Deanna Santana, Santa Clara’s city manager from 2017-2022, has filed a breach of contract lawsuit claiming that the city withheld contracted compensation and benefits when she was dismissed in February 2022. The former top Santa Clara official is also claiming that, at the direction of the San Francisco 49ers, the city discriminated against her based on her race and gender, that her civil rights were violated and she was forced to face harassment in a hostile workplace.
Or as Santana’s lawyer put it: “A competent and celebrated city manager was retaliated and discriminated against, harassed, threatened, and ultimately relieved of her duties for upholding the law.”
Events, Santana’s attorney, Therese Cannata, called “disturbing and, yet all too familiar.”
Santana made the same allegations nearly a year ago in a claim against the city, which, according to the lawsuit, were dismissed by the city. She first threatened to sue Santa Clara in 2021 over a $20,000 cost of living raise.
Santana’s separation agreement entitled her to one year’s full compensation. The lawsuit charges that the city withheld part of Santana’s salary and deferred compensation for IRS 457 and 401(a) accounts* from March 15 through March 31, 2023, withheld cash for accrued leave and converted her sick leave credits to CalPERS service credits without authorization.
The city also, according to Santana, demanded that she “disgorge” $60,000 in 2022 salary, and unsuccessfully attempted to withdraw money from Santana’s deferred compensation retirement accounts.
Santana claims that this breach of contract was part of a harassment campaign against her by San Francisco 49ers. This included retaliation, discrimination and harassment for her race and gender, a hostile work environment, and violation of whistleblower protections; all at the behest of the 49ers, who, Cannata implies, bought the 2020 election.
“In an attempt to obtain a more favorable political environment with less oversight, the 49ers’ franchise flooded an unprecedented $2.9 million into a campaign,” the complaint says.
“The franchise … sought revenge against Ms. Santana … for having the audacity to do her job by pointing out several state code violations, violations of public procurement and contract laws, and questionable administrative practices, resulting in the villainizing of Ms. Santana through several campaign mailers and local blogs during the November 2020 election, and making her compensation a key issue with regards to political strategy and message. The return on that investment was successful,” read the complaint.
Offered in evidence of these allegations are references to a controversial 2022 civil grand jury report, complaints made to the District Attorney that never resulted in investigations, and the use of a derogatory nickname by a local blogger, closely aligned with Mayor Lisa Gillmor. The complaint asserts, without evidence, that “Certain city councilmembers engaged in a ‘quid pro quo’ with the 49ers.”
This alleged campaign by the 49ers, caused Santana and her children great anguish, according to her attorney.
“Because her actions were covered broadly in media articles, the position took a professional toll, By early 2022, Ms. Santana was fearful for her own safety and that of her family’s, having learned by reading a local newspaper** that she and her family were being followed while she was on her own personal time. During this time, Ms. Santana experienced stress along with the related health impacts (e.g., extremely high blood pressure, anxiety/elevated fear, and inability to sleep).”
Santana also claims that the alleged campaign against her was a result of whistleblowing, when she alerted the city council to what she believed were illegalities. However, District Attorney Jeff Rosen — no friend of the 49ers or the Santa Clara city council — didn’t see fit to investigate any of these allegations.
Santana was dismissed after the city’s laborers union — the people who maintain the city’s infrastructure like sewers and water mains — called a strike because Santana blocked raises given to other city unions. Her tenure saw the departure of many experienced employees, and a sizable increase in city payroll.
The Santa Clara city manager is an at-will employee who can be dismissed by the city council at any time for any or no reason. Santana’s compensation package when she was dismissed was $785,000. She is currently the acting city manager of Milpitas.
*IRS 457 and 401(a) accounts are used to give public employees additional retirement benefits beyond what is allowed by the IRS and CalPERS.
**Santana is referring to the website San Jose Inside, which, in 2022, published a story about her then-new Pacific Grove house. Property records and real estate sales are public records.
