OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Diego City Council Audit Committee Meeting - June 14, 2023

Audit Committee — Wednesday, June 14, 2023
BodySan Diego, California
SessionAudit Committee
DateWednesday, June 14, 2023
StatusFILED
Video Record
Meeting Thumbnail
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Transcript — Verbatim
3:27

Good morning, everybody, and welcome to the audit committee meeting of June fourteenth, two thousand twenty-three.

3:32

Thank you very much for being with us.

4:01

This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business.

4:30

Present.

4:30

Committee member Tab Shuri.

4:33

Present.

5:00

If you're in person, please complete a speaker sleep located at the entrance of chambers and place it in the box indicated at the speaker's lecture at the front of the room.

5:06

Please do so in a timely manner to ensure proper meeting management.

5:09

In-person testimony will conclude before virtual testimony begins.

5:13

Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link, which is located online in the preamble language of the agenda on the city's webpage.

5:23

To join the Zoom webinar by telephone, you may dial either one 669-254-5252 or 1646-828-7666 when prompted.

5:34

Input Webinar ID 16121956 Pound.

5:40

And that information is also available on the agenda.

5:44

The public may view the meeting on City TV, which is Channel 24 for Cox Communication and Spectrum, or Channel 99 for ATT Uverse.

5:52

Or you may view the meeting online by going to the City Council Committee's homepage at Sandiego.gov and selecting the City TV live webcast blue button on the right-hand side of the page.

6:02

Please note that if you're watching via City TV or online, there may be a delay.

6:07

Please participate via the audio on your phone and mute your TV or computer when it's turned your turn to speak.

6:12

Thanks as always to our City TV staff for broadcasting today's meeting.

6:17

If you're in person, please come up to the reserve seats at the front of the room when your name is called and be prepared to come up to the lectern in the order called.

6:24

Please wait until the item that you wish to speak to has been called before raising your hand to speak.

6:28

If you raise your hand during a non-comment period, your hand will be lowered.

6:32

When I introduce the item you'd like to comment on, please raise your hand by either tapping the raise your hand button on your device or by pressing star nine on your phone.

6:41

When our committee liaison, Natalie Kessler indicates that it's your turn to speak, she'll call you by your name, or she will read out the last four digits of your phone number.

6:49

At that time, please unmute your phone by tapping the unmute button on your device or by pressing star six on your phone.

6:56

Also, please mute the volume on your TV or computer before you begin to speak.

7:01

We will now take up the approval of the committee actions of April 26, 2023.

7:06

Natalie, please proceed with public comment.

7:09

Thank you, Chair.

7:10

The public comment period for the committee actions of April 26, 2023 is now open.

7:14

And Chair, we do not have any speaker slips submitted, nor do we have any hands raised in the virtual queue.

7:20

So that will conclude public comment on the committee actions.

7:23

Thank you, Natalie.

7:24

I will now invite any comments or questions and a motion from my colleagues on approval of the committee actions.

7:32

I will motion.

7:33

All right.

7:34

We have a motion from committee member Tab Shuri.

7:37

I'll second.

7:38

And a second from Committee Member Halpern.

7:41

Uh seeing no further discussion.

7:44

Uh all those in favor of approving the committee actions, please signify by saying aye.

7:49

Aye.

7:50

Aye.

7:51

All those opposed, please say nay.

7:53

That motion carries.

7:57

We will now take up non-agenda public comment.

8:00

The council members and committee members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and committee meetings.

8:10

For temporary rule 2.7, non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda but are within the subject matter jurisdiction of the committee.

8:20

Each speaker will have two minutes.

8:22

Natalie.

8:24

Thank you, Chair.

8:25

If you're in person, please come up to the reserve seats at the front of the room when your name is called and be prepared to come up to the lecture and the order called.

8:31

And if you are in the virtual queue, please raise your hand at this time if you have non-agenda public comment.

8:36

Chair, we do not have any speakers in chambers who have submitted speaker slips, so we'll move to our virtual queue.

8:42

I will begin the five-minute timer and we will take all callers at the conclusion of the five minutes or when the virtual queue is exhausted, whichever occurs first.

8:53

Our first speaker in the virtual queue is Blair Beekman.

8:56

Blair, please unmute yourself and provide your comments.

9:02

All right, thank you.

9:03

I hope these words I think can speak to the peer view of the audit committee.

