[0:00] .
[0:00] >> Good afternoon will call
[0:01] the city council meeting of
[0:03] Monday APRIL 2nd APRIL 13th,
[0:04] 2026 to order.
[0:04] Clerk Please call the roll.
[0:05] Thank you.
[0:06] Council PRESIDENT Pro Tem and
[0:08] Council member Campbell
[0:09] Councilmember Whitburn
[0:14] Councilmember Foster
[0:14] Councilmember Van Wilpert
[0:15] Councilmember Kemp You hear
[0:18] Councilmember Moreno present
[0:19] Council Member Ella Rivera.
[0:23] Council PRESIDENT LaCava and
[0:24] Council PRESIDENT Pro Tem Lee.
[0:24] They're also taking
[0:25] the meeting.
[0:28] Our assistant city Attorney
[0:28] Michelle Garland Independent
[0:29] budget Analyst Charles Monica.
[0:33] Council Affairs Advisor in
[0:34] the Mayor's office Curtis Iser
[0:34] and myself for City Clerk Diana
[0:35] Fuentes Thank you Council
[0:37] PRESIDENT Pro Tem Thank you.
[0:38] A quorum is now present.
[0:38] We will begin this afternoon
[0:43] with an invocation by Clark
[0:43] Pointis.
[0:43] Followed by the Land
[0:44] acknowledgment and the Pledge
[0:45] of Allegiance led by Council
[0:49] member Campo Grant.
[0:50] Those who hold office in this
[0:55] city the spirit of wisdom,
[0:55] charity and justice that with
[0:56] steadfast purpose they MAY
[0:58] faithfully serve in their
[0:59] offices to promote
[1:04] the well-being of all people We
[1:04] respectfully acknowledge that
[1:05] the Committee.
[1:05] Nation are the original
[1:08] inhabitants of the Unceded land
[1:09] now known as San Diego.
[1:10] Despite enduring the horrors of
[1:10] genocide and colonization,
[1:13] the spirit remains unbroken.
[1:14] We honor the resilience of
[1:15] their ancestors who fought to
[1:18] protect their culture and land.
[1:19] Today they carry their legacy
[1:23] forward ensuring that their
[1:23] traditions continue to thrive
[1:24] in gratitude and strength.
[1:27] We stand with the culmination.
[1:28] Connected to our past and
[1:29] committed to a thriving future.
[1:32] Please stand Face the flag and
[1:36] over your heart Ready Begin.
[1:37] I pledge allegiance to the flag
[1:41] of the United States of America
[1:42] and to the Republic for which
[1:45] it stands One nation under GOD
[1:46] ,indivisible with liberty and
[1:51] justice for all.
[1:55] >> Now are there any mayor,
[1:56] council, city attorney and
[1:57] independent budget analyst or
[2:00] city Clerk Comments Seeing
[2:01] none, the clerk will now go
[2:01] over how the public can offer
[2:05] their public testimony.
[2:06] Please proceed.
[2:06] Thank you Council PRESIDENT For
[2:10] a time I'd like to highlight
[2:11] there was a slight.
[2:11] There it is again the site on
[2:12] the screen that reviews how
[2:13] the public can offer their
[2:15] public testimony during this
[2:16] afternoon's meeting.
[2:16] The order can be found on
[2:17] the agenda summaries found
[2:20] online or at the table in
[2:21] the back of the room here in
[2:21] council chambers.
[2:22] If you are in person please
[2:23] complete the speaker slip
[2:25] looking at the entrance of
[2:25] chambers and bring it to
[2:26] the front of the room in
[2:26] the clear box.
[2:30] Council ambassadors are
[2:30] available near the entrance and
[2:31] can assist with questions and
[2:34] speakers Lips no further
[2:35] in-person testimony will be
[2:36] taken once the council begins
[2:36] Virtual Testimony Thank you
[2:40] Council PRESIDENT Pro Tem Thank
[2:40] you.
[2:41] >> We'll go ahead and get
[2:41] started with our afternoon's
[2:42] informational agenda.
[2:45] Quickly please introduce item
[2:45] 200.
[2:46] >> Item 200 is the performance
[2:49] audit of the mission Bay and
[2:50] San Diego Regional Parks
[2:53] Improvement Funds for fiscal
[2:53] year 2024.
[2:54] If you'd like to speak on this
[2:55] item now's the time to raise
[2:58] your hand by pressing Star nine
[2:58] or the raise your hand icon or
[3:02] by submitting a speaker slip as
[3:02] noted.
[3:03] To the front of the room in
[3:03] the clear box.
[3:04] Thank you.
[3:06] Council PRESIDENT Pro Tem Thank
[3:07] you.
[3:08] We'll go ahead and turn it over
[3:12] to our office of the City
[3:13] Auditor If you all introduce
[3:14] yourselves for the record and
[3:14] let us know how much time
[3:21] you'll need.
[3:22] >> Good afternoon.
[3:22] Council Members Andy Hanauer
[3:27] City Auditor We are here to
[3:27] present our audit of
[3:28] the Mission Bay and San Diego
[3:31] Regional Park Improvement Funds
[3:32] for fiscal year 2024 And can we
[3:33] have about ten minutes please?
[3:33] Thank you.
[3:38] Thanks.
[3:39] As we get started, this audit
[3:44] involves the cooperation of
[3:45] many departments as you can see
[3:45] on this slide as was
[3:46] the Oversight Committee.
[3:48] So we really appreciate all of
[3:48] their cooperation and
[3:53] assistance.
[3:54] >> The city charter requires
[3:58] that our office report annually
[3:58] the extent and nature of
[3:59] the Mission Bay and San Diego
[4:02] Regional Park Improvement funds
[4:03] revenues, expenses and
[4:07] improvements Our objectives
[4:08] were to verify the collection
[4:11] allocation and use of
[4:12] the mission Bay Park lease
[4:13] revenues from fiscal year 2024
[4:16] complied with charter
[4:16] requirements as well as
[4:17] determine if the improvement
[4:18] fund oversight committees are
[4:21] properly informed to fulfill
[4:22] their responsibilities.
[4:26] We found that expenses were in
[4:27] compliance with charter
[4:27] requirements and as far as
[4:32] revenues we could not verify
[4:32] that all revenues were
[4:33] collected and deposited into
[4:36] the funds as required due to a
[4:37] management imposed moratorium
[4:38] on the City Treasurer's lease
[4:41] revenue audits and issues with
[4:42] the application of lease
[4:45] payments management has taken
[4:46] substantial steps to resolve
[4:50] those issues and agreed to all
[4:51] five recommendations and we
[4:52] will continue to monitor
[4:55] progress towards fully
[4:56] implementing
[4:57] the recommendations as part of
[5:00] this year's Mission Bay audit.
[5:01] By way of background, a City
[5:05] Council ordinance established
[5:06] the Mission Bay Park and San
[5:06] Diego Regional Park Improvement
[5:09] Funds in 2002 and since then
[5:10] voters have added these funds
[5:14] to the city Charter mission Bay
[5:15] Park lease revenue is deposited
[5:18] into a general fund account
[5:19] throughout the fiscal year and
[5:20] allocated to the improvement
[5:23] funds after the fiscal year
[5:24] end.
[5:24] The allocation to the funds is
[5:28] based on a formula that has
[5:29] changed over the years and
[5:29] we'll describe the current
[5:33] formula here on the next slide.
[5:34] With me today is principal
[5:35] performance auditor Nathan Otto
[5:38] and senior performance auditor
[5:39] Daniel Kish and I'll hand it
[5:39] over to them for the details of
[5:42] what we found and recommended.
[5:43] >> Thanks Andy.
[5:43] Good afternoon everyone.
[5:47] So City Charter specifies how
[5:48] to allocate the revenue so
[5:48] the first $20 million goes to
[5:52] the general fund and then 35%
[5:53] of the revenues in excess of
[5:56] that is transferred to the San
[5:57] Diego Regional Parks
[5:57] Improvement Fund And
[5:58] the remainder of that excess
[6:02] goes to the mission Bay
[6:02] Improvement Fund.
[6:03] We found that the total
[6:03] adjusted mission bay lease
[6:07] revenues were approximately $37
[6:11] million which is about a 7%
[6:11] decrease from the previous year
[6:12] in fiscal year 23.
[6:14] And that first $20 million did
[6:15] go to the general fund timely
[6:19] and appropriately so That's a
[6:20] good news story as part of this
[6:20] audit.
[6:23] And then a total of 16.9
[6:24] million that spillover amount
[6:24] was distributed to
[6:25] the improvement funds As you
[6:28] can see in the exhibit on this
[6:28] slide And that followed
[6:29] the formula that it was
[6:29] supposed to do.
[6:32] So that's more good news There
[6:32] .
[6:33] One of the wrinkles in this
[6:33] year's audit was the question
[6:37] of how accurate that that total
[6:38] lease revenue figure was.
[6:38] >> So about a year ago
[6:42] the city's annual report on
[6:42] internal controls which is also
[6:47] being discussed this afternoon
[6:48] but the one a year ago stated
[6:48] there were issues with eads
[6:52] lease management as well as
[6:52] invoicing and payment
[6:53] processing and that resulted in
[6:56] a large backlog of unreconciled
[6:57] lease payment discrepancies and
[7:01] an understatement of city lease
[7:02] revenue.
[7:02] Andy noted this but over
[7:03] the course of us completing
[7:06] this audit edi did appear to
[7:07] have taken steps to make a lot
[7:11] of progress on this issue.
[7:12] And since we do the audit every
[7:13] year it's something we'll be
[7:13] checking on our next go around.
[7:16] However, for this iteration due
[7:17] to this understatement of lease
[7:17] revenue we could not confirm
[7:20] that all the mission bay lease
[7:21] revenue payments in fiscal year
[7:25] 24 were applied appropriately.
[7:26] So we have four findings here.
[7:30] Our first finding we note that
[7:31] due to a lease audit moratorium
[7:31] that began in JULY of 2020 for
[7:35] the office of the City
[7:35] Treasurer could not complete
[7:36] and formally close all of its
[7:39] planned audit which include
[7:39] examining lease revenue.
[7:44] And the audit moratorium was
[7:45] noted in that city's annual
[7:45] report I mentioned But it was
[7:46] not until eight months until
[7:49] after the moratorium had been
[7:49] implemented.
[7:50] It stated the moratorium was
[7:53] implemented to improve business
[7:54] practices and perform accurate
[7:55] financial reporting.
[7:58] But we just note as internal
[7:59] controls aficionados you know,
[8:03] limiting the Treasurer's
[8:04] revenue auditing role weakens
[8:04] an important financial control
[8:07] for the city and it can result
[8:08] in lost revenue to the city as
[8:09] well as even as not identifying
[8:13] money that we MAY show as a
[8:13] city to tenants.
[8:16] And so our recommendation on
[8:17] this one was to the cfo or
[8:17] other city executive leadership
[8:20] to issue a memo or other
[8:21] written guidance that laid out
[8:22] in discourage future audit
[8:25] moratoria like that and which
[8:26] required promptly informing
[8:27] the office of the City Auditor
[8:30] and the chair of the Audit
[8:31] committee If the ability to
[8:31] perform these revenue audit
[8:35] functions is restricted in
[8:35] the future.
