The February appointment of Steve Colangelo as Stockton’s Interim City Manager was controversial from the start. The council majority used parliamentary rules to get an immediate vote on his contract, which passed in a split 4-3 vote. The no votes came from Michael Blower, Mario Enriquez, and Brando Villapudua. They had serious concerns about Colangelo’s qualifications for the job. Colangelo had previously served as CEO of the San Joaquin County Fairgrounds, but had no experience in city management.
According to an investigation by Stocktonia, within days of his hiring, Colangelo enlisted the help of someone who did have experience. Without council approval or competitive bidding, Colangelo hired Lathrop City Manager Stephen J. Salvatore as a consultant. Salvatore would serve “in an advisory role, providing strategic guidance … on best practices in municipal management,” according to a memo written by Colangelo. His primary responsibility would be “offering insights and strategic recommendations to support Stockton’s interim leadership.” Taxpayers would shell out an additional $11,000 per month for Salvatore’s guidance. That’s on top of the $20,000 monthly salary earned by Colangelo.
According to Stocktonia, there was worry behind the scenes.
“Internal emails obtained through a public records request show some concern by at least one Stockton staffer who suggested the approval process for Salvatore’s consulting contract seemed to ignore standard or best practices, as the city opted to move forward with hiring Salvatore without confirming a funding source. The city also agreed to waive the liability insurance typically required of outside consultants and contracted vendors.”
There were also concerns about where the money for Salvatore’s salary would come from. It was ultimately taken out of the “City Manager’s Special and Professional Services account.” This apparently strained resources. In a March 2 email, Deputy City Manager Courtney Christy wrote that “the City Manager’s accounts will be overdrawn by the end of March, as we work through the City Manager transition.” Hiring Salvatore without confirming funding availability “is not best, or our standard practice,” Christy added.
Then there were issues with the contract itself. According to Stocktonia, Salvatore’s contract has an indemnity clause protecting him from liability and holding him harmless from “any obligations, costs, claims, judgments, attorneys fees, and attachments arising from, growing out of, or in any way connected” with his work for the city. The Human Resources Department Risk Services Division agreed to waive liability insurance, which is also unusual.
Mayor Christina Fugazi responded to Stocktonia’s request for comment, insisting that Colangelo “acted well within his authority to consult and contract services under his discretionary budget.”
“I commend him for being proactive and tapping into the expertise of one of the region’s most seasoned city managers,” she added.
Although Villapudua opposed Colangelo’s appointment, he wasn’t quick to criticize. Villapudua thinks Colangelo has performed well in his temporary role.
Blower was less sympathetic.
“I don’t think it’s very common to hire someone to do a job for $20,000 a month and then have them hire someone else for an additional $11,000 a month to show them how to do that job,” he said.
Read Stocktonia's full investigative report here.