Special Audit Committee Meeting – July 25, 2025

The San Diego Audit Committee met on July 25, 2025, to discuss several key items including a performance audit of the city’s disaster response to the January 2024 floods, the proposed fiscal year 2026 audit work plan, and a request for proposals for independent legal counsel. The committee also heard extensive public testimony and approved the consent agenda, the disaster response audit report, the work plan, and the RFP with a 4–1 vote on the final item. The meeting adjourned into closed session to consider the reappointment of the city auditor.

Consent Calendar

• Items 1–3 (approval of June 11, 2025 committee minutes; city auditor’s quarterly fraud hotline report for FY2025 Q4; city auditor’s monthly activity report) were approved unanimously by the committee members present (Vice Chair Whitburn was absent).

Public Comments & Testimony

• Becky Rapp (non‑agenda) requested an audit of the city’s marijuana program, noting that fewer than 50% of permitted businesses pay taxes and that unpaid taxes accrue a 25% penalty plus 1.5% monthly interest.
• Blair Beekman (non‑agenda) discussed ALPR reduction, housing development, environmental issues, and de‑escalation practices with federal customs agencies.
• Andrea Ebbing (non‑agenda) highlighted that “other pay” to city employees rose from $142 million (2023) to $151 million (2024), and contrasted mayor and council salaries with those in other California cities.
• Francine Maxwell (non‑agenda) asked for community training on the city auditor’s office, especially in Districts 4, 8, and 9.
• Jessica Khaliks (non‑agenda, flood survivor) criticized the lack of community input and city presence in District 8 after the flood.
• Judy Strang (non‑agenda) raised concerns about unsafe driving by city employees and mentioned that 9% of U.S. workers under 30 have used alcohol or drugs on the job.
• On Item 4 (disaster response audit), public speakers included Blair Beekman, Sally Smull (noted continuing mold and equity issues), Gladys Samarine of Harpy Family Foundation (called the audit a first step but ignored systemic failures and missing metrics), Francine Maxwell (still homes with muck), Kathleen Lippett (blamed city infrastructure neglect), Becky Rapp (linked disaster preparedness to housing and public health), and Jessica Khaliks (described the trauma and lack of support).
• On Item 5 (audit work plan), public comment included Blair Beekman, Becky Rapp (repeated call for marijuana program audit), Sally Smull, Andrea Ebbing (urged deeper homeless services audits), Madison (asked for youth‑focused audits), Homer, and Kathleen Lippett.
• On Item 6 (independent legal counsel RFP), Blair Beekman voiced support for the initiative.
• On Item 7 (reappointment of city auditor), Blair Beekman supported and Andrea Ebbing opposed, citing concerns about missing $151 million in “other pay” and perceived lack of transparency.

Discussion Items

• Item 4: Performance Audit of the City’s Disaster Response (January 2024 Floods)
  • The Office of the City Auditor (OCA) presented findings from a review that interviewed over 100 people and documented nearly 200,000 hours of city staff effort during the response.
  • Finding 1: The city managed the immediate emergency well but lacked plans for recovery beyond infrastructure restoration. There was an “expectations gap” between what the community and elected officials expected and what the city’s plans covered (e.g., medicine, food, long‑term shelter). The county and Red Cross were responsible for care and shelter, but the city did not coordinate effectively.
  • Finding 2: Communication plans were inadequate—no pre‑translated materials, no canvassing plan, and mayor’s office approval caused delays (e.g., denial of a town hall). Canvassing was uncoordinated and created false expectations.
  • Finding 3: The incident management team responded well to infrastructure damage but lacked documented policies and training, delaying mobilization.
  • Finding 4: The Office of Emergency Services (OES) followed its plan but needed updates for volunteer/donation management, tiered training, and tracking lessons learned.
  • The audit made 23 recommendations, all of which the city agreed to implement. Chair Marino questioned the timeline for recommendation 1.1 (developing a framework for the city’s disaster role) and was told OES would work with the council and report to the rules committee in September. Committee member Halpern requested a follow‑up update to the audit committee. The motion to accept the report and forward it to city council, with that amendment, passed unanimously.
• Item 5: Citywide Risk Assessment and Audit Work Plan for FY2026
  • OCA presented its annual work plan, developed from a quantitative risk assessment of over 200 business areas and expanded public outreach (over 120 survey responses). The plan includes 21 audits, including carry‑overs from FY2025.
  • New proposed audits: police armory (weapons management), streetlight maintenance (equity), business tax program (compliance and rates), citywide vehicle rentals, arts and culture funding equity, return on investment of homeless programs, and IT audits (placeholder).
  • Public comment raised concerns about the omission of a marijuana program audit and the need for youth‑focused audits. The committee approved the work plan unanimously.
• Item 6: Request for Proposals for Independent Legal Counsel for OCA and Audit Committee
  • The committee reviewed a draft RFP developed with the ad hoc subcommittee, city attorney’s office, and purchasing. The RFP covers a five‑year, as‑needed contract with a not‑to‑exceed amount of $900,000 ($180,000/year), consistent with Measure A passed by voters in March 2024.
  • Key provisions include compliance with legal ethics rules and government auditing standards independence requirements.
  • The committee approved the draft RFP and designated committee member Mafia to serve on the selection panel. The motion passed 4–1 (Vice Chair Whitburn voted no).
• Item 7: Closed Session – Reappointment of City Auditor
  • Public comment was taken (one speaker in favor, one opposed) before the committee recessed into closed session. After closed session, the meeting was adjourned; no report was provided in the transcript.

Key Outcomes

• Consent agenda approved unanimously.
• Item 4 (disaster response audit) accepted and forwarded to city council; the administration will report back to the audit committee on implementation timelines for recommendation 1.1.
• Item 5 (FY2026 audit work plan) approved unanimously.
• Item 6 (RFP for independent legal counsel) approved 4–1; committee member Mafia appointed to the selection panel.
• Item 7 (reappointment of city auditor) was taken up in closed session; no further action was reported.
• The next regularly scheduled meeting is Wednesday, September 3, 2025 at 9:00 AM.