[8:36] And to their credit we we did
[8:39] get buy in from the cfo and
[8:40] they actually have issued that
[8:40] that guidance.
[8:41] So that's something that's
[8:44] already been done.
[8:45] Our second finding we found
[8:46] that the city did not assess
[8:49] late penalty fees for fiscal
[8:50] year 24 and due to a large
[8:53] backlog of on applied payments
[8:54] including Mission Bay lease
[8:55] revenue for fiscal year 24.
[8:59] So Eadie shared that when
[9:00] unless he makes a rental
[9:03] payment the that rental payment
[9:04] must note the accurate contract
[9:05] invoice number to ensure that
[9:05] payments are applied to
[9:06] the correct account.
[9:09] So as you can see in
[9:10] the exhibit on this slide when
[9:10] basically when the information
[9:13] doesn't match up the payments
[9:14] post to a credit account and
[9:15] both the Office of the City
[9:19] Treasurer and E.D. Review this
[9:20] credit list to apply payments
[9:20] to the correct accounts easily
[9:23] stated due to this large
[9:24] backlog of on applied payments
[9:28] no fee penalties were assessed
[9:29] for fiscal year 2024 or 2024.
[9:33] So we just point out in
[9:34] assessing late fees when they
[9:37] are warranted results in a
[9:38] potential loss in revenue for
[9:39] the city and it undermines
[9:42] the importance of timely
[9:42] payment.
[9:43] So we included a couple of
[9:44] recommendations in this finding
[9:47] about strengthening internal
[9:47] processes including
[9:48] verification of lease terms,
[9:52] quality control checks of
[9:53] revenue received and
[9:53] reconciling payment data and
[9:57] indeed has shared some updated
[9:58] policies and procedures with us
[9:59] And it is something we'll look
[9:59] at in our next iteration of
[10:09] this audit Further for our
[10:10] third finding we found that 35%
[10:11] of the city's mission bay
[10:14] rental agreements are in
[10:14] holdover status some for
[10:15] multiple years which MAY be
[10:19] leading to foregone revenue for
[10:20] the city as well as perceived
[10:23] favoritism amongst lessees Most
[10:24] of the lease and permit
[10:25] agreements require appraisals
[10:25] to be conducted while
[10:28] the agreements are in holdover
[10:29] status.
[10:29] Most agreements also require
[10:33] city council approval to extend
[10:34] the lease beyond the agreement
[10:34] terms.
[10:35] However, during the course of
[10:37] our audit we found that edt had
[10:38] not renewed the expired leases
[10:39] so council approval or
[10:43] conducted site appraisals to
[10:44] ensure the expired lease
[10:45] agreements have provided
[10:47] revenue to the city at fair
[10:48] market rate With leases in
[10:49] holdover the city MAY be losing
[10:52] out on potential revenue.
[10:53] Also the city MAY potentially
[10:57] confer an unfair benefit to
[10:57] the current tenant which could
[10:58] be perceived as favoritism
[11:02] amongst lessees.
[11:02] Therefore we recommended that
[11:03] adt should ensure that
[11:06] agreements should ensure that
[11:07] the agreements which have
[11:08] extended beyond lease agreement
[11:12] terms receive the required
[11:12] Council approval and appraisal
[11:13] to ensure agreements are
[11:16] binding and that fair market
[11:17] rental rate is received.
[11:21] Edt stated efforts have been
[11:21] done to ensure Mission Bay
[11:22] agreements are currently leased
[11:23] at fair market rate that it
[11:26] monitors tenants in holdover
[11:27] and that it seeks to renew
[11:31] lease agreements and come in
[11:31] annual audit of mission
[11:32] Belize's We will verify these
[11:33] updates and ensure that leases
[11:35] lease renewals go to council
[11:36] when required providing for we
[11:40] review the project information
[11:40] shared with the Improvement
[11:41] Fund Oversight committees.
[11:42] We found that city departments
[11:45] provided several high level
[11:45] project status updates to
[11:46] the Mission Bay Park and San
[11:49] Diego Regional Parks
[11:50] Improvement Fund Oversight
[11:51] committees.
[11:51] However, these presentations
[11:55] did not include the detailed
[11:55] expenditure information
[11:56] The Oversight Committee stated
[11:59] they need to oversee funding
[12:00] and project status.
[12:00] We found that no guidance
[12:01] exists that states which
[12:04] project information city
[12:05] departments should provide to
[12:05] ensure the committees can
[12:08] effectively oversee project
[12:09] expenditures and outcomes.
[12:13] We also found that historically
[12:14] the information requested by
[12:14] the oversight committees
[12:15] regularly changed with changes
[12:19] in committee board membership.
[12:20] Therefore we recommend that
[12:23] Parks and Recreation and ea and
[12:24] work with both improvement fund
[12:25] oversight committees to reach
[12:28] an agreement on which specific
[12:29] project elements should be
[12:29] provided and the frequency that
[12:32] departments should generate and
[12:33] share the reports During
[12:34] the course of this audit we
[12:37] also reviewed the two
[12:37] outstanding recommendations
[12:38] from the fiscal year 2021
[12:42] Mission Bay performance Audit.
[12:43] We found that both of these
[12:44] recommendations have been
[12:46] implemented.
[12:47] As previously stated, city
[12:48] management agreed to implement
[12:50] all five recommendations.
[12:51] We're happy to answer any
[12:55] questions.
[12:56] Thank you for the presentation.
[13:00] We will now turn to see if
[13:01] we've got any public comment on
[13:01] item 200.
[13:02] >> Thank you.
[13:05] Council PRESIDENT Pro Tem We
[13:05] have no speakers here in
[13:06] council chambers I'm sorry
[13:07] The five minute timer to go to
[13:09] those participating remotely.
[13:10] We currently have four speakers
[13:11] in the queue two minutes each
[13:24] 8700 if you can please read one
[13:57] second
[13:58] .
[13:58] Sorry for the redirect if
[14:00] the original if you can please
[14:05] unmute.
[14:06] >> Yes.
[14:07] So this further shows the fraud
[14:10] waste and abuse and
[14:10] the negligence of the city when
[14:11] you can't even you know make
[14:14] sure that all of these programs
[14:15] and things are running in a
[14:19] manner where you can track
[14:19] things, be transparent, not get
[14:20] in your own way because that's
[14:24] what you guys tend to do is get
[14:25] in your own way by you know,
[14:26] not having something in place
[14:29] or you know, hiding information
[14:29] or not being able to complete
[14:30] things which is now going to
[14:34] make you know, people think
[14:34] that you're favoring some over
[14:39] others and that leads me to,
[14:39] you know, talk about the what's
[14:40] actually happening in these
[14:44] parts which would also be
[14:44] the negligence that is, you
[14:49] know, happening in the city
[14:49] that would prove that if this
[14:50] kind of stuff is going on, that
[14:54] stuff is also I mean is
[14:54] the money being spent wisely
[14:55] anyway when you know, just in
[14:58] Linda Vista skate park and by
[14:59] the recreation center I mean
[15:00] there's been four murders this
[15:03] year.
[15:04] Two of them were within two
[15:05] days And it doesn't seem like
[15:08] anything is being done to
[15:08] implement some kind of security
[15:12] measures or lighting that would
[15:13] ensure safety for the children
[15:17] that are going to be enjoying
[15:17] the park.
[15:18] You know, when things like that
[15:21] happen and nobody's kind of in
[15:22] a working in that manner to fix
[15:23] it like real campy Oh like this
[15:27] is your community and you're
[15:27] like How many more murders need
[15:28] to happen before something
[15:31] takes place And you guys ensure
[15:32] that if there is that there's
[15:35] some kind of security cameras
[15:36] and lighting that would
[15:37] potentially deter people from
[15:41] going to that park and doing
[15:41] it.
[15:42] But if there isn't that kind of
[15:46] stuff at these parks then those
[15:46] are the perfect, you know,
[15:50] place to go and engage in a
[15:51] crime because you're not going
[15:52] to be caught because there is
[15:53] no lighting for people to see
[15:55] it And you know that you can
[15:56] just go do it and get away with
[15:56] it.
[15:57] So you know, when we're talking
[16:00] about the negligence with your
[16:01] money, it also bleeds over into
[16:01] how you're handling the parks
[16:05] And it's very sad because you
[16:05] know, people shouldn't have to
[16:06] be put in dangerous situations
[16:09] because of your guys's
[16:10] negligence.
[16:10] Your time has concluded.
[16:13] Our next speaker is 8700.
[16:14] After that is Blair Beakman
[16:17] 8700 star six to unmute Thank
[16:22] you so much Joyce And you see
[16:25] these three okay.
[16:26] City of San Diego Strategic
[16:31] plan Operating Principles Trust
[16:35] and Transparency Physical
[16:36] Considerations The audit
[16:40] evaluated several issues
[16:40] relating to lease revenue and
[16:41] the accounting of revenue and
[16:45] expenditures from me We are
[16:50] where are these issues Were
[16:51] these issues presented from 12
[16:59] excuse me were issues present
[17:00] from 2010 to 2023 and
[17:04] the Oversight Committee to two
[17:05] of them They were held back
[17:05] from doing their necessary work
[17:09] last night.
[17:09] Okay.
[17:10] And I'm not comfortable with
[17:14] the leasing with the reason
[17:14] given for the lease audit more
[17:18] and more the moratorium I'm not
[17:19] providing access to
[17:27] the software Excuse me papers.
[17:28] Okay.
[17:33] So how do all these issues
[17:33] impact the credibility of our
[17:34] expert or are they hidden away
[17:38] from auditors like ngo and cro
[17:39] because we don't want to have
[17:43] to do the internal audit report
[17:44] The internal control report.
[17:48] So this feels like a big trust
[17:48] and transparency issue.
[17:53] These audit reports are so
[17:53] important and needed, so
[17:58] valuable and so valuable in
[17:58] the oversight in
[17:59] the implementation.
[18:02] So who's really following up on
[18:03] the project implementation?
[18:04] I'm hurrying on this.
[18:08] Okay.
[18:09] Your city auditor panel buried
[18:13] in the 46 pages of this five it
[18:17] clues red flags guiding cost to
[18:17] our structural budget deficit.
[18:22] In my opinion all past audits
[18:23] would give us an eagle eye.
[18:24] >> Your time has started.
[18:24] My apologies.
[18:26] The five minute timer has also
[18:27] concluded We have three
[18:28] speakers in the queue.
[18:28] No additional speakers will be
[18:35] taken after that Where Beekman
[18:35] If you complain unmute please
[18:36] and mute after that is
[18:37] Katherine Rhodes and Judy
[18:37] Strang our final speaker.
[18:38] >> Hi Thank you and thanks for
[18:41] this item.
[18:42] I wish Council PRESIDENT Lacob
[18:43] was here today for this item.
[18:46] It's really important in
[18:46] talking about accountability I
[18:51] guess for myself to begin.
[18:52] Thank you that you have caught
[18:53] this accounting error and you
[18:57] corrected it and you're making
[18:58] it public.
[18:58] That's a really important first
[18:59] step.
[18:59] Thank you.
[19:02] Thank you guys for doing that.
