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.

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>> Good afternoon will call

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the city council meeting of

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Monday APRIL 2nd APRIL 13th,

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2026 to order.

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Clerk Please call the roll.

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Thank you.

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Council PRESIDENT Pro Tem and

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Council member Campbell

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Councilmember Whitburn

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Councilmember Foster

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Councilmember Van Wilpert

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Councilmember Kemp You hear

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Councilmember Moreno present

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Council Member Ella Rivera.

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Council PRESIDENT LaCava and

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Council PRESIDENT Pro Tem Lee.

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They're also taking

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the meeting.

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Our assistant city Attorney

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Michelle Garland Independent

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budget Analyst Charles Monica.

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Council Affairs Advisor in

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the Mayor's office Curtis Iser

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and myself for City Clerk Diana

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Fuentes Thank you Council

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PRESIDENT Pro Tem Thank you.

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A quorum is now present.

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We will begin this afternoon

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with an invocation by Clark

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Pointis.

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Followed by the Land

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acknowledgment and the Pledge

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of Allegiance led by Council

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member Campo Grant.

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Those who hold office in this

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city the spirit of wisdom,

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charity and justice that with

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steadfast purpose they MAY

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faithfully serve in their

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offices to promote

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the well-being of all people We

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respectfully acknowledge that

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the Committee.

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Nation are the original

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inhabitants of the Unceded land

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now known as San Diego.

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Despite enduring the horrors of

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genocide and colonization,

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the spirit remains unbroken.

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We honor the resilience of

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their ancestors who fought to

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protect their culture and land.

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Today they carry their legacy

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forward ensuring that their

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traditions continue to thrive

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in gratitude and strength.

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We stand with the culmination.

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Connected to our past and

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committed to a thriving future.

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Please stand Face the flag and

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over your heart Ready Begin.

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I pledge allegiance to the flag

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of the United States of America

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and to the Republic for which

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it stands One nation under GOD

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,indivisible with liberty and

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justice for all.

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>> Now are there any mayor,

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council, city attorney and

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independent budget analyst or

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city Clerk Comments Seeing

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none, the clerk will now go

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over how the public can offer

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their public testimony.

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Please proceed.

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Thank you Council PRESIDENT For

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a time I'd like to highlight

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there was a slight.

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There it is again the site on

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the screen that reviews how

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the public can offer their

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public testimony during this

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afternoon's meeting.

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The order can be found on

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the agenda summaries found

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online or at the table in

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the back of the room here in

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council chambers.

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If you are in person please

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complete the speaker slip

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looking at the entrance of

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chambers and bring it to

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the front of the room in

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the clear box.

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Council ambassadors are

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available near the entrance and

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can assist with questions and

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speakers Lips no further

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in-person testimony will be

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taken once the council begins

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Virtual Testimony Thank you

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Council PRESIDENT Pro Tem Thank

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you.

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>> We'll go ahead and get

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started with our afternoon's

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informational agenda.

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Quickly please introduce item

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200.

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>> Item 200 is the performance

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audit of the mission Bay and

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San Diego Regional Parks

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Improvement Funds for fiscal

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year 2024.

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If you'd like to speak on this

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item now's the time to raise

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your hand by pressing Star nine

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or the raise your hand icon or

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by submitting a speaker slip as

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noted.

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To the front of the room in

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the clear box.

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Thank you.

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Council PRESIDENT Pro Tem Thank

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you.

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We'll go ahead and turn it over

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to our office of the City

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Auditor If you all introduce

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yourselves for the record and

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let us know how much time

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you'll need.

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>> Good afternoon.

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Council Members Andy Hanauer

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City Auditor We are here to

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present our audit of

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the Mission Bay and San Diego

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Regional Park Improvement Funds

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for fiscal year 2024 And can we

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have about ten minutes please?

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Thank you.

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Thanks.

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As we get started, this audit

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involves the cooperation of

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many departments as you can see

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on this slide as was

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the Oversight Committee.

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So we really appreciate all of

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their cooperation and

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assistance.

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>> The city charter requires

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that our office report annually

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the extent and nature of

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the Mission Bay and San Diego

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Regional Park Improvement funds

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revenues, expenses and

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improvements Our objectives

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were to verify the collection

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allocation and use of

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the mission Bay Park lease

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revenues from fiscal year 2024

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complied with charter

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requirements as well as

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determine if the improvement

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fund oversight committees are

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properly informed to fulfill

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their responsibilities.

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We found that expenses were in

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compliance with charter

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requirements and as far as

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revenues we could not verify

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that all revenues were

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collected and deposited into

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the funds as required due to a

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management imposed moratorium

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on the City Treasurer's lease

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revenue audits and issues with

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the application of lease

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payments management has taken

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substantial steps to resolve

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those issues and agreed to all

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five recommendations and we

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will continue to monitor

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progress towards fully

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implementing

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the recommendations as part of

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this year's Mission Bay audit.

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By way of background, a City

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Council ordinance established

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the Mission Bay Park and San

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Diego Regional Park Improvement

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Funds in 2002 and since then

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voters have added these funds

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to the city Charter mission Bay

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Park lease revenue is deposited

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into a general fund account

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throughout the fiscal year and

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allocated to the improvement

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funds after the fiscal year

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end.

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The allocation to the funds is

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based on a formula that has

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changed over the years and

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we'll describe the current

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formula here on the next slide.

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With me today is principal

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performance auditor Nathan Otto

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and senior performance auditor

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Daniel Kish and I'll hand it

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over to them for the details of

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what we found and recommended.

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>> Thanks Andy.

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Good afternoon everyone.

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So City Charter specifies how

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to allocate the revenue so

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the first $20 million goes to

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the general fund and then 35%

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of the revenues in excess of

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that is transferred to the San

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Diego Regional Parks

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Improvement Fund And

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the remainder of that excess

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goes to the mission Bay

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Improvement Fund.

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We found that the total

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adjusted mission bay lease

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revenues were approximately $37

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million which is about a 7%

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decrease from the previous year

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in fiscal year 23.

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And that first $20 million did

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go to the general fund timely

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and appropriately so That's a

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good news story as part of this

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audit.

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And then a total of 16.9

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million that spillover amount

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was distributed to

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the improvement funds As you

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can see in the exhibit on this

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slide And that followed

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the formula that it was

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supposed to do.

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So that's more good news There

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.

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One of the wrinkles in this

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year's audit was the question

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of how accurate that that total

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lease revenue figure was.

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>> So about a year ago

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the city's annual report on

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internal controls which is also

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being discussed this afternoon

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but the one a year ago stated

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there were issues with eads

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lease management as well as

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invoicing and payment

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processing and that resulted in

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a large backlog of unreconciled

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lease payment discrepancies and

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an understatement of city lease

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revenue.

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Andy noted this but over

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the course of us completing

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this audit edi did appear to

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have taken steps to make a lot

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of progress on this issue.

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And since we do the audit every

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year it's something we'll be

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checking on our next go around.

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However, for this iteration due

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to this understatement of lease

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revenue we could not confirm

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that all the mission bay lease

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revenue payments in fiscal year

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24 were applied appropriately.

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So we have four findings here.

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Our first finding we note that

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due to a lease audit moratorium

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that began in JULY of 2020 for

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the office of the City

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Treasurer could not complete

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and formally close all of its

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planned audit which include

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examining lease revenue.

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And the audit moratorium was

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noted in that city's annual

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report I mentioned But it was

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not until eight months until

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after the moratorium had been

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implemented.

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It stated the moratorium was

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implemented to improve business

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practices and perform accurate

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financial reporting.

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But we just note as internal

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00:07:59,473 --> 00:08:01,873
controls aficionados you know,

297
00:08:03,344 --> 00:08:04,440
limiting the Treasurer's

298
00:08:04,440 --> 00:08:04,745
revenue auditing role weakens

299
00:08:04,745 --> 00:08:07,145
an important financial control

300
00:08:07,948 --> 00:08:08,649
for the city and it can result

301
00:08:08,649 --> 00:08:09,383
in lost revenue to the city as

302
00:08:09,383 --> 00:08:12,983
well as even as not identifying

303
00:08:13,186 --> 00:08:13,654
money that we MAY show as a

304
00:08:13,654 --> 00:08:15,654
city to tenants.

305
00:08:16,457 --> 00:08:17,124
And so our recommendation on

306
00:08:17,124 --> 00:08:17,858
this one was to the cfo or

307
00:08:17,858 --> 00:08:20,258
other city executive leadership

308
00:08:20,927 --> 00:08:21,629
to issue a memo or other

309
00:08:21,629 --> 00:08:22,262
written guidance that laid out

310
00:08:22,262 --> 00:08:24,662
in discourage future audit

311
00:08:25,900 --> 00:08:26,566
moratoria like that and which

312
00:08:26,566 --> 00:08:27,268
required promptly informing

313
00:08:27,268 --> 00:08:30,604
the office of the City Auditor

314
00:08:30,604 --> 00:08:31,272
and the chair of the Audit

315
00:08:31,272 --> 00:08:31,939
committee If the ability to

316
00:08:31,939 --> 00:08:34,339
perform these revenue audit

317
00:08:35,176 --> 00:08:35,576
functions is restricted in

318
00:08:35,576 --> 00:08:36,277
the future.

319
00:08:36,277 --> 00:08:39,780
And to their credit we we did

320
00:08:39,780 --> 00:08:40,481
get buy in from the cfo and

321
00:08:40,481 --> 00:08:40,915
they actually have issued that

322
00:08:40,915 --> 00:08:41,549
that guidance.

323
00:08:41,549 --> 00:08:43,949
So that's something that's

324
00:08:44,851 --> 00:08:45,620
already been done.

325
00:08:45,620 --> 00:08:46,286
Our second finding we found

326
00:08:46,286 --> 00:08:49,623
that the city did not assess

327
00:08:49,623 --> 00:08:50,391
late penalty fees for fiscal

328
00:08:50,391 --> 00:08:53,694
year 24 and due to a large

329
00:08:53,694 --> 00:08:54,362
backlog of on applied payments

330
00:08:54,362 --> 00:08:55,280
including Mission Bay lease

331
00:08:55,280 --> 00:08:57,428
revenue for fiscal year 24.

332
00:08:59,966 --> 00:09:00,568
So Eadie shared that when

333
00:09:00,568 --> 00:09:03,568
unless he makes a rental

334
00:09:03,770 --> 00:09:04,571
payment the that rental payment

335
00:09:04,571 --> 00:09:05,272
must note the accurate contract

336
00:09:05,272 --> 00:09:05,873
invoice number to ensure that

337
00:09:05,873 --> 00:09:06,407
payments are applied to

338
00:09:06,407 --> 00:09:08,407
the correct account.

339
00:09:09,443 --> 00:09:10,144
So as you can see in

340
00:09:10,144 --> 00:09:10,845
the exhibit on this slide when

341
00:09:10,845 --> 00:09:13,245
basically when the information

342
00:09:13,681 --> 00:09:14,382
doesn't match up the payments

343
00:09:14,382 --> 00:09:15,480
post to a credit account and

344
00:09:15,480 --> 00:09:18,648
both the Office of the City

345
00:09:19,386 --> 00:09:20,860
Treasurer and E.D. Review this

346
00:09:20,860 --> 00:09:20,788
credit list to apply payments

347
00:09:20,788 --> 00:09:23,788
to the correct accounts easily

348
00:09:23,991 --> 00:09:24,692
stated due to this large

349
00:09:24,692 --> 00:09:27,692
backlog of on applied payments

350
00:09:28,462 --> 00:09:29,230
no fee penalties were assessed

351
00:09:29,230 --> 00:09:31,630
for fiscal year 2024 or 2024.

352
00:09:33,568 --> 00:09:34,268
So we just point out in

353
00:09:34,268 --> 00:09:37,268
assessing late fees when they

354
00:09:37,839 --> 00:09:38,539
are warranted results in a

355
00:09:38,539 --> 00:09:39,173
potential loss in revenue for

356
00:09:39,173 --> 00:09:42,173
the city and it undermines

357
00:09:42,609 --> 00:09:42,944
the importance of timely

358
00:09:42,944 --> 00:09:43,711
payment.

359
00:09:43,711 --> 00:09:44,512
So we included a couple of

360
00:09:44,512 --> 00:09:46,912
recommendations in this finding

361
00:09:47,447 --> 00:09:47,982
about strengthening internal

362
00:09:47,982 --> 00:09:48,649
processes including

363
00:09:48,649 --> 00:09:51,490
verification of lease terms,

364
00:09:52,520 --> 00:09:53,540
quality control checks of

365
00:09:53,540 --> 00:09:53,721
revenue received and

366
00:09:53,721 --> 00:09:56,121
reconciling payment data and

367
00:09:57,592 --> 00:09:58,326
indeed has shared some updated

368
00:09:58,326 --> 00:09:59,270
policies and procedures with us

369
00:09:59,270 --> 00:09:59,727
And it is something we'll look

370
00:09:59,727 --> 00:10:03,327
at in our next iteration of

371
00:10:09,971 --> 00:10:10,705
this audit Further for our

372
00:10:10,705 --> 00:10:11,339
third finding we found that 35%

373
00:10:11,339 --> 00:10:14,339
of the city's mission bay

374
00:10:14,375 --> 00:10:14,976
rental agreements are in

375
00:10:14,976 --> 00:10:15,643
holdover status some for

376
00:10:15,643 --> 00:10:18,643
multiple years which MAY be

377
00:10:19,447 --> 00:10:20,147
leading to foregone revenue for

378
00:10:20,147 --> 00:10:23,747
the city as well as perceived

379
00:10:23,818 --> 00:10:24,451
favoritism amongst lessees Most

380
00:10:24,451 --> 00:10:25,153
of the lease and permit

381
00:10:25,153 --> 00:10:25,720
agreements require appraisals

382
00:10:25,720 --> 00:10:28,120
to be conducted while

383
00:10:28,923 --> 00:10:29,257
the agreements are in holdover

384
00:10:29,257 --> 00:10:29,924
status.

385
00:10:29,924 --> 00:10:32,324
Most agreements also require

386
00:10:33,327 --> 00:10:34,280
city council approval to extend

387
00:10:34,280 --> 00:10:34,328
the lease beyond the agreement

388
00:10:34,328 --> 00:10:35,290
terms.

389
00:10:35,290 --> 00:10:37,866
However, during the course of

390
00:10:37,866 --> 00:10:38,566
our audit we found that edt had

391
00:10:38,566 --> 00:10:39,133
not renewed the expired leases

392
00:10:39,133 --> 00:10:41,533
so council approval or

393
00:10:43,872 --> 00:10:44,472
conducted site appraisals to

394
00:10:44,472 --> 00:10:45,720
ensure the expired lease

395
00:10:45,720 --> 00:10:47,720
agreements have provided

396
00:10:47,709 --> 00:10:48,343
revenue to the city at fair

397
00:10:48,343 --> 00:10:49,760
market rate With leases in

398
00:10:49,760 --> 00:10:52,313
holdover the city MAY be losing

399
00:10:52,313 --> 00:10:53,470
out on potential revenue.

400
00:10:53,470 --> 00:10:56,470
Also the city MAY potentially

401
00:10:57,118 --> 00:10:57,818
confer an unfair benefit to

402
00:10:57,818 --> 00:10:58,452
the current tenant which could

403
00:10:58,452 --> 00:11:00,852
be perceived as favoritism

404
00:11:02,290 --> 00:11:02,991
amongst lessees.

405
00:11:02,991 --> 00:11:03,658
Therefore we recommended that

406
00:11:03,658 --> 00:11:06,580
adt should ensure that

407
00:11:06,861 --> 00:11:07,495
agreements should ensure that

408
00:11:07,495 --> 00:11:08,229
the agreements which have

409
00:11:08,229 --> 00:11:10,629
extended beyond lease agreement

410
00:11:12,330 --> 00:11:12,733
terms receive the required

411
00:11:12,733 --> 00:11:13,335
Council approval and appraisal

412
00:11:13,335 --> 00:11:15,735
to ensure agreements are

413
00:11:16,838 --> 00:11:17,439
binding and that fair market

414
00:11:17,439 --> 00:11:19,839
rental rate is received.

415
00:11:21,109 --> 00:11:21,809
Edt stated efforts have been

416
00:11:21,809 --> 00:11:22,544
done to ensure Mission Bay

417
00:11:22,544 --> 00:11:23,211
agreements are currently leased

418
00:11:23,211 --> 00:11:26,381
at fair market rate that it

419
00:11:26,381 --> 00:11:27,470
monitors tenants in holdover

420
00:11:27,470 --> 00:11:30,647
and that it seeks to renew

421
00:11:31,190 --> 00:11:31,620
lease agreements and come in

422
00:11:31,620 --> 00:11:32,320
annual audit of mission

423
00:11:32,320 --> 00:11:33,200
Belize's We will verify these

424
00:11:33,200 --> 00:11:35,890
updates and ensure that leases

425
00:11:35,890 --> 00:11:36,591
lease renewals go to council

426
00:11:36,591 --> 00:11:39,591
when required providing for we

427
00:11:40,940 --> 00:11:40,762
review the project information

428
00:11:40,762 --> 00:11:41,396
shared with the Improvement

429
00:11:41,396 --> 00:11:42,970
Fund Oversight committees.

430
00:11:42,970 --> 00:11:45,970
We found that city departments

431
00:11:45,166 --> 00:11:45,800
provided several high level

432
00:11:45,800 --> 00:11:46,468
project status updates to

433
00:11:46,468 --> 00:11:49,971
the Mission Bay Park and San

434
00:11:49,971 --> 00:11:50,605
Diego Regional Parks

435
00:11:50,605 --> 00:11:51,600
Improvement Fund Oversight

436
00:11:51,600 --> 00:11:51,672
committees.

437
00:11:51,672 --> 00:11:53,672
However, these presentations

438
00:11:55,760 --> 00:11:55,677
did not include the detailed

439
00:11:55,677 --> 00:11:56,378
expenditure information

440
00:11:56,378 --> 00:11:58,778
The Oversight Committee stated

441
00:11:59,581 --> 00:12:00,115
they need to oversee funding

442
00:12:00,115 --> 00:12:00,782
and project status.

443
00:12:00,782 --> 00:12:01,449
We found that no guidance

444
00:12:01,449 --> 00:12:03,849
exists that states which

445
00:12:04,386 --> 00:12:05,860
project information city

446
00:12:05,860 --> 00:12:05,720
departments should provide to

447
00:12:05,720 --> 00:12:08,120
ensure the committees can

448
00:12:08,823 --> 00:12:09,458
effectively oversee project

449
00:12:09,458 --> 00:12:11,458
expenditures and outcomes.

450
00:12:13,562 --> 00:12:14,262
We also found that historically

451
00:12:14,262 --> 00:12:14,863
the information requested by

452
00:12:14,863 --> 00:12:15,563
the oversight committees

453
00:12:15,563 --> 00:12:17,963
regularly changed with changes

454
00:12:19,401 --> 00:12:20,680
in committee board membership.

455
00:12:20,680 --> 00:12:22,468
Therefore we recommend that

456
00:12:23,771 --> 00:12:24,506
Parks and Recreation and ea and

457
00:12:24,506 --> 00:12:25,207
work with both improvement fund

458
00:12:25,207 --> 00:12:27,607
oversight committees to reach

459
00:12:28,377 --> 00:12:29,100
an agreement on which specific

460
00:12:29,100 --> 00:12:29,745
project elements should be

461
00:12:29,745 --> 00:12:32,745
provided and the frequency that

462
00:12:32,981 --> 00:12:33,581
departments should generate and

463
00:12:33,581 --> 00:12:34,249
share the reports During

464
00:12:34,249 --> 00:12:37,286
the course of this audit we

465
00:12:37,286 --> 00:12:37,953
also reviewed the two

466
00:12:37,953 --> 00:12:38,586
outstanding recommendations

467
00:12:38,586 --> 00:12:40,986
from the fiscal year 2021

468
00:12:42,558 --> 00:12:43,325
Mission Bay performance Audit.

469
00:12:43,325 --> 00:12:44,260
We found that both of these

470
00:12:44,260 --> 00:12:46,260
recommendations have been

471
00:12:46,962 --> 00:12:47,696
implemented.

472
00:12:47,696 --> 00:12:48,397
As previously stated, city

473
00:12:48,397 --> 00:12:50,599
management agreed to implement

474
00:12:50,599 --> 00:12:51,466
all five recommendations.

475
00:12:51,466 --> 00:12:54,466
We're happy to answer any

476
00:12:55,337 --> 00:12:56,710
questions.

477
00:12:56,710 --> 00:12:59,710
Thank you for the presentation.

478
00:13:00,808 --> 00:13:01,543
We will now turn to see if

479
00:13:01,543 --> 00:13:01,910
we've got any public comment on

480
00:13:01,910 --> 00:13:02,344
item 200.

481
00:13:02,344 --> 00:13:04,344
>> Thank you.

482
00:13:05,130 --> 00:13:05,681
Council PRESIDENT Pro Tem We

483
00:13:05,681 --> 00:13:06,315
have no speakers here in

484
00:13:06,315 --> 00:13:07,150
council chambers I'm sorry

485
00:13:07,150 --> 00:13:09,585
The five minute timer to go to

486
00:13:09,585 --> 00:13:10,419
those participating remotely.

487
00:13:10,419 --> 00:13:11,886
We currently have four speakers

488
00:13:11,886 --> 00:13:15,486
in the queue two minutes each

489
00:13:24,933 --> 00:13:28,533
8700 if you can please read one

490
00:13:57,867 --> 00:13:58,199
second

491
00:13:58,199 --> 00:13:58,967
.

492
00:13:58,967 --> 00:14:00,769
Sorry for the redirect if

493
00:14:00,769 --> 00:14:04,369
the original if you can please

494
00:14:05,941 --> 00:14:06,342
unmute.

495
00:14:06,342 --> 00:14:07,760
>> Yes.

496
00:14:07,760 --> 00:14:10,450
So this further shows the fraud

497
00:14:10,450 --> 00:14:10,779
waste and abuse and

498
00:14:10,779 --> 00:14:11,447
the negligence of the city when

499
00:14:11,447 --> 00:14:14,750
you can't even you know make

500
00:14:14,750 --> 00:14:15,417
sure that all of these programs

501
00:14:15,417 --> 00:14:19,170
and things are running in a

502
00:14:19,187 --> 00:14:19,922
manner where you can track

503
00:14:19,922 --> 00:14:20,624
things, be transparent, not get

504
00:14:20,624 --> 00:14:24,224
in your own way because that's

505
00:14:24,727 --> 00:14:25,494
what you guys tend to do is get

506
00:14:25,494 --> 00:14:26,195
in your own way by you know,

507
00:14:26,195 --> 00:14:29,195
not having something in place

508
00:14:29,231 --> 00:14:29,931
or you know, hiding information

509
00:14:29,931 --> 00:14:30,599
or not being able to complete

510
00:14:30,599 --> 00:14:34,199
things which is now going to

511
00:14:34,270 --> 00:14:34,969
make you know, people think

512
00:14:34,969 --> 00:14:37,969
that you're favoring some over

513
00:14:39,108 --> 00:14:39,842
others and that leads me to,

514
00:14:39,842 --> 00:14:40,509
you know, talk about the what's

515
00:14:40,509 --> 00:14:42,909
actually happening in these

516
00:14:44,280 --> 00:14:44,947
parts which would also be

517
00:14:44,947 --> 00:14:47,947
the negligence that is, you

518
00:14:49,218 --> 00:14:49,919
know, happening in the city

519
00:14:49,919 --> 00:14:50,686
that would prove that if this

520
00:14:50,686 --> 00:14:54,890
kind of stuff is going on, that

521
00:14:54,890 --> 00:14:54,757
stuff is also I mean is

522
00:14:54,757 --> 00:14:55,458
the money being spent wisely

523
00:14:55,458 --> 00:14:58,694
anyway when you know, just in

524
00:14:58,694 --> 00:14:59,361
Linda Vista skate park and by

525
00:14:59,361 --> 00:15:00,620
the recreation center I mean

526
00:15:00,620 --> 00:15:03,620
there's been four murders this

527
00:15:03,299 --> 00:15:04,166
year.

528
00:15:04,166 --> 00:15:05,340
Two of them were within two

529
00:15:05,340 --> 00:15:08,170
days And it doesn't seem like

530
00:15:08,170 --> 00:15:08,904
anything is being done to

531
00:15:08,904 --> 00:15:11,904
implement some kind of security

532
00:15:12,808 --> 00:15:13,509
measures or lighting that would

533
00:15:13,509 --> 00:15:16,509
ensure safety for the children

534
00:15:17,212 --> 00:15:17,580
that are going to be enjoying

535
00:15:17,580 --> 00:15:18,314
the park.

536
00:15:18,314 --> 00:15:21,884
You know, when things like that

537
00:15:21,884 --> 00:15:22,752
happen and nobody's kind of in

538
00:15:22,752 --> 00:15:23,619
a working in that manner to fix

539
00:15:23,619 --> 00:15:27,123
it like real campy Oh like this

540
00:15:27,123 --> 00:15:27,857
is your community and you're

541
00:15:27,857 --> 00:15:28,490
like How many more murders need

542
00:15:28,490 --> 00:15:30,890
to happen before something

543
00:15:31,894 --> 00:15:32,595
takes place And you guys ensure

544
00:15:32,595 --> 00:15:35,732
that if there is that there's

545
00:15:35,732 --> 00:15:36,399
some kind of security cameras

546
00:15:36,399 --> 00:15:37,100
and lighting that would

547
00:15:37,100 --> 00:15:39,500
potentially deter people from

548
00:15:41,337 --> 00:15:41,604
going to that park and doing

549
00:15:41,604 --> 00:15:42,405
it.

550
00:15:42,405 --> 00:15:46,275
But if there isn't that kind of

551
00:15:46,275 --> 00:15:46,909
stuff at these parks then those

552
00:15:46,909 --> 00:15:49,909
are the perfect, you know,

553
00:15:50,947 --> 00:15:51,647
place to go and engage in a

554
00:15:51,647 --> 00:15:52,348
crime because you're not going

555
00:15:52,348 --> 00:15:53,480
to be caught because there is

556
00:15:53,480 --> 00:15:55,217
no lighting for people to see

557
00:15:55,217 --> 00:15:56,850
it And you know that you can

558
00:15:56,850 --> 00:15:56,352
just go do it and get away with

559
00:15:56,352 --> 00:15:57,860
it.

560
00:15:57,860 --> 00:16:00,423
So you know, when we're talking

561
00:16:00,423 --> 00:16:01,157
about the negligence with your

562
00:16:01,157 --> 00:16:01,857
money, it also bleeds over into

563
00:16:01,857 --> 00:16:04,857
how you're handling the parks

564
00:16:05,194 --> 00:16:05,895
And it's very sad because you

565
00:16:05,895 --> 00:16:06,596
know, people shouldn't have to

566
00:16:06,596 --> 00:16:09,596
be put in dangerous situations

567
00:16:09,699 --> 00:16:10,990
because of your guys's

568
00:16:10,990 --> 00:16:10,700
negligence.

569
00:16:10,700 --> 00:16:13,100
Your time has concluded.

570
00:16:13,969 --> 00:16:14,737
Our next speaker is 8700.

571
00:16:14,737 --> 00:16:17,106
After that is Blair Beakman

572
00:16:17,106 --> 00:16:20,106
8700 star six to unmute Thank

573
00:16:22,845 --> 00:16:25,915
you so much Joyce And you see

574
00:16:25,915 --> 00:16:26,749
these three okay.

575
00:16:26,749 --> 00:16:29,749
City of San Diego Strategic

576
00:16:31,187 --> 00:16:33,587
plan Operating Principles Trust

577
00:16:35,425 --> 00:16:36,250
and Transparency Physical

578
00:16:36,250 --> 00:16:38,250
Considerations The audit

579
00:16:40,196 --> 00:16:40,897
evaluated several issues

580
00:16:40,897 --> 00:16:41,597
relating to lease revenue and

581
00:16:41,597 --> 00:16:44,597
the accounting of revenue and

582
00:16:45,735 --> 00:16:48,735
expenditures from me We are

583
00:16:50,172 --> 00:16:51,410
where are these issues Were

584
00:16:51,410 --> 00:16:53,441
these issues presented from 12

585
00:16:59,816 --> 00:17:00,683
excuse me were issues present

586
00:17:00,683 --> 00:17:02,683
from 2010 to 2023 and

587
00:17:04,454 --> 00:17:05,154
the Oversight Committee to two

588
00:17:05,154 --> 00:17:05,922
of them They were held back

589
00:17:05,922 --> 00:17:08,922
from doing their necessary work

590
00:17:09,590 --> 00:17:09,359
last night.

591
00:17:09,359 --> 00:17:10,193
Okay.

592
00:17:10,193 --> 00:17:13,193
And I'm not comfortable with

593
00:17:14,264 --> 00:17:14,964
the leasing with the reason

594
00:17:14,964 --> 00:17:18,368
given for the lease audit more

595
00:17:18,368 --> 00:17:19,690
and more the moratorium I'm not

596
00:17:19,690 --> 00:17:21,690
providing access to

597
00:17:27,811 --> 00:17:28,211
the software Excuse me papers.

598
00:17:28,211 --> 00:17:30,211
Okay.

599
00:17:33,160 --> 00:17:33,716
So how do all these issues

600
00:17:33,716 --> 00:17:34,484
impact the credibility of our

601
00:17:34,484 --> 00:17:38,840
expert or are they hidden away

602
00:17:38,421 --> 00:17:39,222
from auditors like ngo and cro

603
00:17:39,222 --> 00:17:42,822
because we don't want to have

604
00:17:43,393 --> 00:17:44,600
to do the internal audit report

605
00:17:44,600 --> 00:17:46,460
The internal control report.

606
00:17:48,298 --> 00:17:48,899
So this feels like a big trust

607
00:17:48,899 --> 00:17:50,899
and transparency issue.

608
00:17:53,360 --> 00:17:53,636
These audit reports are so

609
00:17:53,636 --> 00:17:56,360
important and needed, so

610
00:17:58,241 --> 00:17:58,709
valuable and so valuable in

611
00:17:58,709 --> 00:17:59,242
the oversight in

612
00:17:59,242 --> 00:18:01,242
the implementation.

613
00:18:02,846 --> 00:18:03,513
So who's really following up on

614
00:18:03,513 --> 00:18:04,810
the project implementation?

615
00:18:04,810 --> 00:18:06,481
I'm hurrying on this.

616
00:18:08,552 --> 00:18:09,486
Okay.

617
00:18:09,486 --> 00:18:12,486
Your city auditor panel buried

618
00:18:13,390 --> 00:18:17,260
in the 46 pages of this five it

619
00:18:17,260 --> 00:18:17,961
clues red flags guiding cost to

620
00:18:17,961 --> 00:18:20,361
our structural budget deficit.

621
00:18:22,933 --> 00:18:23,700
In my opinion all past audits

622
00:18:23,700 --> 00:18:24,367
would give us an eagle eye.

623
00:18:24,367 --> 00:18:24,868
>> Your time has started.

624
00:18:24,868 --> 00:18:26,868
My apologies.

625
00:18:26,937 --> 00:18:27,537
The five minute timer has also

626
00:18:27,537 --> 00:18:28,104
concluded We have three

627
00:18:28,104 --> 00:18:28,805
speakers in the queue.

628
00:18:28,805 --> 00:18:31,805
No additional speakers will be

629
00:18:35,212 --> 00:18:35,913
taken after that Where Beekman

630
00:18:35,913 --> 00:18:36,480
If you complain unmute please

631
00:18:36,480 --> 00:18:37,114
and mute after that is

632
00:18:37,114 --> 00:18:37,748
Katherine Rhodes and Judy

633
00:18:37,748 --> 00:18:38,582
Strang our final speaker.

634
00:18:38,582 --> 00:18:41,918
>> Hi Thank you and thanks for

635
00:18:41,918 --> 00:18:42,652
this item.

636
00:18:42,652 --> 00:18:43,353
I wish Council PRESIDENT Lacob

637
00:18:43,353 --> 00:18:46,190
was here today for this item.

638
00:18:46,190 --> 00:18:46,889
It's really important in

639
00:18:46,889 --> 00:18:49,289
talking about accountability I

640
00:18:51,795 --> 00:18:52,562
guess for myself to begin.

641
00:18:52,562 --> 00:18:53,363
Thank you that you have caught

642
00:18:53,363 --> 00:18:56,363
this accounting error and you

643
00:18:57,701 --> 00:18:58,680
corrected it and you're making

644
00:18:58,680 --> 00:18:58,802
it public.

645
00:18:58,802 --> 00:18:59,102
That's a really important first

646
00:18:59,102 --> 00:18:59,469
step.

647
00:18:59,469 --> 00:19:01,469
Thank you.

648
00:19:02,439 --> 00:19:03,140
Thank you guys for doing that.

649
00:19:03,140 --> 00:19:03,474
So it's important to proceed

650
00:19:03,474 --> 00:19:05,474
darkly.

651
00:19:07,378 --> 00:19:08,145
i think consciously at this

652
00:19:08,145 --> 00:19:08,512
time and to be able to ask

653
00:19:08,512 --> 00:19:10,512
questions.

654
00:19:11,915 --> 00:19:12,616
For instance, we were all

655
00:19:12,616 --> 00:19:12,983
around in 2024 when this first

656
00:19:12,983 --> 00:19:14,983
happened.

657
00:19:17,354 --> 00:19:18,288
Why exactly did we allow it?

658
00:19:18,288 --> 00:19:18,922
Can we go into a bit of detail

659
00:19:18,922 --> 00:19:21,922
more why exactly This was

660
00:19:22,126 --> 00:19:22,793
allowed by ourselves and

661
00:19:22,793 --> 00:19:23,493
the mayor's office promoted

662
00:19:23,493 --> 00:19:27,930
this idea in the first place.

663
00:19:27,631 --> 00:19:28,365
I know what you with a bit of a

664
00:19:28,365 --> 00:19:31,965
nip and tuck in saving dollars.

665
00:19:32,169 --> 00:19:32,870
I mean that's basic Some formal

666
00:19:32,870 --> 00:19:33,569
explanations of their initial

667
00:19:33,569 --> 00:19:36,569
reasoning could be helpful in

668
00:19:37,410 --> 00:19:37,708
clarity Overall and how we

669
00:19:37,708 --> 00:19:40,708
don't let this happen again.

670
00:19:42,246 --> 00:19:42,780
Basically with that said, I

671
00:19:42,780 --> 00:19:43,513
also wanted to note

672
00:19:43,513 --> 00:19:46,513
the importance of really trying

673
00:19:47,251 --> 00:19:47,952
to work on accountability

674
00:19:47,952 --> 00:19:50,352
issues with park funding

675
00:19:52,690 --> 00:19:53,257
overall the current questions

676
00:19:53,257 --> 00:19:53,858
about the park funding

677
00:19:53,858 --> 00:19:56,858
allocations I think is a

678
00:19:57,428 --> 00:19:57,862
question we're haven't fully

679
00:19:57,862 --> 00:19:58,596
answered yet.

680
00:19:58,596 --> 00:20:02,165
I can be in agreement that a

681
00:20:02,165 --> 00:20:02,867
lot is going to be going to a

682
00:20:02,867 --> 00:20:03,734
special public park fund But

683
00:20:03,734 --> 00:20:07,334
memos have been stated here in

684
00:20:07,704 --> 00:20:08,405
Council that some money has

685
00:20:08,405 --> 00:20:11,405
been slated to go for

686
00:20:12,442 --> 00:20:13,277
the general fund.

687
00:20:13,277 --> 00:20:14,100
Can that be more be made more

688
00:20:14,100 --> 00:20:18,210
clear at this time and we can

689
00:20:18,716 --> 00:20:19,349
have an over or understanding

690
00:20:19,349 --> 00:20:20,490
of park accountability

691
00:20:20,490 --> 00:20:22,587
Budgeting issues at this time

692
00:20:22,587 --> 00:20:23,287
is a good time to practice that

693
00:20:23,287 --> 00:20:25,687
accountability and to conclude

694
00:20:28,459 --> 00:20:29,193
this really ask the question of

695
00:20:29,193 --> 00:20:32,793
a strong mayor city council and

696
00:20:33,230 --> 00:20:33,797
city council is trying to work

697
00:20:33,797 --> 00:20:34,431
towards administrative

698
00:20:34,431 --> 00:20:36,831
organization at this time.

699
00:20:39,670 --> 00:20:40,370
Do we need to be aggressive a

700
00:20:40,370 --> 00:20:40,938
good good idea at this time?

701
00:20:40,938 --> 00:20:41,339
>> I hope we can.

702
00:20:41,339 --> 00:20:41,739
Thank you.

703
00:20:41,739 --> 00:20:43,739
Thank you.

704
00:20:45,876 --> 00:20:46,543
Kathryn Roberts, if you can

705
00:20:46,543 --> 00:20:49,680
please on the third this is

706
00:20:49,680 --> 00:20:50,413
Katherine Rhodes and just what

707
00:20:50,413 --> 00:20:53,584
everybody else said you know, I

708
00:20:53,584 --> 00:20:54,285
don't understand why you had

709
00:20:54,285 --> 00:20:57,885
eight or why our strong mayor

710
00:20:58,222 --> 00:20:58,822
Todd Gloria put a moratorium on

711
00:20:58,822 --> 00:21:01,222
the lease revenue audit.

