OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Diego Audit Committee Meeting - November 12, 2025

Audit Committee — Wednesday, November 12, 2025
BodySan Diego, California
SessionAudit Committee
DateWednesday, November 12, 2025
StatusFILED
Video Record
0:00 / 1:52:33

Transcript — Verbatim
1:36

Good morning and welcome to the audit committee meeting of November 12th, 2025.

1:42

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

1:47

Thank you, Chair.

1:48

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 council administration will continue to make arrangements for the public to comment using the Zoom webinar platform.

1:59

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

2:05

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

2:11

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

2:16

We appreciate the public's cooperation.

2:18

Chair.

2:26

Vice Chair Whitburn.

2:28

Sure.

2:28

Committee member Halpern.

2:31

Present remotely.

2:33

Committee member Mafia.

2:35

Present.

2:36

Committee member Tapshery.

2:38

Uh present remotely.

2:40

And Chair, Councilmember Moreno.

2:42

Present.

2:42

Committee member Halburn, can you please state your virtual declaration?

2:47

Yes, thank you.

2:47

I'm notifying the audit committee and the public that I will be attending the meeting today remotely due to just cause related to contagious illness.

2:56

Pursuant to the Brown Act, I'm disclosing that there are no individuals 18 years of older in the room with me.

3:04

I will update this disclosure if it changes during the course of the meeting.

3:08

Thank you.

3:08

Committee member Tap Shuri, can you please state your virtual declaration?

3:12

Yes.

3:13

I'm notifying the audit committee and the public that I will be attending the meeting today remotely due to just cause related to child care.

3:22

Pursuant to the Brown Act, I'm disclosing that there are no individuals 18 years of age or older present in the room with me.

3:34

Thank you.

3:35

Chair Moreno.

3:37

Also attending uh the meeting is Andy Hanao, this our city auditor.

3:42

Uh Jeff Peel, Assistant Director for the Department of Finance, Kathy Steinman with the City Attorney's Office, Erin Noel with the IBA, Kevin Smith, committee consultant, and Natalie Kessler, committee liaison.

3:56

Natalie, please uh continue with the public comment instructions.

3:59

If you're in person, please complete a speaker slip located at the entrance of chambers and place it on the box near the public comment microphone.

4:05

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

4:08

In-person testimony will conclude before virtual testimony begins.

4:11

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

4:18

If you need to participate by phone, please style 16692545252.

4:22

The webinar ID is 1600 three three seven four two two pound.

4:26

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

4:31

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

4:37

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

4:43

Please note that if you're watching via City TV 24 or online, there may be a delay, so please participate via the audio on your phone and mute your TV or computer when it is your turn to speak.

4:52

If you wish to speak on a particular item, 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 and participant, press star 9 on your phone.

5:01

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

5:04

Chair.

5:05

Thank you.

5:06

A quorum is now present, and we will now take up non-agenda public comment.

5:10

Uh, the council 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.

5:20

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

5:24

For 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 within the subject matter jurisdiction of the committee.

5:32

Each speaker will have two minutes.

5:34

And chair, we have not received any speakers' lips from individuals in chambers.

5:38

There are four hands raised in the virtual queue.

5:40

I've started the five-minute timer.

5:43

Andrea Ebbing, please unmute and begin your non-agenda public comment.

5:47

Good morning.

5:48

My name is Andrea Ebbing.

5:49

I'd like to talk about public safety today.

Discussion Breakdown — Share of Meeting
Audit Follow-up████████████████████████████████████████40%
Lease Revenue Management██████████████████████████26%
Procedural██████████████14%
Public Comment███████████11%
Cannabis Regulation███3%
Racial Equity██2%
Public Health█1%
Public Engagement█1%
Budget Equity Analysis█1%
Summary of Proceedings

San Diego Audit Committee Meeting - November 12, 2025

The Audit Committee convened to review the city's performance audit of Key Performance Indicators (KPIs), the Performance Audit of Mission Bay and Regional Parks Improvement Funds, the quarterly fraud hotline report, and monthly activities. The committee unanimously approved the previous minutes, accepted the two performance audit reports, and held a closed session for personnel matters before adjourning.