[19:03] So it's important to proceed
[19:03] darkly.
[19:07] i think consciously at this
[19:08] time and to be able to ask
[19:08] questions.
[19:11] For instance, we were all
[19:12] around in 2024 when this first
[19:12] happened.
[19:17] Why exactly did we allow it?
[19:18] Can we go into a bit of detail
[19:18] more why exactly This was
[19:22] allowed by ourselves and
[19:22] the mayor's office promoted
[19:23] this idea in the first place.
[19:27] I know what you with a bit of a
[19:28] nip and tuck in saving dollars.
[19:32] I mean that's basic Some formal
[19:32] explanations of their initial
[19:33] reasoning could be helpful in
[19:37] clarity Overall and how we
[19:37] don't let this happen again.
[19:42] Basically with that said, I
[19:42] also wanted to note
[19:43] the importance of really trying
[19:47] to work on accountability
[19:47] issues with park funding
[19:52] overall the current questions
[19:53] about the park funding
[19:53] allocations I think is a
[19:57] question we're haven't fully
[19:57] answered yet.
[19:58] I can be in agreement that a
[20:02] lot is going to be going to a
[20:02] special public park fund But
[20:03] memos have been stated here in
[20:07] Council that some money has
[20:08] been slated to go for
[20:12] the general fund.
[20:13] Can that be more be made more
[20:14] clear at this time and we can
[20:18] have an over or understanding
[20:19] of park accountability
[20:20] Budgeting issues at this time
[20:22] is a good time to practice that
[20:23] accountability and to conclude
[20:28] this really ask the question of
[20:29] a strong mayor city council and
[20:33] city council is trying to work
[20:33] towards administrative
[20:34] organization at this time.
[20:39] Do we need to be aggressive a
[20:40] good good idea at this time?
[20:40] >> I hope we can.
[20:41] Thank you.
[20:41] Thank you.
[20:45] Kathryn Roberts, if you can
[20:46] please on the third this is
[20:49] Katherine Rhodes and just what
[20:50] everybody else said you know, I
[20:53] don't understand why you had
[20:54] eight or why our strong mayor
[20:58] Todd Gloria put a moratorium on
[20:58] the lease revenue audit.
[21:03] Why would he have that ability
[21:04] to do that?
[21:04] And then of course, you know,
[21:08] the fix for that is what
[21:09] Council PRESIDENT Pro Tem Kit
[21:10] Lee came out with his fiscal
[21:14] accountability and transparency
[21:15] reform ballot measure where
[21:19] instead of just having a strong
[21:20] mayor form of government who
[21:21] can just make up things like
[21:25] let's not let's put a
[21:25] moratorium on these revenue
[21:30] audits, you could have an
[21:31] actual strong mayor strong city
[21:31] council form of government.
[21:35] So he can't go around and just,
[21:36] you know, delete these audits
[21:37] that are actually needed.
[21:40] And then of course this is only
[21:41] for fiscal year 2024.
[21:45] You know, where's a one for
[21:45] 2025?
[21:46] Should we be getting that soon?
[21:49] I don't know.
[21:50] So thank you for the audit
[21:51] committee for doing as much as
[21:55] you can but I think this is a
[21:55] problem with the mayor saying
[22:01] that they can't do the job or
[22:01] he's not going to give them
[22:02] the funding to do the job And
[22:06] you the city council not having
[22:06] enough power over him to you
[22:07] know, to force the issue.
[22:11] And so you guys really need to
[22:12] change that And hopefully if
[22:17] you put something into the city
[22:17] charter to take the power away
[22:18] from the mayor and then during
[22:22] that discussion also at
[22:23] the Rules Committee,
[22:24] the mayor's office said
[22:24] basically he'll give you
[22:25] everything you want.
[22:28] You don't have to go through a
[22:28] city charter change for
[22:29] the city council to get things
[22:33] you want like not having this
[22:34] moratorium on the revenue
[22:39] audits So he said that you can
[22:39] have basically everything you
[22:44] want So I would see if if
[22:44] somebody from the mayor's
[22:45] office was there and if they
[22:50] could tell us that they're not
[22:51] going to do these moratoriums
[22:52] any more that when your time
[22:53] has concluded really strong if
[22:57] you can please I'm Good
[22:58] afternoon San Diego City
[22:59] Council mayor of San Diego in
[22:59] person.
[23:03] He's always live by the coast
[23:04] and he knows the mission Bay
[23:08] Area well as does my family.
[23:09] I was a little stunned by
[23:10] the audit report but to start
[23:14] with the good news there was an
[23:18] audit report and the eBay took
[23:19] the job responsibly to take a
[23:24] hard look at past lease
[23:25] arrangements whether the money
[23:25] came in as it was expected and
[23:29] whether it was more importantly
[23:30] allocated like we all would
[23:30] have expected it to.
[23:36] I was very surprised about
[23:37] the lack of oversight with
[23:37] lease leasing.
[23:41] I think the comment made by
[23:42] the ipa that when some leases
[23:47] are not followed up with to get
[23:47] the lease agreement signed or
[23:52] an appropriately negotiated it
[23:52] implies favoritism.
[23:58] Let me just say that again It
[23:58] implies favoritism and that I
[23:59] think has concerned all of us
[24:04] as residents of the city of San
[24:04] Diego when we have leases and
[24:05] we have a lot of them with our
[24:09] gorgeous public lands that go
[24:10] out to private entities
[24:15] sometimes masquerading as
[24:15] nonprofits but nevertheless
[24:16] they are private entities and
[24:20] they make a lot of money off
[24:20] our public lands.
[24:21] We are concerned when we're not
[24:26] getting our fair share of what
[24:27] they take in and it does imply
[24:31] favoritism.
[24:31] The question is is that really
[24:32] favoritism and how would we
[24:32] know?
[24:36] So the good news in this
[24:37] conversation as you have begun
[24:38] the conversation you're sharing
[24:39] this information with us.
[24:43] You've given us a five point
[24:43] plan of how to get back on
[24:44] track regarding the city's
[24:48] revenue so that we can have
[24:48] more faith going forward that
[24:49] we as citizens will be
[24:54] protected from abuse and that
[24:55] the money will come in as
[24:55] expected and be spent As I
[24:59] said, thank you.
[25:00] Let us include public comment
[25:00] on this item.
[25:01] Thank you.
[25:01] Thank you Will now take
[25:05] Councilmember questions
[25:05] comments starting with
[25:06] the chair of our audit
[25:07] committee Councilmember Raina
[25:07] Thank you.
[25:09] Thank you for the presentation
[25:10] and thank you to the city
[25:11] Auditor for your work on this
[25:11] audit.
[25:16] This is an annual audit so we
[25:17] will be hearing on this matter
[25:22] again.
[25:23] >> When will it come back to
[25:23] the audit committee?
[25:27] We are just about to start this
[25:28] year's version of the audit.
[25:28] It's been delayed a little bit
[25:33] due to budget reductions.
[25:33] We had to hold some positions
[25:34] vacant for the last six months
[25:35] but those have been filled and
[25:39] so we'll be starting to see
[25:40] that probably in the fall In
[25:40] the fall.
[25:41] >> Okay, wonderful.
[25:43] Well thank you for that.
[25:44] The issue of the city not being
[25:49] able to properly distribute
[25:49] these payments to the correct
[25:50] accounts was something that
[25:54] the audit committee first
[25:55] learned of at the MARCH meeting
[25:55] when it was disclosed in
[26:00] the internal controls report
[26:00] which was apparently eight
[26:01] months after the issue
[26:01] happened.
[26:06] The audit committee did review
[26:06] this item item last NOVEMBER
[26:10] and today is the first time
[26:10] it's come before us.
[26:15] The city Council at that time
[26:16] staff indicated that
[26:17] the problem was being addressed
[26:17] and expected it to be resolved
[26:21] by the end of the fiscal year.
[26:22] Now as the auditor noted,
[26:23] the problem of the problem
[26:27] resulted in a large backlog of
[26:28] unresolved lease payment
[26:33] discrepancies In MARCH I had a
[26:34] great concern not just about
[26:35] the actual dollar amount that
[26:39] had not been distributed to
[26:40] the right account but more
[26:41] importantly whether this issue
[26:45] was a symptom of something
[26:46] larger and might need a higher
[26:46] level of disclosure.
[26:51] My concern did increase when it
[26:51] was revealed that a moratorium
[26:52] had been placed on the city
[26:57] Treasurer's ability to continue
[26:58] auditing the situation.
[26:59] The office of the City
[27:03] Treasurer is required per
[27:04] council policy 700 Dash ten to
[27:05] conduct an audit of each
[27:10] percentage lease for the first
[27:11] year of operation and at least
[27:14] once every five years.
[27:15] Now restricting their ability
[27:15] to do this is a significant
[27:20] action.
[27:21] On page seven of the audit it
[27:21] states the following edi
[27:26] limited re portfolio access to
[27:31] only its staff and removed
[27:32] access from the audit office of
[27:32] the City Treasurer.
[27:37] He believed it was
[27:37] counterproductive to allow
[27:38] access to leasing management
[27:42] software containing inaccurate
[27:43] information while it was
[27:43] actively working to reconcile
[27:49] accounts so that accurate
[27:50] payments could be applied and
[27:50] correct revenue could be
[27:55] realized according to edi
[27:56] provided all data and
[27:57] information to the City
[28:01] Treasurer upon request to
[28:02] continue revenue audits despite
[28:02] not providing access to
[28:06] the software.
[28:07] However, the City Treasurer
[28:08] indicated that its ability to
[28:13] complete revenue audits was
[28:14] limited by the moratorium which
[28:18] explicitly instructs the city
[28:19] Treasurer to pause audits and
[28:25] restrict contact with a leader
[28:26] Goes on to say that the audit
[28:26] and Treasurer that auditor and
[28:30] Treasurer had to instead rely
[28:31] on data from sap and reports
[28:32] provided by edi to support
[28:36] their analysis.
[28:37] No direct access to the actual
[28:42] data for two top officials in
[28:42] the city for an extended period
[28:47] of extended period of time.
[28:48] I find this to be very
[28:48] concerning and I think
[28:49] everybody on the dais should
[28:53] feel the same way As
[28:54] the auditor states, these
[28:54] actions weaken an important
[28:59] internal financial control,
[28:59] hinders oversight and
[29:00] transparency and could
[29:05] potentially damage the city's
[29:06] reputation and credibility for
[29:06] billing practices and financial
[29:07] reporting.
[29:11] Now I do appreciate
[29:11] the auditor's first
[29:12] recommendation which speaks to
[29:13] discouraging future moratoriums
[29:18] and which requires promptly
[29:18] informing the city auditor and
[29:19] the chair of the audit
[29:20] committee If the ability to
[29:23] perform these revenue audit
[29:24] functions is restricted in
[29:24] the future.
[29:29] This is absolutely critical and
[29:30] I'm glad to see that management
[29:31] agreed to provided provided
[29:31] provide the direction to
[29:35] the department staff in
[29:36] compliance with Council policy
[29:36] 700 Dash ten The audit states
[29:41] that the Economic Development
[29:42] Department appears to have
[29:43] taken steps to subsequently
[29:47] resolve this issue and I would
[29:48] ask staff to expand upon
[29:48] exactly what steps have been
[29:52] taken to resolve this issue and
[29:53] also can the auditor expound on
[29:54] what you need to see done for
[29:55] this issue to be resolved in
[30:10] your eyes?
