Well, we do have one notable absence.

Mr.

Veldivia won't be here today, but we do have quorum with committee members Alan Spencer and Tom Hebrin.

We've got Rolando Charvel from the Mayor's Office, Lisa Byrne with the IBA, Mara Elliott with the City Attorney's Office, Council Member Zap, our City Auditor, Mr.

Luna is attendance, and Riley with committee consultant.

Looks like everybody but Mr.

Valdeebi is here.

Seeing none, that'll be passed by unanimous consent.

Do we have any non-agenda today?

I don't see Martha Welch in the audience in the audience.

We're good to go.

All right.

Committee members, mayor, independent budget analysts.

Uh any comment from anybody here?

Any continuances, anything like that need to be requested before we get going on to our first item.

Seeing none, that takes us on to our first item, which is the monthly activity report from Mr.

Luna, our city auditor.

I'm here to present our monthly activity report since our last meeting.

Um since we've last met, uh we've issued two audit reports, both of which will be heard um later this morning.

This includes the housing commission, which is our second audit report on the housing commission, and then our pedestrian safety audit.

In terms of audits that are in report writing, we have one, which is the annual Central Stores Inventory Audit for fiscal year 2016.

We'll be issuing that report by the end of the month.

We're just awaiting for the response from management.

With regards to audits that are in progress, this includes two IT audits.

Um this is one that deals with the Excel implementation, and the second one deals with SAP user access.

Um three other audits that we have in progress include the San Diego Convention Center, Development Services Department, the Expedite Permitting Program, and finally the street light maintenance.

This includes our audit of the Capital Improvement Program.

This next slide shows um our audits that are in the approved work plan but have not commenced.

This includes economic development department, business industry and incentive program, our audit of the park and recreation department, um, an audit of the stormwater division of the Transportation of Stormwater Department, Office of the City Attorney, Office of the City Controller Grant Management, and finally developing services develop and impact fees.

Also, like at this time, I'd like to introduce a new staff member.

We had an opportunity to hire a second IT auditor.

So I'd like to introduce Jenny Song.

Um she was recently graduated from NYU University with a degree in computer science.

She was working on Wall Street and working for Berkshire Capital Securities and also Deutsche Bank.

She was in the process of relocating from New York to the San Diego area, and we're really fortunate to have her here.

So welcome, Jenny.

And that concludes my presentation.

Great, thank you for the presentation and welcome to the team, Jenny.

I hope you're enjoying the weather, even though it's unusually damp today.

All right, that takes us on to our next item, which is item number two, follow up to the performance audit of the street preservation ordinance.

All right, you all want to introduce yourselves for the record, and you're welcome to start any time.

Good morning, uh committee chair, honorable committee members.

My name is Hassan Youssef.

I'm a deputy director in the Transportation and Stormwater Department.

And with me here today is Christy Reeser, Deputy Director Street Division, and Isam Haresh, Deputy Director, Public Utilities Department.

And also in the audience is Greg Hopkins, Deputy Director of Development Services Department.

Next, please.

This morning, we will provide the committee with an update on our efforts to implement the street preservation ordinance audit recommendations.

In addition, we will report on the status of the request made by the audit committee members during the discussions of the audit report back in March 2016.

The street preservation audit involved several departments, including the Transportation and Stormwater Department, the Public Utilities Department, the Development Services Department, and the Public Works Department.

There were eight audit recommendations made in the audit report.

These recommendations focused on establishing operating procedures and process controls, establishing street repair, establishing street repair, ensuring street repair is performed in accordance with city standards, and centralizing the street preservation ordinance documents and ensuring staff is properly trained.

I am happy to report to you this morning that we're making significant progress on the implementation of these recommendations.

Six of these audit recommendations have been completed.

Although the department considers these completed, I would like to point out that we're still awaiting verification from the auditor's office on the completion of these recommendations.

In addition to the audit recommendations, there were five requests made by the audit committee members during the discussions of the audit report.

Four of these have been completed, and one is still pending.

In the following slides, we will discuss the status of each of these recommendations and requests.

We will start with the audit recommendations.

Audit recommendation number one requested the establishment of a process for assessing quality of work performed by street crews.