OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Diego Audit Committee Meeting - September 18, 2024

Audit Committee — Wednesday, September 18, 2024
BodySan Diego, California
SessionAudit Committee
DateWednesday, September 18, 2024
StatusFILED
Video Record
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Transcript — Verbatim
1:48

Good morning and welcome to the audit committee hearing of September 18th, 2024.

1:53

Our audit committee liaison, uh, Natalie Kessler will go over the instructions for today's meeting.

1:59

Thank you, Chair Moreno.

2:01

While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom webinar platform.

2:12

Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes.

2:18

The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first.

2:24

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

2:30

We appreciate the public's cooperation.

2:32

Chair.

2:41

Vice Chair Whitburn.

2:42

Here.

2:42

Committee member Halpern.

2:44

Here.

2:44

Committee member Mafia.

2:46

Present.

2:47

Committee member Tapsuri.

2:48

Here.

2:48

And Chair, Councilmember Moreno.

2:50

I am here.

2:51

Uh Natalie, please continue with public comment instructions.

2:55

If you are in person, please complete a speaker slip located at the entrance of the committee room and place it on top of the box indicated at the speaker's electron at the front of the room.

3:03

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

3:06

In-person testimony will conclude before virtual testimony begins.

3:09

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

3:17

If you need to participate by telephone, you may dial 16692545252.

3:23

The webinar ID is 1607-8861 pound.

3:27

This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item.

3:33

Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes, and the queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first.

3:45

And please note that if you are watching via City TV 24 or online, there may be a delay.

3:50

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

3:55

If you wish to speak on a particular item, please wait for that item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you're a call-in participant, press star nine on your phone to raise your hand.

4:06

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

4:10

Chair.

4:11

Thank you for reviewing those instructions.

4:14

Also attending the meeting today is Andy Hanao, the city um auditor.

4:24

And Natalie Kessler, our committee liaison.

4:28

A quorum is now present, and we will dispense with the approval of the committee meetings of July 24th, 2024.

4:36

Natalie, please proceed.

4:38

Thank you, Chair.

4:39

The public comment period for the past committee minutes of July 24th, 2024 is now open.

4:43

And we have not received any speaker slips from any individuals in chambers, but we do have one hand raised in the virtual queue.

5:00

Okay, the problem is with the minutes is that when someone is taking these minutes, they're changing what was said.

5:04

So what I said was uh well, what it says I said was that um I was talking about the convention center and the unaccompanied children who were relocated, asking for an audit on the safety and whereabouts of the miners.

5:17

I didn't say relocated, I said they were trafficked.

5:20

And when you say relocated, you're changing the entire thing of what I said.

5:24

So I think it's important to not change uh what people are saying by adding different words, uh, possibly because you don't want to write the word traffic.

5:33

Um, but I said that the kids in the convention center that are the unaccompanied alien children who come across the border, um, were trafficked, and that we need to do an audit on you know where they have gone.

5:47

So I mean, when you say relocated and I say traffic, that totally changes um what was said.

5:52

So I think it needs to be um, you know, clear and exactly uh what the people said, not changing the meaning of it.

6:00

Thank you.

6:00

And this concludes public comment on the past committee minutes.

6:04

Thank you.

6:04

We're now gonna vote on the approval of the committee minutes of July 24th, 2024.

6:10

Um, I do need a motion and a second if I if anybody would be willing.

6:14

Uh motion to approve.

6:16

Wonderful, thank you.

6:17

Um, committee member Mafia, and if I may have a second, Councilmember Whitburn, and now let's take the vote wonderful, thank you.

6:29

The motion passes unanimously, and now we're gonna take up non-agenda public comment.

6:34

Uh, the council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech right at council and committee uh meetings.

6:45

Uh Natalie, please proceed with non-agenda public comment.

Discussion Breakdown — Share of Meeting
Audit Follow-up████████████████████████████28%
Public Comment███████████11%
Parks and Recreation████████8%
Public Engagement███████7%
Stormwater Management█████5%
Budget Equity Analysis█████5%
Public Safety████4%
Economic Development████4%
Cannabis Regulation███3%
Summary of Proceedings

San Diego Audit Committee Meeting - September 18, 2024

The San Diego Audit Committee convened on September 18, 2024, at 5:00 PM to discuss the Office of the City Auditor's (OCA) recommendation follow-up report, department updates, and the auditor's monthly activity report. The committee approved past minutes, heard public testimony, and voted on recommended actions. Key discussions centered on the status of 150 open recommendations, with 30 implemented during the reporting period, the highest in several cycles.