[30:11] Good afternoon.
[30:16] Monica Hardman Assistant
[30:17] Director I'm taking a seat
[30:17] because I realize there'll be
[30:18] numerous questions So thank you
[30:22] for the opportunity to expound
[30:23] upon what the department is
[30:23] doing to resolve these issues.
[30:28] So the first thing that we did
[30:29] is that we took an internal
[30:30] look at improving our system
[30:34] processes.
[30:35] So in this we made sure that we
[30:36] created processes to ensure
[30:40] that an applied payments were
[30:41] reviewed in a timely manner and
[30:42] researched and matched to
[30:42] the corresponding invoices.
[30:46] We also have been improving our
[30:47] internal tracking of lease
[30:48] obligations and our escalation
[30:52] provisions and strengthening
[30:53] the oversight of the agreements
[30:54] that include the percentage
[30:54] rent.
[30:58] Secondly, we launched a very
[30:59] intensive tenant outreach
[30:59] campaign to encourage our
[31:00] tenants to use the city's
[31:04] online payment portal.
[31:05] So this portal it requires
[31:06] the tenants to supply all of
[31:10] the necessary invoicing
[31:11] accounting information upfront
[31:11] which really eliminates
[31:12] the primary source of
[31:16] the payment matching issue.
[31:17] And then third that we've
[31:18] discussed before we are
[31:18] currently modernizing
[31:22] modernizing our software
[31:22] system.
[31:23] So we are upgrading our real
[31:24] estate management portfolio
[31:28] system who are currently in
[31:29] version six.
[31:30] We are upgrading to version 11
[31:34] that will be complete at
[31:35] the beginning of f y 27 So in
[31:36] JULY of 2026 we will be
[31:41] upgraded to version 11.
[31:41] And concurrently we're also in
[31:42] the process of engaging upon a
[31:47] request for proposal for
[31:48] the long term leasing solution
[31:52] and we're working with various
[31:53] departments to ensure that we
[31:54] can have that completed in a
[31:54] timely fashion.
[31:59] >> Thank you for that update.
[32:00] According to the audit which
[32:04] looks at fiscal year 24, only
[32:05] of the 11 leases that are in
[32:09] holdover status six of them
[32:10] have been in holdover for more
[32:10] than eight years.
[32:14] And an audit committee it was
[32:15] stated that one was terminated
[32:21] when were the other leases in
[32:21] mission be updated.
[32:26] >> Thank you for the question.
[32:27] So of the ten minus the one
[32:27] that was terminated, they're
[32:32] actively being addressed.
[32:33] They're either currently going
[32:34] through lease negotiations or
[32:34] through an active competitive
[32:39] rfp process.
[32:39] So for example we currently
[32:40] have Sportsman's Seafood
[32:41] Indiana landing that rfp was
[32:44] just issued in FEBRUARY of
[32:44] 2026.
[32:45] So they are all actively
[32:50] negotiating being negotiated
[32:51] and we're working to get those
[32:51] done as quickly as possible.
[32:52] Got you.
[32:57] I think at this rate I think
[33:02] this council should have a list
[33:03] of those and also when they are
[33:08] going to be not when they're
[33:09] going to be renegotiated
[33:10] because that's what's happening
[33:14] right now When the it's
[33:14] determined that they should be
[33:20] closed, there is an end date,
[33:20] right?
[33:21] Yes.
[33:21] Happy to provide that.
[33:22] We can give a status update for
[33:23] those two and where they're at
[33:25] in the process and
[33:26] the anticipated timeline where
[33:27] either the rfp will be done or
[33:31] will be back before council for
[33:32] consideration for the new
[33:32] lease.
[33:32] Thank you.
[33:33] What is the current backlog
[33:37] backlog of leases in the city
[33:38] and how long will it take to
[33:39] work through it and catch up?
[33:43] >> So currently we have 178
[33:43] agreements that are in hold
[33:44] over and we're actively working
[33:48] through those.
[33:49] Of course they have to be
[33:50] prioritized based on staff
[33:50] capacity.
[33:55] We currently have 13 property
[33:56] agents for the city's entire
[34:00] portfolio of over 900 leases.
[34:01] We have three vacancies.
[34:02] Only ten of those are filled at
[34:06] the moment and we've actively
[34:07] been working with consultants
[34:08] and other assistance just to
[34:12] help us get through this
[34:13] backlog.
[34:13] >> Thank you for that response
[34:18] and thank you for being here.
[34:19] This administration has known
[34:20] about these lease revenue
[34:25] issues for years and we still
[34:25] have leases.
[34:30] >> We just specifically look at
[34:31] Mission Bay that have not been
[34:35] updated for 12 years now.
[34:36] Obviously this issue applies to
[34:37] leases throughout the city
[34:37] which makes as you mentioned
[34:42] the problem 178 times more
[34:48] egregious than the tenant in
[34:49] Mission Bay.
[34:54] Not only are we likely losing
[34:55] out on revenue which once again
[35:00] I always point this out if we
[35:00] look at what rents were 12
[35:01] years ago alone just in an
[35:06] apartment it's it's night and
[35:06] day.
[35:12] >> The issue you know comparing
[35:13] that now to prime land that
[35:13] the city holds in this specific
[35:17] case to Mission Bay it just it
[35:18] makes me sick to my stomach.
[35:19] The auditor states that
[35:23] the city MAY potentially be
[35:23] conferring an unfair benefit to
[35:24] the current tenant creating
[35:29] unnecessarily unnecessary
[35:30] uncertainty for both the city
[35:35] and the lessee and limiting
[35:36] the city's ability to enact and
[35:37] enforce updated contract
[35:41] provisions.
[35:42] This also can lead to perceive
[35:48] favoritism from other lessees.
[35:48] The auditor also states that in
[35:49] reviewing the annual mission be
[35:54] revenue allocation the auditor
[35:58] identified $933,834 in deferred
[35:59] revenue to the city for fiscal
[35:59] year 24.
[36:00] Can the auditor speak to this
[36:04] finding and explain for
[36:05] the public what deferred
[36:10] revenue is in this case?
[36:11] >> Yes, I can I can say a few
[36:12] things about that.
[36:12] Right.
[36:16] So the deferred revenue is just
[36:17] money that was expected but
[36:18] it's not received or recognized
[36:18] in that period.
[36:23] So yeah, about a little less
[36:24] than $1 million.
[36:28] So it's possible he was on that
[36:29] that credit list that
[36:30] the report talks about where it
[36:35] just hadn't been been matched.
[36:36] At the time we did this audit
[36:37] in the scope period we looked
[36:37] at.
[36:38] So we'll be seeing how that
[36:41] amount changes on the next go
[36:41] round.
[36:42] But we flagged it for purposes
[36:43] here because that that is a
[36:47] notable amount of money that.
[36:48] >> So is it expected that this
[36:51] deferred revenue for fiscal
[36:52] year 20 for the 933 million
[36:53] that you mentioned, will that
[36:57] ever be received?
[36:58] I think yeah, I wouldn't I
[36:59] wouldn't assume that it won't
[37:04] be received.
[37:05] It could have already been paid
[37:06] and just not recognized in that
[37:06] accounting period.
[37:10] We got to close the books at
[37:11] some point so it could be that
[37:12] fate or it MAY not have been
[37:17] received at all yet Maybe
[37:17] the tenant did not send in
[37:18] the check for that month so we
[37:19] don't know when next time we go
[37:22] around will compare the figure
[37:22] that we received with that
[37:23] $933,000 figure you just
[37:28] mentioned And Councilmember
[37:28] Moreno, if I MAY, we have
[37:32] confirmed that that nine 33,000
[37:33] it has been received.
[37:33] Thank you.
[37:34] Thank you for that.
[37:40] And if I MAY have my extra
[37:40] three minutes pro tem we give
[37:41] you this I'm gonna give you my
[37:42] three minutes as well.
[37:45] Oh, I've already been okay,
[37:46] well, if I MAY have a thank you
[37:46] from my colleagues if I MAY
[37:50] have some time.
[37:51] Thank you.
[37:51] I also share the concern of
[37:52] the oversight committee that
[37:53] expressed that they weren't
[37:57] getting sufficient information
[37:57] on projects and expenditures
[38:02] that we're supposed to monitor
[38:03] .
[38:03] The role is oversight and
[38:04] the city has a duty to get them
[38:09] all the relevant information
[38:10] that they required to fulfill
[38:10] their duty.
[38:11] I am glad to see in the audit
[38:15] that in mid-year fiscal year 24
[38:16] both committees began to get
[38:16] expanded project information
[38:21] but implementing recommendation
[38:22] 4.1 to reach an agreement and
[38:26] mechanisms to specify which
[38:27] specific project elements
[38:28] should be provided and
[38:28] the frequency that
[38:32] the department should generate
[38:33] and share.
[38:34] The report is critical to
[38:34] implement by the end of
[38:35] the fiscal year.
[38:39] I will end by saying that when
[38:40] the city cannot properly keep
[38:45] track of lease revenues and
[38:45] associated late fees there is
[38:46] great potential for the wrong
[38:50] amount to be deposited into
[38:51] the Mission Bay Improvement
[38:51] Fund.
[38:52] When that happens we're
[38:56] potentially running afoul of
[38:57] the charter requirement that
[38:57] was approved by voters to fund
[39:02] the Mission Bay improvement
[39:03] Fund at a specific, specific
[39:03] and prescribed level hearing
[39:08] that steps have been taken to
[39:09] resolve This issue is good but
[39:10] I don't think I'm going to be
[39:10] satisfied until the city
[39:14] auditor can fully confirm this.
[39:15] Additionally, even if it is
[39:16] resolved as far as refining
[39:21] the process by which we collect
[39:22] and distribute these revenues,
[39:27] I do not think it was proper to
[39:27] restrict the city Treasurer's
[39:28] access to the data they need to
[39:33] do the least revenue audits
[39:34] they were specifically tasked
[39:34] to doing.
[39:35] Nor was it appropriate to
[39:35] restrict the auditor from
[39:39] seeing that data firsthand for
[39:40] the purpose of performing this
[39:40] audit.
[39:41] Neither of those things should
[39:44] ever happen again.
[39:45] And additionally just for
[39:46] the body I will be leaving this
[39:51] body in DECEMBER.
[39:56] So with that being known I have
[39:57] asked that our outside auditor
[39:58] Crowe keep tabs on this issue
[40:03] for their external audits.
[40:04] I know I keep on reiterating
[40:09] this as the chair of the audit
[40:09] committee The purpose of
[40:10] the audit committee is to see
[40:10] issues that are that we're
[40:15] doing wrong and the purpose of
[40:16] management accepting that what
[40:21] we're doing is wrong is to fix
[40:22] those issues.
[40:23] It's just you know, I'm at a
[40:28] loss of words as to why these
[40:29] issues are not being fixed
[40:32] especially when we are looking
[40:33] down $120 million budget
[40:38] deficit.
