At the May 5, 2026, meeting of the Fullerton City Council, councilmembers engaged in a lengthy and at times contentious debate over ethics, sponsorships, transparency, and the future structure of the city’s annual State of the City event.

The discussion centered on concerns raised by Councilmember Ahmad Zahra regarding corporate sponsorships tied to businesses and organizations that currently hold city contracts or may seek future council approvals.

During questioning of staff, Zahra asked whether the event video shown on the city cable channel qualified as a city production. Staff confirmed both the event and production qualified under city operations.

Zahra then requested the list of event sponsors for the record. Staff identified the sponsors as:

• Jones & Mayer LLP, the current City of Fullerton legal representatives
• Happy Jewelers was given the keys to the city by Mayor Fred Jung and then made a large contribution to his campaign funds
• Kimley-Horn works on projects for the City of Fullerton, particularly in planning and infrastructure. As of 2025–2026, they are involved in updating the city’s Open Space and Environmental Justice Elements and leading a major Bicycle and Pedestrian Mobility Enhancement Plan, including improvements on Nutwood Avenue. 
• Orange County Power Authority: Mayor Fred Jung sits on the board, and they contribute to many citywide events [instead of just doing their job and lowering energy costs for their customers], spending over $5,000 on Fullerton’s State of the City in 2025.
• Republic Services paid for concerts in the park in lieu of customer reimbursements after their union went on strike, delaying waste disposal for several days.
• Fullerton College
• California State University, Fullerton
• West Coast Arborists is currently Fullerton’s Arborist and was a sponsor at Fullerton’s State of the City in 2025.
• Boeing, a sponsor at Fullerton’s State of the City in 2025 and Wisk Aero, a wholly owned subsidiary of The Boeing Company, entered into a partnership and memorandum of understanding with the City of Fullerton in September 2025 regarding future autonomous air taxi infrastructure at Fullerton Municipal Airport

Staff acknowledged that most of the sponsors are existing city vendors and hold contracts either previously approved by the council or potentially subject to future council action.

Zahra argued that while soliciting sponsorships broadly may be acceptable, accepting donations from current vendors created “a potential ethical issue.”

“My concern is that while we’re discussing overall revenue, the source of that revenue matters just as much because it reflects on the ethics of this council,” Zahra said.

The debate intensified after Zahra questioned Boeing’s involvement, citing the city’s memorandum of understanding with Wisk Aero, a Boeing subsidiary involved in future aviation technology discussions at the Fullerton Municipal Airport.

Staff clarified that the city’s agreement with Wisk was a one-year memorandum with no direct financial obligation.

Zahra also criticized the use of sponsorship funds from the Orange County Power Authority, arguing that public agency money was effectively being transferred between government entities.

He proposed establishing formal sponsorship guidelines that prohibit city vendors from donating to the event unless specifically authorized under existing contracts. Zahra additionally requested that sponsorship donations receive formal council approval before future events and that safeguards be put in place to prevent promotional activities that benefit elected officials during election cycles.

“We need standards so this process isn’t loosey-goosey,” Zahra said. “That’s what government is supposed to do, and it’s how we maintain transparency.”

“Yeah, cause you are the king of transparency,” quipped Mayor Fred Jung.

Public speakers echoed concerns regarding vendor influence and campaign relationships. One speaker argued that corporate donations could influence future council decisions involving contracts and accused the city of operating in a manner resembling “pay-to-play” politics.

Others defended the event and sponsorship process.

Mayor Pro Tem Nick Dunlap said sponsorship accusations are common in local government but argued that community participation should not automatically be viewed as unethical.

“I don’t think we should create policies that exclude people who genuinely want to support city events,” Dunlap said. “We should be expanding participation, not limiting it.”

Dunlap also suggested future fundraising could potentially flow through the Fullerton Community Foundation rather than directly through the city.

Councilmember Dr. Shana Charles expressed concerns about sponsorship ethics and the lack of full council involvement in planning the event.

Charles argued that because the State of the City presentation speaks on behalf of the entire city, councilmembers should have the opportunity to review the mayor’s remarks beforehand. She also questioned holding the event at the Summit House Restaurant rather than a public facility.

“I agree that it’s hard to hold a celebratory ‘rah-rah’ event” while the city faces serious financial issues, Charles said, referencing the city’s projected $13.7 million budget deficit.

Charles proposed moving future events to public venues such as the Fullerton Community Center, Hunt Library or the Fullerton Downtown Plaza and making the event publicly noticed under California’s Brown Act so all councilmembers could legally attend.

Assistant City Attorney comments during the meeting noted that a recent California Attorney General opinion considers State of the City events potentially subject to the Brown Act if city business is discussed.

Mayor Fred Jung defended the current process and pushed back strongly against what he characterized as repeated insinuations of corruption and transparency failures.

“The reality is anybody that’s been involved in this process knows this is an extensive process,” Jung said later in the meeting during another transparency-related debate. “There’s a lot of staff work that goes into it.”

Multiple motions regarding the State of the City event failed throughout the evening.

A substitute motion by Councilmember Jamie Valencia to approve the event as originally proposed failed in a 2-3 vote.

A second motion by Zahra and Charles seeking to impose new sponsorship standards, require council review of donations, move the event to a public venue, and publicly notice the event also failed in a 2-3 vote.

Ultimately, the council approved a compromise motion introduced by Dunlap to proceed with the 2026 event as planned while directing staff to return within 45 to 60 days with policy recommendations addressing sponsorship rules, event structure, and transparency concerns for future years.

That motion passed 3-2, with Valencia, Dunlap, and Jung voting in favor and Charles and Zahra opposed.