712
00:21:03,728 --> 00:21:04,228
Why would he have that ability

713
00:21:04,228 --> 00:21:04,962
to do that?

714
00:21:04,962 --> 00:21:08,562
And then of course, you know,

715
00:21:08,866 --> 00:21:09,567
the fix for that is what

716
00:21:09,567 --> 00:21:10,401
Council PRESIDENT Pro Tem Kit

717
00:21:10,401 --> 00:21:14,100
Lee came out with his fiscal

718
00:21:14,439 --> 00:21:15,172
accountability and transparency

719
00:21:15,172 --> 00:21:17,572
reform ballot measure where

720
00:21:19,977 --> 00:21:20,645
instead of just having a strong

721
00:21:20,645 --> 00:21:21,345
mayor form of government who

722
00:21:21,345 --> 00:21:24,945
can just make up things like

723
00:21:25,116 --> 00:21:25,817
let's not let's put a

724
00:21:25,817 --> 00:21:28,217
moratorium on these revenue

725
00:21:30,521 --> 00:21:31,254
audits, you could have an

726
00:21:31,254 --> 00:21:31,923
actual strong mayor strong city

727
00:21:31,923 --> 00:21:34,323
council form of government.

728
00:21:35,960 --> 00:21:36,661
So he can't go around and just,

729
00:21:36,661 --> 00:21:37,294
you know, delete these audits

730
00:21:37,294 --> 00:21:39,694
that are actually needed.

731
00:21:40,832 --> 00:21:41,399
And then of course this is only

732
00:21:41,399 --> 00:21:43,399
for fiscal year 2024.

733
00:21:45,269 --> 00:21:45,569
You know, where's a one for

734
00:21:45,569 --> 00:21:46,304
2025?

735
00:21:46,304 --> 00:21:49,807
Should we be getting that soon?

736
00:21:49,807 --> 00:21:50,508
I don't know.

737
00:21:50,508 --> 00:21:51,209
So thank you for the audit

738
00:21:51,209 --> 00:21:54,809
committee for doing as much as

739
00:21:55,213 --> 00:21:55,913
you can but I think this is a

740
00:21:55,913 --> 00:21:58,913
problem with the mayor saying

741
00:22:01,185 --> 00:22:01,852
that they can't do the job or

742
00:22:01,852 --> 00:22:02,553
he's not going to give them

743
00:22:02,553 --> 00:22:06,157
the funding to do the job And

744
00:22:06,157 --> 00:22:06,925
you the city council not having

745
00:22:06,925 --> 00:22:07,559
enough power over him to you

746
00:22:07,559 --> 00:22:10,559
know, to force the issue.

747
00:22:11,629 --> 00:22:12,297
And so you guys really need to

748
00:22:12,297 --> 00:22:15,297
change that And hopefully if

749
00:22:17,680 --> 00:22:17,769
you put something into the city

750
00:22:17,769 --> 00:22:18,470
charter to take the power away

751
00:22:18,470 --> 00:22:22,700
from the mayor and then during

752
00:22:22,941 --> 00:22:23,475
that discussion also at

753
00:22:23,475 --> 00:22:24,750
the Rules Committee,

754
00:22:24,750 --> 00:22:24,676
the mayor's office said

755
00:22:24,676 --> 00:22:25,209
basically he'll give you

756
00:22:25,209 --> 00:22:27,209
everything you want.

757
00:22:28,312 --> 00:22:28,913
You don't have to go through a

758
00:22:28,913 --> 00:22:29,614
city charter change for

759
00:22:29,614 --> 00:22:33,214
the city council to get things

760
00:22:33,952 --> 00:22:34,586
you want like not having this

761
00:22:34,586 --> 00:22:36,986
moratorium on the revenue

762
00:22:39,157 --> 00:22:39,858
audits So he said that you can

763
00:22:39,858 --> 00:22:42,258
have basically everything you

764
00:22:44,296 --> 00:22:44,929
want So I would see if if

765
00:22:44,929 --> 00:22:45,597
somebody from the mayor's

766
00:22:45,597 --> 00:22:49,197
office was there and if they

767
00:22:50,935 --> 00:22:51,636
could tell us that they're not

768
00:22:51,636 --> 00:22:52,303
going to do these moratoriums

769
00:22:52,303 --> 00:22:53,400
any more that when your time

770
00:22:53,400 --> 00:22:56,400
has concluded really strong if

771
00:22:57,775 --> 00:22:58,375
you can please I'm Good

772
00:22:58,375 --> 00:22:59,770
afternoon San Diego City

773
00:22:59,770 --> 00:22:59,410
Council mayor of San Diego in

774
00:22:59,410 --> 00:23:01,410
person.

775
00:23:03,548 --> 00:23:04,215
He's always live by the coast

776
00:23:04,215 --> 00:23:07,815
and he knows the mission Bay

777
00:23:08,653 --> 00:23:09,421
Area well as does my family.

778
00:23:09,421 --> 00:23:10,121
I was a little stunned by

779
00:23:10,121 --> 00:23:13,721
the audit report but to start

780
00:23:14,259 --> 00:23:18,459
with the good news there was an

781
00:23:18,964 --> 00:23:19,664
audit report and the eBay took

782
00:23:19,664 --> 00:23:23,264
the job responsibly to take a

783
00:23:24,369 --> 00:23:25,700
hard look at past lease

784
00:23:25,700 --> 00:23:25,769
arrangements whether the money

785
00:23:25,769 --> 00:23:29,741
came in as it was expected and

786
00:23:29,741 --> 00:23:30,409
whether it was more importantly

787
00:23:30,409 --> 00:23:30,942
allocated like we all would

788
00:23:30,942 --> 00:23:33,342
have expected it to.

789
00:23:36,648 --> 00:23:37,281
I was very surprised about

790
00:23:37,281 --> 00:23:37,716
the lack of oversight with

791
00:23:37,716 --> 00:23:39,716
lease leasing.

792
00:23:41,586 --> 00:23:42,287
I think the comment made by

793
00:23:42,287 --> 00:23:45,887
the ipa that when some leases

794
00:23:47,291 --> 00:23:47,992
are not followed up with to get

795
00:23:47,992 --> 00:23:50,992
the lease agreement signed or

796
00:23:52,230 --> 00:23:52,764
an appropriately negotiated it

797
00:23:52,764 --> 00:23:54,764
implies favoritism.

798
00:23:58,170 --> 00:23:58,870
Let me just say that again It

799
00:23:58,870 --> 00:23:59,637
implies favoritism and that I

800
00:23:59,637 --> 00:24:03,237
think has concerned all of us

801
00:24:04,275 --> 00:24:04,976
as residents of the city of San

802
00:24:04,976 --> 00:24:05,978
Diego when we have leases and

803
00:24:05,978 --> 00:24:09,681
we have a lot of them with our

804
00:24:09,681 --> 00:24:10,282
gorgeous public lands that go

805
00:24:10,282 --> 00:24:12,682
out to private entities

806
00:24:15,186 --> 00:24:15,854
sometimes masquerading as

807
00:24:15,854 --> 00:24:16,555
nonprofits but nevertheless

808
00:24:16,555 --> 00:24:19,555
they are private entities and

809
00:24:20,225 --> 00:24:20,759
they make a lot of money off

810
00:24:20,759 --> 00:24:21,693
our public lands.

811
00:24:21,693 --> 00:24:25,293
We are concerned when we're not

812
00:24:26,231 --> 00:24:27,199
getting our fair share of what

813
00:24:27,199 --> 00:24:31,700
they take in and it does imply

814
00:24:31,700 --> 00:24:31,836
favoritism.

815
00:24:31,836 --> 00:24:32,504
The question is is that really

816
00:24:32,504 --> 00:24:32,804
favoritism and how would we

817
00:24:32,804 --> 00:24:34,804
know?

818
00:24:36,942 --> 00:24:37,642
So the good news in this

819
00:24:37,642 --> 00:24:38,376
conversation as you have begun

820
00:24:38,376 --> 00:24:39,100
the conversation you're sharing

821
00:24:39,100 --> 00:24:41,410
this information with us.

822
00:24:43,810 --> 00:24:43,849
You've given us a five point

823
00:24:43,849 --> 00:24:44,483
plan of how to get back on

824
00:24:44,483 --> 00:24:46,883
track regarding the city's

825
00:24:48,220 --> 00:24:48,920
revenue so that we can have

826
00:24:48,920 --> 00:24:49,587
more faith going forward that

827
00:24:49,587 --> 00:24:52,587
we as citizens will be

828
00:24:54,426 --> 00:24:55,600
protected from abuse and that

829
00:24:55,600 --> 00:24:55,694
the money will come in as

830
00:24:55,694 --> 00:24:59,294
expected and be spent As I

831
00:24:59,832 --> 00:25:00,566
said, thank you.

832
00:25:00,566 --> 00:25:00,999
Let us include public comment

833
00:25:00,999 --> 00:25:01,366
on this item.

834
00:25:01,366 --> 00:25:01,967
Thank you.

835
00:25:01,967 --> 00:25:04,967
Thank you Will now take

836
00:25:05,304 --> 00:25:05,871
Councilmember questions

837
00:25:05,871 --> 00:25:06,438
comments starting with

838
00:25:06,438 --> 00:25:07,139
the chair of our audit

839
00:25:07,139 --> 00:25:07,506
committee Councilmember Raina

840
00:25:07,506 --> 00:25:09,506
Thank you.

841
00:25:09,942 --> 00:25:10,642
Thank you for the presentation

842
00:25:10,642 --> 00:25:11,343
and thank you to the city

843
00:25:11,343 --> 00:25:11,644
Auditor for your work on this

844
00:25:11,644 --> 00:25:13,644
audit.

845
00:25:16,315 --> 00:25:17,216
This is an annual audit so we

846
00:25:17,216 --> 00:25:20,816
will be hearing on this matter

847
00:25:22,220 --> 00:25:23,540
again.

848
00:25:23,540 --> 00:25:23,589
>> When will it come back to

849
00:25:23,589 --> 00:25:25,589
the audit committee?

850
00:25:27,426 --> 00:25:28,930
We are just about to start this

851
00:25:28,930 --> 00:25:28,794
year's version of the audit.

852
00:25:28,794 --> 00:25:32,394
It's been delayed a little bit

853
00:25:33,131 --> 00:25:33,999
due to budget reductions.

854
00:25:33,999 --> 00:25:34,700
We had to hold some positions

855
00:25:34,700 --> 00:25:35,434
vacant for the last six months

856
00:25:35,434 --> 00:25:39,340
but those have been filled and

857
00:25:39,672 --> 00:25:40,339
so we'll be starting to see

858
00:25:40,339 --> 00:25:40,706
that probably in the fall In

859
00:25:40,706 --> 00:25:41,240
the fall.

860
00:25:41,240 --> 00:25:43,240
>> Okay, wonderful.

861
00:25:43,909 --> 00:25:44,643
Well thank you for that.

862
00:25:44,643 --> 00:25:48,843
The issue of the city not being

863
00:25:49,281 --> 00:25:49,982
able to properly distribute

864
00:25:49,982 --> 00:25:50,649
these payments to the correct

865
00:25:50,649 --> 00:25:53,490
accounts was something that

866
00:25:54,353 --> 00:25:55,870
the audit committee first

867
00:25:55,870 --> 00:25:55,688
learned of at the MARCH meeting

868
00:25:55,688 --> 00:25:58,688
when it was disclosed in

869
00:26:00,259 --> 00:26:00,892
the internal controls report

870
00:26:00,892 --> 00:26:01,460
which was apparently eight

871
00:26:01,460 --> 00:26:01,827
months after the issue

872
00:26:01,827 --> 00:26:03,827
happened.

873
00:26:06,980 --> 00:26:06,799
The audit committee did review

874
00:26:06,799 --> 00:26:09,799
this item item last NOVEMBER

875
00:26:10,203 --> 00:26:10,736
and today is the first time

876
00:26:10,736 --> 00:26:13,136
it's come before us.

877
00:26:15,942 --> 00:26:16,475
The city Council at that time

878
00:26:16,475 --> 00:26:17,209
staff indicated that

879
00:26:17,209 --> 00:26:17,910
the problem was being addressed

880
00:26:17,910 --> 00:26:21,510
and expected it to be resolved

881
00:26:21,814 --> 00:26:22,481
by the end of the fiscal year.

882
00:26:22,481 --> 00:26:23,115
Now as the auditor noted,

883
00:26:23,115 --> 00:26:26,115
the problem of the problem

884
00:26:27,786 --> 00:26:28,387
resulted in a large backlog of

885
00:26:28,387 --> 00:26:30,387
unresolved lease payment

886
00:26:33,659 --> 00:26:34,327
discrepancies In MARCH I had a

887
00:26:34,327 --> 00:26:35,260
great concern not just about

888
00:26:35,260 --> 00:26:38,260
the actual dollar amount that

889
00:26:39,665 --> 00:26:40,299
had not been distributed to

890
00:26:40,299 --> 00:26:41,000
the right account but more

891
00:26:41,000 --> 00:26:43,400
importantly whether this issue

892
00:26:45,571 --> 00:26:46,339
was a symptom of something

893
00:26:46,339 --> 00:26:46,873
larger and might need a higher

894
00:26:46,873 --> 00:26:48,873
level of disclosure.

895
00:26:51,277 --> 00:26:51,977
My concern did increase when it

896
00:26:51,977 --> 00:26:52,645
was revealed that a moratorium

897
00:26:52,645 --> 00:26:56,245
had been placed on the city

898
00:26:57,917 --> 00:26:58,517
Treasurer's ability to continue

899
00:26:58,517 --> 00:26:59,850
auditing the situation.

900
00:26:59,850 --> 00:27:02,850
The office of the City

901
00:27:03,655 --> 00:27:04,423
Treasurer is required per

902
00:27:04,423 --> 00:27:05,191
council policy 700 Dash ten to

903
00:27:05,191 --> 00:27:08,191
conduct an audit of each

904
00:27:10,596 --> 00:27:11,363
percentage lease for the first

905
00:27:11,363 --> 00:27:14,300
year of operation and at least

906
00:27:14,300 --> 00:27:15,100
once every five years.

907
00:27:15,100 --> 00:27:15,768
Now restricting their ability

908
00:27:15,768 --> 00:27:19,368
to do this is a significant

909
00:27:20,372 --> 00:27:21,140
action.

910
00:27:21,140 --> 00:27:21,741
On page seven of the audit it

911
00:27:21,741 --> 00:27:24,141
states the following edi

912
00:27:26,790 --> 00:27:29,790
limited re portfolio access to

913
00:27:31,451 --> 00:27:32,251
only its staff and removed

914
00:27:32,251 --> 00:27:32,785
access from the audit office of

915
00:27:32,785 --> 00:27:34,785
the City Treasurer.

916
00:27:37,156 --> 00:27:37,856
He believed it was

917
00:27:37,856 --> 00:27:38,524
counterproductive to allow

918
00:27:38,524 --> 00:27:40,924
access to leasing management

919
00:27:42,695 --> 00:27:43,295
software containing inaccurate

920
00:27:43,295 --> 00:27:43,997
information while it was

921
00:27:43,997 --> 00:27:46,397
actively working to reconcile

922
00:27:49,669 --> 00:27:50,370
accounts so that accurate

923
00:27:50,370 --> 00:27:50,970
payments could be applied and

924
00:27:50,970 --> 00:27:53,370
correct revenue could be

925
00:27:55,842 --> 00:27:56,409
realized according to edi

926
00:27:56,409 --> 00:27:57,100
provided all data and

927
00:27:57,100 --> 00:27:59,410
information to the City

928
00:28:01,381 --> 00:28:02,115
Treasurer upon request to

929
00:28:02,115 --> 00:28:02,715
continue revenue audits despite

930
00:28:02,715 --> 00:28:05,115
not providing access to

931
00:28:06,786 --> 00:28:07,487
the software.

932
00:28:07,487 --> 00:28:08,187
However, the City Treasurer

933
00:28:08,187 --> 00:28:11,187
indicated that its ability to

934
00:28:13,359 --> 00:28:14,930
complete revenue audits was

935
00:28:14,930 --> 00:28:17,930
limited by the moratorium which

936
00:28:18,764 --> 00:28:19,466
explicitly instructs the city

937
00:28:19,466 --> 00:28:22,466
Treasurer to pause audits and

938
00:28:25,305 --> 00:28:26,500
restrict contact with a leader

939
00:28:26,500 --> 00:28:26,706
Goes on to say that the audit

940
00:28:26,706 --> 00:28:29,706
and Treasurer that auditor and

941
00:28:30,944 --> 00:28:31,611
Treasurer had to instead rely

942
00:28:31,611 --> 00:28:32,411
on data from sap and reports

943
00:28:32,411 --> 00:28:35,411
provided by edi to support

944
00:28:36,282 --> 00:28:37,217
their analysis.

945
00:28:37,217 --> 00:28:40,817
No direct access to the actual

946
00:28:42,222 --> 00:28:42,956
data for two top officials in

947
00:28:42,956 --> 00:28:46,556
the city for an extended period

948
00:28:47,460 --> 00:28:48,194
of extended period of time.

949
00:28:48,194 --> 00:28:48,762
I find this to be very

950
00:28:48,762 --> 00:28:49,429
concerning and I think

951
00:28:49,429 --> 00:28:52,429
everybody on the dais should

952
00:28:53,433 --> 00:28:54,670
feel the same way As

953
00:28:54,670 --> 00:28:54,737
the auditor states, these

954
00:28:54,737 --> 00:28:57,137
actions weaken an important

955
00:28:59,339 --> 00:28:59,906
internal financial control,

956
00:28:59,906 --> 00:29:00,473
hinders oversight and

957
00:29:00,473 --> 00:29:02,473
transparency and could

958
00:29:05,345 --> 00:29:06,450
potentially damage the city's

959
00:29:06,450 --> 00:29:06,780
reputation and credibility for

960
00:29:06,780 --> 00:29:07,147
billing practices and financial

961
00:29:07,147 --> 00:29:09,147
reporting.

962
00:29:11,451 --> 00:29:11,985
Now I do appreciate

963
00:29:11,985 --> 00:29:12,685
the auditor's first

964
00:29:12,685 --> 00:29:13,420
recommendation which speaks to

965
00:29:13,420 --> 00:29:15,420
discouraging future moratoriums

966
00:29:18,191 --> 00:29:18,891
and which requires promptly

967
00:29:18,891 --> 00:29:19,459
informing the city auditor and

968
00:29:19,459 --> 00:29:20,126
the chair of the audit

969
00:29:20,126 --> 00:29:23,126
committee If the ability to

970
00:29:23,830 --> 00:29:24,464
perform these revenue audit

971
00:29:24,464 --> 00:29:24,864
functions is restricted in

972
00:29:24,864 --> 00:29:26,864
the future.

973
00:29:29,636 --> 00:29:30,436
This is absolutely critical and

974
00:29:30,436 --> 00:29:31,104
I'm glad to see that management

975
00:29:31,104 --> 00:29:31,705
agreed to provided provided

976
00:29:31,705 --> 00:29:34,105
provide the direction to

977
00:29:35,475 --> 00:29:36,175
the department staff in

978
00:29:36,175 --> 00:29:36,877
compliance with Council policy

979
00:29:36,877 --> 00:29:39,877
700 Dash ten The audit states

980
00:29:41,748 --> 00:29:42,382
that the Economic Development

981
00:29:42,382 --> 00:29:43,500
Department appears to have

982
00:29:43,500 --> 00:29:45,450
taken steps to subsequently

983
00:29:47,487 --> 00:29:48,880
resolve this issue and I would

984
00:29:48,880 --> 00:29:48,755
ask staff to expand upon

985
00:29:48,755 --> 00:29:51,755
exactly what steps have been

986
00:29:52,826 --> 00:29:53,593
taken to resolve this issue and

987
00:29:53,593 --> 00:29:54,293
also can the auditor expound on

988
00:29:54,293 --> 00:29:55,620
what you need to see done for

989
00:29:55,620 --> 00:29:58,662
this issue to be resolved in

990
00:30:10,744 --> 00:30:11,211
your eyes?

991
00:30:11,211 --> 00:30:13,211
Good afternoon.

992
00:30:16,383 --> 00:30:17,830
Monica Hardman Assistant

993
00:30:17,830 --> 00:30:17,784
Director I'm taking a seat

994
00:30:17,784 --> 00:30:18,519
because I realize there'll be

995
00:30:18,519 --> 00:30:21,519
numerous questions So thank you

996
00:30:22,589 --> 00:30:23,256
for the opportunity to expound

997
00:30:23,256 --> 00:30:23,957
upon what the department is

998
00:30:23,957 --> 00:30:26,957
doing to resolve these issues.

999
00:30:28,595 --> 00:30:29,295
So the first thing that we did

1000
00:30:29,295 --> 00:30:30,630
is that we took an internal

1001
00:30:30,630 --> 00:30:33,630
look at improving our system

1002
00:30:34,701 --> 00:30:35,636
processes.

1003
00:30:35,636 --> 00:30:36,303
So in this we made sure that we

1004
00:30:36,303 --> 00:30:38,703
created processes to ensure

1005
00:30:40,841 --> 00:30:41,608
that an applied payments were

1006
00:30:41,608 --> 00:30:42,242
reviewed in a timely manner and

1007
00:30:42,242 --> 00:30:42,910
researched and matched to

1008
00:30:42,910 --> 00:30:44,910
the corresponding invoices.

1009
00:30:46,680 --> 00:30:47,313
We also have been improving our

1010
00:30:47,313 --> 00:30:48,140
internal tracking of lease

1011
00:30:48,140 --> 00:30:50,414
obligations and our escalation

1012
00:30:52,652 --> 00:30:53,387
provisions and strengthening

1013
00:30:53,387 --> 00:30:54,540
the oversight of the agreements

1014
00:30:54,540 --> 00:30:54,354
that include the percentage

1015
00:30:54,354 --> 00:30:56,354
rent.

1016
00:30:58,625 --> 00:30:59,259
Secondly, we launched a very

1017
00:30:59,259 --> 00:30:59,893
intensive tenant outreach

1018
00:30:59,893 --> 00:31:00,527
campaign to encourage our

1019
00:31:00,527 --> 00:31:03,527
tenants to use the city's

1020
00:31:04,765 --> 00:31:05,432
online payment portal.

1021
00:31:05,432 --> 00:31:06,100
So this portal it requires

1022
00:31:06,100 --> 00:31:09,700
the tenants to supply all of

1023
00:31:10,571 --> 00:31:11,272
the necessary invoicing

1024
00:31:11,272 --> 00:31:11,872
accounting information upfront

1025
00:31:11,872 --> 00:31:12,439
which really eliminates

1026
00:31:12,439 --> 00:31:14,839
the primary source of

1027
00:31:16,877 --> 00:31:17,544
the payment matching issue.

1028
00:31:17,544 --> 00:31:18,145
And then third that we've

1029
00:31:18,145 --> 00:31:18,712
discussed before we are

1030
00:31:18,712 --> 00:31:20,712
currently modernizing

1031
00:31:22,615 --> 00:31:22,950
modernizing our software

1032
00:31:22,950 --> 00:31:23,651
system.

1033
00:31:23,651 --> 00:31:24,318
So we are upgrading our real

1034
00:31:24,318 --> 00:31:26,318
estate management portfolio

1035
00:31:28,989 --> 00:31:29,390
system who are currently in

1036
00:31:29,390 --> 00:31:30,900
version six.

1037
00:31:30,900 --> 00:31:33,900
We are upgrading to version 11

1038
00:31:34,862 --> 00:31:35,729
that will be complete at

1039
00:31:35,729 --> 00:31:36,430
the beginning of f y 27 So in

1040
00:31:36,430 --> 00:31:39,430
JULY of 2026 we will be

1041
00:31:41,340 --> 00:31:41,735
upgraded to version 11.

1042
00:31:41,735 --> 00:31:42,503
And concurrently we're also in

1043
00:31:42,503 --> 00:31:46,103
the process of engaging upon a

1044
00:31:47,774 --> 00:31:48,475
request for proposal for

1045
00:31:48,475 --> 00:31:51,475
the long term leasing solution

1046
00:31:52,813 --> 00:31:53,514
and we're working with various

1047
00:31:53,514 --> 00:31:54,181
departments to ensure that we

1048
00:31:54,181 --> 00:31:54,648
can have that completed in a

1049
00:31:54,648 --> 00:31:56,648
timely fashion.

1050
00:31:59,620 --> 00:32:00,288
>> Thank you for that update.

1051
00:32:00,288 --> 00:32:03,288
According to the audit which

1052
00:32:04,358 --> 00:32:05,226
looks at fiscal year 24, only

1053
00:32:05,226 --> 00:32:08,826
of the 11 leases that are in

1054
00:32:09,397 --> 00:32:10,970
holdover status six of them

1055
00:32:10,970 --> 00:32:10,597
have been in holdover for more

1056
00:32:10,597 --> 00:32:12,597
than eight years.

1057
00:32:14,769 --> 00:32:15,569
And an audit committee it was

1058
00:32:15,569 --> 00:32:18,569
stated that one was terminated

1059
00:32:21,209 --> 00:32:21,742
when were the other leases in

1060
00:32:21,742 --> 00:32:23,742
mission be updated.

1061
00:32:26,313 --> 00:32:27,810
>> Thank you for the question.

1062
00:32:27,810 --> 00:32:27,748
So of the ten minus the one

1063
00:32:27,748 --> 00:32:30,148
that was terminated, they're

1064
00:32:32,753 --> 00:32:33,520
actively being addressed.

1065
00:32:33,520 --> 00:32:34,222
They're either currently going

1066
00:32:34,222 --> 00:32:34,922
through lease negotiations or

1067
00:32:34,922 --> 00:32:37,322
through an active competitive

1068
00:32:39,600 --> 00:32:39,827
rfp process.

1069
00:32:39,827 --> 00:32:40,427
So for example we currently

1070
00:32:40,427 --> 00:32:41,950
have Sportsman's Seafood

1071
00:32:41,950 --> 00:32:44,950
Indiana landing that rfp was

1072
00:32:44,699 --> 00:32:44,999
just issued in FEBRUARY of

1073
00:32:44,999 --> 00:32:45,767
2026.

1074
00:32:45,767 --> 00:32:48,767
So they are all actively

1075
00:32:50,605 --> 00:32:51,305
negotiating being negotiated

1076
00:32:51,305 --> 00:32:51,972
and we're working to get those

1077
00:32:51,972 --> 00:32:52,306
done as quickly as possible.

1078
00:32:52,306 --> 00:32:54,306
Got you.

1079
00:32:57,612 --> 00:33:01,812
I think at this rate I think

1080
00:33:02,150 --> 00:33:03,160
this council should have a list

1081
00:33:03,160 --> 00:33:07,216
of those and also when they are

1082
00:33:08,690 --> 00:33:09,290
going to be not when they're

1083
00:33:09,290 --> 00:33:10,240
going to be renegotiated

1084
00:33:10,240 --> 00:33:12,424
because that's what's happening

1085
00:33:14,228 --> 00:33:14,929
right now When the it's

1086
00:33:14,929 --> 00:33:17,929
determined that they should be

1087
00:33:20,468 --> 00:33:20,799
closed, there is an end date,

1088
00:33:20,799 --> 00:33:21,350
right?

1089
00:33:21,350 --> 00:33:21,602
Yes.

1090
00:33:21,602 --> 00:33:22,370
Happy to provide that.

1091
00:33:22,370 --> 00:33:23,710
We can give a status update for

1092
00:33:23,710 --> 00:33:25,840
those two and where they're at

1093
00:33:25,840 --> 00:33:26,541
in the process and

1094
00:33:26,541 --> 00:33:27,242
the anticipated timeline where

1095
00:33:27,242 --> 00:33:31,442
either the rfp will be done or

1096
00:33:31,479 --> 00:33:32,113
will be back before council for

1097
00:33:32,113 --> 00:33:32,413
consideration for the new

1098
00:33:32,413 --> 00:33:32,780
lease.

1099
00:33:32,780 --> 00:33:33,448
Thank you.

1100
00:33:33,448 --> 00:33:36,448
What is the current backlog

1101
00:33:37,986 --> 00:33:38,853
backlog of leases in the city

1102
00:33:38,853 --> 00:33:39,554
and how long will it take to

1103
00:33:39,554 --> 00:33:43,154
work through it and catch up?

1104
00:33:43,191 --> 00:33:43,857
>> So currently we have 178

1105
00:33:43,857 --> 00:33:44,592
agreements that are in hold

1106
00:33:44,592 --> 00:33:47,592
over and we're actively working

1107
00:33:48,530 --> 00:33:49,396
through those.

1108
00:33:49,396 --> 00:33:50,310
Of course they have to be

1109
00:33:50,310 --> 00:33:50,398
prioritized based on staff

1110
00:33:50,398 --> 00:33:52,398
capacity.

1111
00:33:55,370 --> 00:33:56,360
We currently have 13 property

1112
00:33:56,360 --> 00:33:59,360
agents for the city's entire

1113
00:34:00,408 --> 00:34:01,142
portfolio of over 900 leases.

1114
00:34:01,142 --> 00:34:02,430
We have three vacancies.

1115
00:34:02,430 --> 00:34:06,243
Only ten of those are filled at

1116
00:34:06,948 --> 00:34:07,649
the moment and we've actively

1117
00:34:07,649 --> 00:34:08,316
been working with consultants

1118
00:34:08,316 --> 00:34:11,316
and other assistance just to

1119
00:34:12,754 --> 00:34:13,880
help us get through this

1120
00:34:13,880 --> 00:34:13,788
backlog.

1121
00:34:13,788 --> 00:34:16,788
>> Thank you for that response

1122
00:34:18,827 --> 00:34:19,527
and thank you for being here.

1123
00:34:19,527 --> 00:34:20,194
This administration has known

1124
00:34:20,194 --> 00:34:22,594
about these lease revenue

1125
00:34:25,500 --> 00:34:25,900
issues for years and we still

1126
00:34:25,900 --> 00:34:27,900
have leases.

1127
00:34:30,605 --> 00:34:31,306
>> We just specifically look at

1128
00:34:31,306 --> 00:34:34,906
Mission Bay that have not been

1129
00:34:35,911 --> 00:34:36,645
updated for 12 years now.

1130
00:34:36,645 --> 00:34:37,279
Obviously this issue applies to

1131
00:34:37,279 --> 00:34:37,946
leases throughout the city

1132
00:34:37,946 --> 00:34:40,946
which makes as you mentioned

1133
00:34:42,851 --> 00:34:45,251
the problem 178 times more

1134
00:34:48,790 --> 00:34:49,190
egregious than the tenant in

1135
00:34:49,190 --> 00:34:51,190
Mission Bay.

1136
00:34:54,362 --> 00:34:55,950
Not only are we likely losing

1137
00:34:55,950 --> 00:34:58,695
out on revenue which once again

1138
00:35:00,350 --> 00:35:00,735
I always point this out if we

1139
00:35:00,735 --> 00:35:01,603
look at what rents were 12

1140
00:35:01,603 --> 00:35:05,203
years ago alone just in an

1141
00:35:06,508 --> 00:35:06,774
apartment it's it's night and

1142
00:35:06,774 --> 00:35:08,774
day.

1143
00:35:12,447 --> 00:35:13,148
>> The issue you know comparing

1144
00:35:13,148 --> 00:35:13,882
that now to prime land that

1145
00:35:13,882 --> 00:35:17,482
the city holds in this specific

1146
00:35:17,886 --> 00:35:18,687
case to Mission Bay it just it

1147
00:35:18,687 --> 00:35:19,287
makes me sick to my stomach.

1148
00:35:19,287 --> 00:35:21,687
The auditor states that

1149
00:35:23,124 --> 00:35:23,858
the city MAY potentially be

1150
00:35:23,858 --> 00:35:24,526
conferring an unfair benefit to

1151
00:35:24,526 --> 00:35:26,926
the current tenant creating

1152
00:35:29,764 --> 00:35:30,465
unnecessarily unnecessary

1153
00:35:30,465 --> 00:35:33,465
uncertainty for both the city

1154
00:35:35,936 --> 00:35:36,672
and the lessee and limiting

1155
00:35:36,672 --> 00:35:37,271
the city's ability to enact and

1156
00:35:37,271 --> 00:35:39,271
enforce updated contract

1157
00:35:41,375 --> 00:35:42,110
provisions.

1158
00:35:42,110 --> 00:35:45,710
This also can lead to perceive

1159
00:35:48,149 --> 00:35:48,884
favoritism from other lessees.

1160
00:35:48,884 --> 00:35:49,617
The auditor also states that in

1161
00:35:49,617 --> 00:35:52,617
reviewing the annual mission be

1162
00:35:54,322 --> 00:35:56,722
revenue allocation the auditor

1163
00:35:58,760 --> 00:35:59,460
identified $933,834 in deferred

1164
00:35:59,460 --> 00:35:59,794
revenue to the city for fiscal

1165
00:35:59,794 --> 00:36:00,495
year 24.

1166
00:36:00,495 --> 00:36:04,950
Can the auditor speak to this

1167
00:36:04,866 --> 00:36:05,467
finding and explain for

1168
00:36:05,467 --> 00:36:07,867
the public what deferred

1169
00:36:10,806 --> 00:36:11,940
revenue is in this case?

1170
00:36:11,940 --> 00:36:12,441
>> Yes, I can I can say a few

1171
00:36:12,441 --> 00:36:12,741
things about that.

1172
00:36:12,741 --> 00:36:14,741
Right.

1173
00:36:16,878 --> 00:36:17,546
So the deferred revenue is just

1174
00:36:17,546 --> 00:36:18,280
money that was expected but

1175
00:36:18,280 --> 00:36:18,747
it's not received or recognized

1176
00:36:18,747 --> 00:36:20,747
in that period.

1177
00:36:23,718 --> 00:36:24,185
So yeah, about a little less

1178
00:36:24,185 --> 00:36:26,185
than $1 million.

1179
00:36:28,924 --> 00:36:29,491
So it's possible he was on that

1180
00:36:29,491 --> 00:36:30,225
that credit list that

1181
00:36:30,225 --> 00:36:33,825
the report talks about where it

1182
00:36:35,764 --> 00:36:36,532
just hadn't been been matched.

1183
00:36:36,532 --> 00:36:37,232
At the time we did this audit

1184
00:36:37,232 --> 00:36:37,499
in the scope period we looked

1185
00:36:37,499 --> 00:36:38,167
at.

1186
00:36:38,167 --> 00:36:41,636
So we'll be seeing how that

1187
00:36:41,636 --> 00:36:41,937
amount changes on the next go

1188
00:36:41,937 --> 00:36:42,638
round.

1189
00:36:42,638 --> 00:36:43,472
But we flagged it for purposes

1190
00:36:43,472 --> 00:36:47,720
here because that that is a

1191
00:36:47,643 --> 00:36:48,577
notable amount of money that.

1192
00:36:48,577 --> 00:36:51,814
>> So is it expected that this

1193
00:36:51,814 --> 00:36:52,514
deferred revenue for fiscal

1194
00:36:52,514 --> 00:36:53,215
year 20 for the 933 million

1195
00:36:53,215 --> 00:36:56,215
that you mentioned, will that

1196
00:36:57,920 --> 00:36:58,654
ever be received?

1197
00:36:58,654 --> 00:36:59,355
I think yeah, I wouldn't I

1198
00:36:59,355 --> 00:37:02,355
wouldn't assume that it won't

1199
00:37:04,526 --> 00:37:05,294
be received.

1200
00:37:05,294 --> 00:37:06,280
It could have already been paid

1201
00:37:06,280 --> 00:37:06,528
and just not recognized in that

1202
00:37:06,528 --> 00:37:08,528
accounting period.

1203
00:37:10,533 --> 00:37:11,233
We got to close the books at

1204
00:37:11,233 --> 00:37:12,340
some point so it could be that

1205
00:37:12,340 --> 00:37:16,234
fate or it MAY not have been

1206
00:37:17,390 --> 00:37:17,673
received at all yet Maybe

1207
00:37:17,673 --> 00:37:18,374
the tenant did not send in

1208
00:37:18,374 --> 00:37:19,274
the check for that month so we

1209
00:37:19,274 --> 00:37:22,344
don't know when next time we go

1210
00:37:22,344 --> 00:37:22,978
around will compare the figure

1211
00:37:22,978 --> 00:37:23,578
that we received with that

1212
00:37:23,578 --> 00:37:25,578
$933,000 figure you just

1213
00:37:28,217 --> 00:37:28,984
mentioned And Councilmember

1214
00:37:28,984 --> 00:37:32,584
Moreno, if I MAY, we have

1215
00:37:32,855 --> 00:37:33,422
confirmed that that nine 33,000

1216
00:37:33,422 --> 00:37:33,789
it has been received.

1217
00:37:33,789 --> 00:37:34,323
Thank you.

1218
00:37:34,323 --> 00:37:36,723
Thank you for that.

1219
00:37:40,129 --> 00:37:40,930
And if I MAY have my extra

1220
00:37:40,930 --> 00:37:41,630
three minutes pro tem we give

1221
00:37:41,630 --> 00:37:42,198
you this I'm gonna give you my

1222
00:37:42,198 --> 00:37:44,598
three minutes as well.