[40:39] So with that I move that we
[40:41] approve staff's recommendation
[40:42] .
[40:48] >> Thank you.
[40:49] Thank you guys.
[40:50] Remember I know it is an
[40:55] informational item only so no
[40:55] motion will be required with
[40:55] it.
[40:56] We'll turn next to
[40:57] Councilmember Ravenwood.
[41:00] I thank you very much and thank
[41:01] you to our auditor for
[41:02] the presentation and the work
[41:03] on this And I have a couple of
[41:07] questions.
[41:08] Thank you to Council Moreno for
[41:08] all of your thorough questions
[41:09] here on audit.
[41:12] Slide five is as a total
[41:13] adjusted revenues for Mission
[41:16] Bay lease revenues was
[41:16] approximate 37,000,087%
[41:17] decrease from f y 2023 So why
[41:18] is least revenue going down in
[41:22] Mission Bay?
[41:23] That was just one of
[41:29] the indicators that potentially
[41:29] the fall revenues weren't
[41:30] recognized because of
[41:35] the backlog because you would
[41:36] expect it to go up but it went
[41:37] up that year and they should
[41:38] kind of track together at that
[41:41] Both percentages of the revenue
[41:41] that they received.
[41:42] So that's just one indicator
[41:43] that perhaps some of this
[41:47] revenue got caught up in
[41:48] the accounting issues and
[41:48] wasn't recognized for Mission
[41:49] Bay.
[41:53] So that's why you know, we
[41:53] noted we couldn't verify that
[41:54] the amount was right that year
[41:55] and we're going to check it
[41:58] again during this year's audit.
[41:59] >> Okay.
[42:03] Mark, if you have any comment
[42:03] on that one.
[42:04] Again, as the city auditor
[42:08] mentioned, it was a snapshot in
[42:08] time.
[42:09] We have since reconciled and
[42:10] have received all that.
[42:14] Nine 33,000 So I don't know if
[42:15] that could have been the issue
[42:16] or something else I would say
[42:20] globally, you know there have
[42:21] been some situations where
[42:21] revenue has been down but we
[42:26] would expect that you know
[42:26] those would remain at a certain
[42:27] level.
[42:27] So I think looking at it in
[42:31] this new year will really
[42:32] provide us the data points that
[42:33] we need now that we have
[42:37] reconciled and we're receiving
[42:37] revenue and getting through
[42:38] those payment issues to see if
[42:39] there's any global trends.
[42:39] But that's about all that I
[42:40] could really mention at this
[42:47] time.
[42:48] Okay.
[42:51] Yes we are for a $120 million
[42:52] budget deficit.
[42:52] We're not tracking why we're
[42:56] not getting this revenue from
[42:57] one of our most popular parks.
[42:57] Can someone from the mayor's
[43:03] office please explain how an
[43:03] audit can be refused If
[43:04] the Treasurer is being asked
[43:09] how much money did you bring in
[43:09] for the city?
[43:10] How can city management say
[43:11] We're not going to tell you
[43:18] I've never heard of this.
[43:19] Yeah.
[43:19] Thank you for that question,
[43:20] Councilmember I, I don't think
[43:24] it was in an effort to hide
[43:25] the ball or refuse the audit or
[43:25] not participate in that
[43:25] process.
[43:31] I do think when Eden formerly
[43:32] Dream consolidated there was a
[43:36] lot of cleanup work that needed
[43:37] to take place And so I think to
[43:38] get your arms around kind of
[43:42] the back end mess that we were
[43:43] trying to get through and
[43:43] the backlog I think that is
[43:48] the intent of that moratorium.
[43:49] I don't think it was anything
[43:50] beyond that that has since
[43:55] obviously been lifted.
[43:55] The commitment is on the table
[43:56] as seen in the management
[43:57] response and that's that's what
[44:01] we there.
[44:08] Okay.
[44:09] >> And we're not going to do
[44:09] that in the future.
[44:14] No.
[44:14] And then if there is ever a
[44:15] situation where things are not
[44:20] able to be met or delivered,
[44:20] there is the accountability
[44:21] process, the notification to
[44:22] the city auditor as well as
[44:23] the audit committee in the rare
[44:26] event that some type of action
[44:27] needs to be taken.
[44:27] But as in the management
[44:28] response the commitment is
[44:31] there.
[44:31] Okay.
[44:32] I find it very perplexing and
[44:38] really frustrating that we do
[44:39] ask how much money even can
[44:39] account manager is going to say
[44:43] well we're not going to tell
[44:43] you.
[44:44] So I mean I'm glad it has been
[44:49] resolved since but I cannot
[44:49] believe that was one of
[44:50] the responses.
[44:50] I do have a question about how
[44:51] we can help a council So like
[44:54] you said, there's only 13
[44:55] property agents employed by
[44:55] the city of San Diego to
[44:56] oversee how many leases.
[45:00] That is correct.
[45:01] So we currently have 13 fte for
[45:05] our entire lease portfolio
[45:06] which is over 910 of those are
[45:13] filled came came in during
[45:14] the financial year.
[45:15] So the general fund positions
[45:15] are those 13 of these general
[45:18] fund I'm getting that they are
[45:18] why this seems to be an
[45:23] enterprise fund type of I mean
[45:24] if we're getting lease revenue
[45:25] is that not a money making fund
[45:25] How are these not shifted from
[45:30] the general fund to be paid for
[45:30] by the leases?
[45:31] Maybe we could hire more
[45:31] property agents to enforce
[45:32] the leases and get more money
[45:34] into the city with an
[45:40] improvement on the general fund
[45:40] .
[45:41] Good afternoon Ben.
[45:47] Battalion Director of Finance.
[45:48] So yes those 13 positions are
[45:48] in the general fund but
[45:52] the revenue from those leases
[45:53] are also deposited into
[45:53] the general fund as well.
[45:54] So they do support those
[46:00] positions But couldn't we hire
[46:01] more people to are didn't take
[46:02] a burden on the general fund.
[46:02] We made it into a separate
[46:05] enterprise fund and we need
[46:05] more than 30 people to manage
[46:06] 900 properties which is why we
[46:11] have 170 hold or releases I
[46:11] mean gotten to my former leases
[46:14] in San Pasquale been waiting 15
[46:14] years to get their leases done.
[46:15] So I just we obviously need
[46:16] more people to manage our
[46:20] leases but we don't hire people
[46:20] under general fund positions
[46:21] right now because the budget
[46:22] deficit in the general fund So
[46:25] have we thought about moving
[46:26] them over into an enterprise
[46:26] funded source so we could have
[46:27] more property agents to bring
[46:31] in more revenue So the majority
[46:32] of these leases are general
[46:32] fund leases That revenue comes
[46:37] into the general fund and it's
[46:37] significant It's like it's tens
[46:38] of millions of dollars.
[46:43] So if we were to move that all
[46:44] into an enterprise fund with
[46:44] the additional 13 positions
[46:49] plus maybe a few more we would
[46:49] really just be transferring
[46:50] that revenue back to
[46:51] the general fund to support
[46:55] general fund operations.
[46:55] Okay.
[46:56] That kind of is why we only
[46:59] have 13 property agents for 900
[47:00] properties I think probably not
[47:01] your department That's really
[47:01] just yeah, I mean that's a
[47:06] policy call that that's a
[47:07] budgetary decision.
[47:07] Okay.
[47:08] I follow it from the mayor's
[47:11] office on you know we need to
[47:12] bring in money for the city and
[47:13] we know Mission Bay is making
[47:17] money at the beautiful place to
[47:18] go.
[47:18] So I just totally would hope
[47:19] that you're there's absolutely
[47:20] no reason that the city
[47:22] shouldn't be getting lease
[47:28] revenue from our lessees And if
[47:29] the issue is we don't have
[47:30] enough employees to go out and
[47:30] manage our properties then we
[47:31] should have more employees
[47:37] using our properties.
[47:37] Okay.
[47:38] Well thank you for
[47:39] the information about it.
[47:42] Hopefully we can right the ship
[47:47] and I appreciate the audit.
[47:47] Thank you.
[47:48] We'll turn off to Councilmember
[47:53] Foster.
[47:53] All right.
[48:00] Thank you for the presentation
[48:05] and for clearly we have more
[48:05] work to do.
[48:06] But I just wanted to kind of
[48:11] pick up off of where my
[48:11] colleague was at and I can
[48:17] appreciate the discussion on
[48:22] the number of funds I guess
[48:23] what I'm struggling with is I'm
[48:28] not necessarily hearing a plan
[48:29] to resolve these outstanding
[48:34] issues And so I would ask
[48:35] the mayor's office do we have a
[48:41] plan on these 178 holdovers and
[48:41] things that we are doing on how
[48:46] we are going to resolve them?
[48:47] And I'm going to ask from a
[48:51] project management perspective
[48:52] meaning do we have a schedule
[48:58] on identify leases, how you are
[48:59] approaching them due date
[49:03] timelines to where staff
[49:04] understands what they should be
[49:05] working on clear directives
[49:10] what the expectations are and
[49:11] systematically making our way
[49:16] through this backlog?
[49:16] >> Thank you for the question,
[49:17] Councilmember Foster I'm going
[49:18] to start and then I'll let
[49:22] the mayor's office add anything
[49:23] that they would like to as I
[49:23] mentioned early in terms of
[49:24] the plan to resolve the issue,
[49:28] a huge component of that is
[49:29] the upgrade and future rfp for
[49:34] our leasing management
[49:34] software.
[49:35] So number one we need to reduce
[49:35] the human error.
[49:40] Number two, we need to automate
[49:41] workflows and the number three
[49:41] we need to provide visibility
[49:42] into our lease compliance.
[49:46] So those are all things that we
[49:47] are currently struggling with
[49:48] with a system that is very much
[49:48] out of date.
[49:52] So those issues will be
[49:53] resolved partially with
[49:57] the upgrade to version 11 As I
[49:57] mentioned that would be
[50:02] implemented in JULY of 2026 And
[50:02] then again looking long term
[50:03] for how we can continue to
[50:07] improve efficiencies there with
[50:08] another potential system.
[50:09] Secondly in regards to your
[50:14] question on what is the plan,
[50:15] how are we looking at that?
[50:16] We do have a work plan that we
[50:20] prioritize based on council in
[50:21] my oral priorities that we are
[50:26] utilizing our existing staff
[50:27] and also looking at ways in
[50:28] which we can utilize any type
[50:32] of assistance through
[50:33] consultants to help make us as
[50:37] efficient as possible.
[50:45] So sorry COUNCILMAN.
[50:45] Can I just add some detail?
[50:46] Yeah.
[50:51] This is the audit mission Bay
[50:52] only for fiscal 24 but we did
[50:56] do an audit of all city lease
[50:56] management and I think it was
[50:57] 2022 so four years ago that was
[50:58] one of the recommendations have
[51:02] a plan to work down the backlog
[51:02] to prioritize and work it down
[51:07] And so we're still following up
[51:07] on that.
[51:08] I can appreciate that.