Consent Calendar

  • Approval of Minutes: The committee unanimously approved the minutes from the October 8, 2025, meeting with a 5-0 vote.

Public Comments & Testimony

  • Andrea Ebbing: Expressed full intent to file lawsuits against her ex-partner and SDPD Sergeant Detective Oliver Oliver, alleging a conspiracy involving a hardwired tracker in her vehicle and corruption, while refusing to file a police report due to fears of evidence tampering and lack of justice.
  • Becky Rapp (Local Planning Group member): Expressed full support for a full audit of the city's marijuana business department prior to expanding delivery services, citing concerns over inconsistent tax collection and penalties.
  • Peggy Walker (Public Health Educator): Expressed strong support for the immediate implementation of state recommendations regarding marijuana packaging and marketing to protect youth, highlighting scientific evidence of health harms.
  • Madison (Concerned Citizen): Expressed serious concern regarding the financial stability of the cannabis industry, warning that expanding permits could tie city resources to insolvent "zombie operators" and threaten taxpayer dollars.
  • Public Caller (Trash Recycling Concern): Expressed full support for hiring an independent forensic accountant with a contingency fee structure to investigate potential fraud and improper asset sales regarding city trash cans.

Discussion Items

  • Performance Audit of Key Performance Indicators (KPIs):

    • Staff Presentation: Auditors Nathan Otto, Nikki Kalmas, and Alberto Marillo reported that KPIs are underutilized due to concerns about accuracy, relevance, and lack of systematic review venues. They noted that only 1 of 7 council offices and 9 of 27 departments routinely use KPIs for decision-making.
    • Speaker Positions & Concerns:
      • IBA (Aaron Noel & Helen Welda Gorgis): Expressed full support for the audit's recommendations, viewing KPIs as essential for transparency, equity, and data-driven decision-making during fiscal constraints. They emphasized integrating KPIs into Tactical Equity Plans (TEPs).
      • Committee Member Halpern: Expressed full endorsement of the plan to create a standalone performance report and suggested testing the approach experimentally with a few departments to manage resource limitations. He also expressed interest in potential pro bono consulting support from Bloomberg Associates.
      • Committee Member Tapsuri: Expressed support for a robust KPI system but noted the lack of a legal mandate compared to financial budgeting, viewing the system primarily as a feedback mechanism rather than a punitive tool.
      • Committee Member Moreno: Expressed strong concern regarding the underutilization of KPIs, noting that the city is budgeting without reliable data. He voiced full support for a publicly accessible dashboard with historical data and emphasized the need for the Mayor to oversee this initiative.
      • City Attorney (Jim McNeil): Expressed commitment to developing valuable performance-focused KPIs but noted the complexity in measuring adversarial work without KPIs being "weaponized" against the office. They agreed to work with PANDA to align measures with departmental goals.
    • Administrative Response: Acting Director Alex Hampton confirmed senior leadership support for implementation. Deputy Director Justin Ellsworth noted an existing partnership with Bloomberg Associates regarding "What Works Cities" and agreed to explore further collaboration.

