FPPC to Vargas: You Have a Conflict of Interest

Because Council Member Vargas is a ‘public officer’ who is married to Patrick Vargas, a Division Fire Chief in the City’s Fire Department, her interest in the contract is sufficient to prevent her from participating in any manner concerning the contract. (If you would like to learn more about Patrick Vargas’ felony conviction for wire fraud of $138,000 from the Tracy Fire Department click here.) Below is an excerpt from the FPPC’s decision - 

The ruling is an obvious setback for Veronica, who has managed for years to avoid having to recuse herself from Tracy Fire Department matters by the FPPC. In 2015, the conflict of interest issue came up between Vargas and other council members, as to whether she should recuse herself from making any policy decisions involving the department. As reported by the Tracy Press, then City Attorney Sodergren said it was up to the FPPC. (Read the article here.)

The FPPC response was that as long as any agreements didn’t result in “new or different employment for her husband” then she could participate. However, they continued by stating that “elected officials should use common sense” and that they should, “Err on the side of avoiding potential conflicts of interest, as opposed to putting oneself into the potential of an appearance of conflict.” Advice Vargas has clearly chosen to ignore in all her years as a Tracy elected official!

In January 2019, the issue arose again after the City Council inexplicably chose Vargas as an alternate to the Authority Board. The Board provides oversight to the appointed Chief Executive Officer/Fire Chief for the Authority, as well as setting budget and strategic priorities. Again, the FPPC ruled that as long as any decision, “…would not have a reasonably foreseeable, material effect on her personal finances” then she could participate.

Why the FPPC Decision Matters

The FPPC’s decision has significant implications. First, it prevents Veronica Vargas from trying to influence any decisions that can benefit her personally. It goes without saying that if her husband gets a raise, then she gets a raise. And, as we’ve attested, she lacks ethics when it comes to making decisions that benefit her clients and business associates. In short, she will stop at nothing to move her personal agenda. 

Second, the decision may save the South San Joaquin County Fire Authority from falling apart. Rumblings from City Hall tell us some, Veronica Vargas included, oppose unification of the City Fire Department with the Tracy Rural Fire Protection District. Why? It’s difficult to say definitively. Some fire fighters prefer being an autonomous entity from the City. Other sources tell us Veronica believes her husband Patrick should be the Fire Chief. If she can’t make that happen with the Fire Authority, then perhaps her goal is to make him chief of the District with the help of her pal the City Manager. No matter her motives, Vargas will find it harder to influence these decisions by having to recuse herself.

Third, she has demonstrated a history of disrespecting ethical conflicts. She was recently found guilty of omitting her income from Trumark Homes, a Bay area developer looking to build in Tracy. We understand she was a full time salaried employ of Trumark. How do you forget where you go to work every day? And, while she said she would recuse herself from voting on Trumark matters that were placed on the City Council agenda, the Tracy Press reports that City Hall emails show she continued lobbying the City staff on behalf of Trumark. So, her statement that she never voted on a Trumark matter is technically true but leaves a false impression: she continued to advocate for Trumark’s economic interests while serving on the City Council and drawing a salary from Trumark.