Leftovers
Bonta & Juarez &Swalwell & Khanna; Oakland's Encampment Abatement Policy debate resumes this week; 'Dro discusses ex-city manager's lawsuit; Hayward is paying two city managers this month
☕️MORNING BUZZ
—Last week, East Bay Insiders broke the story about a letter sent to California Attorney General Rob Bonta alleging the existence of a “compromising” video — a claim Bonta has unequivocally denied.
He has publicly dismissed the allegation, described the letter’s author as someone in crisis, and said he forwarded it to authorities out of concern.
The controversy landed alongside fresh scrutiny of the large legal fees paid by his campaign during the federal corruption probe.
Bonta’s team has framed the expenses as the cost of cooperating with investigators, while his supporters and critics alike acknowledge the political stakes as he continues to weigh a potential run for governor.
He has since distanced himself from the Duongs and has characterized the broader swirl of accusations and complaints as driven, at least in part, by political motivations.
Here’s the latest developments during the holiday break:
ABOUT THE ALLEGED “COMPROMISING” VIDEO
Flat denial that any such video exists: Bonta has publicly said the allegation that a video exists is false. He told KCRA in Sacramento there is no video and that the claim is untrue.
The letter warning him looked like it came from someone in crisis: After the May 2024 letter warning him about a video surfaced, Bonta characterized the letter’s author as “somebody in a mental-health crisis” and suggested the letter was written by “a desperate person,” Bonta told the San Francisco Chronicle. He said he passed the letter along out of concern for the author’s safety.
Federal investigators contacted him, then later called him a witness: Bonta said the FBI initially reached out because they thought he could be a potential victim of extortion or blackmail given the allegations in the letter. He later said investigators determined he was a witness in the broader probe rather than a target.
ABOUT THE CAMPAIGN’S NEARLY $500K IN LEGAL FEES
Funds paid for legal counsel while he provided information to investigators: Bonta’s campaign has said the nearly $500,000 in payments to the law firm Wilson Sonsini were for legal representation as authorities requested information during the federal bribery investigation.
Bonta framed issue as being politically motivated: In response to a complaint to the California Fair Political Practices Commission (FPPC) about the use of campaign funds, Bonta characterized the complaint in defensive terms portraying the complaint as politically motivated and framed criticisms as partisan.
Bonta is reportedly still eyeing a run for California governor, despite the pair of burgeoning controversies. Some have characterized the report of $500,000 legal fees as being opposition research plied by Eric Swalwell’s campaign for governor to undercut Bonta’s entrance into the crowded field.
Bonta believed he may have been a victim early on and later returned certain donations tied to the Duong family: Bonta said he thought he might be a victim of potential extortion when he first received the letter from Mario Juarez. After the investigation became public he returned a total of $155,000 in campaign donations tied to the Duong family.
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🎙️EAST BAY INSIDERS PODCAST
—EPISODE 120—Following the bombshell East Bay Insiders report of a letter alleging the existence of a video showing California Attorney General Rob Bonta in a “compromising situation,” Steve Tavares provides additional insights into the story and the potential Easter eggs in the letter. Will Bonta still run for governor?
—Along with Trishala Vinnakota and Justin Berton, we also breakdown Eric Swalwell’s own nascent campaign for governor, and his chances and what to expect?
—Plus, we look at Hayward’s mounting budget crisis and two former elected officials’ surprising public criticisms of the current city council.
ELECTION 2026
183 days to June Primary Day
GOVERNOR
—SWALSUIT—Eric Swalwell has previously sued President Trump. Last week, Swalwell added a lawsuit against Bill Pulte, the Trump housing official that filed a criminal referral last month with the U.S. Department of Justice alleging Swalwell committed mortgage fraud.
—In the lawsuit, Swalwell said Pulte used his position as head of the Federal Housing Finance Agency to “concoct fanciful allegations of mortgage fraud,” in addition to violating the Privacy Act of 1974.
—It also alleges Pulte’s referral and the media attention it received harmed Swalwell just as he was preparing a campaign for California governor.
