Did San Bernardino Illegally Gift $800,000 to Former City Manager Candidate Steve Carrigan? Residents Say Yes

During public comment at the March 19 San Bernardino City Council meeting, current and former public officials, residents, and community advocates raised serious concerns over a controversial $800,000 settlement paid to Steve Carrigan — the city’s one-time top candidate for city manager — calling the payout an illegal gift of public funds.

“This city has a history of illegally giving away public funds to people who are not entitled to them — as was done with the Steve Carrigan case,” said former Councilwoman Kimberly Calvin, who appeared in person at the meeting. “The city gave away $800,000 to Steve Carrigan. With those funds, how many streets could have been repaired? Maybe three or four. Or could those funds have been used to hire a veterinarian?”

Citing State Law: Calvin Questions Legality of Payment

Calvin brought with her a document from the League of California Cities, referencing California Constitution Article XVI, Section 6, which prohibits the gift of public funds. Reading directly from the document at the podium, she stated:

“The Legislature shall have no power to give or to lend, or to authorize the giving or lending, of the credit of the State… nor shall it have power to make any gift or authorize the making of any gift, of any public money or thing of value to any individual, municipal or other corporation whatever.”

She emphasized that the prohibition includes not only monetary funds but “any thing of value,” and said that a city council cannot simply vote amongst itself to give away public funds.

“For three years of my tenure, I was voted by my colleagues to represent us as a voting delegate at the League of California Cities,” Calvin said. “Each sitting councilmember at this moment, the city attorney, city clerk, and many staff members were aware of the falsely authorized and edited report that was done on behalf of Steve Carrigan. Nevertheless, you all voted to pay him $800,000 that he was not entitled to — particularly on the claims which he listed.”

Calvin underscored that Carrigan, the former Salinas city manager, “never worked a day here in the City of San Bernardino.” She called out current councilmembers — including Theodore Sanchez, Fred Shorett, Sandra Ibarra, and Juan Figueroa — for approving the payout despite knowing the report used to justify it was edited and allegedly false.

A Broader Pattern of Misconduct?

Carrigan, who was San Bernardino’s top pick for city manager in 2023, withdrew from the position in late September of that year, choosing to remain in Salinas. Shortly after, on October 3, the Salinas City Council terminated his employment. Carrigan later alleged in a legal claim that San Bernardino officials interfered with his job in Salinas by leaking information about his candidacy.

He formally filed his claim in November 2023, seeking $2.2 million in damages — including lost wages, harm to reputation, and loss of future employment opportunities. Despite never working a day in San Bernardino, the City Council approved an $800,000 settlement during closed session on August 7, 2024, with a 5-1 vote. Councilmember Sandra Ibarra dissented the settlement; Councilwoman Kimberly Calvin was absent.

The complaint claimed that councilmembers leaked Carrigan’s candidacy to Salinas officials, prompting his termination. Though Carrigan wrote in a Sept. 28, 2023, email that he intended to remain in Salinas, he later filed a lawsuit. The city, without admitting wrongdoing, settled.

But residents now say the settlement was based on manipulated information — and potentially illegal.

Calls for Accountability and Investigations

Resident John Scholenberger called out the council for refusing to act despite being warned about the credibility of JL Group reports, which were instrumental in discrediting both Carrigan and former Councilwoman Kimberly Calvin.

“It’s now been almost a year since the council released the Suzy Sorenson-manipulated summary investigation report about Carrigan,” Scholenberger said. “Now, according to the complaint filed by Rochelle Clayton, we know the council discussed this in June of last year and was told the JL Group reports are not credible.”

Scholenberger said Fred Shorett acknowledged that issue directly in the complaint, telling a city attorney, “That means all the reports are not credible? Kim Calvin’s too?”

He also said that Councilmember Shorett and Sorenson accepted liability, and Councilman Damon Alexander left Carrigan’s confidential recruitment folder publicly exposed — which, Scholenberger said, helped fuel Carrigan’s claim.

“You still voted to give away $800,000 to someone who did not deserve our money,” Scholenberger said. “And now we know the truth.”

Community Members Demand Equal Scrutiny

Christian Shaughnessy also addressed the council, noting that Councilmember Sanchez once supported censuring Calvin over claims that she put the city at litigation risk.

“Now it appears the city is in legal danger because of [Sanchez’s] actions in regard to former Acting City Manager Rochelle Clayton,” Shaughnessy said. “If we are to be intellectually honest… it would only make sense that you do the exact same thing for yourself.”

Investigator Credibility in Question

Ricky Van Johnson, who was named in a JL Group investigation alleging that Calvin leaked closed-session information, said he remains angry over the process.

“The investigation was maliciously slanted,” Johnson said. “To make matters worse, JL Group investigator Jason Kravetz concluded that I lied. I’m still angry about that.”

Johnson referred to the Clayton complaint, in which attorney Irma Rodriguez said JL Group reports “did not seem credible” and appeared to be written “as if they started with the conclusion and backed into it.”

“That means all of the reports are not credible — including the one used against Councilwoman Calvin,” Johnson said, echoing Shorett’s alleged comments from the Clayton complaint. “Welcome, Mr. Gallardo,” he added, addressing the newly appointed Interim City Manager. “There’s a lot to sort out.”

What Comes Next?

As public scrutiny continues to mount, the legality of the Carrigan payout is under renewed question — especially in light of the California Public Funds Doctrine, which prohibits gifts of public funds to individuals without enforceable claims.

The City of San Bernardino has not publicly responded to the renewed criticism. Carrigan and his attorneys at Executive Law Group have also not issued statements.

Whether the council will revisit or attempt to justify the $800,000 settlement remains unclear. But for many residents, the demand is straightforward: accountability, transparency, and adherence to the law.