Consent Calendar

  • The committee unanimously approved the minutes of the July 24, 2024, meeting after a public comment raised concerns about accuracy in recording a previous statement regarding unaccompanied children at the convention center. The speaker emphasized the word "trafficked" was changed to "relocated" in the minutes.

Public Comments & Testimony

  • Joyce and Yata (District 3): Expressed appreciation for the audit team and urged the committee to focus on equity within the city's employee culture and audit processes.
  • Cesar Javier and Percyta Javier: Reported health issues from a nearby ceramics manufacturing business and requested an audit of the city's approval and oversight of hazardous businesses in residential zones.
  • Becky Rapp (public health educator): Requested an update on marijuana business tax collections, noting the 2022 audit found less than 50% paid taxes. She asked for a timeline on responding to the San Diego Grand Jury report on cannabis fiscal impacts.
  • Madison: Called for the city to track and report fiscal impacts of cannabis legalization as recommended by the Grand Jury, referencing Proposition 64 and Measure N.
  • Audra (virtual): Stressed the need for an audit of unaccompanied alien children housed at the convention center, alleging trafficking and urging the committee to watch the documentary "Trafficked."
  • Additional speakers during Section B: Joyce praised the new report format and PUD progress; Cesar Javier reiterated concerns about toxicity and governance; Audra criticized delays in implementing recommendations and questioned health effects of smart meters.

Discussion Items

Item 1: Office of the City Auditor's Recommendation Follow-Up Report

  • Presentation (Andy Hanao, Matt Holm): The OCA presented the report for the period ending June 30, 2024. Highlights: 26 new recommendations made, 96% agreed to by management; 30 recommendations implemented (a record); 150 still in progress; 36 require additional resources. The new report format (by audit report rather than department) aims to provide context. Recommendations 6, 8, 11, 12, and 13 from the 2019 PUD smart meter audit were proposed to be closed as N/A due to PUD's shift to a performance-based RFP, with recommendation 3 remaining open to cover overall project management.
  • PUD Representative (Katie Keach): Confirmed commitment to smart metering citywide; engaged an expert and developed a comprehensive RFP pending meet-and-confer.
  • Committee Action: Chair Moreno moved to approve the auditors' recommendations in Section A (closing those five recs and keeping rec 3 open). Motion passed unanimously.
  • Section B Discussion (Led by Committee Member Tapsuri): Detailed review of selected audits across departments:
    • PUD Industrial Wastewater: Two recommendations remain; progress on principal negotiations with 12 agencies, but target dates TBD due to external dependencies. Chair Moreno expressed frustration over 30+ year fee delays for outside businesses.
    • Purchasing and Contracting (Claudio Barca): Updates on multiple audits (central stores, contract management, SLBE program, CARES Act). Many recommendations past due; new target date set for March 2025. Communication gaps acknowledged; committee stressed need for timely updates.
    • Economic Development (Lucy Contreras, Christina Bibler): Focus on lease management (holdovers) and the 12-year-old recommendation on council policy 700-12. New policies expected in October 2024; vacancy rate reduced from 38% to 10%. Holdover percentage still about 25% (apples-to-apples analysis requested for next report).
    • Stormwater Division: Recommendation for a reinspection fee not funded in FY25 budget; ROI case will be made for FY26. Chair Moreno urged inclusion in budget memos.
    • Development Services (DSD): Transitioning from deposit accounts to pay-as-you-go model; pilot target April 2024, but implementation delayed. Committee requested a six-month follow-up to ensure credit issues resolved.
    • Parks and Recreation (Sarah Razzo, Erica Ferrera): Progress on equity audit recommendations; translation services implemented; opportunity fund report coming in October. Most recommendations require additional resources; budget requests will continue.
    • Workplace Safety/Workers Comp (Brendan Virgin): New program manager hired; several recommendations delayed 2-3 months due to vacancies and meet-and-confer.
    • Code Enforcement (Leslie Senate): 10 recommendations require budget; KPI updated for accuracy but need automation. Committee requested cost-benefit analysis.
    • Police Department (Captain Jeff Jordan): Body-worn camera recommendations delayed due to meet-and-confer with police association; October 1 target unlikely. Data analysis audit update not provided.
    • Vehicle Towing (Vice Chair Whitburn): Policy options under exploration; city preempted by state law, but council policy being developed (target early 2025).
    • Brush Management (Fire/Erica Ferrera): Fire department needs 5 positions; meet-and-confer ongoing. Parks to complete resource analysis by March 2025; Chair Moreno requested earlier completion for budget priority.
    • Classified Employee Hiring (Brendan Virgin): Vacancy rate dropped from 18% to 11.7%; time to fill reduced by one month; pilot aims to cut request-to-fill time from 95 days to 14 days.
    • Pedestrian Safety (Everett Houser): Four of eight recommendations implemented; remaining need future year budget requests.