—The issue surrounds Swalwell’s financing in 2020 for a $1.2 million home in Washington, D.C. Pulte alleged that Swalwell falsely claimed the home as his primary residence.
—In the lawsuit, Swalwell countered saying the D.C. home was listed as his wife’s primary residence. Swalwell’s still maintains his primary residence in the East Bay, he wrote.
—ENDORSEMENT #1—Eric Swalwell’s gubernatorial campaign has won over at least one California voter. Swalwell received the endorsement of billionaire Stephen Cloobeck, who had been in the governor’s race since November 2024.
—Cloobeck said he only ran for governor because he believed nobody in the current field of Democratic candidates was worthy.
—Swalwell, Cloobeck said, changed all that, leading to the endorsement last week. Cloobeck’s campaign had make very little ground and it’s questionable how much name I.D. he can lend Swalwell over the next seven months of the primary.
—LOST ENDORSEMENT #1—Rep. Ro Khanna and Rep. Eric Swalwell have never really vibed with each other the years, despite representation neighboring East Bay congressional districts.
—If Khanna is Bob Dylan. Swalwell is Britney Spears.
—So it was no surprise that Khanna announced his endorsement of Tom Steyer’s campaign for California governor last week, and not Swalwell’s. Khanna said of Steyer: “Tom is for taxing billionaires like himself.”
CITY NEWS
OAKLAND
—EAP ASAP—The last time the Oakland City Council debated Councilmeber Ken Houston’s robust Encampment Abatement Policy, the Public Safety Committee believed it was not yet ready for a full council discussion. That was Sept. 10.
—After several fits and starts, the policy comes to the Oakland City Council on Tuesday evening for a vote. Expect a lengthy and passionate debate from both sides.
—Houston’s legislation aims to repeal the city’s 2020 Encampment Abatement Policy, and replace it with an ordinance that aligns with U.S. Supreme Court rulings that give city’s greater powers to clear homeless encampments.
SAN LEANDRO
—DEAL OR NO DEAL?—For the second straight council meeting, the San Leandro City Council will meet in closed session this evening to discuss the lawsuit filed by former City Manager Fran Robustelli.
—The frequency of the scheduled item suggests a settlement could be near.
—It follows two recent developments that bolster Robustelli’s claim that her decision to leave the post in 2024 was precipitated by gender bias and misconduct by several current councilmembers.
Robustelli’s lawsuit asserts that Councilmembers Bryan Azevedo and Victor Aguilar, Jr. pressured her to work with Evolutionary Homes, the container home company that is part of the FBI’s East Bay public corruption investigation. Azevedo was charged on Oct. 28 with wire fraud and lying to federal authorities. Both charges are related to Azevedo’s alleged involvement in bringing Evolutionary Homes to San Leandro.
Robustelli also claimed that Aguilar, Jr. and Councilmember Fred Simon exhibited gender bias and violated by the City Charter by interfering in her duties as city manager. Aguilar, Jr. and Simon were censured for these same allegation in November 2024. An investigative report looking into similar allegations against both by Councilmember Xouhoa Bowen could be released sometime this month.
HAYWARD
—DOUBLE PAY DUO—When Jayanti Addleman was elevated by the Hayward City Council to serve as interim city manager in July, her contract stipulated she would retain the job through Dec. 31.
—Last month, Jennifer Ott was tabbed by the City Council to become Hayward’s permanent city manager. Because Ott’s effective date is Dec. 8, city officials will be paying for parts of two city managers salary this month, a development that comes as the city is frantically searching for ways to close a $30 million budget deficit.
—Addleman, who previously served as Hayward’s Director of Library Services, is expected to return to that role, but her current interim city manager contract will be amended to write her a check for an extra $8,085 in differential pay.
—In addition, Addleman will receive 124 hours of leave, allowing her paid leave through the rest of the year. It’s a bad look for a city possibly staring down the barrel of insolvency.
—The pile-on of former Hayward mayors and a councilmember on Nov. 18 is still smarting the City Council. Here’s the highlights on the East Bay Insiders YouTube page. Like and subscribe today.
