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UPDATE ON CITY COUNCIL DIRECTED REFERRALS
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RECOMMENDATION
Receive a status update on the referrals to the Attorney General, District Attorney’s Political Corruption Unit, and the Grand Jury regarding potential charter violations, abuse of authority, and possible misuse of public funds, which were directed by the City Council on November 12, 2025, via Motion 2025-11-12-0301-02.
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Summary
On November 12, 2025, via Motion 2025-11-12-0301-02, the City Council directed the City Manager’s Office and City Attorney’s Office to refer potential charter violations, abuse of authority and possible misuse of public funds to the Attorney General, District Attorney's Political Corruption Unit, and the Grand Jury. During the discussion, the Council identified the following projects for referral: Sutter Street, Hunter House, Brix, and BHCIP.
On February 18, 2026, the Council Audit Committee heard a status update regarding the referrals. Following the update, the Committee directed staff to return to Council at its next meeting, March 3, 2026, for an update to the full body.
DISCUSSION
Background
In accordance with the November 12th direction, the City Attorney’s Office sent communications on January 13, 2026, to the Attorney General, District Attorney’s Office, and Grand Jury relaying the November 12, 2025, Council action and identifying each of the items. The communications also attached records related to the Hunter House matter. Because the City Attorney’s Office had not received records related to the other three matters, these were the only records included.
Present Situation
The City Attorney’s Office, the City Clerk’s Office, and the City Manager’s Office coordinated to gather and review records related to the outstanding referral items. The following outlines the records and search processes
November 12, 2026, City Council Submitted Items
During the November 12, 2025, meeting, Mayor Fugazi, Vice Mayor Lee, and Councilmember Padilla submitted records to the City Clerk, which were incorporated into the record and attached to the meeting minutes. These records were included in the referral documents provided. Additionally, a link to the November 12, 2026, meeting was provided.
Email Records
The City Clerk’s Office conducted a search of the City’s email system with the following search parameters:
• Sutter Street
o Timeframe: December 31, 2024 to February 11, 2026
o Accounts Searched:
§ Stanley McFadden
§ Almarosa Vargas
§ Stephanie Ocasio
§ PD - Neighborhood Services
§ Tina McCarty
§ Christina Fugazi
§ Steve Colangelo
o Search Terms:
§ Henery
§ 119 S. Sutter
• BHCIP
o Timeframe: December 31, 2024 to February 11, 2026
o Accounts Searched:
§ Tina McCarty
§ Christina Fugazi
§ Jordan Peterson
§ Steve Colangelo
o Search Terms:
§ BHCIP
§ Service First
§ Vernell Hill
• Brix
o Timeframe: December 31, 2024 to February 11, 2026
o Accounts Searched:
§ Tina McCarty
§ Christina Fugazi
§ Jordan Peterson
§ Steve Colangelo
o Search Terms:
§ Brix
Physical Records
The City Manager’s Office and the Economic Development Department conducted a search for physical records that would not have been accounted for in the City’s email server, including letters, check, and additional mailed notices.
Following receipt and review of the above records, the City Attorney’s Office emailed the remaining information to the Attorney General, District Attorney's Political Corruption Unit, and the Grand Jury on Thursday, February 26, 2026, and sent copies of the same correspondence via certified mail to the same entities.
FINANCIAL SUMMARY
There is no financial impact from this update.