[51:09] But even if we just simply
[51:13] isolate the discussion we're
[51:14] having here today I guess for
[51:20] for my own understand and again
[51:20] I'm looking for a plan and it's
[51:25] really troubling if we don't
[51:26] have an overall plan and
[51:31] outline so that we can system
[51:32] adequacy which leases up first
[51:33] which leases up today what that
[51:38] date is in for in order for us
[51:39] to update it, it's it's no
[51:40] different than what engineering
[51:41] and capital projects does as
[51:43] they make their way through a
[51:44] project a step by step schedule
[51:49] that shows the activities what
[51:50] those expectations are, what
[51:51] the due dates are so that we
[51:51] can bring some accountability
[51:56] and bring some professionalism
[51:56] and some management to
[51:57] systematically work through
[51:58] this process.
[52:01] Even if we went through and put
[52:02] together an assembly contract
[52:03] to supplement staff, what will
[52:08] we hold those contractors to?
[52:08] How do we convey what those
[52:09] needs are?
[52:13] What the expectations are,
[52:14] what's due on day one, two,
[52:15] three, four and five?
[52:20] That's where I'm that's where
[52:20] I'm going with this And I think
[52:21] that would answer a lot of
[52:25] questions of the council and
[52:26] also our auditor's office.
[52:27] So we have a clear line of what
[52:32] we are monitoring and what our
[52:32] needs are.
[52:33] Is there a way we can Yeah or
[52:37] Councilmember especially as we
[52:38] go through the next few weeks
[52:39] of budget discussion I think
[52:39] that information and what is
[52:40] coming down the pipeline
[52:44] awareness is especially
[52:45] critical so we can have
[52:45] economic development staff.
[52:46] I'm work with city auditor and
[52:50] others and provide you kind of
[52:50] what the next few months look
[52:51] like opportunities for our city
[52:56] to contracts timelines for you
[52:57] know additional software
[52:58] upgrade procurement just we
[52:58] have a better idea of what's
[52:59] coming down the pipeline and to
[53:02] better inform the budget
[53:03] discussions.
[53:03] >> What about that?
[53:04] Okay.
[53:04] I appreciate that and I think
[53:05] that would be a useful tool so
[53:08] we can make sure we're all
[53:09] marching to the same accord
[53:10] especially as we are looking at
[53:10] competing priorities.
[53:14] When you talk about the mayor's
[53:14] priorities versus the council's
[53:15] priorities.
[53:15] Right.
[53:16] So I think that would be a good
[53:16] useful tool.
[53:20] So that we are all clear on
[53:21] where we are headed and how we
[53:21] are going to attack this.
[53:26] So thank you.
[53:27] That concludes conclude my
[53:27] comments.
[53:27] Thank you.
[53:35] Next up is Councilmember
[53:35] Gilbert Harold.
[53:36] Thank you Carl.
[53:36] PRESIDENT Pro-Tem thanks to any
[53:37] of you and your team for
[53:40] the work here.
[53:40] I appreciate the questions my
[53:41] colleagues.
[53:41] We've got someone operating
[53:44] counter bluster really digging
[53:45] in and obviously everybody
[53:45] knows leadership on
[53:46] the committee.
[53:50] I, I too am frustrated with
[53:56] the number of Holder releases
[53:57] and I think the questions about
[53:58] what the plan is and why things
[53:58] are the way they are and it is
[54:02] important.
[54:03] I also do think that it's
[54:03] important to note that this is
[54:07] a long standing problem and
[54:08] this is not a defense of
[54:09] the way that responded to
[54:13] the problem Has been responded
[54:19] to since 2020 or 2021.
[54:19] But I'll I'll draw an analogy
[54:24] to streetlights where we were
[54:25] far behind that even doing
[54:26] work at a regular pace meant
[54:30] that we were unacceptably
[54:31] behind and that staff was
[54:31] underwater in a way where they
[54:34] could never see themselves
[54:35] getting up getting their head
[54:40] above the surface.
[54:47] I think that some of that was
[54:47] the failure to invest in in our
[54:48] city staff in such a way that
[54:54] to equip them But also in this
[54:54] instance I really do think that
[54:55] it's important for us to ask
[54:56] who benefited from the status
[55:00] quo, who benefited from so many
[55:00] leases being held in holdover
[55:01] status, who who benefited from
[55:05] not paying fair market value
[55:06] for incredibly valuable
[55:12] properties?
[55:13] I think it was the friends of
[55:13] folks who served on this dais
[55:14] in the past and who served in
[55:18] the mayor's office in the past
[55:19] And I want to say that out loud
[55:19] because these things did not
[55:23] happen by accident And for sure
[55:24] we need to do better to get to
[55:30] a place where every single
[55:30] property that the city has is
[55:35] owns The city is being fairly
[55:35] compensated for.
[55:36] But in a moment where the city
[55:41] is being attacked for
[55:42] mismanagement and and we are
[55:47] we're trying to get to a better
[55:48] place.
[55:48] It is important to note who who
[55:53] drove the car into the ditch
[55:53] and especially on this front
[55:59] because there are there are
[56:00] people who benefit greatly from
[56:05] their leases being held and
[56:06] hold all of our status for as
[56:07] long as they have.
[56:07] Now to COUNCILMAN Foster's
[56:11] point because we were in
[56:11] the hole that we are in,
[56:12] there's got to be a plan not
[56:18] only the number of leases and
[56:18] all over status but the city's
[56:19] overall budget situation.
[56:20] And so when we're making
[56:22] the difficult decisions about
[56:23] what should be cut, what should
[56:28] be maintained and how and who
[56:29] we seek revenue from to fill
[56:34] the gap that plan becomes
[56:35] incredibly important.
[56:35] And so could I know you answer
[56:36] a number of questions already
[56:40] but it's it's one of those
[56:41] things that I think the council
[56:45] has been pretty consistent in
[56:46] in wanting to make sure that
[56:47] there is there is whether it's
[56:51] from enterprise funds or
[56:52] the general fund that
[56:52] the leases are up to date
[56:53] there's been a willingness to
[56:58] partner from from Labor to see
[56:59] that a willingness to allow
[57:00] some that work to be contracted
[57:04] out because they recognize
[57:04] the big picture, the importance
[57:05] of making sure that we're
[57:06] getting fair market value for
[57:10] all these leases So this is a
[57:11] is I think a really important
[57:21] issue on the on the beauty
[57:22] front we've talked about how
[57:23] every dollar we don't collect
[57:23] in fair market value for those
[57:27] leases that are in all of
[57:28] the status is a dollar that we
[57:29] were not allowed we're not able
[57:32] to then reinvest into providing
[57:33] subsidies and discounts to
[57:33] seniors and people who can
[57:39] barely pay their water bill.
[57:40] Every dollar that we don't get
[57:41] in for free market value for
[57:42] leases that are that support
[57:44] the point of the general fund
[57:45] is a dollar that we're not able
[57:50] to to keep library libraries
[57:51] open parks and rec centers
[57:52] properly funded and even you
[57:52] know have difficult
[57:56] conversations about public
[57:57] safety.
[57:57] And so this is just an
[57:58] incredibly important issue.
[58:03] I know that it's pretty narrow
[58:04] is being presented today but as
[58:05] Andy said, that is an issue
[58:05] that was brought to our
[58:08] attention a few years back and
[58:09] I think the consistency from
[58:10] the council has been there.
[58:12] And so that plan that three of
[58:13] us were talking about is
[58:14] incredibly important and then
[58:14] the action is incredibly
[58:19] important as well.
[58:20] So again thank you to our
[58:20] colleagues for asking
[58:21] questions.
[58:21] They did also let's not let
[58:25] those folks off the hook who
[58:25] who got us into this situation
[58:26] and we should think about who
[58:31] benefited and who and who their
[58:32] friends are because I do think
[58:32] it's a coincidence.
[58:32] >> Thank you.
[58:37] We'll turn next to
[58:37] Councilmember Kimball.
[58:38] >> Thank you.
[58:42] Council PRESIDENT Pro Tem.
[58:43] I just like first to ask is my
[58:46] understanding that as of APRIL
[58:47] of 25 in other words one year
[58:48] ago this moratorium was lifted?
[58:52] Is that correct?
[58:53] I think it was technically
[58:54] lifted around that time.
[58:59] I believe it was around
[59:00] SEPTEMBER that the Treasurer
[59:00] got back the system access that
[59:04] they needed right?
[59:05] That is correct.
[59:06] So it was lifted in APRIL.
[59:11] However it took the Treasurer
[59:12] several months to get back over
[59:16] to work on it.
[59:17] Also I'd just like to remind
[59:18] everyone that the real estate
[59:23] division was a department of it
[59:24] on its own for a while a good
[59:28] long while under various
[59:29] administrations but was moved
[59:29] into economic Development
[59:34] department only in 2024 I
[59:40] forget which month but it was
[59:41] not at the beginning of 2024 as
[59:46] I recall and I wanted to just
[59:46] recall that the software being
[59:52] used by real estate division
[59:53] was then if this is correct was
[59:57] then five years out of date at
[59:58] that time And wasn't that one
[59:59] of the reasons then put
[59:59] the moratorium because they
[1:00:00] couldn't get the correct
[1:00:04] numbers out of that old system?
[1:00:05] Thank you for the question,
[1:00:06] Councilmember Campbell.
[1:00:06] So yes, in terms of
[1:00:10] the software for our portfolio
[1:00:11] at the time we knew that there
[1:00:12] were errors in that system and
[1:00:17] that sap is a financial system
[1:00:18] of record in which this a
[1:00:22] challenges with reconciliation
[1:00:23] and knowing that what was
[1:00:24] currently in our portfolio was
[1:00:28] not correct and that's when we
[1:00:29] had the collective decision
[1:00:30] regarding the moratorium and
[1:00:35] just working to get information
[1:00:35] outside of the system to be as
[1:00:36] efficient with people's time.
[1:00:41] So there was not a silo attempt
[1:00:46] to keep the auditor away from
[1:00:47] the money answers It was
[1:00:48] actually a series of department
[1:00:52] heads who got together and
[1:00:53] realized that the numbers
[1:00:54] coming out were not right.
[1:00:58] We had to get that straightened
[1:00:59] out so we could have the proper
[1:01:00] numbers correct.
[1:01:00] And you know, just to clarify,
[1:01:05] during the moratorium revenues
[1:01:05] were still being collected even
[1:01:06] with the holdover leases that
[1:01:11] we've discussed cpi adjustments
[1:01:12] were still being done.
[1:01:12] So there was never any point
[1:01:17] where revenue was you know,
[1:01:17] just totally stopped.
[1:01:18] It was just really
[1:01:18] the reconciliation of it with
[1:01:23] errors as to, you know, what
[1:01:24] accounts it went to where we
[1:01:25] had to go through a larger
[1:01:25] process to get that all
[1:01:26] reconciled.
[1:01:29] >> Thank you And I and I
[1:01:30] appreciate my colleague's
[1:01:30] questions, many of which were
[1:01:35] ones I was going to ask Of
[1:01:35] the 900 leases that we have on
[1:01:40] city property, we evidently
[1:01:41] have budgeted 13 full time
[1:01:41] equivalent to watch over those
[1:01:47] leases but only of ten of those
[1:01:47] positions filled, is that
[1:01:48] correct?
[1:01:48] That is correct.
[1:01:51] Now of those ten people there
[1:01:52] each responsible for at least
[1:01:53] 90 leases, is that correct?