1223
00:37:45,134 --> 00:37:46,100
Oh, I've already been okay,

1224
00:37:46,100 --> 00:37:46,669
well, if I MAY have a thank you

1225
00:37:46,669 --> 00:37:50,269
from my colleagues if I MAY

1226
00:37:50,739 --> 00:37:51,206
have some time.

1227
00:37:51,206 --> 00:37:51,940
Thank you.

1228
00:37:51,940 --> 00:37:52,608
I also share the concern of

1229
00:37:52,608 --> 00:37:53,275
the oversight committee that

1230
00:37:53,275 --> 00:37:55,675
expressed that they weren't

1231
00:37:57,146 --> 00:37:57,813
getting sufficient information

1232
00:37:57,813 --> 00:38:00,213
on projects and expenditures

1233
00:38:02,752 --> 00:38:03,520
that we're supposed to monitor

1234
00:38:03,520 --> 00:38:03,686
.

1235
00:38:03,686 --> 00:38:04,419
The role is oversight and

1236
00:38:04,419 --> 00:38:09,219
the city has a duty to get them

1237
00:38:09,425 --> 00:38:10,126
all the relevant information

1238
00:38:10,126 --> 00:38:10,526
that they required to fulfill

1239
00:38:10,526 --> 00:38:11,294
their duty.

1240
00:38:11,294 --> 00:38:15,531
I am glad to see in the audit

1241
00:38:15,531 --> 00:38:16,198
that in mid-year fiscal year 24

1242
00:38:16,198 --> 00:38:16,866
both committees began to get

1243
00:38:16,866 --> 00:38:18,866
expanded project information

1244
00:38:21,537 --> 00:38:22,237
but implementing recommendation

1245
00:38:22,237 --> 00:38:25,237
4.1 to reach an agreement and

1246
00:38:26,942 --> 00:38:27,576
mechanisms to specify which

1247
00:38:27,576 --> 00:38:28,144
specific project elements

1248
00:38:28,144 --> 00:38:28,644
should be provided and

1249
00:38:28,644 --> 00:38:30,644
the frequency that

1250
00:38:32,882 --> 00:38:33,415
the department should generate

1251
00:38:33,415 --> 00:38:34,500
and share.

1252
00:38:34,500 --> 00:38:34,650
The report is critical to

1253
00:38:34,650 --> 00:38:35,117
implement by the end of

1254
00:38:35,117 --> 00:38:37,117
the fiscal year.

1255
00:38:39,956 --> 00:38:40,655
I will end by saying that when

1256
00:38:40,655 --> 00:38:43,655
the city cannot properly keep

1257
00:38:45,940 --> 00:38:45,795
track of lease revenues and

1258
00:38:45,795 --> 00:38:46,494
associated late fees there is

1259
00:38:46,494 --> 00:38:49,494
great potential for the wrong

1260
00:38:50,900 --> 00:38:51,567
amount to be deposited into

1261
00:38:51,567 --> 00:38:51,868
the Mission Bay Improvement

1262
00:38:51,868 --> 00:38:52,468
Fund.

1263
00:38:52,468 --> 00:38:54,868
When that happens we're

1264
00:38:56,372 --> 00:38:57,400
potentially running afoul of

1265
00:38:57,400 --> 00:38:57,740
the charter requirement that

1266
00:38:57,740 --> 00:39:01,340
was approved by voters to fund

1267
00:39:02,378 --> 00:39:03,145
the Mission Bay improvement

1268
00:39:03,145 --> 00:39:03,813
Fund at a specific, specific

1269
00:39:03,813 --> 00:39:06,213
and prescribed level hearing

1270
00:39:08,751 --> 00:39:09,452
that steps have been taken to

1271
00:39:09,452 --> 00:39:10,152
resolve This issue is good but

1272
00:39:10,152 --> 00:39:10,753
I don't think I'm going to be

1273
00:39:10,753 --> 00:39:13,153
satisfied until the city

1274
00:39:14,724 --> 00:39:15,391
auditor can fully confirm this.

1275
00:39:15,391 --> 00:39:16,192
Additionally, even if it is

1276
00:39:16,192 --> 00:39:19,192
resolved as far as refining

1277
00:39:21,364 --> 00:39:22,650
the process by which we collect

1278
00:39:22,650 --> 00:39:24,465
and distribute these revenues,

1279
00:39:27,237 --> 00:39:27,936
I do not think it was proper to

1280
00:39:27,936 --> 00:39:28,671
restrict the city Treasurer's

1281
00:39:28,671 --> 00:39:32,871
access to the data they need to

1282
00:39:33,543 --> 00:39:34,244
do the least revenue audits

1283
00:39:34,244 --> 00:39:34,611
they were specifically tasked

1284
00:39:34,611 --> 00:39:35,244
to doing.

1285
00:39:35,244 --> 00:39:35,878
Nor was it appropriate to

1286
00:39:35,878 --> 00:39:38,278
restrict the auditor from

1287
00:39:39,416 --> 00:39:40,116
seeing that data firsthand for

1288
00:39:40,116 --> 00:39:40,416
the purpose of performing this

1289
00:39:40,416 --> 00:39:41,117
audit.

1290
00:39:41,117 --> 00:39:44,117
Neither of those things should

1291
00:39:44,987 --> 00:39:45,622
ever happen again.

1292
00:39:45,622 --> 00:39:46,356
And additionally just for

1293
00:39:46,356 --> 00:39:50,556
the body I will be leaving this

1294
00:39:51,127 --> 00:39:53,127
body in DECEMBER.

1295
00:39:56,866 --> 00:39:57,567
So with that being known I have

1296
00:39:57,567 --> 00:39:58,268
asked that our outside auditor

1297
00:39:58,268 --> 00:40:01,868
Crowe keep tabs on this issue

1298
00:40:03,406 --> 00:40:04,240
for their external audits.

1299
00:40:04,240 --> 00:40:07,840
I know I keep on reiterating

1300
00:40:09,120 --> 00:40:09,612
this as the chair of the audit

1301
00:40:09,612 --> 00:40:10,313
committee The purpose of

1302
00:40:10,313 --> 00:40:10,947
the audit committee is to see

1303
00:40:10,947 --> 00:40:13,947
issues that are that we're

1304
00:40:15,785 --> 00:40:16,486
doing wrong and the purpose of

1305
00:40:16,486 --> 00:40:18,886
management accepting that what

1306
00:40:21,858 --> 00:40:22,292
we're doing is wrong is to fix

1307
00:40:22,292 --> 00:40:23,126
those issues.

1308
00:40:23,126 --> 00:40:27,326
It's just you know, I'm at a

1309
00:40:28,297 --> 00:40:29,980
loss of words as to why these

1310
00:40:29,980 --> 00:40:32,980
issues are not being fixed

1311
00:40:32,702 --> 00:40:33,369
especially when we are looking

1312
00:40:33,369 --> 00:40:35,369
down $120 million budget

1313
00:40:38,574 --> 00:40:39,509
deficit.

1314
00:40:39,509 --> 00:40:41,811
So with that I move that we

1315
00:40:41,811 --> 00:40:42,112
approve staff's recommendation

1316
00:40:42,112 --> 00:40:44,112
.

1317
00:40:48,685 --> 00:40:49,252
>> Thank you.

1318
00:40:49,252 --> 00:40:50,190
Thank you guys.

1319
00:40:50,190 --> 00:40:53,619
Remember I know it is an

1320
00:40:55,580 --> 00:40:55,725
informational item only so no

1321
00:40:55,725 --> 00:40:55,992
motion will be required with

1322
00:40:55,992 --> 00:40:56,493
it.

1323
00:40:56,493 --> 00:40:57,930
We'll turn next to

1324
00:40:57,930 --> 00:40:59,930
Councilmember Ravenwood.

1325
00:41:00,864 --> 00:41:01,465
I thank you very much and thank

1326
00:41:01,465 --> 00:41:02,165
you to our auditor for

1327
00:41:02,165 --> 00:41:03,660
the presentation and the work

1328
00:41:03,660 --> 00:41:07,304
on this And I have a couple of

1329
00:41:07,304 --> 00:41:08,171
questions.

1330
00:41:08,171 --> 00:41:08,872
Thank you to Council Moreno for

1331
00:41:08,872 --> 00:41:09,306
all of your thorough questions

1332
00:41:09,306 --> 00:41:11,306
here on audit.

1333
00:41:12,442 --> 00:41:13,143
Slide five is as a total

1334
00:41:13,143 --> 00:41:15,543
adjusted revenues for Mission

1335
00:41:16,346 --> 00:41:16,947
Bay lease revenues was

1336
00:41:16,947 --> 00:41:17,648
approximate 37,000,087%

1337
00:41:17,648 --> 00:41:18,348
decrease from f y 2023 So why

1338
00:41:18,348 --> 00:41:21,948
is least revenue going down in

1339
00:41:22,585 --> 00:41:23,320
Mission Bay?

1340
00:41:23,320 --> 00:41:26,320
That was just one of

1341
00:41:29,580 --> 00:41:29,693
the indicators that potentially

1342
00:41:29,693 --> 00:41:30,260
the fall revenues weren't

1343
00:41:30,260 --> 00:41:32,260
recognized because of

1344
00:41:35,932 --> 00:41:36,767
the backlog because you would

1345
00:41:36,767 --> 00:41:37,434
expect it to go up but it went

1346
00:41:37,434 --> 00:41:38,135
up that year and they should

1347
00:41:38,135 --> 00:41:41,205
kind of track together at that

1348
00:41:41,205 --> 00:41:41,737
Both percentages of the revenue

1349
00:41:41,737 --> 00:41:42,406
that they received.

1350
00:41:42,406 --> 00:41:43,400
So that's just one indicator

1351
00:41:43,400 --> 00:41:46,400
that perhaps some of this

1352
00:41:47,477 --> 00:41:48,111
revenue got caught up in

1353
00:41:48,111 --> 00:41:48,812
the accounting issues and

1354
00:41:48,812 --> 00:41:49,790
wasn't recognized for Mission

1355
00:41:49,790 --> 00:41:51,790
Bay.

1356
00:41:53,250 --> 00:41:53,951
So that's why you know, we

1357
00:41:53,951 --> 00:41:54,651
noted we couldn't verify that

1358
00:41:54,651 --> 00:41:55,319
the amount was right that year

1359
00:41:55,319 --> 00:41:58,889
and we're going to check it

1360
00:41:58,889 --> 00:41:59,256
again during this year's audit.

1361
00:41:59,256 --> 00:42:01,256
>> Okay.

1362
00:42:03,393 --> 00:42:03,793
Mark, if you have any comment

1363
00:42:03,793 --> 00:42:04,428
on that one.

1364
00:42:04,428 --> 00:42:07,428
Again, as the city auditor

1365
00:42:08,631 --> 00:42:08,932
mentioned, it was a snapshot in

1366
00:42:08,932 --> 00:42:09,600
time.

1367
00:42:09,600 --> 00:42:10,200
We have since reconciled and

1368
00:42:10,200 --> 00:42:12,600
have received all that.

1369
00:42:14,671 --> 00:42:15,372
Nine 33,000 So I don't know if

1370
00:42:15,372 --> 00:42:16,140
that could have been the issue

1371
00:42:16,140 --> 00:42:19,740
or something else I would say

1372
00:42:20,677 --> 00:42:21,311
globally, you know there have

1373
00:42:21,311 --> 00:42:21,979
been some situations where

1374
00:42:21,979 --> 00:42:25,579
revenue has been down but we

1375
00:42:26,150 --> 00:42:26,750
would expect that you know

1376
00:42:26,750 --> 00:42:27,500
those would remain at a certain

1377
00:42:27,500 --> 00:42:27,718
level.

1378
00:42:27,718 --> 00:42:31,655
So I think looking at it in

1379
00:42:31,655 --> 00:42:32,389
this new year will really

1380
00:42:32,389 --> 00:42:33,560
provide us the data points that

1381
00:42:33,560 --> 00:42:36,656
we need now that we have

1382
00:42:37,270 --> 00:42:37,694
reconciled and we're receiving

1383
00:42:37,694 --> 00:42:38,395
revenue and getting through

1384
00:42:38,395 --> 00:42:39,290
those payment issues to see if

1385
00:42:39,290 --> 00:42:39,696
there's any global trends.

1386
00:42:39,696 --> 00:42:40,964
But that's about all that I

1387
00:42:40,964 --> 00:42:43,964
could really mention at this

1388
00:42:47,638 --> 00:42:48,380
time.

1389
00:42:48,380 --> 00:42:50,380
Okay.

1390
00:42:51,609 --> 00:42:52,760
Yes we are for a $120 million

1391
00:42:52,760 --> 00:42:52,743
budget deficit.

1392
00:42:52,743 --> 00:42:55,743
We're not tracking why we're

1393
00:42:56,280 --> 00:42:57,810
not getting this revenue from

1394
00:42:57,810 --> 00:42:57,748
one of our most popular parks.

1395
00:42:57,748 --> 00:43:00,748
Can someone from the mayor's

1396
00:43:03,320 --> 00:43:03,921
office please explain how an

1397
00:43:03,921 --> 00:43:04,588
audit can be refused If

1398
00:43:04,588 --> 00:43:07,588
the Treasurer is being asked

1399
00:43:09,326 --> 00:43:09,760
how much money did you bring in

1400
00:43:09,760 --> 00:43:10,427
for the city?

1401
00:43:10,427 --> 00:43:11,662
How can city management say

1402
00:43:11,662 --> 00:43:15,262
We're not going to tell you

1403
00:43:18,702 --> 00:43:19,103
I've never heard of this.

1404
00:43:19,103 --> 00:43:19,803
Yeah.

1405
00:43:19,803 --> 00:43:20,504
Thank you for that question,

1406
00:43:20,504 --> 00:43:23,504
Councilmember I, I don't think

1407
00:43:24,307 --> 00:43:25,420
it was in an effort to hide

1408
00:43:25,420 --> 00:43:25,642
the ball or refuse the audit or

1409
00:43:25,642 --> 00:43:25,975
not participate in that

1410
00:43:25,975 --> 00:43:27,975
process.

1411
00:43:31,448 --> 00:43:32,149
I do think when Eden formerly

1412
00:43:32,149 --> 00:43:35,149
Dream consolidated there was a

1413
00:43:36,419 --> 00:43:37,388
lot of cleanup work that needed

1414
00:43:37,388 --> 00:43:38,890
to take place And so I think to

1415
00:43:38,890 --> 00:43:41,689
get your arms around kind of

1416
00:43:42,693 --> 00:43:43,327
the back end mess that we were

1417
00:43:43,327 --> 00:43:43,994
trying to get through and

1418
00:43:43,994 --> 00:43:47,594
the backlog I think that is

1419
00:43:48,732 --> 00:43:49,467
the intent of that moratorium.

1420
00:43:49,467 --> 00:43:50,100
I don't think it was anything

1421
00:43:50,100 --> 00:43:53,100
beyond that that has since

1422
00:43:55,720 --> 00:43:55,773
obviously been lifted.

1423
00:43:55,773 --> 00:43:56,406
The commitment is on the table

1424
00:43:56,406 --> 00:43:57,975
as seen in the management

1425
00:43:57,975 --> 00:44:00,975
response and that's that's what

1426
00:44:01,846 --> 00:44:03,846
we there.

1427
00:44:08,519 --> 00:44:09,386
Okay.

1428
00:44:09,386 --> 00:44:09,921
>> And we're not going to do

1429
00:44:09,921 --> 00:44:12,321
that in the future.

1430
00:44:14,250 --> 00:44:14,858
No.

1431
00:44:14,858 --> 00:44:15,560
And then if there is ever a

1432
00:44:15,560 --> 00:44:18,560
situation where things are not

1433
00:44:20,297 --> 00:44:20,965
able to be met or delivered,

1434
00:44:20,965 --> 00:44:21,632
there is the accountability

1435
00:44:21,632 --> 00:44:22,300
process, the notification to

1436
00:44:22,300 --> 00:44:23,340
the city auditor as well as

1437
00:44:23,340 --> 00:44:26,571
the audit committee in the rare

1438
00:44:26,571 --> 00:44:27,104
event that some type of action

1439
00:44:27,104 --> 00:44:27,738
needs to be taken.

1440
00:44:27,738 --> 00:44:28,439
But as in the management

1441
00:44:28,439 --> 00:44:30,839
response the commitment is

1442
00:44:31,800 --> 00:44:31,309
there.

1443
00:44:31,309 --> 00:44:32,176
Okay.

1444
00:44:32,176 --> 00:44:35,776
I find it very perplexing and

1445
00:44:38,582 --> 00:44:39,250
really frustrating that we do

1446
00:44:39,250 --> 00:44:39,984
ask how much money even can

1447
00:44:39,984 --> 00:44:43,454
account manager is going to say

1448
00:44:43,454 --> 00:44:43,721
well we're not going to tell

1449
00:44:43,721 --> 00:44:44,621
you.

1450
00:44:44,621 --> 00:44:49,600
So I mean I'm glad it has been

1451
00:44:49,600 --> 00:44:49,727
resolved since but I cannot

1452
00:44:49,727 --> 00:44:50,160
believe that was one of

1453
00:44:50,160 --> 00:44:50,861
the responses.

1454
00:44:50,861 --> 00:44:51,729
I do have a question about how

1455
00:44:51,729 --> 00:44:54,666
we can help a council So like

1456
00:44:54,666 --> 00:44:55,333
you said, there's only 13

1457
00:44:55,333 --> 00:44:55,933
property agents employed by

1458
00:44:55,933 --> 00:44:56,533
the city of San Diego to

1459
00:44:56,533 --> 00:44:58,933
oversee how many leases.

1460
00:45:00,838 --> 00:45:01,706
That is correct.

1461
00:45:01,706 --> 00:45:05,306
So we currently have 13 fte for

1462
00:45:05,576 --> 00:45:06,444
our entire lease portfolio

1463
00:45:06,444 --> 00:45:10,440
which is over 910 of those are

1464
00:45:13,985 --> 00:45:14,519
filled came came in during

1465
00:45:14,519 --> 00:45:15,219
the financial year.

1466
00:45:15,219 --> 00:45:15,920
So the general fund positions

1467
00:45:15,920 --> 00:45:18,323
are those 13 of these general

1468
00:45:18,323 --> 00:45:18,990
fund I'm getting that they are

1469
00:45:18,990 --> 00:45:22,590
why this seems to be an

1470
00:45:23,795 --> 00:45:24,495
enterprise fund type of I mean

1471
00:45:24,495 --> 00:45:25,230
if we're getting lease revenue

1472
00:45:25,230 --> 00:45:25,930
is that not a money making fund

1473
00:45:25,930 --> 00:45:29,530
How are these not shifted from

1474
00:45:30,268 --> 00:45:30,701
the general fund to be paid for

1475
00:45:30,701 --> 00:45:31,302
by the leases?

1476
00:45:31,302 --> 00:45:31,936
Maybe we could hire more

1477
00:45:31,936 --> 00:45:32,637
property agents to enforce

1478
00:45:32,637 --> 00:45:34,606
the leases and get more money

1479
00:45:34,606 --> 00:45:37,606
into the city with an

1480
00:45:40,244 --> 00:45:40,578
improvement on the general fund

1481
00:45:40,578 --> 00:45:41,112
.

1482
00:45:41,112 --> 00:45:43,112
Good afternoon Ben.

1483
00:45:47,452 --> 00:45:48,219
Battalion Director of Finance.

1484
00:45:48,219 --> 00:45:48,820
So yes those 13 positions are

1485
00:45:48,820 --> 00:45:51,820
in the general fund but

1486
00:45:52,490 --> 00:45:53,910
the revenue from those leases

1487
00:45:53,910 --> 00:45:53,725
are also deposited into

1488
00:45:53,725 --> 00:45:54,458
the general fund as well.

1489
00:45:54,458 --> 00:45:57,458
So they do support those

1490
00:46:00,665 --> 00:46:01,365
positions But couldn't we hire

1491
00:46:01,365 --> 00:46:02,660
more people to are didn't take

1492
00:46:02,660 --> 00:46:02,700
a burden on the general fund.

1493
00:46:02,700 --> 00:46:05,203
We made it into a separate

1494
00:46:05,203 --> 00:46:05,904
enterprise fund and we need

1495
00:46:05,904 --> 00:46:06,771
more than 30 people to manage

1496
00:46:06,771 --> 00:46:09,771
900 properties which is why we

1497
00:46:11,420 --> 00:46:11,776
have 170 hold or releases I

1498
00:46:11,776 --> 00:46:14,790
mean gotten to my former leases

1499
00:46:14,790 --> 00:46:14,812
in San Pasquale been waiting 15

1500
00:46:14,812 --> 00:46:15,513
years to get their leases done.

1501
00:46:15,513 --> 00:46:16,281
So I just we obviously need

1502
00:46:16,281 --> 00:46:19,281
more people to manage our

1503
00:46:20,151 --> 00:46:20,818
leases but we don't hire people

1504
00:46:20,818 --> 00:46:21,486
under general fund positions

1505
00:46:21,486 --> 00:46:22,187
right now because the budget

1506
00:46:22,187 --> 00:46:25,427
deficit in the general fund So

1507
00:46:25,427 --> 00:46:26,910
have we thought about moving

1508
00:46:26,910 --> 00:46:26,791
them over into an enterprise

1509
00:46:26,791 --> 00:46:27,492
funded source so we could have

1510
00:46:27,492 --> 00:46:30,492
more property agents to bring

1511
00:46:31,496 --> 00:46:32,163
in more revenue So the majority

1512
00:46:32,163 --> 00:46:32,864
of these leases are general

1513
00:46:32,864 --> 00:46:35,864
fund leases That revenue comes

1514
00:46:37,350 --> 00:46:37,769
into the general fund and it's

1515
00:46:37,769 --> 00:46:38,369
significant It's like it's tens

1516
00:46:38,369 --> 00:46:40,769
of millions of dollars.

1517
00:46:43,408 --> 00:46:44,750
So if we were to move that all

1518
00:46:44,750 --> 00:46:44,742
into an enterprise fund with

1519
00:46:44,742 --> 00:46:46,742
the additional 13 positions

1520
00:46:49,314 --> 00:46:49,981
plus maybe a few more we would

1521
00:46:49,981 --> 00:46:50,515
really just be transferring

1522
00:46:50,515 --> 00:46:51,182
that revenue back to

1523
00:46:51,182 --> 00:46:54,182
the general fund to support

1524
00:46:55,453 --> 00:46:55,754
general fund operations.

1525
00:46:55,754 --> 00:46:56,622
Okay.

1526
00:46:56,622 --> 00:46:59,758
That kind of is why we only

1527
00:46:59,758 --> 00:47:00,491
have 13 property agents for 900

1528
00:47:00,491 --> 00:47:01,193
properties I think probably not

1529
00:47:01,193 --> 00:47:01,827
your department That's really

1530
00:47:01,827 --> 00:47:05,427
just yeah, I mean that's a

1531
00:47:06,998 --> 00:47:07,532
policy call that that's a

1532
00:47:07,532 --> 00:47:07,832
budgetary decision.

1533
00:47:07,832 --> 00:47:08,500
Okay.

1534
00:47:08,500 --> 00:47:11,770
I follow it from the mayor's

1535
00:47:11,770 --> 00:47:12,504
office on you know we need to

1536
00:47:12,504 --> 00:47:13,238
bring in money for the city and

1537
00:47:13,238 --> 00:47:16,838
we know Mission Bay is making

1538
00:47:17,876 --> 00:47:18,142
money at the beautiful place to

1539
00:47:18,142 --> 00:47:18,844
go.

1540
00:47:18,844 --> 00:47:19,544
So I just totally would hope

1541
00:47:19,544 --> 00:47:20,145
that you're there's absolutely

1542
00:47:20,145 --> 00:47:22,280
no reason that the city

1543
00:47:22,280 --> 00:47:24,680
shouldn't be getting lease

1544
00:47:28,787 --> 00:47:29,420
revenue from our lessees And if

1545
00:47:29,420 --> 00:47:30,122
the issue is we don't have

1546
00:47:30,122 --> 00:47:30,822
enough employees to go out and

1547
00:47:30,822 --> 00:47:31,456
manage our properties then we

1548
00:47:31,456 --> 00:47:33,856
should have more employees

1549
00:47:37,496 --> 00:47:37,796
using our properties.

1550
00:47:37,796 --> 00:47:38,397
Okay.

1551
00:47:38,397 --> 00:47:39,310
Well thank you for

1552
00:47:39,310 --> 00:47:41,431
the information about it.

1553
00:47:42,434 --> 00:47:46,340
Hopefully we can right the ship

1554
00:47:47,205 --> 00:47:47,706
and I appreciate the audit.

1555
00:47:47,706 --> 00:47:48,539
Thank you.

1556
00:47:48,539 --> 00:47:51,539
We'll turn off to Councilmember

1557
00:47:53,345 --> 00:47:53,846
Foster.

1558
00:47:53,846 --> 00:47:55,846
All right.

1559
00:48:00,219 --> 00:48:03,219
Thank you for the presentation

1560
00:48:05,424 --> 00:48:05,824
and for clearly we have more

1561
00:48:05,824 --> 00:48:06,692
work to do.

1562
00:48:06,692 --> 00:48:10,892
But I just wanted to kind of

1563
00:48:11,130 --> 00:48:11,997
pick up off of where my

1564
00:48:11,997 --> 00:48:15,597
colleague was at and I can

1565
00:48:17,200 --> 00:48:19,402
appreciate the discussion on

1566
00:48:22,841 --> 00:48:23,642
the number of funds I guess

1567
00:48:23,642 --> 00:48:27,242
what I'm struggling with is I'm

1568
00:48:28,447 --> 00:48:29,114
not necessarily hearing a plan

1569
00:48:29,114 --> 00:48:31,514
to resolve these outstanding

1570
00:48:34,619 --> 00:48:35,487
issues And so I would ask

1571
00:48:35,487 --> 00:48:39,687
the mayor's office do we have a

1572
00:48:41,590 --> 00:48:41,827
plan on these 178 holdovers and

1573
00:48:41,827 --> 00:48:46,270
things that we are doing on how

1574
00:48:46,970 --> 00:48:47,132
we are going to resolve them?

1575
00:48:47,132 --> 00:48:51,332
And I'm going to ask from a

1576
00:48:51,937 --> 00:48:52,838
project management perspective

1577
00:48:52,838 --> 00:48:56,438
meaning do we have a schedule

1578
00:48:58,477 --> 00:48:59,111
on identify leases, how you are

1579
00:48:59,111 --> 00:49:01,511
approaching them due date

1580
00:49:03,982 --> 00:49:04,717
timelines to where staff

1581
00:49:04,717 --> 00:49:05,384
understands what they should be

1582
00:49:05,384 --> 00:49:07,784
working on clear directives

1583
00:49:10,556 --> 00:49:11,257
what the expectations are and

1584
00:49:11,257 --> 00:49:13,657
systematically making our way

1585
00:49:16,261 --> 00:49:16,996
through this backlog?

1586
00:49:16,996 --> 00:49:17,696
>> Thank you for the question,

1587
00:49:17,696 --> 00:49:18,330
Councilmember Foster I'm going

1588
00:49:18,330 --> 00:49:21,930
to start and then I'll let

1589
00:49:22,201 --> 00:49:23,102
the mayor's office add anything

1590
00:49:23,102 --> 00:49:23,769
that they would like to as I

1591
00:49:23,769 --> 00:49:24,470
mentioned early in terms of

1592
00:49:24,470 --> 00:49:28,700
the plan to resolve the issue,

1593
00:49:28,541 --> 00:49:29,241
a huge component of that is

1594
00:49:29,241 --> 00:49:32,841
the upgrade and future rfp for

1595
00:49:34,113 --> 00:49:34,480
our leasing management

1596
00:49:34,480 --> 00:49:35,281
software.

1597
00:49:35,281 --> 00:49:35,748
So number one we need to reduce

1598
00:49:35,748 --> 00:49:37,748
the human error.

1599
00:49:40,586 --> 00:49:41,287
Number two, we need to automate

1600
00:49:41,287 --> 00:49:41,988
workflows and the number three

1601
00:49:41,988 --> 00:49:42,620
we need to provide visibility

1602
00:49:42,620 --> 00:49:45,200
into our lease compliance.

1603
00:49:46,892 --> 00:49:47,593
So those are all things that we

1604
00:49:47,593 --> 00:49:48,327
are currently struggling with

1605
00:49:48,327 --> 00:49:48,728
with a system that is very much

1606
00:49:48,728 --> 00:49:50,728
out of date.

1607
00:49:52,632 --> 00:49:53,232
So those issues will be

1608
00:49:53,232 --> 00:49:55,232
resolved partially with

1609
00:49:57,102 --> 00:49:57,703
the upgrade to version 11 As I

1610
00:49:57,703 --> 00:50:00,103
mentioned that would be

1611
00:50:02,241 --> 00:50:02,909
implemented in JULY of 2026 And

1612
00:50:02,909 --> 00:50:03,609
then again looking long term

1613
00:50:03,609 --> 00:50:07,209
for how we can continue to

1614
00:50:07,847 --> 00:50:08,481
improve efficiencies there with

1615
00:50:08,481 --> 00:50:09,148
another potential system.

1616
00:50:09,148 --> 00:50:12,148
Secondly in regards to your

1617
00:50:14,687 --> 00:50:15,354
question on what is the plan,

1618
00:50:15,354 --> 00:50:16,289
how are we looking at that?

1619
00:50:16,289 --> 00:50:20,826
We do have a work plan that we

1620
00:50:20,826 --> 00:50:21,527
prioritize based on council in

1621
00:50:21,527 --> 00:50:25,127
my oral priorities that we are

1622
00:50:26,432 --> 00:50:27,199
utilizing our existing staff

1623
00:50:27,199 --> 00:50:28,670
and also looking at ways in

1624
00:50:28,670 --> 00:50:31,667
which we can utilize any type

1625
00:50:32,337 --> 00:50:33,390
of assistance through

1626
00:50:33,390 --> 00:50:36,639
consultants to help make us as

1627
00:50:37,844 --> 00:50:39,844
efficient as possible.

1628
00:50:45,184 --> 00:50:45,918
So sorry COUNCILMAN.

1629
00:50:45,918 --> 00:50:46,219
Can I just add some detail?

1630
00:50:46,219 --> 00:50:48,219
Yeah.

1631
00:50:51,557 --> 00:50:52,358
This is the audit mission Bay

1632
00:50:52,358 --> 00:50:55,958
only for fiscal 24 but we did

1633
00:50:56,610 --> 00:50:56,829
do an audit of all city lease

1634
00:50:56,829 --> 00:50:57,563
management and I think it was

1635
00:50:57,563 --> 00:50:58,297
2022 so four years ago that was

1636
00:50:58,297 --> 00:51:01,297
one of the recommendations have

1637
00:51:02,201 --> 00:51:02,902
a plan to work down the backlog

1638
00:51:02,902 --> 00:51:06,502
to prioritize and work it down

1639
00:51:07,173 --> 00:51:07,606
And so we're still following up

1640
00:51:07,606 --> 00:51:08,207
on that.

1641
00:51:08,207 --> 00:51:09,141
I can appreciate that.

1642
00:51:09,141 --> 00:51:12,741
But even if we just simply

1643
00:51:13,579 --> 00:51:14,280
isolate the discussion we're

1644
00:51:14,280 --> 00:51:17,880
having here today I guess for

1645
00:51:20,190 --> 00:51:20,987
for my own understand and again

1646
00:51:20,987 --> 00:51:25,187
I'm looking for a plan and it's

1647
00:51:25,592 --> 00:51:26,226
really troubling if we don't

1648
00:51:26,226 --> 00:51:29,226
have an overall plan and

1649
00:51:31,664 --> 00:51:32,365
outline so that we can system

1650
00:51:32,365 --> 00:51:33,232
adequacy which leases up first

1651
00:51:33,232 --> 00:51:36,832
which leases up today what that

1652
00:51:38,972 --> 00:51:39,605
date is in for in order for us

1653
00:51:39,605 --> 00:51:40,340
to update it, it's it's no

1654
00:51:40,340 --> 00:51:41,700
different than what engineering

1655
00:51:41,700 --> 00:51:43,543
and capital projects does as

1656
00:51:43,543 --> 00:51:44,277
they make their way through a

1657
00:51:44,277 --> 00:51:47,877
project a step by step schedule

1658
00:51:49,916 --> 00:51:50,583
that shows the activities what

1659
00:51:50,583 --> 00:51:51,251
those expectations are, what

1660
00:51:51,251 --> 00:51:51,951
the due dates are so that we

1661
00:51:51,951 --> 00:51:54,351
can bring some accountability

1662
00:51:56,356 --> 00:51:56,923
and bring some professionalism

1663
00:51:56,923 --> 00:51:57,590
and some management to

1664
00:51:57,590 --> 00:51:58,230
systematically work through

1665
00:51:58,230 --> 00:52:00,230
this process.

1666
00:52:01,928 --> 00:52:02,629
Even if we went through and put

1667
00:52:02,629 --> 00:52:03,330
together an assembly contract

1668
00:52:03,330 --> 00:52:06,330
to supplement staff, what will

1669
00:52:08,201 --> 00:52:08,968
we hold those contractors to?

1670
00:52:08,968 --> 00:52:09,336
How do we convey what those

1671
00:52:09,336 --> 00:52:11,336
needs are?

1672
00:52:13,740 --> 00:52:14,507
What the expectations are,

1673
00:52:14,507 --> 00:52:15,750
what's due on day one, two,

1674
00:52:15,750 --> 00:52:17,475
three, four and five?

1675
00:52:20,113 --> 00:52:20,847
That's where I'm that's where

1676
00:52:20,847 --> 00:52:21,514
I'm going with this And I think

1677
00:52:21,514 --> 00:52:25,114
that would answer a lot of

1678
00:52:25,551 --> 00:52:26,219
questions of the council and

1679
00:52:26,219 --> 00:52:27,120
also our auditor's office.

1680
00:52:27,120 --> 00:52:31,920
So we have a clear line of what

1681
00:52:32,240 --> 00:52:32,392
we are monitoring and what our

1682
00:52:32,392 --> 00:52:33,393
needs are.

1683
00:52:33,393 --> 00:52:37,797
Is there a way we can Yeah or

1684
00:52:37,797 --> 00:52:38,498
Councilmember especially as we

1685
00:52:38,498 --> 00:52:39,166
go through the next few weeks

1686
00:52:39,166 --> 00:52:39,833
of budget discussion I think

1687
00:52:39,833 --> 00:52:40,433
that information and what is

1688
00:52:40,433 --> 00:52:42,833
coming down the pipeline

1689
00:52:44,604 --> 00:52:45,205
awareness is especially

1690
00:52:45,205 --> 00:52:45,872
critical so we can have

1691
00:52:45,872 --> 00:52:46,573
economic development staff.

1692
00:52:46,573 --> 00:52:50,109
I'm work with city auditor and

1693
00:52:50,109 --> 00:52:50,811
others and provide you kind of

1694
00:52:50,811 --> 00:52:51,544
what the next few months look

1695
00:52:51,544 --> 00:52:54,544
like opportunities for our city

1696
00:52:56,783 --> 00:52:57,383
to contracts timelines for you

1697
00:52:57,383 --> 00:52:58,510
know additional software

1698
00:52:58,510 --> 00:52:58,719
upgrade procurement just we

1699
00:52:58,719 --> 00:52:59,452
have a better idea of what's

1700
00:52:59,452 --> 00:53:02,956
coming down the pipeline and to

1701
00:53:02,956 --> 00:53:03,357
better inform the budget

1702
00:53:03,357 --> 00:53:03,890
discussions.

1703
00:53:03,890 --> 00:53:04,191
>> What about that?

1704
00:53:04,191 --> 00:53:04,891
Okay.

1705
00:53:04,891 --> 00:53:05,692
I appreciate that and I think

1706
00:53:05,692 --> 00:53:08,929
that would be a useful tool so

1707
00:53:08,929 --> 00:53:09,596
we can make sure we're all

1708
00:53:09,596 --> 00:53:10,330
marching to the same accord

1709
00:53:10,330 --> 00:53:10,897
especially as we are looking at

1710
00:53:10,897 --> 00:53:12,897
competing priorities.

1711
00:53:14,201 --> 00:53:14,934
When you talk about the mayor's

1712
00:53:14,934 --> 00:53:15,335
priorities versus the council's

1713
00:53:15,335 --> 00:53:15,635
priorities.

1714
00:53:15,635 --> 00:53:16,369
Right.

1715
00:53:16,369 --> 00:53:16,770
So I think that would be a good

1716
00:53:16,770 --> 00:53:18,770
useful tool.

1717
00:53:20,640 --> 00:53:21,341
So that we are all clear on

1718
00:53:21,341 --> 00:53:21,975
where we are headed and how we

1719
00:53:21,975 --> 00:53:24,975
are going to attack this.

1720
00:53:26,580 --> 00:53:27,246
So thank you.

1721
00:53:27,246 --> 00:53:27,614
That concludes conclude my

1722
00:53:27,614 --> 00:53:27,980
comments.

1723
00:53:27,980 --> 00:53:29,980
Thank you.

1724
00:53:35,880 --> 00:53:35,555
Next up is Councilmember

1725
00:53:35,555 --> 00:53:36,220
Gilbert Harold.

1726
00:53:36,220 --> 00:53:36,756
Thank you Carl.