9:07

Um, from Council Person Bon Wilbert's amendment ideas at council last night about city housing staff first making a visit to an encampment site before police arrive on property deemed as ticketable or jailable.

9:21

Is there a way to make this a step one of a four-point process?

Discussion Breakdown — Share of Meeting
Technology and Innovation███████████████████19%
Public Comment████████████████16%
Audit Follow-up███████████████15%
Capital Improvement Planning████████████12%
Customer Service████████████12%
Risk Management██████████10%
Public Safety████4%
Climate Change███3%
Procedural██2%
Summary of Proceedings

San Diego City Council Audit Committee Meeting - June 14, 2023

The San Diego City Council Audit Committee convened on June 14, 2023, to review audit reports, discuss risk management, and hear updates on the city's digital customer experience strategy. The committee voted on two items: designating a committee member to participate in developing a request for proposals (RFP) for outside audit services, and forwarding the capital improvement projects approval process audit to the City Council. All other agenda items were informational.

Consent Calendar

  • Approval of Committee Actions (April 26, 2023): Committee member Tab Shuri moved approval, seconded by Committee Member Halpern. The motion passed unanimously by voice vote.

Public Comments & Testimony

  • Non-Agenda Public Comment: Speakers raised concerns about encampment enforcement, the climate action plan, and appreciated the City Attorney's office.
    • Blair Beekman suggested adding a housing department visit before police enforcement at encampments.
    • John Stump urged an audit of compliance with the climate action plan, particularly employee parking subsidies.
    • A caller (phone ending 7968) thanked the City Attorney's team.
  • Item 1 (RFP for Audit Services): John Stump recommended including climate change mitigation and local location criteria in the RFP.
  • Item 2 (CIP Approval Process Audit): John Stump submitted a 10-page letter and urged review of fire station projects, saying public safety facilities are the worst offenders in cost and time overruns.
  • Item 3 (Risk Management): Blair Beekman connected accountability to litigation avoidance; John Stump suggested reviewing international vehicle safety painting practices.
  • Item 4 (Single Audit): Blair Beekman commented on streetlight repair, ALPRs, and surveillance technology.
  • Item 5 (Digital Customer Experience): Caller Joyce expressed support for the Panda team; Lori Saldania criticized Councilmember Whitburn's encampment policies and urged prioritizing homeless services; Blair Beekman cited San Jose's 311 system as a model.
  • Item 6 (Auditor's Monthly Report): Lori Saldania requested an audit of financial conflict disclosures at council meetings; Joyce supported the housing commission property acquisition audit.

Discussion Items

  • Item 1: RFP for Outside Audit Services
    • City Auditor Andy Hanno and Deputy City Auditor Daniel Knighton presented the timeline to engage an audit firm by December 2023. The current contract expires in February 2024.
    • City Attorney Elliott warned that an extension would require an ordinance process and that recent RFPs have taken longer than expected.
    • Chair Whitburn moved to designate Committee Member Halpern to the RFP working group; the motion passed 4–0 (with one member absent).
  • Item 2: Performance Audit of CIP Approval Process
    • The audit found 44% of projects appeared insufficiently planned when first approved, costing an average 233% more than initial estimates and taking four years longer to complete.
    • The city faces an estimated $5.17 billion CIP funding gap over FY24–FY28 ($9.75 billion needs vs. $4.58 billion available).
    • Three recommendations were issued: require new projects to start as P projects unless project-ready, establish standardized delivery timelines, and review pre-P-project S projects for feasibility. Management agreed to all three.
    • Engineering & Capital Projects Director Rania Amen expressed support for the recommendations.
    • Vice Chair Moreno raised concerns that new requirements could hinder council-prioritized projects without mayoral funding support.
    • Motion to accept the report and forward to City Council passed 4–0.
  • Item 3: Overview of City's Approach to Risk Management
    • Presented by Chief Compliance Officer Christiana Gauger, Risk Management Director Angela Colton, and Compliance Program Manager Luis Bruzegno.
    • Covered types of risks, mitigation through transparency and communication, and risk management programs (liability claims, insurance, workers' compensation, employee benefits).
    • A new loss control team was fully staffed in January 2023 to focus on data analytics.
    • Committee Member Halpern and Tab Shuri noted the lack of a holistic, citywide risk framework; City Auditor Hanno explained the recommendation's origin.
  • Item 4: FY22 Single Audit
    • Presented by Jeff Peel (Department of Finance) and Linda Hurley (MGO partner). The city expended about $264 million in federal awards.
    • The city was considered a low-risk auditee; unmodified opinions were issued. One significant deficiency was found in the Coronavirus State and Local Fiscal Recovery Fund program related to the California water/wastewater arrearage payment program: 4 of 25 sampled customers lacked evidence of required communication.
    • No material weaknesses or noncompliance were identified.
  • Item 5: Preliminary Digital Customer Experience Strategy
    • Presented by CFO Matt Vesby, Performance Analytics Director Kirby Brady, and Deputy Director Alex Hinton.
    • The draft strategy outlines a vision for cohesive customer service, including digital tools and a future contact center. It proposes a 10-year timeline with costs estimated at $19–25 million and 19 FTEs.
    • Vice Chair Moreno and City Auditor Hanno questioned the cost and timeline, citing prior consultant estimates and benchmarking from other cities (e.g., LA at $6.5 million, Sacramento at $3.5 million).
    • Staff defended the estimates, citing the need to modernize back-end systems before launching a functional 311 center.
    • The item was informational; no action was taken.
  • Item 6: City Auditor's Monthly Activity Report
    • City Auditor Hanno reported one report issued (CIP audit), new report template/website launched, and ongoing audits in various stages.
    • FY23: 14 reports issued, 43 recommendations made.
    • The FY24 budget included competitive salaries and funding for two of three requested positions.