[1:01:57] You know, it depends on each
[1:01:58] person's portfolio.
[1:01:58] We have a range of, you know,
[1:01:59] associate to property to
[1:02:03] supervising.
[1:02:04] So it depends on
[1:02:04] the classification, what
[1:02:05] workload that they have.
[1:02:06] But if you were to make a
[1:02:10] general average that would be
[1:02:10] correct.
[1:02:11] It sounds like a large load to
[1:02:11] me.
[1:02:12] I would ask Andy do we have any
[1:02:15] ideas generally or you want to
[1:02:16] put in the real estate world
[1:02:21] how many portfolios can one
[1:02:22] real estate expert manage at a
[1:02:27] time and do an excellent job
[1:02:28] And I do not recall for sure We
[1:02:33] MAY have benchmarked that in
[1:02:34] our 2022 audit of citywide
[1:02:38] lease management looking at all
[1:02:38] 900 leases.
[1:02:39] This is just looking at Mission
[1:02:40] Bay only So we didn't look at
[1:02:45] that on this audit So I don't
[1:02:46] have any information on that at
[1:02:46] this moment for you.
[1:02:46] >> Okay.
[1:02:49] Well these 900 for the whole
[1:02:50] city is not just Mission Bay
[1:02:52] but on the Mission Bay ones,
[1:02:53] the ten that were not being
[1:02:54] followed up on and updated are
[1:02:59] now currently being dealt with,
[1:02:59] is that correct?
[1:03:05] That is correct.
[1:03:05] Okay.
[1:03:06] So pretty soon we will we will
[1:03:07] see what the outcome is of
[1:03:11] those that work.
[1:03:12] But I would just like to say
[1:03:13] that it seems to me
[1:03:17] the Department which took in
[1:03:17] the real estate division MAY
[1:03:18] need more help with its real
[1:03:23] estate problems And if it does
[1:03:24] I would like to hear as a
[1:03:29] council member how many full
[1:03:29] time equivalents more of real
[1:03:30] estate experts are needed so
[1:03:34] that the city can prioritize
[1:03:35] and make a high priority
[1:03:36] getting as much bang for
[1:03:40] the buck as we can on releases
[1:03:40] that we're putting out.
[1:03:46] Do you have any ideas at this
[1:03:47] time of how many you would like
[1:03:52] to have if you had a wish and
[1:03:53] you could make a wish for as
[1:03:53] many as you need it?
[1:03:57] >> I appreciate the question.
[1:03:58] So as I just want to mention
[1:03:59] looking at the leasing software
[1:04:03] was really one of our
[1:04:04] priorities because you know
[1:04:05] the software will help us do
[1:04:05] more with less staffing and
[1:04:10] understanding just you know,
[1:04:11] dire needs that we're in with
[1:04:11] the budget.
[1:04:15] I don't have a number off
[1:04:15] the top of my head because
[1:04:16] we're always looking at ways we
[1:04:17] can be more efficient with what
[1:04:17] we do have.
[1:04:22] I can confirm though that
[1:04:23] industry standards outside of
[1:04:23] you know, city government that
[1:04:28] you know approximately 90
[1:04:29] leases per person is is pretty
[1:04:29] high.
[1:04:29] >> Okay.
[1:04:34] It reminds me of the code
[1:04:35] enforcers trying to spec 130
[1:04:39] entities each every week which
[1:04:40] is obviously humanly
[1:04:40] impossible.
[1:04:45] So I think what we need to do
[1:04:46] as a council is realize that
[1:04:47] when we need to hire more
[1:04:51] expertise as a city or contract
[1:04:52] out for more expertise we have
[1:04:57] to spend money to do that.
[1:04:58] If we spend money to do that
[1:04:58] then we have to cut the budget
[1:04:59] somewhere else because we're
[1:05:03] not in it in a plush situation
[1:05:09] in terms of how much revenue
[1:05:09] the city is getting these past
[1:05:13] year or two years and how bad
[1:05:14] it was under covid as well and
[1:05:19] how we really haven't totally
[1:05:20] recovered after that.
[1:05:20] So these are tough decisions
[1:05:25] that we're going to have to be
[1:05:26] making in the next several
[1:05:27] weeks And I hope that we all
[1:05:31] realize that sometimes getting
[1:05:32] more expertise is actually a
[1:05:37] savings than a cost and that
[1:05:38] sometimes we have to give some
[1:05:43] things up in order to pay for
[1:05:44] other things.
[1:05:44] And at any rate I really
[1:05:49] appreciate all the work I went
[1:05:50] into this and I know Andy you
[1:05:51] will soon be coming back to us
[1:05:54] with the correct numbers for
[1:05:55] 2025 as well as for 2026 of
[1:05:55] that fiscal year will be over
[1:06:00] JULY first, 2026.
[1:06:01] So I appreciate that.
[1:06:06] i appreciate all your work in
[1:06:07] Oversight.
[1:06:07] It's so important that we have
[1:06:08] these audits and it's so
[1:06:09] important that the public
[1:06:12] realize that the city is in
[1:06:17] financial straits and we cannot
[1:06:18] do everything for everybody
[1:06:19] that they want without paying.
[1:06:24] And so these are tough
[1:06:25] decisions that have to be made
[1:06:25] and we need to have
[1:06:26] the public's help in this and
[1:06:30] understanding in this.
[1:06:31] So thank you so much for
[1:06:32] everyone's comments and
[1:06:32] questions and thank you for all
[1:06:37] your hard work and thank you
[1:06:38] Chair Pro-Tem Thank you.
[1:06:43] So we're Campbell I think that
[1:06:43] concludes the speakers for my
[1:06:44] colleagues so I'll close off by
[1:06:45] noting that my colleagues to
[1:06:49] ask me the questions that I
[1:06:50] think I would have and I
[1:06:50] appreciate them their
[1:06:51] directness and trying to get
[1:06:54] information about where we
[1:06:54] stand.
[1:06:55] I certainly agree with them all
[1:06:56] about not just getting our
[1:07:00] processes correct.
[1:07:01] I think this is why the Office
[1:07:01] of the City Auditor played such
[1:07:02] an important role for us here
[1:07:06] at the city because you're
[1:07:07] hoping to unpeel layers of what
[1:07:08] we MAY not be looking at from a
[1:07:08] day to day process given
[1:07:12] the amount of workload that a
[1:07:13] department MAY have.
[1:07:13] And I think Thank you,
[1:07:14] Councilmember Campbell for just
[1:07:14] simply pointing out how
[1:07:18] tremendous that workload is.
[1:07:19] And so I think for us this is
[1:07:20] an opportunity to understand
[1:07:24] where we've lost out as a city
[1:07:25] on potential revenue and beyond
[1:07:30] just the revenue as a dollar
[1:07:30] figure.
[1:07:31] I also think of the fact that
[1:07:32] our our lessees are not all
[1:07:36] just commercial businesses or
[1:07:37] institutions that are running
[1:07:38] different facilities.
[1:07:38] Maybe a better question for you
[1:07:43] or whoever knows the answer but
[1:07:44] up to 31 leases that we have in
[1:07:44] Mission Bay I assume at least a
[1:07:48] number of those are nonprofit
[1:07:48] organizations that are
[1:07:49] operating facilities that are
[1:07:49] serving the public that
[1:07:53] the city would otherwise not be
[1:07:53] able to do.
[1:07:54] Do we have a sense of what it
[1:07:55] looks like?
[1:07:59] I don't have the list in front
[1:08:00] of me but it would be accurate
[1:08:01] that there would be a
[1:08:01] combination of nonprofit and
[1:08:06] for profit and I presume that
[1:08:06] some of those are also in
[1:08:07] holdover status.
[1:08:07] And so I think when when we
[1:08:11] point out that the holdovers
[1:08:12] are not just impacting our
[1:08:13] opportunities to adjust leases
[1:08:17] to match up that there are also
[1:08:18] organizations, entities that
[1:08:18] are operating facilities where
[1:08:23] the holder of status means that
[1:08:24] they're not putting anything
[1:08:25] into those facilities And that
[1:08:25] is frankly at the end the day a
[1:08:29] lost opportunity for the public
[1:08:30] if any of them have been in
[1:08:31] long hold of status Typically
[1:08:35] with each of these lease
[1:08:36] updates this council will see
[1:08:36] them as an opportunity for
[1:08:37] the city to also require
[1:08:40] capital investment in some of
[1:08:41] these facilities that would
[1:08:41] again serve the public
[1:08:42] the longer term sort of
[1:08:46] agreements with organizations
[1:08:46] allow them to execute financial
[1:08:47] agreements that would allow
[1:08:52] them to meet capital
[1:08:52] commitments of or collect from
[1:08:53] private dollars.
[1:08:54] That is an impact that MAY not
[1:08:58] be a direct fiscal impact of
[1:08:59] the city but actually has a
[1:09:04] direct correlation to what
[1:09:05] the public benefits from.
[1:09:05] And so to me I see this not
[1:09:06] just the discussion of how can
[1:09:10] the city get more revenue, it's
[1:09:10] also thinking about how do we
[1:09:11] adequately serve the public
[1:09:15] with the resources that we've
[1:09:16] got knowing that the land and
[1:09:17] the organizations that are
[1:09:22] running programs from that also
[1:09:23] have an impact on that front.
[1:09:24] So that is only a thing I would
[1:09:24] add to the discussion that
[1:09:27] we've had and look forward to
[1:09:28] perhaps some further
[1:09:28] discussions on how we evaluate
[1:09:33] leases across them the city.
[1:09:34] So I think that concludes our
[1:09:34] speakers for this item.
[1:09:35] Again it was an informational
[1:09:39] items in the motion was
[1:09:39] unnecessary.
[1:09:40] >> With that we'll turn clerk
[1:09:43] to item two one item 2a1 is
[1:09:44] the 2025 annual report on
[1:09:48] internal financial control.
[1:09:49] If you'd like to speak on this
[1:09:50] item please be sure to submit
[1:09:50] your speaker.
[1:09:51] So if this is also an
[1:09:55] informational item you can
[1:09:56] submit your speakership by
[1:09:57] submitting it to the clear box
[1:09:58] at the front of the room or if
[1:10:01] you are participating remotely
[1:10:01] now's the time to raise your
[1:10:02] hand by pressing Star nine or
[1:10:03] the raise your hand icon.
[1:10:03] Thank you Council PRESIDENT
[1:10:06] Adam Thank you.
[1:10:07] We'll turn it over to the team
[1:10:10] once we're ready If you'll
[1:10:11] introduce yourselves for
[1:10:21] the record and most optionally
[1:10:22] good afternoon Council
[1:10:28] PRESIDENT Pro Tem Lee and
[1:10:29] council members I'm Ben Italian
[1:10:29] director of finance.
[1:10:30] With me today is Jeff Peel,
[1:10:33] chief accountant in
[1:10:34] the Department of Finance.
[1:10:35] Today we're here to present
[1:10:39] the city's annual report on
[1:10:40] internal financial controls for
[1:10:40] calendar year 2025 And today
[1:10:43] I'll need about ten minutes.