1727
00:53:36,756 --> 00:53:37,390
PRESIDENT Pro-Tem thanks to any

1728
00:53:37,390 --> 00:53:40,127
of you and your team for

1729
00:53:40,127 --> 00:53:40,827
the work here.

1730
00:53:40,827 --> 00:53:41,228
I appreciate the questions my

1731
00:53:41,228 --> 00:53:41,895
colleagues.

1732
00:53:41,895 --> 00:53:44,295
We've got someone operating

1733
00:53:44,531 --> 00:53:45,165
counter bluster really digging

1734
00:53:45,165 --> 00:53:45,699
in and obviously everybody

1735
00:53:45,699 --> 00:53:46,133
knows leadership on

1736
00:53:46,133 --> 00:53:48,133
the committee.

1737
00:53:50,871 --> 00:53:54,471
I, I too am frustrated with

1738
00:53:56,510 --> 00:53:57,311
the number of Holder releases

1739
00:53:57,311 --> 00:53:58,450
and I think the questions about

1740
00:53:58,450 --> 00:53:58,846
what the plan is and why things

1741
00:53:58,846 --> 00:54:02,349
are the way they are and it is

1742
00:54:02,349 --> 00:54:03,217
important.

1743
00:54:03,217 --> 00:54:03,917
I also do think that it's

1744
00:54:03,917 --> 00:54:07,517
important to note that this is

1745
00:54:07,855 --> 00:54:08,655
a long standing problem and

1746
00:54:08,655 --> 00:54:09,289
this is not a defense of

1747
00:54:09,289 --> 00:54:12,289
the way that responded to

1748
00:54:13,861 --> 00:54:16,861
the problem Has been responded

1749
00:54:19,660 --> 00:54:19,800
to since 2020 or 2021.

1750
00:54:19,800 --> 00:54:23,400
But I'll I'll draw an analogy

1751
00:54:24,805 --> 00:54:25,506
to streetlights where we were

1752
00:54:25,506 --> 00:54:26,273
far behind that even doing

1753
00:54:26,273 --> 00:54:29,873
work at a regular pace meant

1754
00:54:30,543 --> 00:54:31,178
that we were unacceptably

1755
00:54:31,178 --> 00:54:31,879
behind and that staff was

1756
00:54:31,879 --> 00:54:34,648
underwater in a way where they

1757
00:54:34,648 --> 00:54:35,516
could never see themselves

1758
00:54:35,516 --> 00:54:38,516
getting up getting their head

1759
00:54:40,921 --> 00:54:42,921
above the surface.

1760
00:54:47,270 --> 00:54:47,794
I think that some of that was

1761
00:54:47,794 --> 00:54:48,662
the failure to invest in in our

1762
00:54:48,662 --> 00:54:52,862
city staff in such a way that

1763
00:54:54,340 --> 00:54:54,768
to equip them But also in this

1764
00:54:54,768 --> 00:54:55,436
instance I really do think that

1765
00:54:55,436 --> 00:54:56,136
it's important for us to ask

1766
00:54:56,136 --> 00:54:59,136
who benefited from the status

1767
00:55:00,400 --> 00:55:00,741
quo, who benefited from so many

1768
00:55:00,741 --> 00:55:01,442
leases being held in holdover

1769
00:55:01,442 --> 00:55:04,442
status, who who benefited from

1770
00:55:05,846 --> 00:55:06,547
not paying fair market value

1771
00:55:06,547 --> 00:55:08,547
for incredibly valuable

1772
00:55:12,486 --> 00:55:13,254
properties?

1773
00:55:13,254 --> 00:55:13,954
I think it was the friends of

1774
00:55:13,954 --> 00:55:14,789
folks who served on this dais

1775
00:55:14,789 --> 00:55:18,292
in the past and who served in

1776
00:55:18,292 --> 00:55:19,160
the mayor's office in the past

1777
00:55:19,160 --> 00:55:19,827
And I want to say that out loud

1778
00:55:19,827 --> 00:55:22,827
because these things did not

1779
00:55:23,530 --> 00:55:24,398
happen by accident And for sure

1780
00:55:24,398 --> 00:55:29,198
we need to do better to get to

1781
00:55:30,271 --> 00:55:30,971
a place where every single

1782
00:55:30,971 --> 00:55:34,571
property that the city has is

1783
00:55:35,376 --> 00:55:35,843
owns The city is being fairly

1784
00:55:35,843 --> 00:55:36,543
compensated for.

1785
00:55:36,543 --> 00:55:40,743
But in a moment where the city

1786
00:55:41,816 --> 00:55:42,516
is being attacked for

1787
00:55:42,516 --> 00:55:45,516
mismanagement and and we are

1788
00:55:47,688 --> 00:55:48,560
we're trying to get to a better

1789
00:55:48,560 --> 00:55:48,890
place.

1790
00:55:48,890 --> 00:55:53,900
It is important to note who who

1791
00:55:53,227 --> 00:55:53,894
drove the car into the ditch

1792
00:55:53,894 --> 00:55:56,894
and especially on this front

1793
00:55:59,467 --> 00:56:00,201
because there are there are

1794
00:56:00,201 --> 00:56:03,201
people who benefit greatly from

1795
00:56:05,806 --> 00:56:06,674
their leases being held and

1796
00:56:06,674 --> 00:56:07,175
hold all of our status for as

1797
00:56:07,175 --> 00:56:07,809
long as they have.

1798
00:56:07,809 --> 00:56:10,209
Now to COUNCILMAN Foster's

1799
00:56:11,450 --> 00:56:11,745
point because we were in

1800
00:56:11,745 --> 00:56:12,613
the hole that we are in,

1801
00:56:12,613 --> 00:56:16,813
there's got to be a plan not

1802
00:56:18,252 --> 00:56:18,953
only the number of leases and

1803
00:56:18,953 --> 00:56:19,587
all over status but the city's

1804
00:56:19,587 --> 00:56:20,188
overall budget situation.

1805
00:56:20,188 --> 00:56:22,757
And so when we're making

1806
00:56:22,757 --> 00:56:23,558
the difficult decisions about

1807
00:56:23,558 --> 00:56:27,158
what should be cut, what should

1808
00:56:28,730 --> 00:56:29,397
be maintained and how and who

1809
00:56:29,397 --> 00:56:32,997
we seek revenue from to fill

1810
00:56:34,602 --> 00:56:35,169
the gap that plan becomes

1811
00:56:35,169 --> 00:56:35,870
incredibly important.

1812
00:56:35,870 --> 00:56:36,571
And so could I know you answer

1813
00:56:36,571 --> 00:56:39,571
a number of questions already

1814
00:56:40,808 --> 00:56:41,542
but it's it's one of those

1815
00:56:41,542 --> 00:56:45,142
things that I think the council

1816
00:56:45,813 --> 00:56:46,614
has been pretty consistent in

1817
00:56:46,614 --> 00:56:47,315
in wanting to make sure that

1818
00:56:47,315 --> 00:56:50,915
there is there is whether it's

1819
00:56:51,652 --> 00:56:52,219
from enterprise funds or

1820
00:56:52,219 --> 00:56:52,854
the general fund that

1821
00:56:52,854 --> 00:56:53,554
the leases are up to date

1822
00:56:53,554 --> 00:56:56,554
there's been a willingness to

1823
00:56:58,693 --> 00:56:59,360
partner from from Labor to see

1824
00:56:59,360 --> 00:57:00,940
that a willingness to allow

1825
00:57:00,940 --> 00:57:03,694
some that work to be contracted

1826
00:57:04,132 --> 00:57:04,865
out because they recognize

1827
00:57:04,865 --> 00:57:05,499
the big picture, the importance

1828
00:57:05,499 --> 00:57:06,200
of making sure that we're

1829
00:57:06,200 --> 00:57:09,200
getting fair market value for

1830
00:57:10,271 --> 00:57:11,139
all these leases So this is a

1831
00:57:11,139 --> 00:57:14,739
is I think a really important

1832
00:57:21,782 --> 00:57:22,450
issue on the on the beauty

1833
00:57:22,450 --> 00:57:23,151
front we've talked about how

1834
00:57:23,151 --> 00:57:23,852
every dollar we don't collect

1835
00:57:23,852 --> 00:57:27,452
in fair market value for those

1836
00:57:27,556 --> 00:57:28,323
leases that are in all of

1837
00:57:28,323 --> 00:57:29,570
the status is a dollar that we

1838
00:57:29,570 --> 00:57:32,427
were not allowed we're not able

1839
00:57:32,427 --> 00:57:33,610
to then reinvest into providing

1840
00:57:33,610 --> 00:57:33,694
subsidies and discounts to

1841
00:57:33,694 --> 00:57:36,694
seniors and people who can

1842
00:57:39,834 --> 00:57:40,702
barely pay their water bill.

1843
00:57:40,702 --> 00:57:41,369
Every dollar that we don't get

1844
00:57:41,369 --> 00:57:42,370
in for free market value for

1845
00:57:42,370 --> 00:57:44,972
leases that are that support

1846
00:57:44,972 --> 00:57:45,739
the point of the general fund

1847
00:57:45,739 --> 00:57:49,939
is a dollar that we're not able

1848
00:57:50,944 --> 00:57:51,646
to to keep library libraries

1849
00:57:51,646 --> 00:57:52,313
open parks and rec centers

1850
00:57:52,313 --> 00:57:52,848
properly funded and even you

1851
00:57:52,848 --> 00:57:54,848
know have difficult

1852
00:57:56,985 --> 00:57:57,319
conversations about public

1853
00:57:57,319 --> 00:57:57,952
safety.

1854
00:57:57,952 --> 00:57:58,620
And so this is just an

1855
00:57:58,620 --> 00:58:00,620
incredibly important issue.

1856
00:58:03,992 --> 00:58:04,726
I know that it's pretty narrow

1857
00:58:04,726 --> 00:58:05,393
is being presented today but as

1858
00:58:05,393 --> 00:58:05,994
Andy said, that is an issue

1859
00:58:05,994 --> 00:58:08,763
that was brought to our

1860
00:58:08,763 --> 00:58:09,463
attention a few years back and

1861
00:58:09,463 --> 00:58:10,131
I think the consistency from

1862
00:58:10,131 --> 00:58:12,968
the council has been there.

1863
00:58:12,968 --> 00:58:13,568
And so that plan that three of

1864
00:58:13,568 --> 00:58:14,269
us were talking about is

1865
00:58:14,269 --> 00:58:14,869
incredibly important and then

1866
00:58:14,869 --> 00:58:17,269
the action is incredibly

1867
00:58:19,641 --> 00:58:20,342
important as well.

1868
00:58:20,342 --> 00:58:20,909
So again thank you to our

1869
00:58:20,909 --> 00:58:21,276
colleagues for asking

1870
00:58:21,276 --> 00:58:21,943
questions.

1871
00:58:21,943 --> 00:58:25,460
They did also let's not let

1872
00:58:25,460 --> 00:58:25,747
those folks off the hook who

1873
00:58:25,747 --> 00:58:26,448
who got us into this situation

1874
00:58:26,448 --> 00:58:30,480
and we should think about who

1875
00:58:31,319 --> 00:58:32,200
benefited and who and who their

1876
00:58:32,200 --> 00:58:32,554
friends are because I do think

1877
00:58:32,554 --> 00:58:32,988
it's a coincidence.

1878
00:58:32,988 --> 00:58:34,988
>> Thank you.

1879
00:58:37,580 --> 00:58:37,625
We'll turn next to

1880
00:58:37,625 --> 00:58:38,600
Councilmember Kimball.

1881
00:58:38,600 --> 00:58:40,600
>> Thank you.

1882
00:58:42,263 --> 00:58:43,231
Council PRESIDENT Pro Tem.

1883
00:58:43,231 --> 00:58:46,634
I just like first to ask is my

1884
00:58:46,634 --> 00:58:47,535
understanding that as of APRIL

1885
00:58:47,535 --> 00:58:48,270
of 25 in other words one year

1886
00:58:48,270 --> 00:58:51,270
ago this moratorium was lifted?

1887
00:58:52,808 --> 00:58:53,542
Is that correct?

1888
00:58:53,542 --> 00:58:54,142
I think it was technically

1889
00:58:54,142 --> 00:58:56,542
lifted around that time.

1890
00:58:59,381 --> 00:59:00,480
I believe it was around

1891
00:59:00,480 --> 00:59:00,782
SEPTEMBER that the Treasurer

1892
00:59:00,782 --> 00:59:04,382
got back the system access that

1893
00:59:04,820 --> 00:59:05,287
they needed right?

1894
00:59:05,287 --> 00:59:06,540
That is correct.

1895
00:59:06,540 --> 00:59:09,654
So it was lifted in APRIL.

1896
00:59:11,793 --> 00:59:12,527
However it took the Treasurer

1897
00:59:12,527 --> 00:59:16,127
several months to get back over

1898
00:59:16,932 --> 00:59:17,699
to work on it.

1899
00:59:17,699 --> 00:59:18,400
Also I'd just like to remind

1900
00:59:18,400 --> 00:59:21,400
everyone that the real estate

1901
00:59:23,304 --> 00:59:24,172
division was a department of it

1902
00:59:24,172 --> 00:59:28,343
on its own for a while a good

1903
00:59:28,343 --> 00:59:29,440
long while under various

1904
00:59:29,440 --> 00:59:29,677
administrations but was moved

1905
00:59:29,677 --> 00:59:31,677
into economic Development

1906
00:59:34,249 --> 00:59:36,649
department only in 2024 I

1907
00:59:40,489 --> 00:59:41,223
forget which month but it was

1908
00:59:41,223 --> 00:59:44,823
not at the beginning of 2024 as

1909
00:59:46,195 --> 00:59:46,895
I recall and I wanted to just

1910
00:59:46,895 --> 00:59:49,895
recall that the software being

1911
00:59:52,334 --> 00:59:53,135
used by real estate division

1912
00:59:53,135 --> 00:59:57,335
was then if this is correct was

1913
00:59:57,940 --> 00:59:58,706
then five years out of date at

1914
00:59:58,706 --> 00:59:59,307
that time And wasn't that one

1915
00:59:59,307 --> 00:59:59,975
of the reasons then put

1916
00:59:59,975 --> 01:00:00,576
the moratorium because they

1917
01:00:00,576 --> 01:00:02,976
couldn't get the correct

1918
01:00:04,746 --> 01:00:05,414
numbers out of that old system?

1919
01:00:05,414 --> 01:00:06,150
Thank you for the question,

1920
01:00:06,150 --> 01:00:06,548
Councilmember Campbell.

1921
01:00:06,548 --> 01:00:09,548
So yes, in terms of

1922
01:00:10,886 --> 01:00:11,586
the software for our portfolio

1923
01:00:11,586 --> 01:00:12,454
at the time we knew that there

1924
01:00:12,454 --> 01:00:16,540
were errors in that system and

1925
01:00:17,493 --> 01:00:18,127
that sap is a financial system

1926
01:00:18,127 --> 01:00:21,727
of record in which this a

1927
01:00:22,664 --> 01:00:23,365
challenges with reconciliation

1928
01:00:23,365 --> 01:00:24,650
and knowing that what was

1929
01:00:24,650 --> 01:00:27,650
currently in our portfolio was

1930
01:00:28,771 --> 01:00:29,438
not correct and that's when we

1931
01:00:29,438 --> 01:00:30,104
had the collective decision

1932
01:00:30,104 --> 01:00:32,504
regarding the moratorium and

1933
01:00:35,770 --> 01:00:35,844
just working to get information

1934
01:00:35,844 --> 01:00:36,544
outside of the system to be as

1935
01:00:36,544 --> 01:00:38,944
efficient with people's time.

1936
01:00:41,150 --> 01:00:45,350
So there was not a silo attempt

1937
01:00:46,688 --> 01:00:47,289
to keep the auditor away from

1938
01:00:47,289 --> 01:00:48,230
the money answers It was

1939
01:00:48,230 --> 01:00:51,230
actually a series of department

1940
01:00:52,795 --> 01:00:53,429
heads who got together and

1941
01:00:53,429 --> 01:00:54,620
realized that the numbers

1942
01:00:54,620 --> 01:00:57,620
coming out were not right.

1943
01:00:58,767 --> 01:00:59,602
We had to get that straightened

1944
01:00:59,602 --> 01:01:00,690
out so we could have the proper

1945
01:01:00,690 --> 01:01:00,770
numbers correct.

1946
01:01:00,770 --> 01:01:04,370
And you know, just to clarify,

1947
01:01:05,700 --> 01:01:05,741
during the moratorium revenues

1948
01:01:05,741 --> 01:01:06,442
were still being collected even

1949
01:01:06,442 --> 01:01:09,442
with the holdover leases that

1950
01:01:11,480 --> 01:01:12,810
we've discussed cpi adjustments

1951
01:01:12,810 --> 01:01:12,815
were still being done.

1952
01:01:12,815 --> 01:01:16,415
So there was never any point

1953
01:01:17,860 --> 01:01:17,652
where revenue was you know,

1954
01:01:17,652 --> 01:01:18,154
just totally stopped.

1955
01:01:18,154 --> 01:01:18,854
It was just really

1956
01:01:18,854 --> 01:01:21,854
the reconciliation of it with

1957
01:01:23,659 --> 01:01:24,460
errors as to, you know, what

1958
01:01:24,460 --> 01:01:25,940
accounts it went to where we

1959
01:01:25,940 --> 01:01:25,694
had to go through a larger

1960
01:01:25,694 --> 01:01:26,940
process to get that all

1961
01:01:26,940 --> 01:01:28,940
reconciled.

1962
01:01:29,598 --> 01:01:30,233
>> Thank you And I and I

1963
01:01:30,233 --> 01:01:30,933
appreciate my colleague's

1964
01:01:30,933 --> 01:01:33,933
questions, many of which were

1965
01:01:35,137 --> 01:01:35,904
ones I was going to ask Of

1966
01:01:35,904 --> 01:01:39,504
the 900 leases that we have on

1967
01:01:40,610 --> 01:01:41,244
city property, we evidently

1968
01:01:41,244 --> 01:01:41,944
have budgeted 13 full time

1969
01:01:41,944 --> 01:01:44,944
equivalent to watch over those

1970
01:01:47,820 --> 01:01:47,717
leases but only of ten of those

1971
01:01:47,717 --> 01:01:48,610
positions filled, is that

1972
01:01:48,610 --> 01:01:48,518
correct?

1973
01:01:48,518 --> 01:01:50,518
That is correct.

1974
01:01:51,888 --> 01:01:52,588
Now of those ten people there

1975
01:01:52,588 --> 01:01:53,256
each responsible for at least

1976
01:01:53,256 --> 01:01:55,656
90 leases, is that correct?

1977
01:01:57,527 --> 01:01:58,600
You know, it depends on each

1978
01:01:58,600 --> 01:01:58,761
person's portfolio.

1979
01:01:58,761 --> 01:01:59,362
We have a range of, you know,

1980
01:01:59,362 --> 01:02:01,762
associate to property to

1981
01:02:03,599 --> 01:02:04,167
supervising.

1982
01:02:04,167 --> 01:02:04,767
So it depends on

1983
01:02:04,767 --> 01:02:05,368
the classification, what

1984
01:02:05,368 --> 01:02:06,350
workload that they have.

1985
01:02:06,350 --> 01:02:10,235
But if you were to make a

1986
01:02:10,373 --> 01:02:10,706
general average that would be

1987
01:02:10,706 --> 01:02:11,407
correct.

1988
01:02:11,407 --> 01:02:11,674
It sounds like a large load to

1989
01:02:11,674 --> 01:02:12,675
me.

1990
01:02:12,675 --> 01:02:15,878
I would ask Andy do we have any

1991
01:02:15,878 --> 01:02:16,583
ideas generally or you want to

1992
01:02:16,583 --> 01:02:20,183
put in the real estate world

1993
01:02:21,951 --> 01:02:22,818
how many portfolios can one

1994
01:02:22,818 --> 01:02:26,418
real estate expert manage at a

1995
01:02:27,823 --> 01:02:28,891
time and do an excellent job

1996
01:02:28,891 --> 01:02:33,691
And I do not recall for sure We

1997
01:02:33,997 --> 01:02:34,764
MAY have benchmarked that in

1998
01:02:34,764 --> 01:02:37,164
our 2022 audit of citywide

1999
01:02:38,467 --> 01:02:38,868
lease management looking at all

2000
01:02:38,868 --> 01:02:39,602
900 leases.

2001
01:02:39,602 --> 01:02:40,369
This is just looking at Mission

2002
01:02:40,369 --> 01:02:44,569
Bay only So we didn't look at

2003
01:02:45,375 --> 01:02:46,109
that on this audit So I don't

2004
01:02:46,109 --> 01:02:46,642
have any information on that at

2005
01:02:46,642 --> 01:02:46,976
this moment for you.

2006
01:02:46,976 --> 01:02:48,976
>> Okay.

2007
01:02:49,445 --> 01:02:50,112
Well these 900 for the whole

2008
01:02:50,112 --> 01:02:52,982
city is not just Mission Bay

2009
01:02:52,982 --> 01:02:53,650
but on the Mission Bay ones,

2010
01:02:53,650 --> 01:02:54,517
the ten that were not being

2011
01:02:54,517 --> 01:02:58,117
followed up on and updated are

2012
01:02:59,255 --> 01:02:59,722
now currently being dealt with,

2013
01:02:59,722 --> 01:03:01,722
is that correct?

2014
01:03:05,194 --> 01:03:05,527
That is correct.

2015
01:03:05,527 --> 01:03:06,363
Okay.

2016
01:03:06,363 --> 01:03:07,130
So pretty soon we will we will

2017
01:03:07,130 --> 01:03:10,730
see what the outcome is of

2018
01:03:11,367 --> 01:03:12,235
those that work.

2019
01:03:12,235 --> 01:03:13,200
But I would just like to say

2020
01:03:13,200 --> 01:03:16,200
that it seems to me

2021
01:03:17,730 --> 01:03:17,740
the Department which took in

2022
01:03:17,740 --> 01:03:18,441
the real estate division MAY

2023
01:03:18,441 --> 01:03:22,410
need more help with its real

2024
01:03:23,713 --> 01:03:24,613
estate problems And if it does

2025
01:03:24,613 --> 01:03:28,813
I would like to hear as a

2026
01:03:29,119 --> 01:03:29,818
council member how many full

2027
01:03:29,818 --> 01:03:30,487
time equivalents more of real

2028
01:03:30,487 --> 01:03:33,487
estate experts are needed so

2029
01:03:34,924 --> 01:03:35,525
that the city can prioritize

2030
01:03:35,525 --> 01:03:36,126
and make a high priority

2031
01:03:36,126 --> 01:03:39,126
getting as much bang for

2032
01:03:40,363 --> 01:03:40,964
the buck as we can on releases

2033
01:03:40,964 --> 01:03:43,364
that we're putting out.

2034
01:03:46,703 --> 01:03:47,470
Do you have any ideas at this

2035
01:03:47,470 --> 01:03:51,670
time of how many you would like

2036
01:03:52,475 --> 01:03:53,176
to have if you had a wish and

2037
01:03:53,176 --> 01:03:53,743
you could make a wish for as

2038
01:03:53,743 --> 01:03:56,743
many as you need it?

2039
01:03:57,780 --> 01:03:58,648
>> I appreciate the question.

2040
01:03:58,648 --> 01:03:59,382
So as I just want to mention

2041
01:03:59,382 --> 01:04:02,382
looking at the leasing software

2042
01:04:03,954 --> 01:04:04,621
was really one of our

2043
01:04:04,621 --> 01:04:05,288
priorities because you know

2044
01:04:05,288 --> 01:04:05,956
the software will help us do

2045
01:04:05,956 --> 01:04:08,956
more with less staffing and

2046
01:04:10,527 --> 01:04:11,328
understanding just you know,

2047
01:04:11,328 --> 01:04:11,728
dire needs that we're in with

2048
01:04:11,728 --> 01:04:13,728
the budget.

2049
01:04:15,198 --> 01:04:15,899
I don't have a number off

2050
01:04:15,899 --> 01:04:16,633
the top of my head because

2051
01:04:16,633 --> 01:04:17,367
we're always looking at ways we

2052
01:04:17,367 --> 01:04:17,767
can be more efficient with what

2053
01:04:17,767 --> 01:04:19,767
we do have.

2054
01:04:22,372 --> 01:04:23,730
I can confirm though that

2055
01:04:23,730 --> 01:04:23,773
industry standards outside of

2056
01:04:23,773 --> 01:04:26,773
you know, city government that

2057
01:04:28,612 --> 01:04:29,312
you know approximately 90

2058
01:04:29,312 --> 01:04:29,612
leases per person is is pretty

2059
01:04:29,612 --> 01:04:29,945
high.

2060
01:04:29,945 --> 01:04:31,945
>> Okay.

2061
01:04:34,618 --> 01:04:35,285
It reminds me of the code

2062
01:04:35,285 --> 01:04:37,685
enforcers trying to spec 130

2063
01:04:39,923 --> 01:04:40,457
entities each every week which

2064
01:04:40,457 --> 01:04:40,857
is obviously humanly

2065
01:04:40,857 --> 01:04:42,857
impossible.

2066
01:04:45,829 --> 01:04:46,530
So I think what we need to do

2067
01:04:46,530 --> 01:04:47,397
as a council is realize that

2068
01:04:47,397 --> 01:04:50,997
when we need to hire more

2069
01:04:51,668 --> 01:04:52,369
expertise as a city or contract

2070
01:04:52,369 --> 01:04:55,969
out for more expertise we have

2071
01:04:57,240 --> 01:04:58,108
to spend money to do that.

2072
01:04:58,108 --> 01:04:58,809
If we spend money to do that

2073
01:04:58,809 --> 01:04:59,476
then we have to cut the budget

2074
01:04:59,476 --> 01:05:01,876
somewhere else because we're

2075
01:05:03,112 --> 01:05:07,312
not in it in a plush situation

2076
01:05:09,520 --> 01:05:09,753
in terms of how much revenue

2077
01:05:09,753 --> 01:05:13,353
the city is getting these past

2078
01:05:13,691 --> 01:05:14,458
year or two years and how bad

2079
01:05:14,458 --> 01:05:18,658
it was under covid as well and

2080
01:05:19,763 --> 01:05:20,330
how we really haven't totally

2081
01:05:20,330 --> 01:05:20,997
recovered after that.

2082
01:05:20,997 --> 01:05:23,997
So these are tough decisions

2083
01:05:25,636 --> 01:05:26,270
that we're going to have to be

2084
01:05:26,270 --> 01:05:27,103
making in the next several

2085
01:05:27,103 --> 01:05:31,303
weeks And I hope that we all

2086
01:05:31,608 --> 01:05:32,342
realize that sometimes getting

2087
01:05:32,342 --> 01:05:35,342
more expertise is actually a

2088
01:05:37,881 --> 01:05:38,582
savings than a cost and that

2089
01:05:38,582 --> 01:05:42,182
sometimes we have to give some

2090
01:05:43,586 --> 01:05:44,210
things up in order to pay for

2091
01:05:44,210 --> 01:05:44,755
other things.

2092
01:05:44,755 --> 01:05:48,355
And at any rate I really

2093
01:05:49,560 --> 01:05:50,361
appreciate all the work I went

2094
01:05:50,361 --> 01:05:51,328
into this and I know Andy you

2095
01:05:51,328 --> 01:05:54,331
will soon be coming back to us

2096
01:05:54,331 --> 01:05:55,132
with the correct numbers for

2097
01:05:55,132 --> 01:05:55,999
2025 as well as for 2026 of

2098
01:05:55,999 --> 01:05:59,599
that fiscal year will be over

2099
01:06:00,437 --> 01:06:01,710
JULY first, 2026.

2100
01:06:01,710 --> 01:06:03,471
So I appreciate that.

2101
01:06:06,744 --> 01:06:07,110
i appreciate all your work in

2102
01:06:07,110 --> 01:06:07,811
Oversight.

2103
01:06:07,811 --> 01:06:08,412
It's so important that we have

2104
01:06:08,412 --> 01:06:09,460
these audits and it's so

2105
01:06:09,460 --> 01:06:11,446
important that the public

2106
01:06:12,582 --> 01:06:16,182
realize that the city is in

2107
01:06:17,987 --> 01:06:18,655
financial straits and we cannot

2108
01:06:18,655 --> 01:06:19,356
do everything for everybody

2109
01:06:19,356 --> 01:06:22,356
that they want without paying.

2110
01:06:24,328 --> 01:06:25,280
And so these are tough

2111
01:06:25,280 --> 01:06:25,629
decisions that have to be made

2112
01:06:25,629 --> 01:06:26,397
and we need to have

2113
01:06:26,397 --> 01:06:29,997
the public's help in this and

2114
01:06:30,734 --> 01:06:31,502
understanding in this.

2115
01:06:31,502 --> 01:06:32,102
So thank you so much for

2116
01:06:32,102 --> 01:06:32,837
everyone's comments and

2117
01:06:32,837 --> 01:06:36,437
questions and thank you for all

2118
01:06:37,407 --> 01:06:38,800
your hard work and thank you

2119
01:06:38,800 --> 01:06:40,408
Chair Pro-Tem Thank you.

2120
01:06:43,800 --> 01:06:43,781
So we're Campbell I think that

2121
01:06:43,781 --> 01:06:44,515
concludes the speakers for my

2122
01:06:44,515 --> 01:06:45,182
colleagues so I'll close off by

2123
01:06:45,182 --> 01:06:48,182
noting that my colleagues to

2124
01:06:49,420 --> 01:06:50,870
ask me the questions that I

2125
01:06:50,870 --> 01:06:50,654
think I would have and I

2126
01:06:50,654 --> 01:06:51,322
appreciate them their

2127
01:06:51,322 --> 01:06:54,322
directness and trying to get

2128
01:06:54,592 --> 01:06:54,892
information about where we

2129
01:06:54,892 --> 01:06:55,626
stand.

2130
01:06:55,626 --> 01:06:56,360
I certainly agree with them all

2131
01:06:56,360 --> 01:06:59,360
about not just getting our

2132
01:07:00,231 --> 01:07:01,132
processes correct.

2133
01:07:01,132 --> 01:07:01,866
I think this is why the Office

2134
01:07:01,866 --> 01:07:02,566
of the City Auditor played such

2135
01:07:02,566 --> 01:07:06,166
an important role for us here

2136
01:07:06,570 --> 01:07:07,371
at the city because you're

2137
01:07:07,371 --> 01:07:08,139
hoping to unpeel layers of what

2138
01:07:08,139 --> 01:07:08,739
we MAY not be looking at from a

2139
01:07:08,739 --> 01:07:11,739
day to day process given

2140
01:07:12,476 --> 01:07:13,100
the amount of workload that a

2141
01:07:13,100 --> 01:07:13,577
department MAY have.

2142
01:07:13,577 --> 01:07:14,311
And I think Thank you,

2143
01:07:14,311 --> 01:07:14,912
Councilmember Campbell for just

2144
01:07:14,912 --> 01:07:17,312
simply pointing out how

2145
01:07:18,982 --> 01:07:19,951
tremendous that workload is.

2146
01:07:19,951 --> 01:07:20,618
And so I think for us this is

2147
01:07:20,618 --> 01:07:23,180
an opportunity to understand

2148
01:07:24,421 --> 01:07:25,156
where we've lost out as a city

2149
01:07:25,156 --> 01:07:28,156
on potential revenue and beyond

2150
01:07:30,561 --> 01:07:30,894
just the revenue as a dollar

2151
01:07:30,894 --> 01:07:31,662
figure.

2152
01:07:31,662 --> 01:07:32,430
I also think of the fact that

2153
01:07:32,430 --> 01:07:36,300
our our lessees are not all

2154
01:07:36,767 --> 01:07:37,467
just commercial businesses or

2155
01:07:37,467 --> 01:07:38,350
institutions that are running

2156
01:07:38,350 --> 01:07:38,769
different facilities.

2157
01:07:38,769 --> 01:07:42,369
Maybe a better question for you

2158
01:07:43,374 --> 01:07:44,141
or whoever knows the answer but

2159
01:07:44,141 --> 01:07:44,875
up to 31 leases that we have in

2160
01:07:44,875 --> 01:07:48,450
Mission Bay I assume at least a

2161
01:07:48,450 --> 01:07:48,612
number of those are nonprofit

2162
01:07:48,612 --> 01:07:49,313
organizations that are

2163
01:07:49,313 --> 01:07:49,914
operating facilities that are

2164
01:07:49,914 --> 01:07:52,314
serving the public that

2165
01:07:53,417 --> 01:07:53,918
the city would otherwise not be

2166
01:07:53,918 --> 01:07:54,852
able to do.

2167
01:07:54,852 --> 01:07:55,252
Do we have a sense of what it

2168
01:07:55,252 --> 01:07:57,252
looks like?

2169
01:07:59,691 --> 01:08:00,458
I don't have the list in front

2170
01:08:00,458 --> 01:08:01,250
of me but it would be accurate

2171
01:08:01,250 --> 01:08:01,692
that there would be a

2172
01:08:01,692 --> 01:08:04,920
combination of nonprofit and

2173
01:08:06,630 --> 01:08:06,697
for profit and I presume that

2174
01:08:06,697 --> 01:08:07,164
some of those are also in

2175
01:08:07,164 --> 01:08:07,832
holdover status.

2176
01:08:07,832 --> 01:08:11,702
And so I think when when we

2177
01:08:11,702 --> 01:08:12,336
point out that the holdovers

2178
01:08:12,336 --> 01:08:13,370
are not just impacting our

2179
01:08:13,370 --> 01:08:15,437
opportunities to adjust leases

2180
01:08:17,442 --> 01:08:18,108
to match up that there are also

2181
01:08:18,108 --> 01:08:18,809
organizations, entities that

2182
01:08:18,809 --> 01:08:21,209
are operating facilities where

2183
01:08:23,648 --> 01:08:24,315
the holder of status means that

2184
01:08:24,315 --> 01:08:25,160
they're not putting anything

2185
01:08:25,160 --> 01:08:25,750
into those facilities And that

2186
01:08:25,750 --> 01:08:29,821
is frankly at the end the day a

2187
01:08:29,821 --> 01:08:30,554
lost opportunity for the public

2188
01:08:30,554 --> 01:08:31,255
if any of them have been in

2189
01:08:31,255 --> 01:08:34,255
long hold of status Typically

2190
01:08:35,326 --> 01:08:36,260
with each of these lease

2191
01:08:36,260 --> 01:08:36,661
updates this council will see

2192
01:08:36,661 --> 01:08:37,262
them as an opportunity for

2193
01:08:37,262 --> 01:08:40,262
the city to also require

2194
01:08:40,565 --> 01:08:41,232
capital investment in some of

2195
01:08:41,232 --> 01:08:41,799
these facilities that would

2196
01:08:41,799 --> 01:08:42,400
again serve the public

2197
01:08:42,400 --> 01:08:45,400
the longer term sort of

2198
01:08:46,170 --> 01:08:46,904
agreements with organizations

2199
01:08:46,904 --> 01:08:47,572
allow them to execute financial

2200
01:08:47,572 --> 01:08:49,972
agreements that would allow

2201
01:08:52,210 --> 01:08:52,911
them to meet capital

2202
01:08:52,911 --> 01:08:53,378
commitments of or collect from

2203
01:08:53,378 --> 01:08:54,780
private dollars.

2204
01:08:54,780 --> 01:08:58,278
That is an impact that MAY not

2205
01:08:58,482 --> 01:08:59,150
be a direct fiscal impact of

2206
01:08:59,150 --> 01:09:02,750
the city but actually has a

2207
01:09:04,622 --> 01:09:05,256
direct correlation to what

2208
01:09:05,256 --> 01:09:05,991
the public benefits from.

2209
01:09:05,991 --> 01:09:06,891
And so to me I see this not

2210
01:09:06,891 --> 01:09:10,195
just the discussion of how can

2211
01:09:10,195 --> 01:09:10,895
the city get more revenue, it's

2212
01:09:10,895 --> 01:09:11,562
also thinking about how do we

2213
01:09:11,562 --> 01:09:13,962
adequately serve the public

2214
01:09:15,934 --> 01:09:16,634
with the resources that we've

2215
01:09:16,634 --> 01:09:17,335
got knowing that the land and

2216
01:09:17,335 --> 01:09:19,735
the organizations that are

2217
01:09:22,507 --> 01:09:23,208
running programs from that also

2218
01:09:23,208 --> 01:09:24,420
have an impact on that front.

2219
01:09:24,420 --> 01:09:24,676
So that is only a thing I would

2220
01:09:24,676 --> 01:09:27,676
add to the discussion that

2221
01:09:27,745 --> 01:09:28,279
we've had and look forward to

2222
01:09:28,279 --> 01:09:28,980
perhaps some further

2223
01:09:28,980 --> 01:09:31,980
discussions on how we evaluate

2224
01:09:33,384 --> 01:09:34,152
leases across them the city.

2225
01:09:34,152 --> 01:09:34,752
So I think that concludes our

2226
01:09:34,752 --> 01:09:35,453
speakers for this item.

2227
01:09:35,453 --> 01:09:38,453
Again it was an informational

2228
01:09:39,524 --> 01:09:39,924
items in the motion was

2229
01:09:39,924 --> 01:09:40,624
unnecessary.

