Records reveal Cupertino spent more than $20,000 to investigate ex-city manager who stepped down last month

Cupertino shelled out more than $20,000 on a previously undisclosed investigation into former City Manager Pamela Wu, who stepped down last month after being put on paid administrative leave for unknown reasons.

Interim City Attorney Floy Andrews hired Newport Beach-based Clarus “to conduct a privileged workplace investigation” into Wu, according to a March 31 letter obtained by this news organization through a public records request. The city’s agreement with the human resources consulting firm, which charges a $4,000 retainer for its services, came as the Cupertino City Council held a series of closed-session meetings in April and May, during which they discussed Wu’s performance.

On May 2, the council voted 3-2 to place Wu on leave. At the time, the city put out a statement that the decision was “made to ensure the city can continue to operate smoothly and maintain organizational stability while allowing a fair internal review process to move forward in a constructive and focused manner.”

The former city manager and residents raised concerns to the council when it scheduled a “public employee performance evaluation” for Wu on April 2, which was less than six months from her last annual performance review at the end of November 2024.

In an April 1 email to the council, Wu asked whether the meeting would be considered her 2025 evaluation, if the city had selected a third-party facilitator and what the criteria for the evaluation would be. The latter two points were required to be mutually agreed upon, according to her contract.

“I have yet to be notified of this discussion,” Wu wrote in the email.

On June 6, Wu decided to step down from her post as part of a settlement agreement with the city — she’d receive eight months of severance pay plus other benefits for a total of $311,089. Both the city and Wu agreed not to sue or disparage the other as part of the settlement.

Cupertino spokesperson Samantha LoCurto refused to answer questions about the investigation and the costs the city incurred as a result. Instead, she wrote in an email that “the city has had new leadership in place since the spring, and our focus is firmly on the future and executing the goals and priorities outlined by council.”

Clarus charged the city more than $20,000 for its work between April 7 and June 11, according to heavily redacted invoices obtained by this news organization. A June 2 invoice, however, offers a glimpse into the impetus for the investigation with the words “workplace investigation – election sign” in bold font.

Weeks before the November 2024 election, city workers removed a number of election lawn signs along Bollinger Road for now-Councilmember Ray Wang and Vice Mayor Kitty Moore. Some residents blamed the mistake on Wu. A source familiar with the matter confirmed the issue was among concerns about the former city manager raised by the council majority.

The incident resurfaced in April in dozens of emails from residents to the council, cited as one of a slew of reasons the city needed to “hold her accountable.” Other residents, however, characterized the closed-door meetings about Wu’s performance as the harassment of a city manager they felt had stabilized Cupertino amid years of rocky politics.

Wu declined to comment on the investigation or the costs.

Councilmember Sheila Mohan, who voted against placing Wu on leave back in May, said in an interview that the investigation was something the council majority pushed for as they “wanted to see a change at the top of city administration.”

“They wanted to make sure that the outcome they wanted had some validity,” she said.

According to Wu’s contract, the city would have to pay her a full year’s salary if the council terminated her without cause. If the council terminated Wu with cause, however, her contract said she would not be entitled to any severance. When Wu was hired in 2022, her base salary was set at $298,000 a year, but her annual wage grew to $337,324 in 2024, according to a database from the California State Controller’s Office.

Councilmember J.R. Fruen, who also voted against placing the former city manager on leave, told Bay Area News Group that he didn’t feel like the cost of the investigation was a good use of city funds.

“I am very satisfied with the work that Pamela was putting forward,” he said. “In my estimation, looking back on how my colleagues viewed her and the relationship that they had with her, it always struck me as a means for harassing her out of a job.”

Cupertino has struggled to hold onto senior staff in recent years. Since 2018, the city has gone through four city managers and three interim city managers.

In February 2023, the city hired an employment attorney to investigate claims made in a 2022 Santa Clara County Civil Grand Jury report that there was an adversarial relationship between the council and city officials.

Current and former staff told Santa Rosa-based lawyer Linda Daube that they felt “devalued, demeaned and frustrated” by now-Mayor Liang Chao and Moore. Daube said that Chao and Moore sent “voluminous email requests for additional and duplicative information” and that several city officials felt that the tone of emails were “threatening, accusatory and somewhat coercive.”

The investigation also found “abusive and controlling behavior” from former Mayor Darcy Paul and Wang, who at the time was a planning commissioner who had been removed from his role following accusations of harassment.

Moore and Wang did not respond to a request for comment on the investigation into Wu.

Mayor Liang Chao, who previously said in a statement about Wu’s departure that she was happy the city could “move forward,” did not answer specific questions related to the investigation and its cost. Instead, the mayor sent a lengthy email to this news organization touting what she viewed as the city’s recent accomplishments, including bringing back the 4th of July fireworks and opening the Jollyman All-Inclusive Playground.

As the city searches for its next city manager, Deputy City Manager Tina Kapoor will temporarily step into the role. Mohan and Fruen, however, worry how the loss of yet another city manager will impact the city in the long term.

“I think it’s very damaging to our reputation,” Fruen said. “I think it makes it very hard for us to retain quality staff. I think it also creates a situation where if you are currently on staff, you could legitimately wonder ‘Well, who’s going to be here in 6 months? Who’s going to be my boss in the future?”