Key Outcomes

  • Item 1 Vote: Motion to designate Committee Member Halpern to assist with RFP development passed 4–0.
  • Item 2 Vote: Motion to accept the CIP approval process audit and forward it to City Council passed 4–0.
  • Next Steps: Staff will develop the RFP for outside audit services with committee involvement, implement the three CIP audit recommendations, incorporate public feedback into the digital customer experience strategy draft, and continue ongoing audits.

Meeting Transcript

Good morning, everybody, and welcome to the audit committee meeting of June fourteenth, two thousand twenty-three. Thank you very much for being with us. This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business. Present. Committee member Tab Shuri. Present. If you're in person, please complete a speaker sleep located at the entrance of chambers and place it in the box indicated at the speaker's lecture at the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link, which is located online in the preamble language of the agenda on the city's webpage. To join the Zoom webinar by telephone, you may dial either one 669-254-5252 or 1646-828-7666 when prompted. Input Webinar ID 16121956 Pound. And that information is also available on the agenda. The public may view the meeting on City TV, which is Channel 24 for Cox Communication and Spectrum, or Channel 99 for ATT Uverse. Or you may view the meeting online by going to the City Council Committee's homepage at Sandiego.gov and selecting the City TV live webcast blue button on the right-hand side of the page. Please note that if you're watching via City TV or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it's turned your turn to speak. Thanks as always to our City TV staff for broadcasting today's meeting. If you're in person, please come up to the reserve seats at the front of the room when your name is called and be prepared to come up to the lectern in the order called. Please wait until the item that you wish to speak to has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. When I introduce the item you'd like to comment on, please raise your hand by either tapping the raise your hand button on your device or by pressing star nine on your phone. When our committee liaison, Natalie Kessler indicates that it's your turn to speak, she'll call you by your name, or she will read out the last four digits of your phone number. At that time, please unmute your phone by tapping the unmute button on your device or by pressing star six on your phone. Also, please mute the volume on your TV or computer before you begin to speak. We will now take up the approval of the committee actions of April 26, 2023. Natalie, please proceed with public comment. Thank you, Chair. The public comment period for the committee actions of April 26, 2023 is now open. And Chair, we do not have any speaker slips submitted, nor do we have any hands raised in the virtual queue. So that will conclude public comment on the committee actions. Thank you, Natalie. I will now invite any comments or questions and a motion from my colleagues on approval of the committee actions. I will motion. All right. We have a motion from committee member Tab Shuri. I'll second. And a second from Committee Member Halpern. Uh seeing no further discussion. Uh all those in favor of approving the committee actions, please signify by saying aye. Aye. Aye. All those opposed, please say nay. That motion carries. We will now take up non-agenda public comment. The council members and committee members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and committee meetings. For temporary rule 2.7, non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda but are within the subject matter jurisdiction of the committee. Each speaker will have two minutes. Natalie. Thank you, Chair.

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