2230
01:09:40,624 --> 01:09:43,495
>> With that we'll turn clerk

2231
01:09:43,495 --> 01:09:44,195
to item two one item 2a1 is

2232
01:09:44,195 --> 01:09:46,595
the 2025 annual report on

2233
01:09:48,933 --> 01:09:49,734
internal financial control.

2234
01:09:49,734 --> 01:09:50,435
If you'd like to speak on this

2235
01:09:50,435 --> 01:09:50,868
item please be sure to submit

2236
01:09:50,868 --> 01:09:51,436
your speaker.

2237
01:09:51,436 --> 01:09:55,360
So if this is also an

2238
01:09:55,974 --> 01:09:56,607
informational item you can

2239
01:09:56,607 --> 01:09:57,308
submit your speakership by

2240
01:09:57,308 --> 01:09:58,900
submitting it to the clear box

2241
01:09:58,900 --> 01:10:01,246
at the front of the room or if

2242
01:10:01,246 --> 01:10:01,915
you are participating remotely

2243
01:10:01,915 --> 01:10:02,614
now's the time to raise your

2244
01:10:02,614 --> 01:10:03,248
hand by pressing Star nine or

2245
01:10:03,248 --> 01:10:03,915
the raise your hand icon.

2246
01:10:03,915 --> 01:10:06,315
Thank you Council PRESIDENT

2247
01:10:06,885 --> 01:10:07,752
Adam Thank you.

2248
01:10:07,752 --> 01:10:10,788
We'll turn it over to the team

2249
01:10:10,788 --> 01:10:11,388
once we're ready If you'll

2250
01:10:11,388 --> 01:10:13,388
introduce yourselves for

2251
01:10:21,833 --> 01:10:22,400
the record and most optionally

2252
01:10:22,400 --> 01:10:24,400
good afternoon Council

2253
01:10:28,273 --> 01:10:29,700
PRESIDENT Pro Tem Lee and

2254
01:10:29,700 --> 01:10:29,541
council members I'm Ben Italian

2255
01:10:29,541 --> 01:10:30,208
director of finance.

2256
01:10:30,208 --> 01:10:33,808
With me today is Jeff Peel,

2257
01:10:33,845 --> 01:10:34,479
chief accountant in

2258
01:10:34,479 --> 01:10:35,146
the Department of Finance.

2259
01:10:35,146 --> 01:10:38,146
Today we're here to present

2260
01:10:39,383 --> 01:10:40,118
the city's annual report on

2261
01:10:40,118 --> 01:10:40,786
internal financial controls for

2262
01:10:40,786 --> 01:10:43,186
calendar year 2025 And today

2263
01:10:43,789 --> 01:10:44,456
I'll need about ten minutes.

2264
01:10:44,456 --> 01:10:45,560
The final report is issued

2265
01:10:45,560 --> 01:10:47,456
pursuant to the city's

2266
01:10:49,394 --> 01:10:50,950
municipal code which was

2267
01:10:50,950 --> 01:10:50,395
amended by the City Council in

2268
01:10:50,395 --> 01:10:52,395
2004.

2269
01:10:55,467 --> 01:10:56,101
It requires a high standard of

2270
01:10:56,101 --> 01:10:56,801
quality in and efficacy of

2271
01:10:56,801 --> 01:10:59,201
the city's financial reporting

2272
01:11:00,539 --> 01:11:01,206
and disclosure practices.

2273
01:11:01,206 --> 01:11:01,840
The municipal code requires

2274
01:11:01,840 --> 01:11:04,240
that management perform an

2275
01:11:06,612 --> 01:11:07,279
annual evaluation of the city's

2276
01:11:07,279 --> 01:11:07,980
internal financial controls

2277
01:11:07,980 --> 01:11:08,613
submit a written annual report

2278
01:11:08,613 --> 01:11:11,613
to the audit committee and

2279
01:11:12,818 --> 01:11:13,384
the City Council and submit a

2280
01:11:13,384 --> 01:11:13,919
certification by city

2281
01:11:13,919 --> 01:11:14,585
management regarding

2282
01:11:14,585 --> 01:11:16,985
the design, maintenance and

2283
01:11:18,423 --> 01:11:19,910
effectiveness of the city's

2284
01:11:19,910 --> 01:11:19,791
internal financial controls.

2285
01:11:19,791 --> 01:11:23,991
I'll now turn it over to Jeff

2286
01:11:24,596 --> 01:11:24,996
to discuss the highlights of

2287
01:11:24,996 --> 01:11:25,698
the report.

2288
01:11:25,698 --> 01:11:26,331
>> The focus of this report is

2289
01:11:26,331 --> 01:11:26,932
to provide an overview of

2290
01:11:26,932 --> 01:11:28,932
management's approach to

2291
01:11:30,569 --> 01:11:31,270
developing a maintaining a

2292
01:11:31,270 --> 01:11:31,837
strong and effective system of

2293
01:11:31,837 --> 01:11:32,471
internal controls over

2294
01:11:32,471 --> 01:11:34,871
financial reporting and to

2295
01:11:35,741 --> 01:11:36,475
highlight some of

2296
01:11:36,475 --> 01:11:37,760
the accomplishments of the past

2297
01:11:37,760 --> 01:11:37,476
year that support those

2298
01:11:37,476 --> 01:11:38,210
objectives.

2299
01:11:38,210 --> 01:11:41,210
The objectives of the financial

2300
01:11:41,280 --> 01:11:41,980
reporting are to produce

2301
01:11:41,980 --> 01:11:42,681
financial information that is

2302
01:11:42,681 --> 01:11:43,348
reliable, relevant and timely.

2303
01:11:43,348 --> 01:11:45,748
Management's ability to meet

2304
01:11:47,386 --> 01:11:47,953
these objectives depends in

2305
01:11:47,953 --> 01:11:48,687
part on the design and

2306
01:11:48,687 --> 01:11:49,355
effectiveness of the processes,

2307
01:11:49,355 --> 01:11:51,755
policies and procedures and

2308
01:11:53,580 --> 01:11:53,759
safeguards it has in place to

2309
01:11:53,759 --> 01:11:54,293
reduce or mitigate risks over

2310
01:11:54,293 --> 01:11:54,893
financial reporting.

2311
01:11:54,893 --> 01:11:56,893
>> Internal controls are

2312
01:11:58,998 --> 01:11:59,531
important because without such

2313
01:11:59,531 --> 01:12:00,265
controls it would be

2314
01:12:00,265 --> 01:12:00,999
challenging to prepare reliable

2315
01:12:00,999 --> 01:12:03,399
financial reports that utilized

2316
01:12:04,737 --> 01:12:05,437
to be utilized by management

2317
01:12:05,437 --> 01:12:06,710
investors, rating agencies and

2318
01:12:06,710 --> 01:12:08,710
other interested parties.

2319
01:12:10,275 --> 01:12:10,943
The city's internal control

2320
01:12:10,943 --> 01:12:11,643
program is based on the best

2321
01:12:11,643 --> 01:12:12,278
practices established by coso

2322
01:12:12,278 --> 01:12:14,678
Kosovo's The committee of

2323
01:12:16,482 --> 01:12:17,216
sponsoring Organizations of

2324
01:12:17,216 --> 01:12:17,917
the Treadway Commission because

2325
01:12:17,917 --> 01:12:18,617
it was developed a conceptual

2326
01:12:18,617 --> 01:12:21,170
framework to guide businesses

2327
01:12:22,221 --> 01:12:22,855
and government entities in

2328
01:12:22,855 --> 01:12:23,522
areas of risk management,

2329
01:12:23,522 --> 01:12:23,922
internal controls and fraud

2330
01:12:23,922 --> 01:12:25,922
deterrence.

2331
01:12:26,959 --> 01:12:27,693
The framework includes five

2332
01:12:27,693 --> 01:12:28,360
interrelated components control

2333
01:12:28,360 --> 01:12:30,360
environment risk assessment

2334
01:12:32,998 --> 01:12:33,566
control activities, information

2335
01:12:33,566 --> 01:12:34,233
and communication and

2336
01:12:34,233 --> 01:12:34,833
monitoring activities within

2337
01:12:34,833 --> 01:12:37,233
each of the components.

2338
01:12:37,903 --> 01:12:38,437
Another layer of 17 principles

2339
01:12:38,437 --> 01:12:40,837
helps guide as well.

2340
01:12:41,740 --> 01:12:42,341
I will describe each one of

2341
01:12:42,341 --> 01:12:42,907
the components briefly.

2342
01:12:42,907 --> 01:12:43,576
Control environment is

2343
01:12:43,576 --> 01:12:45,576
the organizational attitude

2344
01:12:47,790 --> 01:12:47,847
toward internal controls.

2345
01:12:47,847 --> 01:12:48,180
It starts with the tone at

2346
01:12:48,180 --> 01:12:48,747
the top.

2347
01:12:48,747 --> 01:12:49,448
Management creates an

2348
01:12:49,448 --> 01:12:50,820
environment where everyone in

2349
01:12:50,820 --> 01:12:52,820
the organization believes

2350
01:12:53,252 --> 01:12:53,952
internal controls are important

2351
01:12:53,952 --> 01:12:54,720
and each person has a role.

2352
01:12:54,720 --> 01:12:57,120
Secondly is risk assessment

2353
01:12:58,457 --> 01:12:59,158
which is how management

2354
01:12:59,158 --> 01:12:59,892
identifies, assesses evaluates

2355
01:12:59,892 --> 01:13:03,428
and manages the amount of risk.

2356
01:13:03,428 --> 01:13:04,130
And it's always important to

2357
01:13:04,130 --> 01:13:04,697
note that risk can never be

2358
01:13:04,697 --> 01:13:05,397
completely eliminated.

2359
01:13:05,397 --> 01:13:07,797
Thirdly is control activities.

2360
01:13:08,734 --> 01:13:09,402
These are the policies and

2361
01:13:09,402 --> 01:13:10,690
procedures that help ensure

2362
01:13:10,690 --> 01:13:10,770
management's objectives are

2363
01:13:10,770 --> 01:13:13,770
carried out and the necessary

2364
01:13:14,540 --> 01:13:14,840
actions are taken to address

2365
01:13:14,840 --> 01:13:15,507
risks.

2366
01:13:15,507 --> 01:13:16,208
This includes segregation of

2367
01:13:16,208 --> 01:13:18,608
duties, reviews and approvals

2368
01:13:19,445 --> 01:13:20,460
within the processes.

2369
01:13:20,460 --> 01:13:20,746
The fourth component is

2370
01:13:20,746 --> 01:13:21,413
information and communication.

2371
01:13:21,413 --> 01:13:24,413
This is the distribution of

2372
01:13:25,350 --> 01:13:25,984
information needed to perform

2373
01:13:25,984 --> 01:13:26,652
control activities and to

2374
01:13:26,652 --> 01:13:27,320
understand internal control

2375
01:13:27,320 --> 01:13:27,820
responsibilities throughout

2376
01:13:27,820 --> 01:13:29,820
the organization.

2377
01:13:30,423 --> 01:13:31,123
And the last component is

2378
01:13:31,123 --> 01:13:33,523
monitoring activities which is

2379
01:13:35,127 --> 01:13:35,795
the evaluation of each of

2380
01:13:35,795 --> 01:13:36,329
the other four components to

2381
01:13:36,329 --> 01:13:36,996
ensure that they are

2382
01:13:36,996 --> 01:13:38,996
functioning effectively and

2383
01:13:40,300 --> 01:13:40,700
organizational objectives are

2384
01:13:40,700 --> 01:13:41,400
being met.

2385
01:13:41,400 --> 01:13:42,100
The Department of Finance used

2386
01:13:42,100 --> 01:13:42,602
a management assessment

2387
01:13:42,602 --> 01:13:45,200
template to help assess

2388
01:13:46,206 --> 01:13:46,872
the effectiveness of the city's

2389
01:13:46,872 --> 01:13:47,507
system of internal financial

2390
01:13:47,507 --> 01:13:50,309
controls as it relates to

2391
01:13:50,309 --> 01:13:50,877
the five components and 17

2392
01:13:50,877 --> 01:13:51,244
principles of the coso

2393
01:13:51,244 --> 01:13:51,944
framework.

2394
01:13:51,944 --> 01:13:52,478
This tool helps management to

2395
01:13:52,478 --> 01:13:54,478
analyze and provide

2396
01:13:55,347 --> 01:13:56,820
the structure of this report.

2397
01:13:56,820 --> 01:13:56,549
The assessment can be found in

2398
01:13:56,549 --> 01:13:57,350
Attachment one.

2399
01:13:57,350 --> 01:14:00,950
I want to highlight a few

2400
01:14:01,154 --> 01:14:01,554
highlights from that from

2401
01:14:01,554 --> 01:14:02,188
the report.

2402
01:14:02,188 --> 01:14:05,188
First, the city received a

2403
01:14:05,358 --> 01:14:06,250
clean audit opinion for

2404
01:14:06,250 --> 01:14:06,726
the fiscal year 2025 annual

2405
01:14:06,726 --> 01:14:07,260
Comprehensive Financial Report

2406
01:14:07,260 --> 01:14:09,260
with no significant

2407
01:14:10,596 --> 01:14:11,164
deficiencies and no material

2408
01:14:11,164 --> 01:14:11,531
weaknesses in internal

2409
01:14:11,531 --> 01:14:12,131
controls.

2410
01:14:12,131 --> 01:14:15,131
Next the city received a

2411
01:14:16,802 --> 01:14:17,403
certificate of Achievement for

2412
01:14:17,403 --> 01:14:18,104
Excellence in financial

2413
01:14:18,104 --> 01:14:18,771
reporting from the Government

2414
01:14:18,771 --> 01:14:20,771
Finance Officers Association

2415
01:14:21,975 --> 01:14:22,775
gfa.

2416
01:14:22,775 --> 01:14:23,509
This is the 11th consecutive

2417
01:14:23,509 --> 01:14:23,909
year that the city has received

2418
01:14:23,909 --> 01:14:25,909
this award.

2419
01:14:27,146 --> 01:14:27,847
The city also received

2420
01:14:27,847 --> 01:14:28,514
the Budget Presentation Award

2421
01:14:28,514 --> 01:14:32,118
from g f a way for the fy 25

2422
01:14:32,118 --> 01:14:32,685
adopted budget and the budget

2423
01:14:32,685 --> 01:14:33,319
Excellence Award from

2424
01:14:33,319 --> 01:14:34,530
the California Society of

2425
01:14:34,530 --> 01:14:36,530
Municipalities Finance Officers

2426
01:14:38,725 --> 01:14:42,695
csf and more for the f y 2425

2427
01:14:42,695 --> 01:14:43,396
Capital and operating budgets.

2428
01:14:43,396 --> 01:14:44,630
>> In last year's internal

2429
01:14:44,630 --> 01:14:44,664
Financial controls report a

2430
01:14:44,664 --> 01:14:47,640
risk was identified for

2431
01:14:48,234 --> 01:14:48,568
the revenue Compliance program

2432
01:14:48,568 --> 01:14:49,235
.

2433
01:14:49,235 --> 01:14:49,902
As you recall, the program

2434
01:14:49,902 --> 01:14:50,637
identified opportunities for

2435
01:14:50,637 --> 01:14:53,370
enhanced internal controls over

2436
01:14:53,740 --> 01:14:54,340
and over economic development

2437
01:14:54,340 --> 01:14:54,941
departments, real estate

2438
01:14:54,941 --> 01:14:56,941
divisions, invoicing and

2439
01:14:59,179 --> 01:14:59,846
payment processing as well as

2440
01:14:59,846 --> 01:15:00,513
the lease audit management.

2441
01:15:00,513 --> 01:15:01,247
We wanted to provide a brief

2442
01:15:01,247 --> 01:15:04,247
update on addressing that risk.

2443
01:15:05,251 --> 01:15:05,919
The moratorium usually agreed

2444
01:15:05,919 --> 01:15:06,552
upon by economic development

2445
01:15:06,552 --> 01:15:09,552
and the City Treasurer for

2446
01:15:09,889 --> 01:15:10,223
lease audits concluded in APRIL

2447
01:15:10,223 --> 01:15:10,857
of 2025.

2448
01:15:10,857 --> 01:15:13,257
The revenue compliance has

2449
01:15:15,495 --> 01:15:16,162
since return resumed audit

2450
01:15:16,162 --> 01:15:16,863
auditing of leases which has

2451
01:15:16,863 --> 01:15:17,397
now allowed City Treasurer to

2452
01:15:17,397 --> 01:15:19,797
work in tandem with

2453
01:15:21,340 --> 01:15:21,735
the economic Development

2454
01:15:21,735 --> 01:15:22,402
Department to maintain strong

2455
01:15:22,402 --> 01:15:23,680
internal controls and ensure

2456
01:15:23,680 --> 01:15:26,680
that there are any potential

2457
01:15:26,139 --> 01:15:26,506
risk are identified and

2458
01:15:26,506 --> 01:15:27,106
mitigated.

2459
01:15:27,106 --> 01:15:29,106
The Economic Development

2460
01:15:30,910 --> 01:15:31,478
Department has also formalized

2461
01:15:31,478 --> 01:15:32,111
internal processes and

2462
01:15:32,111 --> 01:15:32,646
significant processes have

2463
01:15:32,646 --> 01:15:33,460
the need to address

2464
01:15:33,460 --> 01:15:35,460
the backlog.

2465
01:15:36,483 --> 01:15:37,149
The Department has continued to

2466
01:15:37,149 --> 01:15:37,851
make improvements to ensure

2467
01:15:37,851 --> 01:15:40,251
revenue is accurately captured

2468
01:15:41,821 --> 01:15:42,489
and reported in compliance with

2469
01:15:42,489 --> 01:15:43,188
the current city policy and

2470
01:15:43,188 --> 01:15:43,790
documented internal processes.

2471
01:15:43,790 --> 01:15:45,790
The Economic Development

2472
01:15:47,294 --> 01:15:47,928
Department is also upgrading

2473
01:15:47,928 --> 01:15:48,595
its aging software system.

2474
01:15:48,595 --> 01:15:50,595
Technology enhancements are

2475
01:15:51,665 --> 01:15:52,365
intended to reduce human

2476
01:15:52,365 --> 01:15:53,650
errors, automate workflows and

2477
01:15:53,650 --> 01:15:53,466
provide visibility into these

2478
01:15:53,466 --> 01:15:55,466
compliance.

2479
01:15:57,404 --> 01:15:58,400
We also wanted to provide a

2480
01:15:58,400 --> 01:15:58,738
brief update on a couple

2481
01:15:58,738 --> 01:16:01,138
outstanding audit items related

2482
01:16:02,275 --> 01:16:02,609
to the Human Capital Management

2483
01:16:02,609 --> 01:16:03,210
.

2484
01:16:03,210 --> 01:16:03,877
One is the uncompetitive

2485
01:16:03,877 --> 01:16:04,478
compensation which is being

2486
01:16:04,478 --> 01:16:06,878
resolved with the total

2487
01:16:07,781 --> 01:16:08,348
compensation strategy.

2488
01:16:08,348 --> 01:16:08,948
The other is improving

2489
01:16:08,948 --> 01:16:09,616
the employee performance

2490
01:16:09,616 --> 01:16:12,616
process which is also being

2491
01:16:12,886 --> 01:16:13,520
addressed with a series of

2492
01:16:13,520 --> 01:16:14,187
implementations focused on

2493
01:16:14,187 --> 01:16:16,587
trends and completion rates.

2494
01:16:17,691 --> 01:16:18,358
The Human Resources Department

2495
01:16:18,358 --> 01:16:19,580
and personnel department are

2496
01:16:19,580 --> 01:16:19,760
working with the city Auditor

2497
01:16:19,760 --> 01:16:22,160
to close these recommendations

2498
01:16:22,796 --> 01:16:23,463
based on our evaluation we have

2499
01:16:23,463 --> 01:16:24,300
concluded that the internal

2500
01:16:24,300 --> 01:16:24,398
financial controls are

2501
01:16:24,398 --> 01:16:26,398
effective.

2502
01:16:27,868 --> 01:16:28,769
That concludes our presentation

2503
01:16:28,769 --> 01:16:29,136
and we are happy to answer any

2504
01:16:29,136 --> 01:16:29,569
questions.

2505
01:16:29,569 --> 01:16:31,569
>> Thank you.

2506
01:16:33,874 --> 01:16:34,574
Do we have any public comment

2507
01:16:34,574 --> 01:16:35,175
relative to the Common Hearing

2508
01:16:35,175 --> 01:16:35,908
Council chambers We have

2509
01:16:35,908 --> 01:16:36,242
several people with their hands

2510
01:16:36,242 --> 01:16:38,242
raised.

2511
01:16:39,379 --> 01:16:39,980
Starting with Katherine Rhodes

2512
01:16:39,980 --> 01:16:40,681
you have four people.

2513
01:16:40,681 --> 01:16:42,480
If you can please unmute.

2514
01:16:42,480 --> 01:16:42,348
I've started the five minute

2515
01:16:42,348 --> 01:16:42,782
timer.

2516
01:16:42,782 --> 01:16:44,782
>> Wonderful.

2517
01:16:46,520 --> 01:16:47,120
First you know everything you

2518
01:16:47,120 --> 01:16:50,120
have here and your five

2519
01:16:51,458 --> 01:16:51,758
components of internal controls

2520
01:16:51,758 --> 01:16:52,326
.

2521
01:16:52,326 --> 01:16:54,726
They weren't done for

2522
01:16:54,795 --> 01:16:55,596
the mission Bay Park So

2523
01:16:55,596 --> 01:16:59,196
the item 200 that you just had

2524
01:17:00,601 --> 01:17:01,468
you know the risk assessment of

2525
01:17:01,468 --> 01:17:05,680
of of knowing you know which

2526
01:17:05,705 --> 01:17:06,473
leases are not outstanding.

2527
01:17:06,473 --> 01:17:10,730
I mean every single one of

2528
01:17:10,611 --> 01:17:11,311
these components of your of

2529
01:17:11,311 --> 01:17:13,711
your you know, internal

2530
01:17:16,316 --> 01:17:16,583
financial controls wasn't being

2531
01:17:16,583 --> 01:17:18,583
met.

2532
01:17:20,654 --> 01:17:21,323
So you know so the mayor's

2533
01:17:21,323 --> 01:17:21,822
basically saying we're doing

2534
01:17:21,822 --> 01:17:23,822
everything great.

2535
01:17:26,930 --> 01:17:26,360
They're not the city council is

2536
01:17:26,360 --> 01:17:28,360
it?

2537
01:17:30,898 --> 01:17:31,231
It's not a strong city council

2538
01:17:31,231 --> 01:17:32,660
.

2539
01:17:32,660 --> 01:17:36,360
You guys really do need to put

2540
01:17:36,360 --> 01:17:36,837
forward a ballot proposition so

2541
01:17:36,837 --> 01:17:41,370
that we can have a strong city

2542
01:17:41,275 --> 01:17:41,942
council to counter the strong

2543
01:17:41,942 --> 01:17:42,643
mayor right now because he's

2544
01:17:42,643 --> 01:17:45,643
doing everything he just wants

2545
01:17:47,180 --> 01:17:47,848
and then he's coming to you in

2546
01:17:47,848 --> 01:17:50,848
this report here telling you

2547
01:17:51,719 --> 01:17:52,319
everything's fine.

2548
01:17:52,319 --> 01:17:52,886
Don't worry about it.

2549
01:17:52,886 --> 01:17:53,520
We've got your back.

2550
01:17:53,520 --> 01:17:56,520
They don't have your back.

2551
01:17:56,724 --> 01:17:57,240
They don't have the public's

2552
01:17:57,240 --> 01:17:57,625
back.

2553
01:17:57,625 --> 01:18:00,250
You know, How about

2554
01:18:01,695 --> 01:18:02,263
the internal controls over

2555
01:18:02,263 --> 01:18:02,930
the budget coming up?

2556
01:18:02,930 --> 01:18:04,565
You know there was a

2557
01:18:04,565 --> 01:18:06,565
Union-Tribune article today

2558
01:18:10,237 --> 01:18:10,938
that says that you know there's

2559
01:18:10,938 --> 01:18:11,639
I forgot the 400 and something

2560
01:18:11,639 --> 01:18:14,639
percent increase in the amount

2561
01:18:15,309 --> 01:18:15,943
of middle managers that came

2562
01:18:15,943 --> 01:18:18,943
about And all these middle

2563
01:18:20,214 --> 01:18:21,282
managers started coming about

2564
01:18:21,282 --> 01:18:24,882
in in 2013 when Todd Gloria was

2565
01:18:25,552 --> 01:18:26,870
the mayor and he want to get

2566
01:18:26,870 --> 01:18:26,721
around the five year

2567
01:18:26,721 --> 01:18:29,121
pensionable pay freeze and

2568
01:18:29,557 --> 01:18:30,191
the way to get around that is

2569
01:18:30,191 --> 01:18:33,191
to make people be nonunion

2570
01:18:34,495 --> 01:18:35,196
members and become middle

2571
01:18:35,196 --> 01:18:35,863
managers And then they're paid

2572
01:18:35,863 --> 01:18:36,197
sometimes doubled, sometimes

2573
01:18:36,197 --> 01:18:38,197
tripled.

2574
01:18:40,266 --> 01:18:40,935
I don't see you have controls

2575
01:18:40,935 --> 01:18:44,204
And then of course I always

2576
01:18:44,204 --> 01:18:44,905
have my big problem with

2577
01:18:44,905 --> 01:18:45,573
the with the fund balance that

2578
01:18:45,573 --> 01:18:49,173
you don't have all the fund

2579
01:18:49,943 --> 01:18:50,614
balances you're included next

2580
01:18:50,614 --> 01:18:53,180
to the original if you can

2581
01:18:53,180 --> 01:18:54,480
please unmute after that will

2582
01:18:54,480 --> 01:18:55,150
be 8700 and I mean obviously I

2583
01:18:55,150 --> 01:18:58,154
don't and you guys have an item

2584
01:18:58,154 --> 01:18:58,752
prior to this that shows that

2585
01:18:58,752 --> 01:18:59,520
this is not working as

2586
01:18:59,520 --> 01:19:02,520
Katherine was pointing out and

2587
01:19:03,457 --> 01:19:04,190
it's like I don't understand

2588
01:19:04,190 --> 01:19:07,762
how you could be getting awards

2589
01:19:07,762 --> 01:19:08,462
for this when just the item

2590
01:19:08,462 --> 01:19:11,462
before showing that for years

2591
01:19:11,966 --> 01:19:12,600
nearly a decade there has been

2592
01:19:12,600 --> 01:19:13,334
issues that this internal

2593
01:19:13,334 --> 01:19:16,334
controls didn't catch didn't do

2594
01:19:18,390 --> 01:19:18,939
anything about.

2595
01:19:18,939 --> 01:19:19,373
I mean it constantly there are

2596
01:19:19,373 --> 01:19:21,373
issues showing

2597
01:19:22,376 --> 01:19:23,770
the mismanagement, fraud, waste

2598
01:19:23,770 --> 01:19:23,577
and abuse that it's taking

2599
01:19:23,577 --> 01:19:24,411
place in the city.

2600
01:19:24,411 --> 01:19:27,448
So for you guys to sit here and

2601
01:19:27,448 --> 01:19:28,149
give a presentation like this

2602
01:19:28,149 --> 01:19:31,749
as though you know, this is

2603
01:19:32,190 --> 01:19:32,720
working really well obviously

2604
01:19:32,720 --> 01:19:36,920
it is not from the prior item.

2605
01:19:37,240 --> 01:19:37,791
I don't know if you guys don't

2606
01:19:37,791 --> 01:19:38,392
think about those things or if

2607
01:19:38,392 --> 01:19:39,126
you're kind of just like

2608
01:19:39,126 --> 01:19:42,429
throwing it in our face to be

2609
01:19:42,429 --> 01:19:42,730
like Oh yeah, everything is

2610
01:19:42,730 --> 01:19:43,397
fine.

2611
01:19:43,397 --> 01:19:44,980
Just don't pay attention to

2612
01:19:44,980 --> 01:19:46,867
the prior item that we had in

2613
01:19:46,867 --> 01:19:47,602
question How the internal

2614
01:19:47,602 --> 01:19:48,236
controls were working there and

2615
01:19:48,236 --> 01:19:51,236
why they didn't stop these

2616
01:19:51,906 --> 01:19:52,573
things for years Like it's for

2617
01:19:52,573 --> 01:19:53,341
years this has been going on

2618
01:19:53,341 --> 01:19:56,678
and for years you guys have

2619
01:19:56,678 --> 01:19:59,678
been in debt and mismanaging

2620
01:20:01,150 --> 01:20:01,782
the money So it's like weird

2621
01:20:01,782 --> 01:20:02,450
that you can sit here and bring

2622
01:20:02,450 --> 01:20:03,840
forward an item and act like

2623
01:20:03,840 --> 01:20:05,484
your internal controls are

2624
01:20:05,787 --> 01:20:06,554
working Really well.

2625
01:20:06,554 --> 01:20:06,954
Are they working well to hide

2626
01:20:06,954 --> 01:20:08,954
that stuff?

2627
01:20:10,624 --> 01:20:11,259
Because if that's the case then

2628
01:20:11,259 --> 01:20:11,960
sure yeah they're working

2629
01:20:11,960 --> 01:20:12,593
extremely well because they're

2630
01:20:12,593 --> 01:20:15,593
making sure that you know

2631
01:20:16,970 --> 01:20:16,731
business as usual goes on with

2632
01:20:16,731 --> 01:20:19,131
the you know, intentional

2633
01:20:21,502 --> 01:20:22,203
willful negligence and and

2634
01:20:22,203 --> 01:20:24,603
mismanagement of the people's

2635
01:20:26,541 --> 01:20:27,508
money who work very, very hard.

2636
01:20:27,508 --> 01:20:30,911
So it is a slap in the face to

2637
01:20:30,911 --> 01:20:31,612
sit here and tell that

2638
01:20:31,612 --> 01:20:32,313
everything is going well when

2639
01:20:32,313 --> 01:20:35,416
you just proved prior to this

2640
01:20:35,416 --> 01:20:36,840
that it wasn't And so I think

2641
01:20:36,840 --> 01:20:36,750
you need to rethink the way

2642
01:20:36,750 --> 01:20:39,150
that you're presenting this

2643
01:20:39,721 --> 01:20:40,488
item and not claim that it

2644
01:20:40,488 --> 01:20:41,188
works really well and you know,

2645
01:20:41,188 --> 01:20:44,188
be all excited because you're

2646
01:20:45,590 --> 01:20:45,693
getting awards because

2647
01:20:45,693 --> 01:20:46,394
the people you're probably

2648
01:20:46,394 --> 01:20:47,128
getting awards from are people

2649
01:20:47,128 --> 01:20:50,231
that are also hiding things and

2650
01:20:50,231 --> 01:20:50,965
just wanting to make it seem

2651
01:20:50,965 --> 01:20:54,565
like things are hunky dory when

2652
01:20:55,270 --> 01:20:55,970
in fact they aren't But

2653
01:20:55,970 --> 01:20:56,670
everything is inverted and so

2654
01:20:56,670 --> 01:20:59,574
we get an inversion inverted.

2655
01:20:59,574 --> 01:21:00,442
Martino has concluded Next is

2656
01:21:00,442 --> 01:21:03,442
8700 After that will be Blair

2657
01:21:07,315 --> 01:21:10,315
Beekman 8700 star six To unmute

2658
01:21:10,551 --> 01:21:13,551
Joy Sonata pd three from

2659
01:21:15,156 --> 01:21:15,958
the staff report rather

2660
01:21:15,958 --> 01:21:18,958
the controls are intended to

2661
01:21:20,495 --> 01:21:21,162
mitigate the risks of financial

2662
01:21:21,162 --> 01:21:24,162
reporting errors to a level

2663
01:21:25,320 --> 01:21:28,320
that is acceptable based on

2664
01:21:30,380 --> 01:21:30,906
conditions of materiality and

2665
01:21:30,906 --> 01:21:34,506
to quote I study materiality in

2666
01:21:34,809 --> 01:21:38,409
this context and believe me I

2667
01:21:39,414 --> 01:21:43,140
was not reassured in any way

2668
01:21:44,619 --> 01:21:45,287
Also expenditure errors

2669
01:21:45,287 --> 01:21:48,287
appeared to be in compliance

2670
01:21:49,257 --> 01:21:50,250
Look up the word appeared in

2671
01:21:50,250 --> 01:21:53,250
this context I was not

2672
01:21:54,296 --> 01:21:57,896
reassured I am leaning on this

2673
01:21:59,100 --> 01:22:03,300
in this way That risk is more

2674
01:22:03,739 --> 01:22:04,606
discretionary and subjective

2675
01:22:04,606 --> 01:22:05,206
And I'm sorry to have to say

2676
01:22:05,206 --> 01:22:05,774
that because I love our

2677
01:22:05,774 --> 01:22:07,774
Department of Finance.

2678
01:22:08,777 --> 01:22:09,510
They know that and the people

2679
01:22:09,510 --> 01:22:10,178
that are in there they're great

2680
01:22:10,178 --> 01:22:12,578
people But something's wrong

2681
01:22:13,448 --> 01:22:14,316
here.

2682
01:22:14,316 --> 01:22:14,583
Do you see what is calling to

2683
01:22:14,583 --> 01:22:16,583
us?

2684
01:22:18,353 --> 01:22:21,953
It's a red flag of opportunity.

2685
01:22:26,395 --> 01:22:27,362
Let us be except what happens

2686
01:22:27,362 --> 01:22:27,696
if you look at it Go with an

2687
01:22:27,696 --> 01:22:29,696
Eagles.

2688
01:22:31,834 --> 01:22:35,434
I let us seize the opportunity

2689
01:22:36,700 --> 01:22:36,672
to change to grow and to become

2690
01:22:36,672 --> 01:22:39,672
a better city for all.

2691
01:22:40,342 --> 01:22:40,946
When are we going to truly

2692
01:22:40,946 --> 01:22:43,946
truly be willing to have

2693
01:22:45,180 --> 01:22:45,781
the courage and the greatness

2694
01:22:45,781 --> 01:22:46,547
to do that step?

2695
01:22:46,547 --> 01:22:50,147
We're not there yet but let's

2696
01:22:50,719 --> 01:22:51,453
try to do it together.

2697
01:22:51,453 --> 01:22:52,321
>> Look to all Thank you.

2698
01:22:52,321 --> 01:22:55,724
Next is Blair Beckman If you

2699
01:22:55,724 --> 01:22:56,390
can please unmute The five

2700
01:22:56,390 --> 01:22:57,920
minute timer also concluded

2701
01:22:57,920 --> 01:23:00,920
that there were four speakers

2702
01:23:00,596 --> 01:23:01,196
in the queue No additional

2703
01:23:01,196 --> 01:23:02,300
speakers will be taken.

2704
01:23:02,300 --> 01:23:05,300
>> Blair Beckman After that is

2705
01:23:05,367 --> 01:23:06,340
Kathleen Lippert.

2706
01:23:06,340 --> 01:23:06,735
All right, thank you.

2707
01:23:06,735 --> 01:23:08,937
Beakman Thanks for this item.

2708
01:23:08,937 --> 01:23:09,371
Thanks for the public comment

2709
01:23:09,371 --> 01:23:11,371
on this item.

2710
01:23:14,343 --> 01:23:14,910
I feel similar really nice work

2711
01:23:14,910 --> 01:23:17,310
on the previous item.

2712
01:23:18,914 --> 01:23:19,614
I think everyone is involved on

2713
01:23:19,614 --> 01:23:20,249
the previous item and I think

2714
01:23:20,249 --> 01:23:23,249
it relates to what you're

2715
01:23:23,318 --> 01:23:23,986
talking about overall for this

2716
01:23:23,986 --> 01:23:26,386
item Overall accounting and

2717
01:23:28,357 --> 01:23:28,724
auditing issues for our city

2718
01:23:28,724 --> 01:23:30,724
concerns.

2719
01:23:33,462 --> 01:23:34,163
So a good history was presented

2720
01:23:34,163 --> 01:23:34,930
on previous problems and what

2721
01:23:34,930 --> 01:23:38,701
we need to do to address this

2722
01:23:38,701 --> 01:23:39,234
is issues that stem far back

2723
01:23:39,234 --> 01:23:41,234
before Mayor Gloria.

2724
01:23:43,705 --> 01:23:44,406
We I good luck that we really

2725
01:23:44,406 --> 01:23:47,406
can be addressing the previous

2726
01:23:47,810 --> 01:23:48,710
item and how it relates to this

2727
01:23:48,710 --> 01:23:49,477
item and I think we really can

2728
01:23:49,477 --> 01:23:52,470
do it as a city These are

2729
01:23:52,470 --> 01:23:52,815
the one of the projects that we

2730
01:23:52,815 --> 01:23:53,716
work as a community at this

2731
01:23:53,716 --> 01:23:56,919
time So I hope we don't get

2732
01:23:56,919 --> 01:23:57,686
caught up in you know people

2733
01:23:57,686 --> 01:24:01,886
get lost in the process and we

2734
01:24:01,957 --> 01:24:02,657
really develop something really

2735
01:24:02,657 --> 01:24:03,580
good with this going on for

2736
01:24:03,580 --> 01:24:05,580
good ideas.