  • Performance Audit of Mission Bay and San Diego Regional Parks Improvement Funds:

    • Staff Presentation: Principal Auditor Nathan Otto, Jermaine Brooks, and Danielle Kish reported that while expenditures were compliant, the office of the City Treasurer could not verify all lease revenues due to a management-imposed audit moratorium and late fee accounting issues.
    • Speaker Positions & Concerns:
      • Committee Member Moreno: Expressed deep concern regarding the eight-month delay in disclosing the audit moratorium and the restriction of the City Treasurer's access to data, stating that restricting oversight functions is inappropriate regardless of the financial scale. He demanded full confirmation of revenue collection before being satisfied.
      • Committee Member Halpern: Expressed full alignment with Committee Member Moreno's concerns regarding the moratorium and requested a system-level approach to prevent future data access restrictions without higher-level authority.
      • Committee Member Tapsuri: Expressed that while the financial impact was not material, the decision-making process allowing the moratorium was a "basic mistake" that compounded the problem.
      • Economic Development (Monica Hardman, Christina Bibler, Lucy Contreras): Explained that the moratorium was a consensus decision with the CFO and City Treasurer to rebuild foundational systems and address inaccurate data in a 12-year-old leasing system. They stated they do not anticipate needing a moratorium in the future.
      • City CFO: Provided context that the decision aimed to focus resources on resolving structural issues rather than responding to standard audit inquiries, though agreeing that future moratoriums must be communicated immediately to the Audit Committee.
    • Outcomes: Auditors recommended discouraging future moratoriums, improving lease management narratives, and establishing standardized reporting for oversight committees. Management agreed to all recommendations.

  • Fraud Hotline and Activity Reports:

    • Staff presented the quarterly fraud hotline report (37 city-related reports received, 30 closed, 4 substantiated) and the monthly activity report (9 ongoing projects, upcoming peer review). No committee members raised concerns requiring further discussion.

Key Outcomes

  • Unanimous Approval of Consent Agenda: Minutes approved 5-0.
  • Unanimous Acceptance of KPI Audit: The committee accepted the Performance Audit of KPIs and recommended forwarding it to City Council.
  • Unanimous Acceptance of Mission Bay Audit: The committee accepted the Performance Audit of Mission Bay funds and recommended forwarding it to City Council for informational purposes.
  • Closed Session: The committee adjourned to closed session for a public employment performance evaluation pursuant to California Government Code Section 54957(b)(1). No reportable action was taken or reported out.
  • Next Meeting: Scheduled for January 21, 2026, at 9:00 AM.
  • Staff Updates: The City Auditor (Andy Hanao) received a birthday wish from the committee.

Meeting Transcript

Good morning and welcome to the audit committee meeting of November 12th, 2025. Our committee liaison, Natalie Kessler will go over instructions for today's meeting. Thank you, Chair. 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 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. Sure. Committee member Halpern. Present remotely. Committee member Mafia. Present. Committee member Tapshery. Uh present remotely. And Chair, Councilmember Moreno. Present. Committee member Halburn, can you please state your virtual declaration? Yes, thank you. I'm notifying the audit committee and the public that I will be attending the meeting today remotely due to just cause related to contagious illness. Pursuant to the Brown Act, I'm disclosing that there are no individuals 18 years of older in the room with me. I will update this disclosure if it changes during the course of the meeting. Thank you. Committee member Tap Shuri, can you please state your virtual declaration? Yes. I'm notifying the audit committee and the public that I will be attending the meeting today remotely due to just cause related to child care. Pursuant to the Brown Act, I'm disclosing that there are no individuals 18 years of age or older present in the room with me. Thank you. Chair Moreno. Also attending uh the meeting is Andy Hanao, this our city auditor. Uh Jeff Peel, Assistant Director for the Department of Finance, Kathy Steinman with the City Attorney's Office, Erin Noel with the IBA, Kevin Smith, committee consultant, and Natalie Kessler, committee liaison. Natalie, please uh continue with the public comment instructions. If you're in person, please complete a speaker slip located at the entrance of chambers and place it on the box near the public comment microphone. 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 listed online in the preamble language of the agenda on the city's webpage. If you need to participate by phone, please style 16692545252. The webinar ID is 1600 three three seven four two two 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. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. Please note that if you're watching via City TV 24 or online, there may be a delay, so 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, 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 and participant, press star 9 on your phone. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you. A quorum is now present, and we will now take up non-agenda public comment. Uh, the council 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.

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