.
The Selma City Council’s legal team will ask the California Attorney General’s Office to review a $350,000 settlement and related agreements with former city manager Fernando Santillan for potential violations of Government Code section 1090, City Attorney Costanzo said during the council’s May 6 meeting.
Costanzo told councilmembers that the council earlier voted to direct him to make the referral. “Government Code section 1090 is the basic conflict of interest statute that prohibits any city officer from having a contract with the city in which that officer is financially interested,” he said. Costanzo said the settlement agreement and revised employment agreement involved payments to Santillan that the city attorney believes were not supported by valid legal claims, and therefore may be “a gift of public money” subject to recovery.
Costanzo said the referral packet follows the office of the Attorney General’s required form, that he has a contact in Sacramento who will shepherd the submission, and that the AG’s office will inform the city whether it will investigate. “Government Code section 1090 can be prosecuted either civilly or criminally or both,” Costanzo told the council. He also said the conduct underlying the paid claims appeared to be privileged (arising from closed sessions or other protected communications) and therefore not a valid basis for civil payment.
Councilmembers asked how the AG process works; Costanzo replied that the AG will contact his office whether it declines the matter or decides to investigate. He said the district attorney’s office in Fresno showed little response when some council members inquired previously, and that is why the city is referring the matter to the Attorney General.
Costanzo circulated a draft referral form to councilmembers at the meeting and asked them to provide any suggested corrections before he files the referral.
Ending: The city attorney said he will file the referral on Thursday and will make the document public when the AG office receives it; council members said they will review the draft and provide any edits.