Consent Calendar Items Pulled

Councilmember Dr. Ahmad Zahra pulled Items 4, 6, and 7 from the consent calendar for discussion. The remaining consent calendar items were approved unanimously.

Residents Raise Concerns Over Waste Rates

During public comment, resident Jeffrey Otter urged the council to conduct a formal cost-of-service analysis before awarding a new waste services agreement. Otter argued that proposed commercial waste fee structures could disproportionately affect residents of apartments, condominiums, mobile home parks, and other multifamily housing.

Otter said comparisons of the shortlisted waste-hauling proposals showed multifamily residents could pay between 250% and 1,400% more than single-family households for equivalent levels of service. He warned that without a Proposition 218-compliant analysis, the city could face future legal challenges.

He also offered to assist the city in evaluating revised proposals and urged the council to pursue a two-tier commercial rate structure to avoid shifting costs onto multifamily residents.

Public Speakers Criticize Mayor Jung

Several speakers criticized Mayor Fred Jung over recent actions and statements.

Karen Lloreda accused Jung of repeatedly acting beyond his authority, citing prior controversies involving a proposed Korean garden at the Korean War Memorial near Duck Pond Park, the use of the city seal by non-committee appointees and non-city employees, and a proclamation recognizing April 27 as “Kim Boo Kan Philanthropy Day” that had not been formally approved by the council.

Another speaker challenged Jung’s recent claim that homelessness in Fullerton had been “drastically reduced,” calling the statement inaccurate and urging greater transparency regarding homelessness data and city policy. They criticized the city’s restrictions on newspaper distribution within city buildings, highlighting publications like the Fullerton Observer and Daily Titan, as well as online news sources such as Voice of OC and LAist, which they believe contribute positively to the community.

Hillcrest Park Native Garden Discussed

Jensen Hallstrom addressed the council regarding the native community garden located along the Hillcrest Park trail between Euclid Street and Richman Knoll.

Hallstrom described the project as an eight-year volunteer-driven effort involving more than 100 community members and said the site serves as an educational and ecological resource for families.

He told the council he recently met with city officials regarding a draft agreement that could create a legal framework for the garden’s continued operation, but expressed concern after Public Works crews removed trees from the site earlier that day.

Hallstrom argued the garden does not present the safety and liability concerns cited by the city and urged officials to work collaboratively with volunteers moving forward.

Financial Audit Discussion

The council discussed an agreement with Grant Thornton Advisors LLC for financial audit, budget analysis, and related advisory services.

Questions centered on whether the council would retain authority over any future forensic investigation stemming from the audit findings.

City Manager Eddy Manfro said any significant expansion into forensic services would require council approval. However, staff could proceed with preliminary investigative work if the initial findings warranted further review.

Staff said the audit firm is expected to provide periodic updates and that any indications of fraud or serious irregularities would be communicated immediately to both the council and the public.

Councilmember Shana Charles questioned whether the Fiscal Sustainability Ad Hoc Committee would receive information before the full council. Staff responded that all councilmembers would receive the same information simultaneously.

The agreement was approved unanimously.

Treasurer’s Report Presented

The council also received a third-quarter Treasurer’s Report and approved an updated city investment policy.

Finance staff reported the city’s investment portfolio totaled approximately $191.4 million at the close of the third quarter of Fiscal Year 2025-26. The portfolio included investments in state-managed short-term pools, U.S. Treasury notes, corporate accounts, and municipal securities.

The city reported a market yield of 4.19% for the quarter and approximately $1.7 million in interest income.

Zahra said he pulled the item to ensure greater public transparency surrounding the city’s financial operations amid ongoing budget concerns.

Energy Audit Proposal Approved

The council approved a no-cost agreement with Veregy LLC to conduct an investment-grade audit evaluating potential energy conservation measures citywide.

Zahra raised concerns about why the proposal had not undergone a formal request-for-proposals process. She also questioned why the city was exploring additional energy-saving opportunities while still paying off financing related to a previous energy project conducted by NORESCO, a national leader in energy efficiency, resiliency, and infrastructure solutions. This prior project involved an $8.4 million investment that was guaranteed to save the city $12.1 million.

City staff explained the proposal is exploratory only and carries no financial obligation for the city. Staff said the audit would identify possible future energy efficiencies and determine whether additional projects would be financially viable.

Representatives from Veregy said some federal incentives tied to solar infrastructure are time-sensitive and could expire later this year.

The agreement was approved unanimously.

Tense Exchange Over Transparency and Street Projects

Council comments became contentious after Councilmember Charles raised concerns over street rehabilitation projects approved at a previous meeting.

Charles said media analysis showed several projects were located near the homes of councilmembers Dunlap, Jung, and Valencia and proposed agendizing a future discussion regarding disclosure requirements for projects located within a half-mile of elected officials’ residences.

Mayor Jung strongly opposed the proposal, arguing that existing conflict-of-interest laws already address disclosure requirements and that additional measures could create safety concerns for council members who have received threats. He said that he had received threats on his life and feared for his safety so much that he had police officers camped out in front of his home.

After debate, the council voted 3-2 against agendizing the discussion, with Charles and Zahra voting in favor of further review.

Additional Council Comments

Charles also announced an upcoming food insecurity forum scheduled for May 18 at the Fullerton Community Center and encouraged residents to participate in discussions about food access and volunteer opportunities.

Zahra promoted a fundraiser for Fullerton College student veterans club taking place at Raising Cane’s at  201. W. Orangethorpe Avenue – by eating there and letting them know that you are supporting Fullerton College Veterans Club.