2737
01:24:06,729 --> 01:24:07,596
Good luck with that and for for

2738
01:24:07,596 --> 01:24:11,567
this type of thing, you know, I

2739
01:24:11,567 --> 01:24:12,234
think we still have to

2740
01:24:12,234 --> 01:24:14,634
acknowledge that we made

2741
01:24:15,104 --> 01:24:15,838
mistakes in 2024.

2742
01:24:15,838 --> 01:24:16,439
I mean why did that happen?

2743
01:24:16,439 --> 01:24:18,839
At least we're holding

2744
01:24:19,375 --> 01:24:21,375
ourselves accountable now.

2745
01:24:23,412 --> 01:24:23,712
But what did we do wrong in

2746
01:24:23,712 --> 01:24:24,480
2024?

2747
01:24:24,480 --> 01:24:25,381
And as much as I think

2748
01:24:25,381 --> 01:24:28,217
the mayor's office and I had a

2749
01:24:28,217 --> 01:24:28,917
part in bringing this to

2750
01:24:28,917 --> 01:24:31,917
accountability at this time, i

2751
01:24:33,890 --> 01:24:33,756
think it suggests the overall

2752
01:24:33,756 --> 01:24:34,557
idea that, you know, council

2753
01:24:34,557 --> 01:24:38,157
has been asking how do we

2754
01:24:38,327 --> 01:24:39,610
create a better set of

2755
01:24:39,610 --> 01:24:42,610
governance at this time There's

2756
01:24:42,598 --> 01:24:43,199
something lacking in our

2757
01:24:43,199 --> 01:24:43,933
governance policies that

2758
01:24:43,933 --> 01:24:47,533
the strong mayor position is is

2759
01:24:48,137 --> 01:24:48,838
is it lacks something in

2760
01:24:48,838 --> 01:24:51,238
creating a better governance.

2761
01:24:52,207 --> 01:24:52,942
I really hope and the strong

2762
01:24:52,942 --> 01:24:53,575
mayor position because learn to

2763
01:24:53,575 --> 01:24:55,975
take suggestions from our

2764
01:24:57,380 --> 01:24:58,470
current city council on what

2765
01:24:58,470 --> 01:24:58,781
can be better organizational

2766
01:24:58,781 --> 01:25:01,181
practices and better governance

2767
01:25:02,652 --> 01:25:03,519
practices and learn to be

2768
01:25:03,519 --> 01:25:07,119
flexible in that thinking And I

2769
01:25:08,524 --> 01:25:09,158
hope that can develop our

2770
01:25:09,158 --> 01:25:11,558
future plan has concluded.

2771
01:25:12,295 --> 01:25:13,950
>> Kathleen Lippert, if you can

2772
01:25:13,950 --> 01:25:16,310
please join me after that is

2773
01:25:16,310 --> 01:25:16,966
Judy Strang.

2774
01:25:16,966 --> 01:25:20,566
Kathleen, I can hear me before

2775
01:25:21,137 --> 01:25:21,737
you if it takes a minute to

2776
01:25:21,737 --> 01:25:24,137
find the unmute button.

2777
01:25:25,875 --> 01:25:26,642
>> Thank you.

2778
01:25:26,642 --> 01:25:27,142
>> My name is Kathleen Letter

2779
01:25:27,142 --> 01:25:29,142
in Good afternoon.

2780
01:25:30,512 --> 01:25:31,213
The public is really served so

2781
01:25:31,213 --> 01:25:31,913
well by individuals such as

2782
01:25:31,913 --> 01:25:34,913
Katherine Rhodes in order for

2783
01:25:36,252 --> 01:25:37,120
their candor I am also confused

2784
01:25:37,120 --> 01:25:40,356
as to why the city receives so

2785
01:25:40,356 --> 01:25:43,356
many accolades for audits when

2786
01:25:45,161 --> 01:25:45,862
they are clearly in deficit

2787
01:25:45,862 --> 01:25:46,529
when they clearly are sending

2788
01:25:46,529 --> 01:25:49,529
there they are doing fit

2789
01:25:49,932 --> 01:25:50,633
fiscally in responsible things

2790
01:25:50,633 --> 01:25:54,233
like spending out all of their

2791
01:25:54,871 --> 01:25:55,538
reserves, finding everywhere to

2792
01:25:55,538 --> 01:25:57,938
look under overturning every

2793
01:25:59,709 --> 01:26:00,509
rock to find taxpayer money,

2794
01:26:00,509 --> 01:26:04,109
not taking the money out of

2795
01:26:05,480 --> 01:26:05,748
the city budget card San Diego

2796
01:26:05,748 --> 01:26:09,118
has the worst fiscal health of

2797
01:26:09,118 --> 01:26:09,886
any city in the county.

2798
01:26:09,886 --> 01:26:12,886
That's hardly something to brag

2799
01:26:14,323 --> 01:26:15,240
about and they while serving in

2800
01:26:15,240 --> 01:26:15,658
the California Senate and one

2801
01:26:15,658 --> 01:26:18,658
of the senators decided to

2802
01:26:19,229 --> 01:26:19,929
prepare a fiscal ranking of

2803
01:26:19,929 --> 01:26:22,929
the cities when cities are

2804
01:26:23,800 --> 01:26:24,467
delinquent paying real property

2805
01:26:24,467 --> 01:26:27,467
tax I'm sorry when taxpayers

2806
01:26:28,905 --> 01:26:29,572
are delinquent in paying real

2807
01:26:29,572 --> 01:26:30,206
property tax on their homes

2808
01:26:30,206 --> 01:26:33,206
Even one day the county

2809
01:26:34,344 --> 01:26:34,978
treasurer taxes them a 10%

2810
01:26:34,978 --> 01:26:35,378
penalty of the amount that

2811
01:26:35,378 --> 01:26:37,378
they're due.

2812
01:26:39,249 --> 01:26:39,948
So why the Sacramento allow

2813
01:26:39,948 --> 01:26:43,548
cities to be so complacent in

2814
01:26:43,620 --> 01:26:44,120
their fiscal reporting

2815
01:26:44,120 --> 01:26:44,820
responsibilities?

2816
01:26:44,820 --> 01:26:47,820
Having due dates and penalties

2817
01:26:48,658 --> 01:26:48,991
should at least be a two way

2818
01:26:48,991 --> 01:26:50,991
street.

2819
01:26:53,596 --> 01:26:54,364
Also the city is not served by

2820
01:26:54,364 --> 01:26:58,535
one party or the other having a

2821
01:26:58,535 --> 01:26:59,202
total say without having

2822
01:26:59,202 --> 01:27:01,202
alternative opinions because

2823
01:27:03,573 --> 01:27:04,207
clearly you all need to get out

2824
01:27:04,207 --> 01:27:07,207
of your echo chambers and

2825
01:27:08,110 --> 01:27:08,712
listen to alternative opinions

2826
01:27:08,712 --> 01:27:11,712
which typically prove to have

2827
01:27:12,582 --> 01:27:13,383
some merit.

2828
01:27:13,383 --> 01:27:13,983
The last thing is strong public

2829
01:27:13,983 --> 01:27:16,383
employee unions tend to

2830
01:27:18,121 --> 01:27:18,787
influence the outcome of who is

2831
01:27:18,787 --> 01:27:19,422
elected to the city councils

2832
01:27:19,422 --> 01:27:22,422
and when they control who

2833
01:27:22,992 --> 01:27:23,760
becomes their bosses they tend

2834
01:27:23,760 --> 01:27:27,263
to get a little greedy as time

2835
01:27:27,263 --> 01:27:30,263
has concluded to a string.

2836
01:27:32,169 --> 01:27:35,169
Good afternoon San Diego City

2837
01:27:36,606 --> 01:27:37,340
Council I just have kind of an

2838
01:27:37,340 --> 01:27:40,340
a comment or an observation

2839
01:27:41,912 --> 01:27:42,612
that I've been making because I

2840
01:27:42,612 --> 01:27:45,612
think everyone on city council

2841
01:27:46,749 --> 01:27:47,417
has some of the same concern

2842
01:27:47,417 --> 01:27:49,817
about receiving the revenue

2843
01:27:51,221 --> 01:27:51,954
that we need and what are

2844
01:27:51,954 --> 01:27:52,589
the internal financial controls

2845
01:27:52,589 --> 01:27:55,589
that can make that happen.

2846
01:27:56,293 --> 01:27:57,270
But I noticed on the last item

2847
01:27:57,270 --> 01:28:00,627
that my own city council person

2848
01:28:01,198 --> 01:28:01,898
Joe LaCava was missing and we

2849
01:28:01,898 --> 01:28:04,898
were talking about Mission Bay

2850
01:28:06,436 --> 01:28:07,103
and it made me wonder about all

2851
01:28:07,103 --> 01:28:07,704
the city council people Are

2852
01:28:07,704 --> 01:28:10,104
they missing in action?

2853
01:28:11,575 --> 01:28:12,209
Do you know in your city

2854
01:28:12,209 --> 01:28:12,776
council district which are

2855
01:28:12,776 --> 01:28:15,176
the city leased public

2856
01:28:15,412 --> 01:28:16,280
properties?

2857
01:28:16,280 --> 01:28:17,147
Do you know what's been going

2858
01:28:17,147 --> 01:28:20,747
on and have those leases been

2859
01:28:20,918 --> 01:28:21,618
negotiated And recently do you

2860
01:28:21,618 --> 01:28:25,218
know what sort of loss of

2861
01:28:25,789 --> 01:28:26,356
funding has happened because of

2862
01:28:26,356 --> 01:28:26,757
those leases not being

2863
01:28:26,757 --> 01:28:28,757
negotiated?

2864
01:28:30,460 --> 01:28:34,600
Are you aware that they might

2865
01:28:35,265 --> 01:28:36,320
be presenting the visual

2866
01:28:36,320 --> 01:28:39,536
the optic if you will, of

2867
01:28:39,536 --> 01:28:40,237
preferential treatment Because

2868
01:28:40,237 --> 01:28:43,237
perhaps that's the problem is

2869
01:28:44,842 --> 01:28:45,642
that you all don't have a good

2870
01:28:45,642 --> 01:28:49,713
handle on who it is within your

2871
01:28:49,713 --> 01:28:50,414
city council district that hold

2872
01:28:50,414 --> 01:28:53,414
leases of public property And

2873
01:28:54,618 --> 01:28:55,385
we in the public of course very

2874
01:28:55,385 --> 01:28:58,385
difficult for us to understand

2875
01:28:59,857 --> 01:29:00,457
who in our neighborhoods might

2876
01:29:00,457 --> 01:29:01,158
want public land in our

2877
01:29:01,158 --> 01:29:03,558
neighborhoods might be under

2878
01:29:05,496 --> 01:29:06,163
lease And so hard for us to

2879
01:29:06,163 --> 01:29:08,563
know whether we're receiving

2880
01:29:09,500 --> 01:29:10,300
the funding we need.

2881
01:29:10,300 --> 01:29:10,868
So maybe the buck doesn't stop

2882
01:29:10,868 --> 01:29:13,268
at the mayor's office.

2883
01:29:14,438 --> 01:29:15,390
Maybe the buck doesn't stop

2884
01:29:15,390 --> 01:29:15,672
with middle management.

2885
01:29:15,672 --> 01:29:19,272
Maybe it stops at the city

2886
01:29:19,677 --> 01:29:20,277
council or at least it's

2887
01:29:20,277 --> 01:29:20,877
something for us all to

2888
01:29:20,877 --> 01:29:23,714
consider And this is our

2889
01:29:23,714 --> 01:29:24,681
opportunity that this report is

2890
01:29:24,681 --> 01:29:28,352
providing us to take a look at

2891
01:29:28,352 --> 01:29:29,520
our our own 90 our own nine

2892
01:29:29,520 --> 01:29:29,820
city council districts and ask

2893
01:29:29,820 --> 01:29:33,570
ourselves if we've got a good

2894
01:29:33,570 --> 01:29:33,624
handle on it.

2895
01:29:33,624 --> 01:29:34,240
>> Thank you.

2896
01:29:34,240 --> 01:29:34,791
Thank you.

2897
01:29:34,791 --> 01:29:38,391
Next And our final speaker is

2898
01:29:40,331 --> 01:29:40,664
Tony, if you can please unmute

2899
01:29:40,664 --> 01:29:41,265
.

2900
01:29:41,265 --> 01:29:41,732
Yes, Hello City Council.

2901
01:29:41,732 --> 01:29:43,732
Good afternoon.

2902
01:29:45,202 --> 01:29:45,936
I just wanted to speak and

2903
01:29:45,936 --> 01:29:46,569
comment on the this audit issue

2904
01:29:46,569 --> 01:29:49,569
that's going on with these

2905
01:29:49,974 --> 01:29:50,673
parks right now, these issues

2906
01:29:50,673 --> 01:29:53,410
that we're having being under

2907
01:29:53,410 --> 01:29:54,110
budget on the whole about $120

2908
01:29:54,110 --> 01:29:57,710
million And I wanted to speak

2909
01:29:58,283 --> 01:29:59,490
to an issue that Bob Kaye has

2910
01:29:59,490 --> 01:30:01,719
been coming to city council for

2911
01:30:01,719 --> 01:30:02,453
for the last 20 years.

2912
01:30:02,453 --> 01:30:06,530
He's been talking about how in

2913
01:30:06,723 --> 01:30:07,491
Joe the Culver's district,

2914
01:30:07,491 --> 01:30:11,295
the La Hoya Glider Port Park is

2915
01:30:11,295 --> 01:30:14,198
getting away with paying off.

2916
01:30:14,198 --> 01:30:14,899
I think it's only 5000 or

2917
01:30:14,899 --> 01:30:15,532
$10,000 a year is what their

2918
01:30:15,532 --> 01:30:17,932
leases and they're making

2919
01:30:18,970 --> 01:30:19,670
millions of dollars off of a

2920
01:30:19,670 --> 01:30:22,670
public park and they're paying

2921
01:30:23,641 --> 01:30:24,308
a super tiny minimal lease that

2922
01:30:24,308 --> 01:30:24,942
they've been locked into for

2923
01:30:24,942 --> 01:30:25,442
the last 20 years And it's

2924
01:30:25,442 --> 01:30:27,442
really depressing.

2925
01:30:28,412 --> 01:30:29,180
I go to city council chambers

2926
01:30:29,180 --> 01:30:32,317
and Bob tells me that he's been

2927
01:30:32,317 --> 01:30:33,840
raising this issue for over 20

2928
01:30:33,840 --> 01:30:33,884
years and I was there in person

2929
01:30:33,884 --> 01:30:36,821
when he asked you all to play

2930
01:30:36,821 --> 01:30:37,521
the video of him speaking

2931
01:30:37,521 --> 01:30:38,256
before this city council and

2932
01:30:38,256 --> 01:30:41,856
bringing this issue to the city

2933
01:30:42,426 --> 01:30:43,294
council's attention back then.

2934
01:30:43,294 --> 01:30:43,994
This was back in 2006 and he

2935
01:30:43,994 --> 01:30:47,398
played this video in front of

2936
01:30:47,398 --> 01:30:48,990
you And still I'm not seeing a

2937
01:30:48,990 --> 01:30:48,766
single one of you taking this

2938
01:30:48,766 --> 01:30:51,766
issue by the reins and

2939
01:30:52,370 --> 01:30:53,300
investigating this issue.

2940
01:30:53,300 --> 01:30:53,738
It's really depressing as

2941
01:30:53,738 --> 01:30:56,373
somebody that tries to weigh in

2942
01:30:56,373 --> 01:30:57,740
and tries to make a difference

2943
01:30:57,740 --> 01:30:57,708
in city council understanding

2944
01:30:57,708 --> 01:31:00,108
that y'all are supposedly

2945
01:31:01,846 --> 01:31:02,580
listening to our inputs and our

2946
01:31:02,580 --> 01:31:03,281
opinions and y'all are supposed

2947
01:31:03,281 --> 01:31:06,384
to take what we say seriously

2948
01:31:06,384 --> 01:31:07,150
and then I see somebody who's

2949
01:31:07,150 --> 01:31:07,951
been working on this same issue

2950
01:31:07,951 --> 01:31:11,551
of corruption of the city not

2951
01:31:11,989 --> 01:31:12,789
getting paid its its due fair

2952
01:31:12,789 --> 01:31:16,389
share for a park that it

2953
01:31:16,861 --> 01:31:17,594
publicly owns And he's been

2954
01:31:17,594 --> 01:31:18,396
raising the alarm on this issue

2955
01:31:18,396 --> 01:31:21,332
for over 20 years and it still

2956
01:31:21,332 --> 01:31:22,100
hasn't been addressed.

2957
01:31:22,100 --> 01:31:22,900
It's like if this issue doesn't

2958
01:31:22,900 --> 01:31:25,900
get addressed, how many other

2959
01:31:26,470 --> 01:31:27,138
issues you know get swept under

2960
01:31:27,138 --> 01:31:30,575
the rug that people have to

2961
01:31:30,575 --> 01:31:31,308
continue fighting for and

2962
01:31:31,308 --> 01:31:31,576
coming to city council meetings

2963
01:31:31,576 --> 01:31:32,443
for?

2964
01:31:32,443 --> 01:31:36,470
It's not an easy thing to do to

2965
01:31:36,470 --> 01:31:36,547
clock out of work to go to city

2966
01:31:36,547 --> 01:31:38,547
council in person.

2967
01:31:39,183 --> 01:31:39,917
I've gotten four parking

2968
01:31:39,917 --> 01:31:40,585
tickets in the last five months

2969
01:31:40,585 --> 01:31:43,585
from my involvement in these

2970
01:31:44,322 --> 01:31:44,955
city Council meetings and still

2971
01:31:44,955 --> 01:31:45,323
these issues aren't being

2972
01:31:45,323 --> 01:31:46,230
addressed.

2973
01:31:46,230 --> 01:31:48,726
>> So your time has concluded

2974
01:31:48,726 --> 01:31:49,494
and that does conclude public

2975
01:31:49,494 --> 01:31:50,295
comment on item 2a1 Thank you

2976
01:31:50,295 --> 01:31:53,295
Council PRESIDENT Pro Tem Thank

2977
01:31:54,165 --> 01:31:54,866
you.

2978
01:31:54,866 --> 01:31:55,500
Thank you for the presentation

2979
01:31:55,500 --> 01:31:58,500
and see no other comments.

2980
01:31:59,103 --> 01:31:59,804
Well I'll turn first to

2981
01:31:59,804 --> 01:32:02,204
COUNCILMAN Realer Rivera Thank

2982
01:32:02,707 --> 01:32:05,750
you council PRESIDENT Pro tem I

2983
01:32:05,750 --> 01:32:09,275
just want to say thank you for

2984
01:32:10,648 --> 01:32:13,648
the report here the public

2985
01:32:15,486 --> 01:32:15,887
comment here I was very

2986
01:32:15,887 --> 01:32:16,588
predictable.

2987
01:32:16,588 --> 01:32:19,958
>> I spoke with my team about

2988
01:32:19,958 --> 01:32:20,925
this last week when we were

2989
01:32:20,925 --> 01:32:24,525
going through the agenda and it

2990
01:32:25,960 --> 01:32:25,797
completely understand why in a

2991
01:32:25,797 --> 01:32:28,797
moment like this one where

2992
01:32:29,968 --> 01:32:30,635
we're going through the budget

2993
01:32:30,635 --> 01:32:33,635
challenges we are that this

2994
01:32:34,339 --> 01:32:35,106
conversation can feel detached

2995
01:32:35,106 --> 01:32:38,706
from reality But it's also it's

2996
01:32:39,544 --> 01:32:40,245
a technical response to a

2997
01:32:40,245 --> 01:32:43,245
technical question And I just

2998
01:32:43,815 --> 01:32:48,453
want to kind of ask for you all

2999
01:32:48,453 --> 01:32:49,420
to reiterate that the report

3000
01:32:49,420 --> 01:32:53,620
out that we heard is not a

3001
01:32:53,691 --> 01:32:54,358
declaration that everything is

3002
01:32:54,358 --> 01:32:57,358
being done perfectly or that

3003
01:32:58,229 --> 01:32:59,960
every decision it's been made

3004
01:32:59,960 --> 01:33:02,696
has been ideal but instead a

3005
01:33:03,368 --> 01:33:03,969
answer to the question as to

3006
01:33:03,969 --> 01:33:06,369
whether or not specific

3007
01:33:07,739 --> 01:33:08,472
internal financial controls are

3008
01:33:08,472 --> 01:33:08,974
in place and best practices are

3009
01:33:08,974 --> 01:33:10,974
being adhered to.

3010
01:33:13,780 --> 01:33:13,845
It is that correct?

3011
01:33:13,845 --> 01:33:16,845
>> That is that is correct.

3012
01:33:18,500 --> 01:33:18,683
Council member Sheila Rivera

3013
01:33:18,683 --> 01:33:22,283
intent of the report is to

3014
01:33:22,420 --> 01:33:23,154
basically say do we have a

3015
01:33:23,154 --> 01:33:23,822
strong enough system control to

3016
01:33:23,822 --> 01:33:26,822
be able to produce financial

3017
01:33:27,391 --> 01:33:28,192
statements that are reliable

3018
01:33:28,192 --> 01:33:28,827
that that investors can look at

3019
01:33:28,827 --> 01:33:31,227
and are properly following

3020
01:33:32,970 --> 01:33:32,764
the accounting standards and

3021
01:33:32,764 --> 01:33:33,432
the rules of accounting that

3022
01:33:33,432 --> 01:33:36,432
the auditor goes through and

3023
01:33:37,536 --> 01:33:38,136
verifies that that's the that

3024
01:33:38,136 --> 01:33:38,837
there is still of course

3025
01:33:38,837 --> 01:33:41,237
there's materiality It's never

3026
01:33:42,400 --> 01:33:42,674
perfection will never be

3027
01:33:42,674 --> 01:33:43,341
the goal because to get a

3028
01:33:43,341 --> 01:33:45,341
perfect financial statements

3029
01:33:46,310 --> 01:33:47,790
would be extremely expensive.

3030
01:33:47,790 --> 01:33:47,412
But is it materially accurate

3031
01:33:47,412 --> 01:33:49,412
enough?

3032
01:33:52,170 --> 01:33:52,717
Do we have a strong system of

3033
01:33:52,717 --> 01:33:53,285
internal controls that that's

3034
01:33:53,285 --> 01:33:53,652
really the question to

3035
01:33:53,652 --> 01:33:53,986
answering.

3036
01:33:53,986 --> 01:33:55,986
>> Okay.

3037
01:33:56,755 --> 01:34:00,355
I I appreciate that and I'm

3038
01:34:01,192 --> 01:34:04,792
glad that we're doing things in

3039
01:34:06,664 --> 01:34:07,332
such a way that ensures that

3040
01:34:07,332 --> 01:34:08,000
investors see us in the way

3041
01:34:08,000 --> 01:34:08,667
that you just mentioned and

3042
01:34:08,667 --> 01:34:11,350
that we're doing the things

3043
01:34:11,350 --> 01:34:11,703
that we need to be that need to

3044
01:34:11,703 --> 01:34:12,437
be done on that front.

3045
01:34:12,437 --> 01:34:13,380
And at the same time I just

3046
01:34:13,380 --> 01:34:13,739
think it's important to

3047
01:34:13,739 --> 01:34:16,139
acknowledge that just because

3048
01:34:16,675 --> 01:34:17,376
we are saying that we are we

3049
01:34:17,376 --> 01:34:20,976
are checking those boxes and I

3050
01:34:21,312 --> 01:34:22,214
don't mean that in a in a

3051
01:34:22,214 --> 01:34:25,150
flippant way but again in a

3052
01:34:25,150 --> 01:34:25,851
technical way just because

3053
01:34:25,851 --> 01:34:26,551
we're checking checking those

3054
01:34:26,551 --> 01:34:29,822
boxes does mean that we think

3055
01:34:29,822 --> 01:34:30,522
that everything's perfect and

3056
01:34:30,522 --> 01:34:31,190
we don't need to do things

3057
01:34:31,190 --> 01:34:34,190
differently when it comes to

3058
01:34:34,526 --> 01:34:35,127
the city's finances and we have

3059
01:34:35,127 --> 01:34:35,727
different opinions as to

3060
01:34:35,727 --> 01:34:38,864
the best way to do that.

3061
01:34:38,864 --> 01:34:39,665
But again, I want to say thank

3062
01:34:39,665 --> 01:34:43,702
you And then I just wanted to

3063
01:34:43,702 --> 01:34:44,269
kind of acknowledge disconnect

3064
01:34:44,269 --> 01:34:45,300
here between having a

3065
01:34:45,300 --> 01:34:48,300
conversation where we say we're

3066
01:34:49,741 --> 01:34:50,409
we're doing things right and

3067
01:34:50,409 --> 01:34:51,750
then two days from now we're

3068
01:34:51,750 --> 01:34:51,410
going to be presented with a

3069
01:34:51,410 --> 01:34:53,410
budget.

3070
01:34:54,313 --> 01:34:54,980
It's going to be telling us all

3071
01:34:54,980 --> 01:34:57,980
the ways that things aren't

3072
01:34:58,417 --> 01:34:59,180
okay And and while that can

3073
01:34:59,180 --> 01:35:01,418
feel incongruent in this

3074
01:35:02,321 --> 01:35:02,988
instance, it's just because

3075
01:35:02,988 --> 01:35:03,522
we're answering kind of two

3076
01:35:03,522 --> 01:35:03,956
different questions.

3077
01:35:03,956 --> 01:35:05,956
>> Thank you.

3078
01:35:07,559 --> 01:35:07,926
Council PRESIDENT Pro Tem.

3079
01:35:07,926 --> 01:35:08,627
Thank you.

3080
01:35:08,627 --> 01:35:11,627
Next up is council member

3081
01:35:12,765 --> 01:35:13,465
Yvonne Wilbert from Thank you

3082
01:35:13,465 --> 01:35:14,133
And thank you Councilor Rivera

3083
01:35:14,133 --> 01:35:17,169
because I was going to make

3084
01:35:17,169 --> 01:35:17,803
the same comment about how we

3085
01:35:17,803 --> 01:35:18,470
saw that earlier item that

3086
01:35:18,470 --> 01:35:20,870
we're not collecting revenue

3087
01:35:21,673 --> 01:35:22,441
from leases that we should be

3088
01:35:22,441 --> 01:35:23,142
and now we're going to say

3089
01:35:23,142 --> 01:35:26,742
we're doing a good job with

3090
01:35:27,111 --> 01:35:27,679
financial controls but it's I

3091
01:35:27,679 --> 01:35:28,214
understand it's a very

3092
01:35:28,214 --> 01:35:28,847
technical question.

3093
01:35:28,847 --> 01:35:31,617
I mean I've also been very

3094
01:35:31,617 --> 01:35:32,318
upset by the lack of city

3095
01:35:32,318 --> 01:35:35,318
staff's ability to conform to

3096
01:35:36,255 --> 01:35:36,923
budgeted contracting items and

3097
01:35:36,923 --> 01:35:37,623
allowing contracts to expire

3098
01:35:37,623 --> 01:35:40,623
And we're still spending money

3099
01:35:41,527 --> 01:35:42,294
that's not been authorized by

3100
01:35:42,294 --> 01:35:42,862
the city council And I know we

3101
01:35:42,862 --> 01:35:43,896
had an audit about it.

3102
01:35:43,896 --> 01:35:45,698
We're going to have an audit of

3103
01:35:45,698 --> 01:35:46,298
the herc rental contract which

3104
01:35:46,298 --> 01:35:46,899
is one of the ones that

3105
01:35:46,899 --> 01:35:48,000
spiraled out of control.

3106
01:35:48,000 --> 01:35:49,602
I am glad that we do have a new

3107
01:35:49,602 --> 01:35:52,200
improvements to Ariba and

3108
01:35:54,607 --> 01:35:55,274
contracting processes.

3109
01:35:55,274 --> 01:35:58,274
It's still it's it's really

3110
01:35:58,411 --> 01:35:59,178
hard for us to get our heads

3111
01:35:59,178 --> 01:35:59,811
around this when one of the big

3112
01:35:59,811 --> 01:36:02,211
biggest budget items we're

3113
01:36:03,849 --> 01:36:04,483
going to see next week or in

3114
01:36:04,483 --> 01:36:05,184
the few days is you know,

3115
01:36:05,184 --> 01:36:07,584
external contracts or outside

3116
01:36:08,621 --> 01:36:09,288
contracts with hundreds of

3117
01:36:09,288 --> 01:36:09,956
millions of dollars And it's

3118
01:36:09,956 --> 01:36:10,222
very hard for us to dig into

3119
01:36:10,222 --> 01:36:11,230
it.

3120
01:36:11,230 --> 01:36:13,591
And now that I'm seeing so many

3121
01:36:13,591 --> 01:36:14,293
contracts come through that are

3122
01:36:14,293 --> 01:36:14,994
overdue that are past due and

3123
01:36:14,994 --> 01:36:17,994
we're just expected to rubber

3124
01:36:18,664 --> 01:36:19,650
stamp them, it has made me very

3125
01:36:19,650 --> 01:36:19,631
frustrated.

3126
01:36:19,631 --> 01:36:20,299
And so something on on

3127
01:36:20,299 --> 01:36:23,202
the PowerPoint slide is that

3128
01:36:23,202 --> 01:36:23,835
highlights of c y 2025 revenue

3129
01:36:23,835 --> 01:36:25,835
compliance program process

3130
01:36:27,306 --> 01:36:28,174
improvement in system upgrades

3131
01:36:28,174 --> 01:36:31,110
Can you tell me more about what

3132
01:36:31,110 --> 01:36:32,144
those are?

3133
01:36:32,144 --> 01:36:35,744
I think it's Slide seven in

3134
01:36:36,215 --> 01:36:37,183
the PowerPoint.

3135
01:36:37,183 --> 01:36:40,183
I think that relates to

3136
01:36:41,353 --> 01:36:43,753
the deck economic development

3137
01:36:46,625 --> 01:36:47,293
the leases and we can have we

3138
01:36:47,293 --> 01:36:47,994
could have our liaison from

3139
01:36:47,994 --> 01:36:50,394
economic development speak to

3140
01:36:52,798 --> 01:36:53,566
that.

3141
01:36:53,566 --> 01:36:56,566
Thank you for the question

3142
01:36:59,205 --> 01:36:59,872
Councilmember Belmore Pert This

3143
01:36:59,872 --> 01:37:00,606
is the least system upgrade

3144
01:37:00,606 --> 01:37:04,806
that I spoke to on the previous

3145
01:37:05,511 --> 01:37:06,212
four item So we're currently in

3146
01:37:06,212 --> 01:37:09,212
version six for upgrading now

3147
01:37:09,515 --> 01:37:10,249
to version 11 and the more in

3148
01:37:10,249 --> 01:37:12,951
the process of doing an rfp for

3149
01:37:12,951 --> 01:37:13,252
a future system.

3150
01:37:13,252 --> 01:37:15,252
Okay.

3151
01:37:18,591 --> 01:37:19,292
And can I ask what is the plan

3152
01:37:19,292 --> 01:37:19,659
going forward to upgrade city

3153
01:37:19,659 --> 01:37:21,659
software?

3154
01:37:22,895 --> 01:37:23,596
I know that is a budget issue

3155
01:37:23,596 --> 01:37:27,196
but when I was first elected

3156
01:37:27,633 --> 01:37:28,368
the water department wasn't

3157
01:37:28,368 --> 01:37:29,302
billing residents for water and

3158
01:37:29,302 --> 01:37:33,720
I went over to Pudi and was

3159
01:37:33,720 --> 01:37:33,472
given a presentation of

3160
01:37:33,472 --> 01:37:34,400
the system.

3161
01:37:34,400 --> 01:37:34,674
They had to go through

3162
01:37:34,674 --> 01:37:37,674
the software system and it

3163
01:37:37,777 --> 01:37:38,578
honestly looked similar to what

3164
01:37:38,578 --> 01:37:42,549
I used the Oregon Trail as a

3165
01:37:42,549 --> 01:37:43,216
video game in middle school and

3166
01:37:43,216 --> 01:37:44,160
finally it has been upgraded

3167
01:37:44,160 --> 01:37:47,520
and they hired new staff who

3168
01:37:47,520 --> 01:37:48,154
understand how to do billing

3169
01:37:48,154 --> 01:37:48,787
and it's working and we're

3170
01:37:48,787 --> 01:37:49,155
getting more revenue into

3171
01:37:49,155 --> 01:37:51,155
the city.

3172
01:37:51,891 --> 01:37:52,625
But why is it that our economic

3173
01:37:52,625 --> 01:37:55,250
development department is still

3174
01:37:57,300 --> 01:37:57,764
using software from its 11 that

3175
01:37:57,764 --> 01:37:58,264
was six It could be you know,

3176
01:37:58,264 --> 01:38:00,264
ten, 15 years ago.

3177
01:38:00,867 --> 01:38:01,534
You know what is our internal

3178
01:38:01,534 --> 01:38:02,350
processes to make sure we're

3179
01:38:02,350 --> 01:38:04,350
updating software.

3180
01:38:05,372 --> 01:38:06,139
I know it comes at a cost but

3181
01:38:06,139 --> 01:38:06,806
do we have any kind of

3182
01:38:06,806 --> 01:38:09,806
management plan for this for

3183
01:38:10,710 --> 01:38:11,177
software for our city?

3184
01:38:11,177 --> 01:38:11,945
We we do.

3185
01:38:11,945 --> 01:38:14,945
Councilmember And there is a

3186
01:38:15,348 --> 01:38:16,150
strategic plan especially when

3187
01:38:16,150 --> 01:38:16,749
you have legacy systems like

3188
01:38:16,749 --> 01:38:19,385
the one that we're referring to

3189
01:38:19,385 --> 01:38:20,860
and where you can actually

3190
01:38:20,860 --> 01:38:20,754
cause vulnerabilities in terms

3191
01:38:20,754 --> 01:38:21,120
of cyber security and things

3192
01:38:21,120 --> 01:38:23,120
like that.

3193
01:38:24,556 --> 01:38:25,225
But absolutely this scenario

3194
01:38:25,225 --> 01:38:28,225
that I know the Christina

3195
01:38:29,796 --> 01:38:30,463
Biller had flagged for us a few

3196
01:38:30,463 --> 01:38:31,164
years back and we're moving

3197
01:38:31,164 --> 01:38:34,764
forward with the rfp for this

3198
01:38:35,335 --> 01:38:36,360
particular software in MAY Just

3199
01:38:36,360 --> 01:38:38,972
to redirect a little bit

3200
01:38:38,972 --> 01:38:39,672
the discussion here with this

3201
01:38:39,672 --> 01:38:40,140
particular report is the scope

3202
01:38:40,140 --> 01:38:42,140
is very narrow.

3203
01:38:44,377 --> 01:38:44,977
It's is about any time that we

3204
01:38:44,977 --> 01:38:46,977
are producing financial

3205
01:38:48,848 --> 01:38:49,416
information for external use

3206
01:38:49,416 --> 01:38:50,150
for example financial

3207
01:38:50,150 --> 01:38:52,150
statements, official statements

3208
01:38:53,453 --> 01:38:54,187
when we issue bonds.

3209
01:38:54,187 --> 01:38:54,921
So this is really something

3210
01:38:54,921 --> 01:38:58,391
that was added to the municipal

3211
01:38:58,391 --> 01:38:59,920
code after all the issues that

3212
01:38:59,920 --> 01:39:02,692
we saw in the early 2000 to

3213
01:39:03,796 --> 01:39:04,431
make sure that if there was an

3214
01:39:04,431 --> 01:39:04,998
issue in internal internal

3215
01:39:04,998 --> 01:39:05,631
controls for financial

3216
01:39:05,631 --> 01:39:08,631
reporting that we would be

3217
01:39:08,902 --> 01:39:09,235
presenting that to the city

3218
01:39:09,235 --> 01:39:09,936
council.

3219
01:39:09,936 --> 01:39:12,906
So we recognize that there are

3220
01:39:12,906 --> 01:39:13,507
issues operational issues in

3221
01:39:13,507 --> 01:39:14,400
other financial problems

3222
01:39:14,400 --> 01:39:14,775
throughout the city.

3223
01:39:14,775 --> 01:39:18,611
But the scope at least for this

3224
01:39:18,611 --> 01:39:18,945
particular report is is very

3225
01:39:18,945 --> 01:39:19,679
narrow.

3226
01:39:19,679 --> 01:39:22,679
It's that we are actually

3227
01:39:23,170 --> 01:39:23,716
reporting the fiscal condition

3228
01:39:23,716 --> 01:39:27,316
of the city to the investors.

3229
01:39:27,953 --> 01:39:28,588
But I understand that that's

3230
01:39:28,588 --> 01:39:28,954
why this is accurate this

3231
01:39:28,954 --> 01:39:30,954
statement.

3232
01:39:32,693 --> 01:39:33,392
But it is a sad state of

3233
01:39:33,392 --> 01:39:34,610
affairs that we do have to

3234
01:39:34,610 --> 01:39:36,563
report So things to the city

3235
01:39:36,563 --> 01:39:36,863
that they're not running so

3236
01:39:36,863 --> 01:39:37,564
well.

3237
01:39:37,564 --> 01:39:38,231
So but I do understand

3238
01:39:38,231 --> 01:39:41,231
the difference and thank you

3239
01:39:42,102 --> 01:39:42,969
for your work.

3240
01:39:42,969 --> 01:39:43,270
You guys are always keeping us

3241
01:39:43,270 --> 01:39:44,400
early.

