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Stockton audit committee finds procedural irregularities in DEI office dissolution; council directs corrective actions
Summary
An audit-committee inquiry concluded the executive-level DEI function was dissolved and the DEI program director reassigned without adequate council notice or required budget approvals; the council accepted committee recommendations with modifications (vote 6-1) and directed staff to develop corrective compliance plans.
The Stockton City Council received a report from its audit committee on Jan. 13 finding substantial procedural irregularities in the dissolution of the city's executive-level diversity, equity and inclusion (DEI) function.
Vice Mayor Lee, who authored the audit-committee report, said the committee found the DEI program director's role had been administratively established and later dissolved without explicit council direction, that staff testified the reallocation of budgeted DEI funds (the committee identified roughly $197,000) to other accounts occurred without required council appropriation, and that the public messaging calling the reorganization "data driven" lacked corroborating analysis.
The committee also said it issued a subpoena to former interim city manager Steve Colangelo that the mayor declined to enforce; the audit committee characterized the mayor's refusal to enforce the subpoena as an obstruction of legitimate oversight and recommended clarifying the council's enforcement authority and strengthening fiscal controls.
After public comment and council discussion, a motion to accept the audit-committee recommendations (items 1 and 2) and to direct staff to prepare a corrective action plan within 60 days passed 6-1 (Mayor Fugazi dissenting). The council asked the city manager and city attorney to return with a compliance plan and any administrative actions necessary to align processes with the charter and municipal rules.