Item 2: City Auditor's Monthly Activity Report

  • Andy Hanao reported one report issued (the recommendation follow-up), nine audits in progress (including fire overtime, fleet maintenance, cybersecurity, Pure Water, and disaster preparedness for January floods), and four reports issued in FY25 with 23 recommendations. Also working on IT risk assessment, whistleblower protection ordinance input.

Key Outcomes

  • Vote: Motion to approve Section A of the recommendation follow-up (closing five PUD smart meter recommendations and keeping rec 3 open) passed unanimously.
  • Directives and Next Steps:
    • Purchasing and contracting must provide target dates and regular updates; March 2025 deadline set.
    • DSD to report back in six months on deposit account transition.
    • Code enforcement to provide cost-benefit analysis for additional positions.
    • Parks resource analysis requested earlier than March 2025 for budget cycle.
    • PUD to continue industrial wastewater negotiations; committee will monitor.
    • Police body camera recommendations to be tracked; next update in six months.
    • Vehicle towing council policy to be developed by early 2025.
  • The next regularly scheduled meeting is October 9, 2024, at 9:00 AM.

Meeting Transcript

Good morning and welcome to the audit committee hearing of September 18th, 2024. Our audit committee liaison, uh, Natalie Kessler will go over the instructions for today's meeting. Thank you, Chair Moreno. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair. Vice Chair Whitburn. Here. Committee member Halpern. Here. Committee member Mafia. Present. Committee member Tapsuri. Here. And Chair, Councilmember Moreno. I am here. Uh Natalie, please continue with public comment instructions. If you are in person, please complete a speaker slip located at the entrance of the committee room and place it on top of the box indicated at the speaker's electron 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 also join the webinar by computer, tablet, or smartphone by accessing the link which is listed online in the preamble language of the agenda on the city's webpage. If you need to participate by telephone, you may dial 16692545252. The webinar ID is 1607-8861 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes, and the queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. And please note that if you are watching via City TV 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on a particular item, please wait for that item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you're a call-in participant, press star nine on your phone to raise your hand. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you for reviewing those instructions. Also attending the meeting today is Andy Hanao, the city um auditor. And Natalie Kessler, our committee liaison. A quorum is now present, and we will dispense with the approval of the committee meetings of July 24th, 2024. Natalie, please proceed. Thank you, Chair. The public comment period for the past committee minutes of July 24th, 2024 is now open. And we have not received any speaker slips from any individuals in chambers, but we do have one hand raised in the virtual queue. Okay, the problem is with the minutes is that when someone is taking these minutes, they're changing what was said. So what I said was uh well, what it says I said was that um I was talking about the convention center and the unaccompanied children who were relocated, asking for an audit on the safety and whereabouts of the miners. I didn't say relocated, I said they were trafficked. And when you say relocated, you're changing the entire thing of what I said. So I think it's important to not change uh what people are saying by adding different words, uh, possibly because you don't want to write the word traffic. Um, but I said that the kids in the convention center that are the unaccompanied alien children who come across the border, um, were trafficked, and that we need to do an audit on you know where they have gone. So I mean, when you say relocated and I say traffic, that totally changes um what was said. So I think it needs to be um, you know, clear and exactly uh what the people said, not changing the meaning of it. Thank you.

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