3242
01:39:44,400 --> 01:39:46,573
I appreciate you know, Rolando,

3243
01:39:46,573 --> 01:39:47,274
since you've taken over you've

3244
01:39:47,274 --> 01:39:47,674
been completely accessible and

3245
01:39:47,674 --> 01:39:48,375
transparent.

3246
01:39:48,375 --> 01:39:51,378
I know the employee groups are

3247
01:39:51,378 --> 01:39:51,712
enjoying working with with you

3248
01:39:51,712 --> 01:39:52,446
as well.

3249
01:39:52,446 --> 01:39:53,113
So I know that you know

3250
01:39:53,113 --> 01:39:56,113
the Department of Finance is

3251
01:39:56,383 --> 01:39:56,984
not responsible for all

3252
01:39:56,984 --> 01:39:57,684
the operational needs of

3253
01:39:57,684 --> 01:39:58,352
the city and often you have to

3254
01:39:58,352 --> 01:40:01,121
and try and answer questions

3255
01:40:01,121 --> 01:40:01,755
about them when your job is

3256
01:40:01,755 --> 01:40:02,222
just to properly make sure

3257
01:40:02,222 --> 01:40:02,956
they're funded.

3258
01:40:02,956 --> 01:40:03,757
So I just I appreciate what you

3259
01:40:03,757 --> 01:40:07,357
do and thank you for continuing

3260
01:40:09,229 --> 01:40:09,630
to work with us.

3261
01:40:09,630 --> 01:40:09,996
Okay.

3262
01:40:09,996 --> 01:40:11,996
Thank you.

3263
01:40:13,566 --> 01:40:14,168
Seeing no other speakers that

3264
01:40:14,168 --> 01:40:14,902
will conclude this item.

3265
01:40:14,902 --> 01:40:17,902
Thank you for the presentation.

3266
01:40:20,974 --> 01:40:21,675
Once again as a reminder that

3267
01:40:21,675 --> 01:40:22,309
was an informational item only

3268
01:40:22,309 --> 01:40:25,309
so no motion was required.

3269
01:40:26,313 --> 01:40:26,780
We will now take up non agenda

3270
01:40:26,780 --> 01:40:27,514
public comment.

3271
01:40:27,514 --> 01:40:28,215
The council members respect and

3272
01:40:28,215 --> 01:40:30,615
appreciate the public's input

3273
01:40:30,651 --> 01:40:31,352
and are fully committed to

3274
01:40:31,352 --> 01:40:32,520
protecting every participant's

3275
01:40:32,520 --> 01:40:35,520
free speech rights at council

3276
01:40:35,656 --> 01:40:36,290
and committee meetings quickly

3277
01:40:36,290 --> 01:40:36,623
please proceed with public

3278
01:40:36,623 --> 01:40:37,560
comment.

3279
01:40:37,560 --> 01:40:37,791
>> Thank you.

3280
01:40:37,791 --> 01:40:41,161
Council PRESIDENT Pro Tem We do

3281
01:40:41,161 --> 01:40:41,862
have a couple of speakers here

3282
01:40:41,862 --> 01:40:42,596
in council chambers Pearl 2.7

3283
01:40:42,596 --> 01:40:45,198
and Agenda Public comment is an

3284
01:40:45,198 --> 01:40:45,899
opportunity for members of

3285
01:40:45,899 --> 01:40:46,600
the public to comment on items

3286
01:40:46,600 --> 01:40:47,234
that are not on the agenda but

3287
01:40:47,234 --> 01:40:49,634
within the subject matter

3288
01:40:50,304 --> 01:40:50,637
jurisdiction of the city

3289
01:40:50,637 --> 01:40:51,271
Council.

3290
01:40:51,271 --> 01:40:51,605
Each speaker will have two

3291
01:40:51,605 --> 01:40:52,306
minutes.

3292
01:40:52,306 --> 01:40:54,608
Please note there are eight or

3293
01:40:54,608 --> 01:40:54,908
more speakers on a single topic

3294
01:40:54,908 --> 01:40:55,609
.

3295
01:40:55,609 --> 01:40:56,143
The maximum time for the topic

3296
01:40:56,143 --> 01:40:56,877
will be 16 minutes.

3297
01:40:56,877 --> 01:40:59,413
If you're in chambers please be

3298
01:40:59,413 --> 01:41:00,180
sure to submit your speaker

3299
01:41:00,180 --> 01:41:00,848
slip now or if you are joining

3300
01:41:00,848 --> 01:41:03,848
us virtually press the raise

3301
01:41:04,551 --> 01:41:08,722
your hand icon or star nine if

3302
01:41:08,722 --> 01:41:09,290
I can have Jabali Gutierrez

3303
01:41:09,290 --> 01:41:11,690
please come up to

3304
01:41:17,198 --> 01:41:17,898
the microphone after that out

3305
01:41:17,898 --> 01:41:19,650
Del Mastro and Alan Benson

3306
01:41:19,650 --> 01:41:19,333
Please come up to the first

3307
01:41:19,333 --> 01:41:20,000
row.

3308
01:41:20,000 --> 01:41:22,350
If I've already called your

3309
01:41:22,350 --> 01:41:25,635
name you should come up to

3310
01:41:26,841 --> 01:41:27,474
the first row Now.

3311
01:41:27,474 --> 01:41:28,175
>> Good afternoon.

3312
01:41:28,175 --> 01:41:31,175
My name is Julie Gutierrez.

3313
01:41:31,412 --> 01:41:32,790
Thank you.

3314
01:41:32,790 --> 01:41:32,813
Council PRESIDENT Council

3315
01:41:32,813 --> 01:41:33,180
members I am a resident of this

3316
01:41:33,180 --> 01:41:35,180
community.

3317
01:41:36,250 --> 01:41:36,917
I'm here today since we're

3318
01:41:36,917 --> 01:41:37,618
seeing in our downtown area

3319
01:41:37,618 --> 01:41:41,880
it's not just a policy issue.

3320
01:41:41,880 --> 01:41:41,789
It's a human one.

3321
01:41:41,789 --> 01:41:42,490
Every day more individuals are

3322
01:41:42,490 --> 01:41:44,890
living without stable shelter.

3323
01:41:45,626 --> 01:41:46,327
We see people sleeping on

3324
01:41:46,327 --> 01:41:49,327
sidewalks and doorways and in

3325
01:41:50,970 --> 01:41:50,431
places never meant for rest or

3326
01:41:50,431 --> 01:41:51,132
safety.

3327
01:41:51,132 --> 01:41:54,732
This is not because they chose

3328
01:41:55,636 --> 01:41:56,270
to live this way or it's just a

3329
01:41:56,270 --> 01:41:56,971
factor that's pushed them.

3330
01:41:56,971 --> 01:41:59,971
Many factors have pushed them

3331
01:42:00,107 --> 01:42:00,808
to live this way but also

3332
01:42:00,808 --> 01:42:03,208
there's not enough accessible

3333
01:42:04,745 --> 01:42:05,479
and adequate shelter options

3334
01:42:05,479 --> 01:42:08,479
available to them Long waitlist

3335
01:42:09,884 --> 01:42:10,584
and long waitlist and denied

3336
01:42:10,584 --> 01:42:11,185
requests remain common leaving

3337
01:42:11,185 --> 01:42:11,786
many individuals without

3338
01:42:11,786 --> 01:42:14,186
immediate help Despite a

3339
01:42:15,256 --> 01:42:15,923
population of about 1.4 million

3340
01:42:15,923 --> 01:42:18,323
residents, the 2025 point in

3341
01:42:18,960 --> 01:42:19,493
time count report in 9905

3342
01:42:19,493 --> 01:42:20,930
people experiencing

3343
01:42:20,930 --> 01:42:22,930
homelessness county wide

3344
01:42:27,902 --> 01:42:28,536
including 5714 unsheltered 4191

3345
01:42:28,536 --> 01:42:29,203
in shelters, according to

3346
01:42:29,203 --> 01:42:31,572
the University of San Diego,

3347
01:42:31,572 --> 01:42:32,440
which conducted a research as

3348
01:42:32,440 --> 01:42:35,440
of MAY of 2025 nearly 994% of

3349
01:42:36,877 --> 01:42:37,578
unhoused individuals seeking

3350
01:42:37,578 --> 01:42:38,146
shelter were denied primarily

3351
01:42:38,146 --> 01:42:41,146
due to lack of space.

3352
01:42:41,549 --> 01:42:42,250
This crisis also reaches

3353
01:42:42,250 --> 01:42:42,917
diverse groups such as seniors

3354
01:42:42,917 --> 01:42:45,219
families struggling to make

3355
01:42:45,219 --> 01:42:46,186
ends meet and students who

3356
01:42:46,186 --> 01:42:49,186
cannot find housing they can

3357
01:42:50,792 --> 01:42:51,492
afford the people we see

3358
01:42:51,492 --> 01:42:51,959
experiencing homelessness are

3359
01:42:51,959 --> 01:42:52,593
not statistics.

3360
01:42:52,593 --> 01:42:54,993
They are individuals with

3361
01:42:55,229 --> 01:42:56,300
families hard emotions and

3362
01:42:56,300 --> 01:42:59,801
human needs which is why I am

3363
01:42:59,801 --> 01:43:00,101
speaking about their dignity as

3364
01:43:00,101 --> 01:43:00,735
well.

3365
01:43:00,735 --> 01:43:01,436
The contrast is especially

3366
01:43:01,436 --> 01:43:04,436
striking in downtown San Diego

3367
01:43:05,600 --> 01:43:05,740
yet alongside this prosperity

3368
01:43:05,740 --> 01:43:06,374
is visible human suffering When

3369
01:43:06,374 --> 01:43:08,374
homelessness becomes just

3370
01:43:10,111 --> 01:43:10,816
another part of the scenery,

3371
01:43:10,816 --> 01:43:13,216
indifference takes root Which

3372
01:43:14,615 --> 01:43:15,249
is why I am asking and I'm also

3373
01:43:15,249 --> 01:43:15,883
bringing awareness to this

3374
01:43:15,883 --> 01:43:18,283
issue demands both urgent

3375
01:43:18,920 --> 01:43:19,454
action and long term solutions

3376
01:43:19,454 --> 01:43:20,121
grounded in empathy.

3377
01:43:20,121 --> 01:43:20,688
I urge the Council to expand

3378
01:43:20,688 --> 01:43:22,688
shelter capacity in

3379
01:43:24,192 --> 01:43:24,792
the downtown area, invest in

3380
01:43:24,792 --> 01:43:25,293
transitional housing and

3381
01:43:25,293 --> 01:43:27,293
partner with local

3382
01:43:29,264 --> 01:43:31,264
organizations.

3383
01:43:33,668 --> 01:43:36,680
>> Thank you Domestic Mastro

3384
01:43:38,206 --> 01:43:38,840
Hi, my name is Aldo Mastro and

3385
01:43:38,840 --> 01:43:39,440
ex blue collar worker.

3386
01:43:39,440 --> 01:43:41,840
I'm a disabled veteran.

3387
01:43:43,678 --> 01:43:44,345
I'm a senior and yes, I'm a

3388
01:43:44,345 --> 01:43:47,345
small mom and pop landlord.

3389
01:43:47,949 --> 01:43:48,349
I've been a landlord for over

3390
01:43:48,349 --> 01:43:49,500
20 years.

3391
01:43:49,500 --> 01:43:52,500
I've destroyed my body through

3392
01:43:52,988 --> 01:43:53,721
my hard work and my service to

3393
01:43:53,721 --> 01:43:54,722
this country and the community.

3394
01:43:54,722 --> 01:43:57,492
I live in a five plex in

3395
01:43:57,492 --> 01:43:58,259
Claremont.

3396
01:43:58,259 --> 01:43:59,127
I never bought a house because

3397
01:43:59,127 --> 01:44:02,630
I wanted to be a responsible

3398
01:44:02,630 --> 01:44:02,764
senior.

3399
01:44:02,764 --> 01:44:03,331
This new law that the city

3400
01:44:03,331 --> 01:44:05,731
council is putting on

3401
01:44:06,634 --> 01:44:07,350
the ballot in JUNE is extremely

3402
01:44:07,350 --> 01:44:07,835
misleading.

3403
01:44:07,835 --> 01:44:12,350
I guess even a judge has made

3404
01:44:12,730 --> 01:44:12,774
them reworded it from a

3405
01:44:12,774 --> 01:44:16,374
vacation home to an empty home

3406
01:44:16,911 --> 01:44:17,678
law because how misleading that

3407
01:44:17,678 --> 01:44:21,878
was The true ugliness for me is

3408
01:44:22,417 --> 01:44:26,617
this law would pardon me if it

3409
01:44:26,655 --> 01:44:29,791
takes me longer to renovate an

3410
01:44:29,791 --> 01:44:32,791
apartment than six months or

3411
01:44:33,940 --> 01:44:33,695
183 days I'm going to be fined

3412
01:44:33,695 --> 01:44:35,695
$8000 to $10,000.

3413
01:44:38,199 --> 01:44:41,769
The deal is 90% of all mom and

3414
01:44:41,769 --> 01:44:42,370
pop landlords are over the age

3415
01:44:42,370 --> 01:44:43,438
of 55 to 80.

3416
01:44:43,438 --> 01:44:47,209
So if one of us gets cancer or

3417
01:44:47,209 --> 01:44:47,909
wife dies or anything like that

3418
01:44:47,909 --> 01:44:48,510
happens, we're going to get a

3419
01:44:48,510 --> 01:44:51,510
fine on top of it.

3420
01:44:52,247 --> 01:44:52,747
This is about as ugly a law

3421
01:44:52,747 --> 01:44:53,682
that you guys are.

3422
01:44:53,682 --> 01:44:56,718
I know you guys aren't that bad

3423
01:44:56,718 --> 01:44:57,418
of people that would anybody

3424
01:44:57,418 --> 01:45:00,889
would put forth I think since

3425
01:45:00,889 --> 01:45:01,656
the judge even changed about it

3426
01:45:01,656 --> 01:45:02,356
the first time when I saw this

3427
01:45:02,356 --> 01:45:05,956
being presented was it was for

3428
01:45:06,610 --> 01:45:06,727
millionaires who own houses and

3429
01:45:06,727 --> 01:45:10,327
mansions and a lawyer But it

3430
01:45:10,531 --> 01:45:11,233
affect anybody that has an open

3431
01:45:11,233 --> 01:45:11,767
property no matter unless I go

3432
01:45:11,767 --> 01:45:14,167
into a nursing home.

3433
01:45:16,104 --> 01:45:16,838
If you read the details, if I

3434
01:45:16,838 --> 01:45:17,638
don't go into an immersion home

3435
01:45:17,638 --> 01:45:19,541
and I have a heart attack or my

3436
01:45:19,541 --> 01:45:20,342
spouse dies, I'm getting an 8

3437
01:45:20,342 --> 01:45:23,942
or $10,000 fine on top of it

3438
01:45:24,579 --> 01:45:25,547
and margins are real slim with

3439
01:45:25,547 --> 01:45:26,415
us Now we still I my wife and I

3440
01:45:26,415 --> 01:45:29,451
both still have parents who are

3441
01:45:29,451 --> 01:45:29,751
alive and we still take care of

3442
01:45:29,751 --> 01:45:31,751
them.

3443
01:45:34,555 --> 01:45:34,856
And so this is this is a little

3444
01:45:34,856 --> 01:45:35,691
cruel.

3445
01:45:35,691 --> 01:45:36,325
>> I don't know if I should be

3446
01:45:36,325 --> 01:45:38,725
doing this to handicapped

3447
01:45:39,280 --> 01:45:39,728
people disabled.

3448
01:45:39,728 --> 01:45:40,940
That concludes your Thank you.

3449
01:45:40,940 --> 01:45:42,940
Thank you.

3450
01:45:43,198 --> 01:45:45,198
Dylan Benson Hello.

3451
01:45:47,803 --> 01:45:48,470
>> You can excuse the customs

3452
01:45:48,470 --> 01:45:50,870
and courtesies just talking

3453
01:45:53,242 --> 01:45:53,942
about some things today

3454
01:45:53,942 --> 01:45:54,643
Councilmember Ella Rivera your

3455
01:45:54,643 --> 01:45:58,243
super quick to talk about how

3456
01:45:58,380 --> 01:45:59,810
investors view us I think now

3457
01:45:59,810 --> 01:45:59,681
is the wrong time to like look

3458
01:45:59,681 --> 01:46:02,518
at those kind of things

3459
01:46:02,518 --> 01:46:03,218
especially when our huge

3460
01:46:03,218 --> 01:46:04,860
margins are just missing money

3461
01:46:04,860 --> 01:46:07,656
And then when we're looking at

3462
01:46:07,656 --> 01:46:08,257
like you guys are already

3463
01:46:08,257 --> 01:46:10,657
getting paid more than

3464
01:46:12,127 --> 01:46:12,828
congressman Congresswoman all

3465
01:46:12,828 --> 01:46:16,428
of you Todd Gloria is getting

3466
01:46:17,332 --> 01:46:20,332
you are actually And MISS

3467
01:46:21,670 --> 01:46:22,404
Campbell, when the people were

3468
01:46:22,404 --> 01:46:23,138
having the comments on agendas,

3469
01:46:23,138 --> 01:46:23,739
you got up and started clipping

3470
01:46:23,739 --> 01:46:26,139
your toenails behind You

3471
01:46:26,875 --> 01:46:27,342
haven't cared about what anyone

3472
01:46:27,342 --> 01:46:28,110
has said today.

3473
01:46:28,110 --> 01:46:31,110
I've watched you We're talking

3474
01:46:31,613 --> 01:46:32,381
about Councilmember Campbell.

3475
01:46:32,381 --> 01:46:35,684
You also said sometimes we need

3476
01:46:35,684 --> 01:46:36,118
to give things up to get other

3477
01:46:36,118 --> 01:46:36,852
things done.

3478
01:46:36,852 --> 01:46:37,586
Is that including your personal

3479
01:46:37,586 --> 01:46:40,422
salary which once again is more

3480
01:46:40,422 --> 01:46:40,723
than the congressmen and women

3481
01:46:40,723 --> 01:46:41,155
?

3482
01:46:41,155 --> 01:46:41,890
Probably not.

3483
01:46:41,890 --> 01:46:42,224
So you guys will be hearing

3484
01:46:42,224 --> 01:46:44,224
from me.

3485
01:46:45,761 --> 01:46:46,128
We're talking about these money

3486
01:46:46,128 --> 01:46:46,794
problems.

3487
01:46:46,794 --> 01:46:49,794
It's long standing You guys

3488
01:46:50,265 --> 01:46:50,899
have been this money problem

3489
01:46:50,899 --> 01:46:51,700
for what, two decades now?

3490
01:46:51,700 --> 01:46:52,601
I'm not a big money guy but

3491
01:46:52,601 --> 01:46:55,704
I'll be coming back with more

3492
01:46:55,704 --> 01:46:56,371
facts next time and they'll be

3493
01:46:56,371 --> 01:46:56,672
customs and courtesies next

3494
01:46:56,672 --> 01:46:58,672
time.

3495
01:47:00,175 --> 01:47:00,875
But I just want to I appreciate

3496
01:47:00,875 --> 01:47:01,176
the time for letting me speak

3497
01:47:01,176 --> 01:47:01,610
today.

3498
01:47:01,610 --> 01:47:01,977
So thank you.

3499
01:47:01,977 --> 01:47:03,977
Thank you.

3500
01:47:05,414 --> 01:47:06,810
I started the five minute timer

3501
01:47:06,810 --> 01:47:06,448
going to those participating

3502
01:47:06,448 --> 01:47:07,149
remotely.

3503
01:47:07,149 --> 01:47:07,850
We currently have nine people

3504
01:47:07,850 --> 01:47:10,118
in the queue with their hands

3505
01:47:10,118 --> 01:47:10,553
raised starting with

3506
01:47:10,553 --> 01:47:12,553
the original.

3507
01:47:14,690 --> 01:47:15,457
If you can please unmute I love

3508
01:47:15,457 --> 01:47:19,570
when people come in and you

3509
01:47:19,829 --> 01:47:20,496
know really hold you guys

3510
01:47:20,496 --> 01:47:21,197
accountable because there's

3511
01:47:21,197 --> 01:47:21,897
more accolades a lot of times

3512
01:47:21,897 --> 01:47:24,266
and people are misled thinking

3513
01:47:24,266 --> 01:47:24,934
that what you guys are doing is

3514
01:47:24,934 --> 01:47:25,234
actually beneficial to their

3515
01:47:25,234 --> 01:47:25,901
lives.

3516
01:47:25,901 --> 01:47:28,871
But you know what Dylan was

3517
01:47:28,871 --> 01:47:29,505
saying It's like you guys get

3518
01:47:29,505 --> 01:47:30,205
paid exorbitant amounts of

3519
01:47:30,205 --> 01:47:33,205
money and you're never willing

3520
01:47:33,575 --> 01:47:34,176
to cut back on that but you're

3521
01:47:34,176 --> 01:47:34,910
willing to make cuts to

3522
01:47:34,910 --> 01:47:38,510
the people And it's sad because

3523
01:47:38,614 --> 01:47:38,914
there's so much fraud waste and

3524
01:47:38,914 --> 01:47:39,615
abuse.

3525
01:47:39,615 --> 01:47:40,315
And Shawn, as you guys are

3526
01:47:40,315 --> 01:47:42,218
sitting here trying to explain

3527
01:47:42,218 --> 01:47:42,885
away those last two items, I

3528
01:47:42,885 --> 01:47:43,586
don't think it's really fair

3529
01:47:43,586 --> 01:47:47,186
because it's like if you're in

3530
01:47:47,356 --> 01:47:48,570
terminal controls were working

3531
01:47:48,570 --> 01:47:48,824
then they would be working in

3532
01:47:48,824 --> 01:47:51,761
this kind of stuff wouldn't be

3533
01:47:51,761 --> 01:47:52,528
taking place.

3534
01:47:52,528 --> 01:47:56,128
But it's like I mean people

3535
01:47:56,332 --> 01:47:56,966
will come in as has been stated

3536
01:47:56,966 --> 01:47:57,633
before about you know from

3537
01:47:57,633 --> 01:48:00,633
the Glide report and talking

3538
01:48:01,503 --> 01:48:02,338
about that lease for 20 years.

3539
01:48:02,338 --> 01:48:05,841
>> So imagine how much money is

3540
01:48:05,841 --> 01:48:06,474
actually being lost due to

3541
01:48:06,474 --> 01:48:10,740
the you know, quid pro quo

3542
01:48:11,460 --> 01:48:11,614
that's going on here And these

3543
01:48:11,614 --> 01:48:12,281
people are, you know,

3544
01:48:12,281 --> 01:48:14,681
benefiting from making, you

3545
01:48:15,851 --> 01:48:16,518
know, millions of dollars off

3546
01:48:16,518 --> 01:48:16,819
of that site while the city

3547
01:48:16,819 --> 01:48:17,519
isn't.

3548
01:48:17,519 --> 01:48:20,519
So who's getting the kickbacks

3549
01:48:20,823 --> 01:48:21,524
for that Because it makes you

3550
01:48:21,524 --> 01:48:22,158
wonder like when things aren't

3551
01:48:22,158 --> 01:48:24,558
being addressed when it's

3552
01:48:26,950 --> 01:48:26,762
decades long issues and you

3553
01:48:26,762 --> 01:48:27,430
guys have this all the time

3554
01:48:27,430 --> 01:48:30,430
where it's like people will

3555
01:48:30,766 --> 01:48:31,434
come in and tell you they're

3556
01:48:31,434 --> 01:48:32,135
really egregious things that

3557
01:48:32,135 --> 01:48:35,637
are taking place that you guys

3558
01:48:35,637 --> 01:48:36,506
should be mitigating.

3559
01:48:36,506 --> 01:48:37,206
I mean it's even like Tent City

3560
01:48:37,206 --> 01:48:37,873
and we know that you know, if

3561
01:48:37,873 --> 01:48:40,273
Stephen Whitburn is friends

3562
01:48:40,911 --> 01:48:41,644
with Theresa Smith then

3563
01:48:41,644 --> 01:48:42,311
obviously you guys aren't going

3564
01:48:42,311 --> 01:48:42,979
to do anything about making

3565
01:48:42,979 --> 01:48:46,249
sure that the people in Tent

3566
01:48:46,249 --> 01:48:46,915
City are actually, you know, be

3567
01:48:46,915 --> 01:48:47,617
being provided the services

3568
01:48:47,617 --> 01:48:50,119
that they're supposed to that

3569
01:48:50,119 --> 01:48:51,870
they're getting into housing.

3570
01:48:51,870 --> 01:48:51,788
So it's like you guys sit here

3571
01:48:51,788 --> 01:48:55,357
and you virtue signal and you

3572
01:48:55,357 --> 01:48:56,590
gaslight the people as if we

3573
01:48:56,590 --> 01:48:56,826
can't see through what you're

3574
01:48:56,826 --> 01:48:59,762
doing And it's like and you

3575
01:48:59,762 --> 01:49:00,429
literally sit up there and act

3576
01:49:00,429 --> 01:49:01,331
like everything is fine when

3577
01:49:01,331 --> 01:49:04,634
time and time again it does all

3578
01:49:04,634 --> 01:49:05,301
you have to do is come to a

3579
01:49:05,301 --> 01:49:05,935
meeting and you can see that

3580
01:49:05,935 --> 01:49:06,569
things are and that you're

3581
01:49:06,569 --> 01:49:08,969
mismanaging money and that

3582
01:49:08,972 --> 01:49:09,606
there's missing money or that

3583
01:49:09,606 --> 01:49:10,340
money's going from here to

3584
01:49:10,340 --> 01:49:11,700
there and this project can't be

3585
01:49:11,700 --> 01:49:11,674
completed because of this or

3586
01:49:11,674 --> 01:49:13,843
we're not going to shut this

3587
01:49:13,843 --> 01:49:14,343
down because I'm getting

3588
01:49:14,343 --> 01:49:14,978
kickbacks from it.

3589
01:49:14,978 --> 01:49:17,378
It's very transparent what

3590
01:49:19,249 --> 01:49:19,882
you're going do you're doing

3591
01:49:19,882 --> 01:49:20,483
and that's the only thing

3592
01:49:20,483 --> 01:49:21,217
you're transparent about

3593
01:49:21,217 --> 01:49:21,951
everything else you're not Your

3594
01:49:21,951 --> 01:49:25,551
time has concluded Khaya if you

3595
01:49:26,154 --> 01:49:28,154
can please unmute.

3596
01:49:31,327 --> 01:49:32,161
Hello?

3597
01:49:32,161 --> 01:49:32,462
>> Yes we can hear me okay.

3598
01:49:32,462 --> 01:49:33,229
Hi.

3599
01:49:33,229 --> 01:49:35,431
Actually my name is Sue Taylor.

3600
01:49:35,431 --> 01:49:36,166
This is my daughter's computer.

3601
01:49:36,166 --> 01:49:39,766
i just wanted to talk about

3602
01:49:40,236 --> 01:49:40,570
some general information about

3603
01:49:40,570 --> 01:49:41,471
leases.

3604
01:49:41,471 --> 01:49:45,671
I did listen to the item on

3605
01:49:46,420 --> 01:49:46,709
the performance audit and I

3606
01:49:46,709 --> 01:49:47,100
wanted to know that as of

3607
01:49:47,100 --> 01:49:47,744
today.

3608
01:49:47,744 --> 01:49:50,814
Background I worked in the real

3609
01:49:50,814 --> 01:49:51,514
estate department for 41 years

3610
01:49:51,514 --> 01:49:51,781
and retired a couple of years

3611
01:49:51,781 --> 01:49:53,781
ago.

3612
01:49:55,180 --> 01:49:55,351
As of today there's 825 total

3613
01:49:55,351 --> 01:49:57,351
leases.

3614
01:49:58,455 --> 01:49:58,888
Of those 164 are at

3615
01:49:58,888 --> 01:49:59,656
the airports.

3616
01:49:59,656 --> 01:50:03,159
And of those a good portion of

3617
01:50:03,159 --> 01:50:03,726
those like over 100 are

3618
01:50:03,726 --> 01:50:04,427
probably airport Titan

3619
01:50:04,427 --> 01:50:06,620
agreements, airplane tie down

3620
01:50:06,620 --> 01:50:08,462
agreements which don't require

3621
01:50:11,234 --> 01:50:11,968
a whole lot of work.

3622
01:50:11,968 --> 01:50:12,702
And that leaves there's about

3623
01:50:12,702 --> 01:50:13,360
60 that are where the city is a

3624
01:50:13,360 --> 01:50:15,360
lessee.

3625
01:50:16,406 --> 01:50:17,730
So that would be like your

3626
01:50:17,730 --> 01:50:17,807
office space buildings or it

3627
01:50:17,807 --> 01:50:20,810
could even be the bridge kiosks

3628
01:50:20,810 --> 01:50:21,177
And on and over the 15 things

3629
01:50:21,177 --> 01:50:23,177
like that.

3630
01:50:24,213 --> 01:50:24,915
So that leaves about 600

3631
01:50:24,915 --> 01:50:27,915
agreements that would have to

3632
01:50:28,318 --> 01:50:29,190
be handled by those 13 people.

3633
01:50:29,190 --> 01:50:31,419
Then also regarding holdovers

3634
01:50:33,423 --> 01:50:33,790
in general, there's 180

3635
01:50:33,790 --> 01:50:35,790
holdovers.

3636
01:50:38,160 --> 01:50:38,861
Probably the most egregious are

3637
01:50:38,861 --> 01:50:39,262
the samba school where there's

3638
01:50:39,262 --> 01:50:40,300
22 of those.

3639
01:50:40,300 --> 01:50:43,233
Now the reason why I say that

3640
01:50:43,233 --> 01:50:43,900
is because, you know, a couple

3641
01:50:43,900 --> 01:50:44,600
of years ago there was a

3642
01:50:44,600 --> 01:50:47,000
program coordinator added just

3643
01:50:47,904 --> 01:50:48,505
to work on those leases But

3644
01:50:48,505 --> 01:50:49,172
that has not been done.

3645
01:50:49,172 --> 01:50:52,772
But a lot of the other

3646
01:50:52,843 --> 01:50:53,543
holdovers like Mission Bay

3647
01:50:53,543 --> 01:50:54,100
Yeah, there's 11 two of those

3648
01:50:54,100 --> 01:50:56,410
went out to rfp.

3649
01:50:57,514 --> 01:50:58,280
Those are the big ones.

3650
01:50:58,280 --> 01:50:59,150
Six of them are storage.

3651
01:50:59,150 --> 01:51:02,150
So they're like canoe storage

3652
01:51:02,786 --> 01:51:03,587
for the different rowing clubs

3653
01:51:03,587 --> 01:51:03,887
which bring in 200 to 300 a

3654
01:51:03,887 --> 01:51:05,887
month.

3655
01:51:07,957 --> 01:51:08,625
So those are permits like three

3656
01:51:08,625 --> 01:51:09,126
year permits to get renewed,

3657
01:51:09,126 --> 01:51:11,126
not major leases.

3658
01:51:12,529 --> 01:51:13,229
Two of our telecommunication

3659
01:51:13,229 --> 01:51:13,930
sites which do get yearly

3660
01:51:13,930 --> 01:51:16,330
increases even though they're

3661
01:51:17,968 --> 01:51:18,735
on hold over.

3662
01:51:18,735 --> 01:51:19,335
And one of them is the Boy

3663
01:51:19,335 --> 01:51:20,700
Scouts on Fiesta Island.

3664
01:51:20,700 --> 01:51:22,720
So whatever you guys want to do

3665
01:51:22,720 --> 01:51:22,739
with that, I just wanted to say

3666
01:51:22,739 --> 01:51:23,440
that sometimes the holdovers

3667
01:51:23,440 --> 01:51:23,840
are non-revenue and there's no

3668
01:51:23,840 --> 01:51:25,840
value there.

3669
01:51:27,177 --> 01:51:27,878
But the high value ones are

3670
01:51:27,878 --> 01:51:28,145
the ones that should be worked

3671
01:51:28,145 --> 01:51:28,511
on.

3672
01:51:28,511 --> 01:51:28,880
Thank you.

3673
01:51:28,880 --> 01:51:30,880
Thank you.

3674
01:51:32,150 --> 01:51:32,349
Next is Peggy Walker if you can

3675
01:51:32,349 --> 01:51:32,716
please.

3676
01:51:32,716 --> 01:51:33,115
>> On you.

3677
01:51:33,115 --> 01:51:35,115
Thank you.

3678
01:51:36,587 --> 01:51:37,187
Good afternoon.

3679
01:51:37,187 --> 01:51:37,855
I'm a public health

3680
01:51:37,855 --> 01:51:40,855
professional and if you are

3681
01:51:41,824 --> 01:51:42,192
people are a priority and they

3682
01:51:42,192 --> 01:51:42,926
should be.

3683
01:51:42,926 --> 01:51:45,562
I ask you to look at

3684
01:51:45,562 --> 01:51:46,263
the science and data to

3685
01:51:46,263 --> 01:51:46,830
consider real consequences of

3686
01:51:46,830 --> 01:51:48,830
adding more marijuana

3687
01:51:50,901 --> 01:51:51,568
businesses a c program

3688
01:51:51,568 --> 01:51:53,968
proffering more high potency

3689
01:51:55,272 --> 01:51:55,939
products will only increase

3690
01:51:55,939 --> 01:51:56,306
adverse health and economic

3691
01:51:56,306 --> 01:51:58,306
outcomes.

3692
01:52:00,243 --> 01:52:00,944
Economic downsides include

3693
01:52:00,944 --> 01:52:01,677
increased need for health care

3694
01:52:01,677 --> 01:52:04,770
treatment and access especially

3695
01:52:05,382 --> 01:52:06,150
for young people.

3696
01:52:06,150 --> 01:52:07,170
You know there's already a

3697
01:52:07,170 --> 01:52:10,170
problem when 40% of San Diego

3698
01:52:10,888 --> 01:52:13,288
County's marijuana related er

3699
01:52:15,426 --> 01:52:17,826
admissions are aged 12 to 17

3700
01:52:18,729 --> 01:52:19,430
and those 15 to 24 have

3701
01:52:19,430 --> 01:52:22,430
the highest number of cannabis

3702
01:52:23,967 --> 01:52:24,835
related er visits of all ages.

3703
01:52:24,835 --> 01:52:27,371
You know there's a problem when

3704
01:52:27,371 --> 01:52:28,380
Rudy's Children's Hospital

3705
01:52:28,380 --> 01:52:28,739
reports 600 child admissions

3706
01:52:28,739 --> 01:52:31,139
for cannabis related treatment

3707
01:52:32,710 --> 01:52:35,710
last year and the county

3708
01:52:36,680 --> 01:52:37,381
predicts a 129% increase is in

3709
01:52:37,381 --> 01:52:39,781
use substance treatment needs

3710
01:52:41,352 --> 01:52:41,990
in the future.

3711
01:52:41,990 --> 01:52:42,620
Studies show teens living

3712
01:52:42,620 --> 01:52:45,200
within ten minutes of

3713
01:52:46,900 --> 01:52:46,757
dispensaries Those on Medicaid

3714
01:52:46,757 --> 01:52:49,757
and those from lower income

3715
01:52:50,861 --> 01:52:51,562
neighborhoods are more likely

3716
01:52:51,562 --> 01:52:52,162
to use marijuana and have

3717
01:52:52,162 --> 01:52:54,162
higher psychosis rates.

3718
01:52:55,632 --> 01:52:56,200
Ironically this worsens

3719
01:52:56,200 --> 01:52:58,200
existing mental health

3720
01:53:00,571 --> 01:53:01,238
inequities right and seats

3721
01:53:01,238 --> 01:53:03,238
target targeted communities.

3722
01:53:05,475 --> 01:53:06,110
Remember the pot industry's

3723
01:53:06,110 --> 01:53:06,844
business model is to keep

3724
01:53:06,844 --> 01:53:09,844
existing users dependent and to

3725
01:53:10,647 --> 01:53:11,515
hook future generations.

3726
01:53:11,515 --> 01:53:14,515
And no reparation or tax

3727
01:53:15,752 --> 01:53:16,386
revenue justifies the resulting

3728
01:53:16,386 --> 01:53:18,386
child poisonings Addiction

3729
01:53:20,224 --> 01:53:21,250
cannabis hyperemesis psychosis

3730
01:53:21,250 --> 01:53:24,250
drops out suicide dui injuries

3731
01:53:25,629 --> 01:53:26,396
or death.

3732
01:53:26,396 --> 01:53:26,931
Now a young person's future is

3733
01:53:26,931 --> 01:53:28,931
worth that tradeoff.

3734
01:53:30,501 --> 01:53:30,901
We don't need more marijuana

3735
01:53:30,901 --> 01:53:31,502
businesses.

3736
01:53:31,502 --> 01:53:34,502
We need drug free kids.

3737
01:53:35,605 --> 01:53:36,600
Thank you for listening.

3738
01:53:36,600 --> 01:53:36,941
Thank you.

3739
01:53:36,941 --> 01:53:39,876
Blair Beckman If you can please

3740
01:53:39,876 --> 01:53:40,477
unmute me.

3741
01:53:40,477 --> 01:53:40,844
>> All right.

3742
01:53:40,844 --> 01:53:42,844
Thank you.

