Sacramento Ethics Commission Regular Meeting – August 24, 2026

The Sacramento Ethics Commission met on Monday, August 24, 2026, at 5:30 PM at City Hall, 915 I Street, Sacramento. The meeting included a consent calendar, a public hearing on a complaint against Mayor Kevin McCarty, and commissioner comments. The commission voted to approve the consent calendar with an amendment to refer a separate complaint to the independent evaluator, and after hearing evidence, unanimously found no violation by Mayor McCarty and referred the aggregation issue to the Fair Political Practices Commission (FPPC).

Consent Calendar

• Item 1 & 2: Approval of June 22, 2026 meeting minutes and the Ethics Commission Complaint Log.
• Discussion: Chair LaFaso raised a concern about a complaint (File ID 2026-008) that had been dismissed, arguing it should be referred to the independent evaluator because the alleged conduct might fall under the council's rules of procedure, which are within the commission's jurisdiction. City Attorney Gary Lindsay agreed and recommended reversing the dismissal.
• Action: Motion to approve the consent calendar with the amendment to refer the specific complaint to the independent evaluator. Motion passed by voice vote.

Public Comments & Testimony

• During the hearing (Item 3):
  • Carla Black (complainant): Testified under oath, requesting the commission not close the matter. She argued that the investigation did not conclusively determine ownership/control of the contributors (Nazir Azimi, Terranomic Software, Ohana Gardens) and that the commission should either order further investigation or refer the aggregation issue to the FPPC. She stated that public records show Azimi owns or has interests in the entities.
  • Zeus (age 9): Public comment speaker, stated that leaders should follow the same rules and that if questions remain, the investigation should continue.
• No speakers for matters not on the agenda.

Discussion Items

• Item 3: Hearing on Complaint Against Mayor Kevin McCarty
  • Independent Evaluator Report: Trevor Tanaguchi of Hanson Bridget LLP presented the report. He summarized two allegations:
    1. Levine Act Violation: Allegation that Mayor McCarty accepted a contribution over $500 from a COR permittee and then voted on an extension. The evaluator found none of the 10 COR permittees made contributions to the mayor, so no violation.
    2. Campaign Contribution Aggregation: Allegation that contributions from Nazir Azimi, Terranomic Software, and Ohana Gardens should have been aggregated. The city's municipal code requires proof that the candidate had knowledge of the aggregation requirement. Interviews with the mayor, his treasurer, and consultant showed no such knowledge. Therefore, the evaluator concluded no violation by the mayor.
  • Commissioner Questions: Vice Chair Velasquez and Commissioner Emory asked about the entities' involvement in COR and the aggregation rules. The evaluator clarified that the contributors were not part of the COR decision and that the city code places liability on contributors, not candidates, unless the candidate had knowledge.
  • Complainant Testimony: Carla Black argued that the ownership relationships were not fully investigated and that the commission should refer the matter to the FPPC.
  • Commission Deliberation: Commissioners discussed the jurisdictional limits and the need for further investigation. Commissioner Kelly expressed concern about the aggregation issue but noted it falls outside the commission's purview. Commissioner Emory noted that candidates often rely on campaign staff and may not know contribution details. Chair LaFaso supported the evaluator's findings and suggested referring the aggregation issue to the FPPC.
  • Motion: Commissioner Kelly moved to (1) receive the independent evaluator's report, (2) find that sufficient evidence does not exist to establish a violation, and (3) refer the aggregation matter to the FPPC. The motion was seconded by Commissioner Dow. After a brief discussion about the conditional proviso (which was withdrawn), the motion passed unanimously on a roll call vote (5-0).

Commissioner Comments, Ideas, and Questions

• Ad Hoc Committee on FPPC Contract: Commissioner Kelly requested that the commission invite the FPPC to make a presentation to the full commission before the ad hoc committee finalizes its report. City Clerk Mindy Cuppy advised that the typical process is for the ad hoc committee to complete its work and bring a recommendation, but the commission could add a follow-up item. After discussion, the commission agreed to add an item to the follow-up log to invite the FPPC.
• Ethical Concern: Commissioner Kelly raised a separate issue about a Sacramento Bee article alleging a city employee misused luxury box tickets at Golden 1 Center. He noted it may be more of a criminal matter but wanted to emphasize the importance of ethical conduct.
• Process Improvement: Chair LaFaso announced he will submit proposals to improve the transparency of the complaint process.

Key Outcomes

• Consent Calendar: Approved with amendment to refer a dismissed complaint (File ID 2026-008) to the independent evaluator.
• Hearing on Mayor McCarty Complaint:
  • Received the independent evaluator's report.
  • Found no violation of the Levine Act or the Municipal Code campaign contribution limits by Mayor Kevin McCarty.
  • Directed the referral of the aggregation issue concerning contributions from Nazir Azimi, Terranomic Software, and Ohana Gardens to the Fair Political Practices Commission (FPPC) for potential further investigation.
• Follow-up Log: Item added to invite the FPPC for a presentation at a future meeting.
• Next Steps: Chair LaFaso will submit proposed rule changes for commissioner consideration.