3743
01:53:44,715 --> 01:53:45,416
Very.

3744
01:53:45,416 --> 01:53:48,416
Thanks for the meeting today.

3745
01:53:49,253 --> 01:53:49,854
It was an important meeting on

3746
01:53:49,854 --> 01:53:50,254
ideas of accountability.

3747
01:53:50,254 --> 01:53:52,254
We need it.

3748
01:53:54,725 --> 01:53:55,493
I like accountability ideas.

3749
01:53:55,493 --> 01:53:55,793
Good luck what we could be

3750
01:53:55,793 --> 01:53:57,793
doing.

3751
01:53:58,529 --> 01:53:58,963
i was councilperson LaCava was

3752
01:53:58,963 --> 01:53:59,697
here today.

3753
01:53:59,697 --> 01:54:00,397
Good luck How he can be

3754
01:54:00,397 --> 01:54:02,797
returning to upcoming city

3755
01:54:02,967 --> 01:54:03,835
council meetings.

3756
01:54:03,835 --> 01:54:07,505
Um I wanted to comment a thank

3757
01:54:07,505 --> 01:54:08,238
you from public comment today.

3758
01:54:08,238 --> 01:54:11,838
I'm also interested in the idea

3759
01:54:12,443 --> 01:54:13,144
that we continue dialog on not

3760
01:54:13,144 --> 01:54:16,744
just council but the mayor can

3761
01:54:17,748 --> 01:54:18,516
take a slight reduction in pay

3762
01:54:18,516 --> 01:54:22,716
and how that can be good faith

3763
01:54:23,154 --> 01:54:23,721
efforts and ideas to really

3764
01:54:23,721 --> 01:54:24,120
address the budget in

3765
01:54:24,120 --> 01:54:24,856
the future.

3766
01:54:24,856 --> 01:54:25,256
Good luck in really considering

3767
01:54:25,256 --> 01:54:27,256
that issue.

3768
01:54:27,492 --> 01:54:27,791
I think it's worth considering

3769
01:54:27,791 --> 01:54:28,559
.

3770
01:54:28,559 --> 01:54:32,159
I also wanted to comment at

3771
01:54:32,830 --> 01:54:33,597
this time you know I'm trying

3772
01:54:33,597 --> 01:54:33,898
my best to learn how to balance

3773
01:54:33,898 --> 01:54:35,898
that.

3774
01:54:37,368 --> 01:54:38,690
The fact that we're in a

3775
01:54:38,690 --> 01:54:41,669
current war in Iran and how

3776
01:54:42,407 --> 01:54:43,107
that connects to our lives here

3777
01:54:43,107 --> 01:54:46,411
at the local level do we have

3778
01:54:46,411 --> 01:54:47,311
to be in deep fear or do we

3779
01:54:47,311 --> 01:54:51,820
have to be in slight fear or I

3780
01:54:51,820 --> 01:54:51,749
mean unbelievably we don't seem

3781
01:54:51,749 --> 01:54:52,483
to have to be in fear.

3782
01:54:52,483 --> 01:54:53,885
Things seem to be in check.

3783
01:54:53,885 --> 01:54:57,485
I think GOD's really lucky on

3784
01:54:59,900 --> 01:54:59,757
our end.

3785
01:54:59,757 --> 01:55:00,725
>> What are we doing?

3786
01:55:00,725 --> 01:55:04,295
I hope we can be continuing to

3787
01:55:04,295 --> 01:55:04,996
address important matters from

3788
01:55:04,996 --> 01:55:08,596
that and that you know in

3789
01:55:08,599 --> 01:55:09,334
noting how things are going

3790
01:55:09,334 --> 01:55:12,971
around the world we we then can

3791
01:55:12,971 --> 01:55:13,737
balance best practices and best

3792
01:55:13,737 --> 01:55:14,438
ideals And when we do that

3793
01:55:14,438 --> 01:55:18,380
stuff here I keep saying at

3794
01:55:18,109 --> 01:55:18,710
the local level openly and

3795
01:55:18,710 --> 01:55:21,110
clearly it simply gives

3796
01:55:22,947 --> 01:55:23,681
everyone around the world ideas

3797
01:55:23,681 --> 01:55:24,415
of better reasoning and peace

3798
01:55:24,415 --> 01:55:28,150
And so it's working towards our

3799
01:55:28,190 --> 01:55:28,720
best selves that it's how to

3800
01:55:28,720 --> 01:55:31,720
address war and not to

3801
01:55:32,323 --> 01:55:32,956
continuously hide and be

3802
01:55:32,956 --> 01:55:33,658
secretive because of war.

3803
01:55:33,658 --> 01:55:36,658
It's an important lesson we're

3804
01:55:37,562 --> 01:55:38,429
learning and I hope we practice

3805
01:55:38,429 --> 01:55:42,100
it well and I hope we practice

3806
01:55:42,100 --> 01:55:42,800
dialog instead of harm in

3807
01:55:42,800 --> 01:55:43,268
the future and trust luck how

3808
01:55:43,268 --> 01:55:43,701
we can do that.

3809
01:55:43,701 --> 01:55:45,701
>> Thank you.

3810
01:55:46,337 --> 01:55:47,105
Thank you.

3811
01:55:47,105 --> 01:55:47,772
Next is Madison After that

3812
01:55:47,772 --> 01:55:50,172
Francine Maxwell in Madison

3813
01:55:50,842 --> 01:55:51,476
Please unmute.

3814
01:55:51,476 --> 01:55:53,476
>> Hi, good afternoon.

3815
01:55:56,247 --> 01:55:56,915
I'm a mother of young children

3816
01:55:56,915 --> 01:55:57,615
and I'm here today to speak

3817
01:55:57,615 --> 01:56:00,615
about the public safety risks

3818
01:56:00,885 --> 01:56:01,553
associated with high thc

3819
01:56:01,553 --> 01:56:01,987
cannabis and what that means

3820
01:56:01,987 --> 01:56:03,987
for our roads.

3821
01:56:05,824 --> 01:56:06,557
A recent federally funded study

3822
01:56:06,557 --> 01:56:08,557
highlighted something important

3823
01:56:10,895 --> 01:56:11,496
We still do not have a reliable

3824
01:56:11,496 --> 01:56:12,960
practical way to measure

3825
01:56:12,960 --> 01:56:14,960
marijuana impairment at

3826
01:56:15,667 --> 01:56:16,100
the roadside like we do with

3827
01:56:16,100 --> 01:56:16,701
alcohol.

3828
01:56:16,701 --> 01:56:19,701
Researchers are now working on

3829
01:56:20,238 --> 01:56:20,772
a new thc breathalyzer using 3d

3830
01:56:20,772 --> 01:56:21,439
printed technology.

3831
01:56:21,439 --> 01:56:24,439
But they do acknowledge it's

3832
01:56:25,310 --> 01:56:25,977
only a proof of concept and

3833
01:56:25,977 --> 01:56:27,977
requires significant further

3834
01:56:29,581 --> 01:56:30,248
validation while marijuana use

3835
01:56:30,248 --> 01:56:30,648
becomes more normalized and

3836
01:56:30,648 --> 01:56:32,648
accessible.

3837
01:56:34,152 --> 01:56:34,820
Our ability to keep impaired

3838
01:56:34,820 --> 01:56:35,187
drivers off the road has not

3839
01:56:35,187 --> 01:56:37,187
kept pace.

3840
01:56:39,223 --> 01:56:39,891
The study makes clear that

3841
01:56:39,891 --> 01:56:40,558
there is a growing need for

3842
01:56:40,558 --> 01:56:42,958
fast reliable roadside tools

3843
01:56:44,462 --> 01:56:45,162
due to the increase in cannabis

3844
01:56:45,162 --> 01:56:48,762
use and that the current lack

3845
01:56:49,199 --> 01:56:49,868
of such tools raises the risk

3846
01:56:49,868 --> 01:56:50,569
of accidents and fatalities

3847
01:56:50,569 --> 01:56:52,969
caused by intoxicated drivers.

3848
01:56:53,972 --> 01:56:54,672
Even more concerning, federal

3849
01:56:54,672 --> 01:56:57,720
researchers and agencies have

3850
01:56:58,810 --> 01:56:59,411
acknowledged that thc levels in

3851
01:56:59,411 --> 01:57:00,440
the body do not reliably

3852
01:57:00,440 --> 01:57:02,440
correlate with impairment

3853
01:57:03,615 --> 01:57:04,316
the way alcohol does.

3854
01:57:04,316 --> 01:57:04,983
That means law enforcement is

3855
01:57:04,983 --> 01:57:07,383
left without clear objective

3856
01:57:08,860 --> 01:57:08,687
standards making it much harder

3857
01:57:08,687 --> 01:57:11,870
to identify and prevent

3858
01:57:12,457 --> 01:57:13,325
impaired driving in real time.

3859
01:57:13,325 --> 01:57:13,992
At the same time we know thc

3860
01:57:13,992 --> 01:57:16,392
affects reaction time, motor

3861
01:57:17,796 --> 01:57:18,497
coordination and judgment all

3862
01:57:18,497 --> 01:57:18,830
of which are critical for safe

3863
01:57:18,830 --> 01:57:20,830
driving.

3864
01:57:22,467 --> 01:57:23,200
When you combine increased

3865
01:57:23,200 --> 01:57:26,200
access to high potency products

3866
01:57:26,837 --> 01:57:27,606
with limited enforcement tools

3867
01:57:27,606 --> 01:57:28,106
you create a real and growing

3868
01:57:28,106 --> 01:57:30,106
public safety gap.

3869
01:57:31,510 --> 01:57:32,244
>> This is especially relevant

3870
01:57:32,244 --> 01:57:32,878
as the city considers expanding

3871
01:57:32,878 --> 01:57:34,878
marijuana storefronts more

3872
01:57:36,848 --> 01:57:37,549
retail access means more use

3873
01:57:37,549 --> 01:57:39,949
and more inevitably increases

3874
01:57:41,519 --> 01:57:41,886
the risk of impaired driving on

3875
01:57:41,886 --> 01:57:42,520
our roads.

3876
01:57:42,520 --> 01:57:43,188
We should not be expanding

3877
01:57:43,188 --> 01:57:45,588
access to an intoxicating

3878
01:57:46,892 --> 01:57:47,459
substance faster than we can

3879
01:57:47,459 --> 01:57:47,893
responsibly manage its

3880
01:57:47,893 --> 01:57:49,893
consequences.

3881
01:57:51,960 --> 01:57:51,762
I urge you to take a cautious

3882
01:57:51,762 --> 01:57:52,331
approach and prioritize road

3883
01:57:52,331 --> 01:57:52,698
safety for this issue.

3884
01:57:52,698 --> 01:57:54,698
Thank you.

3885
01:57:55,867 --> 01:57:56,735
Thank you.

3886
01:57:56,735 --> 01:57:59,735
>> Francine Maxwell If you can

3887
01:58:00,606 --> 01:58:01,273
please unmute.

3888
01:58:01,273 --> 01:58:01,607
>> Good afternoon Francine

3889
01:58:01,607 --> 01:58:02,273
Maxwell.

3890
01:58:02,273 --> 01:58:02,575
Thank you for allowing me to

3891
01:58:02,575 --> 01:58:04,575
speak.

3892
01:58:05,644 --> 01:58:09,244
I'm asking for the City Council

3893
01:58:10,382 --> 01:58:11,500
to reimagine the cpp, reimagine

3894
01:58:11,500 --> 01:58:14,500
you engaging in getting more

3895
01:58:15,319 --> 01:58:15,988
involved especially since for

3896
01:58:15,988 --> 01:58:16,689
the last five years so many

3897
01:58:16,689 --> 01:58:19,624
things have been classified as

3898
01:58:19,624 --> 01:58:20,259
miscellaneous.

3899
01:58:20,259 --> 01:58:20,893
You should have the police

3900
01:58:20,893 --> 01:58:23,293
department give you an

3901
01:58:25,331 --> 01:58:26,310
explanation in of why they're

3902
01:58:26,310 --> 01:58:28,431
labeling so much miscellaneous

3903
01:58:29,802 --> 01:58:30,569
and not telling the cpp.

3904
01:58:30,569 --> 01:58:31,271
When we used to get a

3905
01:58:31,271 --> 01:58:33,671
spreadsheet of all complaints

3906
01:58:34,873 --> 01:58:35,440
made to the San Diego Police

3907
01:58:35,440 --> 01:58:36,750
Department that's what

3908
01:58:36,750 --> 01:58:39,750
the measure be calls for.

3909
01:58:39,345 --> 01:58:39,978
I would also like the City

3910
01:58:39,978 --> 01:58:42,978
Council to have some bold

3911
01:58:44,830 --> 01:58:44,783
leadership and demand that Joan

3912
01:58:44,783 --> 01:58:47,783
Dawson be interviewed with you

3913
01:58:48,854 --> 01:58:49,421
guys in closed session and ask

3914
01:58:49,421 --> 01:58:50,560
why a city attorney is

3915
01:58:50,560 --> 01:58:52,456
rewriting the policies and

3916
01:58:53,192 --> 01:58:53,592
procedures for an independent

3917
01:58:53,592 --> 01:58:54,193
commission.

3918
01:58:54,193 --> 01:58:56,593
The cpp is independent.

3919
01:58:58,497 --> 01:58:58,831
The city attorney's office is

3920
01:58:58,831 --> 01:58:59,532
the sdp.

3921
01:58:59,532 --> 01:59:01,932
These attorneys we're supposed

3922
01:59:03,335 --> 01:59:03,903
to have our own attorney an

3923
01:59:03,903 --> 01:59:04,637
independent attorney.

3924
01:59:04,637 --> 01:59:08,700
Can you guys ask your colleague

3925
01:59:08,700 --> 01:59:08,741
Marni when she takes a break

3926
01:59:08,741 --> 01:59:09,475
from running for Congress, when

3927
01:59:09,475 --> 01:59:12,211
she's going to get us our

3928
01:59:12,211 --> 01:59:12,912
independent attorney?

3929
01:59:12,912 --> 01:59:15,912
We have a new executive

3930
01:59:17,349 --> 01:59:17,650
director that absolutely needs

3931
01:59:17,650 --> 01:59:18,417
help.

3932
01:59:18,417 --> 01:59:19,180
We need a legal voice on our

3933
01:59:19,180 --> 01:59:21,180
independent commission.

3934
01:59:22,688 --> 01:59:25,688
Where's the Help City Council?

3935
01:59:27,559 --> 01:59:28,261
You are in charge of c p for

3936
01:59:28,261 --> 01:59:28,727
those of you that are running

3937
01:59:28,727 --> 01:59:29,328
for reelection.

3938
01:59:29,328 --> 01:59:32,231
>> Those of you that are

3939
01:59:32,231 --> 01:59:32,998
looking for your next office

3940
01:59:32,998 --> 01:59:33,699
out of city council think about

3941
01:59:33,699 --> 01:59:37,299
how we're going to attach this

3942
01:59:37,937 --> 01:59:38,637
to your leg that you did not do

3943
01:59:38,637 --> 01:59:39,370
what Measure b has called for

3944
01:59:39,370 --> 01:59:41,370
you to do.

3945
01:59:42,975 --> 01:59:43,842
We respect, meet and confer.

3946
01:59:43,842 --> 01:59:47,446
They can take as long as they

3947
01:59:47,446 --> 01:59:48,147
want to but to have the city

3948
01:59:48,147 --> 01:59:51,747
attorney butting in to the cpp

3949
01:59:51,984 --> 01:59:52,685
to have a city council person

3950
01:59:52,685 --> 01:59:53,553
chair of public safety not

3951
01:59:53,553 --> 01:59:57,153
secure as our own attorney you

3952
01:59:57,256 --> 01:59:57,657
should be ashamed of

3953
01:59:57,657 --> 01:59:59,657
yourselves.

3954
01:59:59,992 --> 02:00:00,459
>> Our next speaker is Kathleen

3955
02:00:00,459 --> 02:00:02,459
Lippert.

3956
02:00:09,801 --> 02:00:10,303
If you can please unmute

3957
02:00:10,303 --> 02:00:11,170
Kathleen Lippert.

3958
02:00:11,170 --> 02:00:15,370
>> I can't I mean for you I

3959
02:00:15,408 --> 02:00:15,908
will need to move on to

3960
02:00:15,908 --> 02:00:16,309
the next speaker.

3961
02:00:16,309 --> 02:00:16,809
>> I know.

3962
02:00:16,809 --> 02:00:17,110
There you are.

3963
02:00:17,110 --> 02:00:19,110
Sorry.

3964
02:00:20,120 --> 02:00:20,313
I'm trying.

3965
02:00:20,313 --> 02:00:20,679
Okay.

3966
02:00:20,679 --> 02:00:21,180
Thank you.

3967
02:00:21,180 --> 02:00:23,180
Good afternoon.

3968
02:00:24,750 --> 02:00:25,484
The earlier comment on

3969
02:00:25,484 --> 02:00:29,840
the glide report that is making

3970
02:00:29,489 --> 02:00:30,189
millions while it enjoys

3971
02:00:30,189 --> 02:00:30,857
the benefit of profiting by a

3972
02:00:30,857 --> 02:00:33,257
sweetheart lease is really

3973
02:00:34,360 --> 02:00:35,128
troubling.

3974
02:00:35,128 --> 02:00:38,728
There are a number of similar

3975
02:00:39,298 --> 02:00:39,932
issues where either on going

3976
02:00:39,932 --> 02:00:40,667
support the city's ongoing

3977
02:00:40,667 --> 02:00:44,267
support of a failed policy or

3978
02:00:45,104 --> 02:00:45,738
the absence of a policy that

3979
02:00:45,738 --> 02:00:48,738
really should be in place.

3980
02:00:48,807 --> 02:00:49,542
Both are critical to look at

3981
02:00:49,542 --> 02:00:52,542
city policy should be evaluated

3982
02:00:53,646 --> 02:00:54,380
for their costs versus benefits

3983
02:00:54,380 --> 02:00:57,980
and the city policies that have

3984
02:00:58,885 --> 02:01:02,485
led to higher city costs in

3985
02:01:02,921 --> 02:01:03,623
terms of low law enforcement

3986
02:01:03,623 --> 02:01:05,623
diverted limited resources,

3987
02:01:07,861 --> 02:01:09,861
emergency etc..

3988
02:01:12,565 --> 02:01:13,266
Those are where your policies

3989
02:01:13,266 --> 02:01:13,666
are either absent or they're

3990
02:01:13,666 --> 02:01:15,666
not working.

3991
02:01:18,400 --> 02:01:18,672
The failure to regulate and

3992
02:01:18,672 --> 02:01:19,105
audit city smoke shops is a

3993
02:01:19,105 --> 02:01:21,105
good example.

3994
02:01:23,420 --> 02:01:23,643
They continue to sell products

3995
02:01:23,643 --> 02:01:24,100
that have been banned by

3996
02:01:24,100 --> 02:01:24,544
the state.

3997
02:01:24,544 --> 02:01:26,544
These products harm.

3998
02:01:27,814 --> 02:01:28,515
Are youth and their futures as

3999
02:01:28,515 --> 02:01:31,515
well as undermine the profits

4000
02:01:32,585 --> 02:01:33,252
of permitted shops that are

4001
02:01:33,252 --> 02:01:33,653
operating according to city

4002
02:01:33,653 --> 02:01:35,653
regulations.

4003
02:01:37,190 --> 02:01:37,857
The city has allowed alcohol

4004
02:01:37,857 --> 02:01:40,257
retailers that unfairly draw

4005
02:01:42,862 --> 02:01:43,564
limited long foresman resources

4006
02:01:43,564 --> 02:01:45,964
resources over serve customers

4007
02:01:47,500 --> 02:01:48,134
that lead to customers leaving

4008
02:01:48,134 --> 02:01:50,534
and getting into crashes.

4009
02:01:52,339 --> 02:01:55,339
Do you or are hitting

4010
02:01:57,143 --> 02:01:57,711
pedestrian injuries or death or

4011
02:01:57,711 --> 02:01:58,211
getting into fights or

4012
02:01:58,211 --> 02:02:00,211
committing rapes?

4013
02:02:01,815 --> 02:02:02,515
The city needs an on sale

4014
02:02:02,515 --> 02:02:03,160
conditional use permit to hold

4015
02:02:03,160 --> 02:02:05,160
them accountable.

4016
02:02:07,870 --> 02:02:07,554
And last please stop with all

4017
02:02:07,554 --> 02:02:08,255
the euphemisms.

4018
02:02:08,255 --> 02:02:11,855
The public is tired of ballot

4019
02:02:11,858 --> 02:02:12,726
measures, initiatives etc. That

4020
02:02:12,726 --> 02:02:16,229
say one thing but when you read

4021
02:02:16,229 --> 02:02:16,729
the fine print means something

4022
02:02:16,729 --> 02:02:18,729
totally different.

4023
02:02:20,967 --> 02:02:21,434
The Inflation Reduction Act

4024
02:02:21,434 --> 02:02:22,135
Perfect example.

4025
02:02:22,135 --> 02:02:24,535
Drug dealers became caregivers

4026
02:02:27,807 --> 02:02:28,441
Federal schedule one being

4027
02:02:28,441 --> 02:02:30,441
called medicine Marijuana.

4028
02:02:33,279 --> 02:02:33,947
Sorry your time is patient Your

4029
02:02:33,947 --> 02:02:35,782
time is concluded Catherine

4030
02:02:35,782 --> 02:02:36,820
wrote If you can please on meal

4031
02:02:36,820 --> 02:02:38,820
.

4032
02:02:39,853 --> 02:02:40,519
Hello Catherine wrote You know

4033
02:02:40,519 --> 02:02:41,254
the 1998 Torrey Pines glider

4034
02:02:41,254 --> 02:02:44,254
Port sweetheart lease was given

4035
02:02:45,250 --> 02:02:45,792
to retired city of San Diego

4036
02:02:45,792 --> 02:02:48,792
employee who's making so much

4037
02:02:49,962 --> 02:02:50,697
private money for themselves

4038
02:02:50,697 --> 02:02:54,297
and paying the city very little

4039
02:02:54,600 --> 02:02:55,569
in lease revenue.

4040
02:02:55,569 --> 02:02:56,169
Why don't you have it be a

4041
02:02:56,169 --> 02:02:56,503
percentage of the lease

4042
02:02:56,503 --> 02:02:58,405
instead?

4043
02:02:58,405 --> 02:02:58,705
Right now it's a gift to public

4044
02:02:58,705 --> 02:02:59,573
funds.

4045
02:02:59,573 --> 02:03:03,173
In fact there was a 2022 San

4046
02:03:04,100 --> 02:03:04,644
Diego County Grand jury report

4047
02:03:04,644 --> 02:03:05,112
on the Torrey Pines quite

4048
02:03:05,112 --> 02:03:07,112
important lease.

4049
02:03:08,415 --> 02:03:09,820
So far nothing has happened.

4050
02:03:09,820 --> 02:03:09,816
You know that It's pathetic.

4051
02:03:09,816 --> 02:03:12,816
So anyway, your new budget

4052
02:03:14,200 --> 02:03:14,755
comes out next Wednesday.

4053
02:03:14,755 --> 02:03:18,258
Why is everybody going to get

4054
02:03:18,258 --> 02:03:18,859
10% at least in the nba going

4055
02:03:18,859 --> 02:03:19,626
to get 10% raises.

4056
02:03:19,626 --> 02:03:22,626
And the management analysts are

4057
02:03:23,397 --> 02:03:24,630
going to get like 18.8% raises.

4058
02:03:24,630 --> 02:03:27,630
How could they possibly get

4059
02:03:27,735 --> 02:03:28,368
raises when we have a

4060
02:03:28,368 --> 02:03:30,368
structural budget deficit?

4061
02:03:31,905 --> 02:03:32,439
Plus since 2023 they already

4062
02:03:32,439 --> 02:03:34,439
got a 23% rate.

4063
02:03:35,909 --> 02:03:36,477
So they've gotten 23% in

4064
02:03:36,477 --> 02:03:37,770
the last three years.

4065
02:03:37,770 --> 02:03:37,577
Now they're going to get

4066
02:03:37,577 --> 02:03:39,577
another 10% more.

4067
02:03:41,480 --> 02:03:41,949
And remember in 2013 is when

4068
02:03:41,949 --> 02:03:45,186
I'm mayor or inner mayor todd

4069
02:03:45,186 --> 02:03:45,853
Gloria started using the league

4070
02:03:45,853 --> 02:03:48,853
legal loophole in the city

4071
02:03:49,560 --> 02:03:49,790
charter to violate the five

4072
02:03:49,790 --> 02:03:50,524
year pitch double pay freeze by

4073
02:03:50,524 --> 02:03:53,524
creating the middle managers at

4074
02:03:54,280 --> 02:03:54,628
that point there were 70

4075
02:03:54,628 --> 02:03:56,628
million middle managers.

4076
02:03:59,333 --> 02:04:00,000
Now the another u-t report came

4077
02:04:00,000 --> 02:04:00,701
out and the San Diego County

4078
02:04:00,701 --> 02:04:03,101
Taxpayers Association came out

4079
02:04:04,400 --> 02:04:07,400
that the middle managers that

4080
02:04:07,410 --> 02:04:07,908
are nonunion workers have

4081
02:04:07,908 --> 02:04:10,308
exploded by 461% over 15 years.

4082
02:04:12,913 --> 02:04:15,913
And then also during closed

4083
02:04:17,510 --> 02:04:17,484
session last week you guys

4084
02:04:17,484 --> 02:04:18,185
didn't report.

4085
02:04:18,185 --> 02:04:18,786
You didn't report out that you

4086
02:04:18,786 --> 02:04:21,186
had all these tentative

4087
02:04:22,220 --> 02:04:22,322
agreements with all the unions

4088
02:04:22,322 --> 02:04:23,190
.

4089
02:04:23,190 --> 02:04:26,327
In fact, you didn't say you you

4090
02:04:26,327 --> 02:04:26,927
you didn't say anything about

4091
02:04:26,927 --> 02:04:27,661
any tentative agreement.

4092
02:04:27,661 --> 02:04:31,465
So I don't know why I think

4093
02:04:31,465 --> 02:04:31,932
that the city attorney should

4094
02:04:31,932 --> 02:04:33,932
talk about that.

4095
02:04:36,370 --> 02:04:36,971
And so I don't see how you

4096
02:04:36,971 --> 02:04:39,371
could possibly be giving

4097
02:04:41,509 --> 02:04:42,175
anybody any raise More time has

4098
02:04:42,175 --> 02:04:42,910
concluded if you're raising

4099
02:04:42,910 --> 02:04:46,510
your hand after the five minute

4100
02:04:46,847 --> 02:04:47,748
timer has concluded already.

4101
02:04:47,748 --> 02:04:48,115
So you MAY take any additional

4102
02:04:48,115 --> 02:04:50,850
comments.

4103
02:04:50,850 --> 02:04:50,785
The city clerk at San diego.Gov

4104
02:04:50,785 --> 02:04:51,152
and those will be distributed.

4105
02:04:51,152 --> 02:04:53,152
Becky up.

4106
02:04:55,156 --> 02:04:55,756
Please proceed.

4107
02:04:55,756 --> 02:04:57,756
>> Good afternoon.

4108
02:04:59,960 --> 02:05:00,728
My name is Anne Burghoff and I

4109
02:05:00,728 --> 02:05:03,497
come here to ask you to please

4110
02:05:03,497 --> 02:05:04,650
prioritize public health in

4111
02:05:04,650 --> 02:05:04,465
relation to marijuana

4112
02:05:04,465 --> 02:05:05,166
consumption.

4113
02:05:05,166 --> 02:05:08,166
It's more important than ever

4114
02:05:09,403 --> 02:05:10,104
before that accurate science

4115
02:05:10,104 --> 02:05:13,607
speak for me is presented to

4116
02:05:13,607 --> 02:05:13,941
this Council and to the public

4117
02:05:13,941 --> 02:05:14,508
serves.

4118
02:05:14,508 --> 02:05:15,142
A recent report from

4119
02:05:15,142 --> 02:05:17,542
the National Academies of

4120
02:05:18,112 --> 02:05:18,779
Sciences Our nation's leading

4121
02:05:18,779 --> 02:05:21,179
scientific advisory board is

4122
02:05:23,500 --> 02:05:23,684
recommending federal action to

4123
02:05:23,684 --> 02:05:24,418
address the serious health

4124
02:05:24,418 --> 02:05:24,819
risks associated with marijuana

4125
02:05:24,819 --> 02:05:26,819
consumption.

4126
02:05:29,290 --> 02:05:29,990
This is a clear warning from

4127
02:05:29,990 --> 02:05:32,626
the science community that it

4128
02:05:32,626 --> 02:05:33,159
is not aligned with serious

4129
02:05:33,159 --> 02:05:33,794
public health risks.

4130
02:05:33,794 --> 02:05:36,194
The report highlights some

4131
02:05:37,565 --> 02:05:39,565
critical turns dramatically.

4132
02:05:43,504 --> 02:05:47,104
It is apparently in doubt and

4133
02:05:47,375 --> 02:05:48,142
the abundance of toxic sulfate

4134
02:05:48,142 --> 02:05:50,545
phc being sold at our local

4135
02:05:50,545 --> 02:05:53,545
tobacco and smoke shops These

4136
02:05:57,418 --> 02:05:59,418
pot.

4137
02:06:02,957 --> 02:06:03,425
Hello.

4138
02:06:03,425 --> 02:06:04,192
We lost you.

4139
02:06:04,192 --> 02:06:06,592
Barbara Gordon your final

4140
02:06:07,128 --> 02:06:07,528
speaker.

4141
02:06:07,528 --> 02:06:09,528
Thank you.

4142
02:06:12,333 --> 02:06:13,167
Good afternoon.

4143
02:06:13,167 --> 02:06:16,767
I am concerned as a public

4144
02:06:16,971 --> 02:06:17,738
health advocate that nearly

4145
02:06:17,738 --> 02:06:20,738
every week a new intoxicating

4146
02:06:22,176 --> 02:06:22,810
mind altering product emerges

4147
02:06:22,810 --> 02:06:23,444
often unnoticed and until

4148
02:06:23,444 --> 02:06:25,844
reports surfaced as people

4149
02:06:27,615 --> 02:06:28,316
being harmed and the physical

4150
02:06:28,316 --> 02:06:28,783
and mental health of our youth

4151
02:06:28,783 --> 02:06:30,783
is in jeopardy.

4152
02:06:32,186 --> 02:06:32,887
Products like intoxicating thc

4153
02:06:32,887 --> 02:06:35,887
hemp and create them are

4154
02:06:36,758 --> 02:06:37,425
dangerous and addictive

4155
02:06:37,425 --> 02:06:39,425
Intoxicating compounds like

4156
02:06:41,290 --> 02:06:41,361
Delta eight, Delta ten and many

4157
02:06:41,361 --> 02:06:42,630
others.

4158
02:06:42,630 --> 02:06:45,630
The products are available in

4159
02:06:46,000 --> 02:06:46,668
convenience stores, vape shops

4160
02:06:46,668 --> 02:06:49,680
online without any oversight

4161
02:06:51,390 --> 02:06:51,506
and in many places without any

4162
02:06:51,506 --> 02:06:53,506
age restriction.

4163
02:06:55,476 --> 02:06:56,211
Potent kratom compounds become

4164
02:06:56,211 --> 02:06:59,211
especially dangerous when it is

4165
02:07:00,148 --> 02:07:00,881
concentrated in products like

4166
02:07:00,881 --> 02:07:02,881
dummies, drinks, powders,

4167
02:07:04,786 --> 02:07:05,320
Capsules are also sold in smoke

4168
02:07:05,320 --> 02:07:07,320
shops, gas stations,

4169
02:07:09,724 --> 02:07:10,258
convenience stores and online

4170
02:07:10,258 --> 02:07:11,920
marketed as natural.

4171
02:07:11,920 --> 02:07:14,496
These products can be just as

4172
02:07:14,496 --> 02:07:15,630
harmful as synthetic opiates

4173
02:07:15,630 --> 02:07:17,630
posing serious danger.

4174
02:07:19,701 --> 02:07:20,468
The fda warns that kratom

4175
02:07:20,468 --> 02:07:22,868
products like 708 is not

4176
02:07:23,972 --> 02:07:24,839
approved.

4177
02:07:24,839 --> 02:07:28,439
It's not lawful and unsafe with

4178
02:07:28,877 --> 02:07:29,577
risk including seizures,

4179
02:07:29,577 --> 02:07:31,577
depression, anxiety, addiction

4180
02:07:33,815 --> 02:07:34,182
withdrawals and overdose like

4181
02:07:34,182 --> 02:07:35,160
symptoms.

4182
02:07:35,160 --> 02:07:39,154
I am urging the city Council to

4183
02:07:39,154 --> 02:07:39,955
treat intoxicating products as

4184
02:07:39,955 --> 02:07:43,724
a public health issue not as a

4185
02:07:43,724 --> 02:07:44,325
product that is in the gray

4186
02:07:44,325 --> 02:07:45,159
area as it could be.

4187
02:07:45,159 --> 02:07:48,759
As a community we need to

4188
02:07:48,763 --> 02:07:49,496
insist that any mind altering

4189
02:07:49,496 --> 02:07:51,896
substance that are manufactured

4190
02:07:53,702 --> 02:07:54,469
packaging marketed should not

4191
02:07:54,469 --> 02:07:54,936
be allowed to be sold in in

4192
02:07:54,936 --> 02:07:56,936
the marketplace.

4193
02:07:58,605 --> 02:07:59,207
Public safety is the city's

4194
02:07:59,207 --> 02:08:01,207
primary responsibility.

4195
02:08:04,179 --> 02:08:04,646
Thank you for letting me speak.

4196
02:08:04,646 --> 02:08:05,450
>> Thank you.

4197
02:08:05,450 --> 02:08:05,780
Big wrap.

4198
02:08:05,780 --> 02:08:08,250
I am coming back to you.

4199
02:08:08,250 --> 02:08:08,817
I'm not sure if the issue was

4200
02:08:08,817 --> 02:08:11,817
on my end or not.

4201
02:08:12,787 --> 02:08:13,288
Thank you And I appreciate had

4202
02:08:13,288 --> 02:08:13,622
one minute left.

4203
02:08:13,622 --> 02:08:13,988
Great.

4204
02:08:13,988 --> 02:08:14,723
Thank you.

4205
02:08:14,723 --> 02:08:17,491
I was just reading about

4206
02:08:17,491 --> 02:08:17,993
the National Academies of

4207
02:08:17,993 --> 02:08:18,626
Sciences and their

4208
02:08:18,626 --> 02:08:21,260
recommendations and I just

4209
02:08:22,931 --> 02:08:23,665
wanted to add that here in San

4210
02:08:23,665 --> 02:08:24,366
Diego our emergency departments

4211
02:08:24,366 --> 02:08:26,766
and pediatric specialists are

4212
02:08:27,502 --> 02:08:28,203
seeing these real impacts youth

4213
02:08:28,203 --> 02:08:30,203
experiencing psychosis, severe

4214
02:08:32,174 --> 02:08:32,741
anxiety and cannabinoid

4215
02:08:32,741 --> 02:08:33,441
hyperemesis syndrome.

4216
02:08:33,441 --> 02:08:37,410
I urge this council to invite

4217
02:08:37,412 --> 02:08:38,113
physicians from Rady Children's

4218
02:08:38,113 --> 02:08:38,813
Hospital and doctors from our

4219
02:08:38,813 --> 02:08:41,213
local emergency departments to

4220
02:08:42,651 --> 02:08:43,351
come and speak directly to you.

4221
02:08:43,351 --> 02:08:43,852
Let them share what they're

4222
02:08:43,852 --> 02:08:45,852
seeing firsthand.

4223
02:08:47,222 --> 02:08:47,856
Let this Council hear directly

4224
02:08:47,856 --> 02:08:48,522
from the medical community

4225
02:08:48,522 --> 02:08:51,426
about these products and how

4226
02:08:51,426 --> 02:08:51,927
they're affecting our youth and

4227
02:08:51,927 --> 02:08:52,628
our families.

4228
02:08:52,628 --> 02:08:55,280
The National Academies report

4229
02:08:56,865 --> 02:08:57,499
is clear We need better public

4230
02:08:57,499 --> 02:08:58,166
education, better data and

4231
02:08:58,166 --> 02:09:00,566
policies grounded in public

4232
02:09:02,304 --> 02:09:02,638
health not just access and

4233
02:09:02,638 --> 02:09:03,710
revenue.

4234
02:09:03,710 --> 02:09:03,438
>> Thank you.

4235
02:09:03,438 --> 02:09:04,706
Thank you.

4236
02:09:04,706 --> 02:09:05,407
That does conclude the agenda

4237
02:09:05,407 --> 02:09:07,807
Public comment for today's

4238
02:09:09,644 --> 02:09:10,145
meeting.

4239
02:09:10,145 --> 02:09:12,145
Thank you.

4240
02:09:15,484 --> 02:09:15,984
And with that we will now

4241
02:09:15,984 --> 02:09:16,718
adjourn Council to

4242
02:09:16,718 --> 02:09:19,870
the regularly scheduled council

4243
02:09:19,870 --> 02:09:19,588
meeting on Tuesday, APRIL 14th,

4244
02:09:19,588 --> 02:09:21,588
2026 at 10:00 am.