[1:10:44] The final report is issued
[1:10:45] pursuant to the city's
[1:10:49] municipal code which was
[1:10:50] amended by the City Council in
[1:10:50] 2004.
[1:10:55] It requires a high standard of
[1:10:56] quality in and efficacy of
[1:10:56] the city's financial reporting
[1:11:00] and disclosure practices.
[1:11:01] The municipal code requires
[1:11:01] that management perform an
[1:11:06] annual evaluation of the city's
[1:11:07] internal financial controls
[1:11:07] submit a written annual report
[1:11:08] to the audit committee and
[1:11:12] the City Council and submit a
[1:11:13] certification by city
[1:11:13] management regarding
[1:11:14] the design, maintenance and
[1:11:18] effectiveness of the city's
[1:11:19] internal financial controls.
[1:11:19] I'll now turn it over to Jeff
[1:11:24] to discuss the highlights of
[1:11:24] the report.
[1:11:25] >> The focus of this report is
[1:11:26] to provide an overview of
[1:11:26] management's approach to
[1:11:30] developing a maintaining a
[1:11:31] strong and effective system of
[1:11:31] internal controls over
[1:11:32] financial reporting and to
[1:11:35] highlight some of
[1:11:36] the accomplishments of the past
[1:11:37] year that support those
[1:11:37] objectives.
[1:11:38] The objectives of the financial
[1:11:41] reporting are to produce
[1:11:41] financial information that is
[1:11:42] reliable, relevant and timely.
[1:11:43] Management's ability to meet
[1:11:47] these objectives depends in
[1:11:47] part on the design and
[1:11:48] effectiveness of the processes,
[1:11:49] policies and procedures and
[1:11:53] safeguards it has in place to
[1:11:53] reduce or mitigate risks over
[1:11:54] financial reporting.
[1:11:54] >> Internal controls are
[1:11:58] important because without such
[1:11:59] controls it would be
[1:12:00] challenging to prepare reliable
[1:12:00] financial reports that utilized
[1:12:04] to be utilized by management
[1:12:05] investors, rating agencies and
[1:12:06] other interested parties.
[1:12:10] The city's internal control
[1:12:10] program is based on the best
[1:12:11] practices established by coso
[1:12:12] Kosovo's The committee of
[1:12:16] sponsoring Organizations of
[1:12:17] the Treadway Commission because
[1:12:17] it was developed a conceptual
[1:12:18] framework to guide businesses
[1:12:22] and government entities in
[1:12:22] areas of risk management,
[1:12:23] internal controls and fraud
[1:12:23] deterrence.
[1:12:26] The framework includes five
[1:12:27] interrelated components control
[1:12:28] environment risk assessment
[1:12:32] control activities, information
[1:12:33] and communication and
[1:12:34] monitoring activities within
[1:12:34] each of the components.
[1:12:37] Another layer of 17 principles
[1:12:38] helps guide as well.
[1:12:41] I will describe each one of
[1:12:42] the components briefly.
[1:12:42] Control environment is
[1:12:43] the organizational attitude
[1:12:47] toward internal controls.
[1:12:47] It starts with the tone at
[1:12:48] the top.
[1:12:48] Management creates an
[1:12:49] environment where everyone in
[1:12:50] the organization believes
[1:12:53] internal controls are important
[1:12:53] and each person has a role.
[1:12:54] Secondly is risk assessment
[1:12:58] which is how management
[1:12:59] identifies, assesses evaluates
[1:12:59] and manages the amount of risk.
[1:13:03] And it's always important to
[1:13:04] note that risk can never be
[1:13:04] completely eliminated.
[1:13:05] Thirdly is control activities.
[1:13:08] These are the policies and
[1:13:09] procedures that help ensure
[1:13:10] management's objectives are
[1:13:10] carried out and the necessary
[1:13:14] actions are taken to address
[1:13:14] risks.
[1:13:15] This includes segregation of
[1:13:16] duties, reviews and approvals
[1:13:19] within the processes.
[1:13:20] The fourth component is
[1:13:20] information and communication.
[1:13:21] This is the distribution of
[1:13:25] information needed to perform
[1:13:25] control activities and to
[1:13:26] understand internal control
[1:13:27] responsibilities throughout
[1:13:27] the organization.
[1:13:30] And the last component is
[1:13:31] monitoring activities which is
[1:13:35] the evaluation of each of
[1:13:35] the other four components to
[1:13:36] ensure that they are
[1:13:36] functioning effectively and
[1:13:40] organizational objectives are
[1:13:40] being met.
[1:13:41] The Department of Finance used
[1:13:42] a management assessment
[1:13:42] template to help assess
[1:13:46] the effectiveness of the city's
[1:13:46] system of internal financial
[1:13:47] controls as it relates to
[1:13:50] the five components and 17
[1:13:50] principles of the coso
[1:13:51] framework.
[1:13:51] This tool helps management to
[1:13:52] analyze and provide
[1:13:55] the structure of this report.
[1:13:56] The assessment can be found in
[1:13:56] Attachment one.
[1:13:57] I want to highlight a few
[1:14:01] highlights from that from
[1:14:01] the report.
[1:14:02] First, the city received a
[1:14:05] clean audit opinion for
[1:14:06] the fiscal year 2025 annual
[1:14:06] Comprehensive Financial Report
[1:14:07] with no significant
[1:14:10] deficiencies and no material
[1:14:11] weaknesses in internal
[1:14:11] controls.
[1:14:12] Next the city received a
[1:14:16] certificate of Achievement for
[1:14:17] Excellence in financial
[1:14:18] reporting from the Government
[1:14:18] Finance Officers Association
[1:14:21] gfa.
[1:14:22] This is the 11th consecutive
[1:14:23] year that the city has received
[1:14:23] this award.
[1:14:27] The city also received
[1:14:27] the Budget Presentation Award
[1:14:28] from g f a way for the fy 25
[1:14:32] adopted budget and the budget
[1:14:32] Excellence Award from
[1:14:33] the California Society of
[1:14:34] Municipalities Finance Officers
[1:14:38] csf and more for the f y 2425
[1:14:42] Capital and operating budgets.
[1:14:43] >> In last year's internal
[1:14:44] Financial controls report a
[1:14:44] risk was identified for
[1:14:48] the revenue Compliance program
[1:14:48] .
[1:14:49] As you recall, the program
[1:14:49] identified opportunities for
[1:14:50] enhanced internal controls over
[1:14:53] and over economic development
[1:14:54] departments, real estate
[1:14:54] divisions, invoicing and
[1:14:59] payment processing as well as
[1:14:59] the lease audit management.
[1:15:00] We wanted to provide a brief
[1:15:01] update on addressing that risk.
[1:15:05] The moratorium usually agreed
[1:15:05] upon by economic development
[1:15:06] and the City Treasurer for
[1:15:09] lease audits concluded in APRIL
[1:15:10] of 2025.
[1:15:10] The revenue compliance has
[1:15:15] since return resumed audit
[1:15:16] auditing of leases which has
[1:15:16] now allowed City Treasurer to
[1:15:17] work in tandem with
[1:15:21] the economic Development
[1:15:21] Department to maintain strong
[1:15:22] internal controls and ensure
[1:15:23] that there are any potential
[1:15:26] risk are identified and
[1:15:26] mitigated.
[1:15:27] The Economic Development
[1:15:30] Department has also formalized
[1:15:31] internal processes and
[1:15:32] significant processes have
[1:15:32] the need to address
[1:15:33] the backlog.
[1:15:36] The Department has continued to
[1:15:37] make improvements to ensure
[1:15:37] revenue is accurately captured
[1:15:41] and reported in compliance with
[1:15:42] the current city policy and
[1:15:43] documented internal processes.
[1:15:43] The Economic Development
[1:15:47] Department is also upgrading
[1:15:47] its aging software system.
[1:15:48] Technology enhancements are
[1:15:51] intended to reduce human
[1:15:52] errors, automate workflows and
[1:15:53] provide visibility into these
[1:15:53] compliance.
[1:15:57] We also wanted to provide a
[1:15:58] brief update on a couple
[1:15:58] outstanding audit items related
[1:16:02] to the Human Capital Management
[1:16:02] .
[1:16:03] One is the uncompetitive
[1:16:03] compensation which is being
[1:16:04] resolved with the total
[1:16:07] compensation strategy.
[1:16:08] The other is improving
[1:16:08] the employee performance
[1:16:09] process which is also being
[1:16:12] addressed with a series of
[1:16:13] implementations focused on
[1:16:14] trends and completion rates.
[1:16:17] The Human Resources Department
[1:16:18] and personnel department are
[1:16:19] working with the city Auditor
[1:16:19] to close these recommendations
[1:16:22] based on our evaluation we have
[1:16:23] concluded that the internal
[1:16:24] financial controls are
[1:16:24] effective.
[1:16:27] That concludes our presentation
[1:16:28] and we are happy to answer any
[1:16:29] questions.
[1:16:29] >> Thank you.
[1:16:33] Do we have any public comment
[1:16:34] relative to the Common Hearing
[1:16:35] Council chambers We have
[1:16:35] several people with their hands
[1:16:36] raised.
[1:16:39] Starting with Katherine Rhodes
[1:16:39] you have four people.
[1:16:40] If you can please unmute.
[1:16:42] I've started the five minute
[1:16:42] timer.
[1:16:42] >> Wonderful.
[1:16:46] First you know everything you
[1:16:47] have here and your five
[1:16:51] components of internal controls
[1:16:51] .
[1:16:52] They weren't done for
[1:16:54] the mission Bay Park So
[1:16:55] the item 200 that you just had
[1:17:00] you know the risk assessment of
[1:17:01] of of knowing you know which
[1:17:05] leases are not outstanding.
[1:17:06] I mean every single one of
[1:17:10] these components of your of
[1:17:11] your you know, internal
[1:17:16] financial controls wasn't being
[1:17:16] met.
[1:17:20] So you know so the mayor's
[1:17:21] basically saying we're doing
[1:17:21] everything great.
[1:17:26] They're not the city council is
[1:17:26] it?
[1:17:30] It's not a strong city council
[1:17:31] .
[1:17:32] You guys really do need to put
[1:17:36] forward a ballot proposition so
[1:17:36] that we can have a strong city
[1:17:41] council to counter the strong
[1:17:41] mayor right now because he's
[1:17:42] doing everything he just wants
[1:17:47] and then he's coming to you in
[1:17:47] this report here telling you
[1:17:51] everything's fine.
[1:17:52] Don't worry about it.
[1:17:52] We've got your back.
[1:17:53] They don't have your back.
[1:17:56] They don't have the public's
[1:17:57] back.
[1:17:57] You know, How about
[1:18:01] the internal controls over
[1:18:02] the budget coming up?
[1:18:02] You know there was a
[1:18:04] Union-Tribune article today
[1:18:10] that says that you know there's
[1:18:10] I forgot the 400 and something
[1:18:11] percent increase in the amount
[1:18:15] of middle managers that came
[1:18:15] about And all these middle
[1:18:20] managers started coming about
[1:18:21] in in 2013 when Todd Gloria was
[1:18:25] the mayor and he want to get
[1:18:26] around the five year
[1:18:26] pensionable pay freeze and
[1:18:29] the way to get around that is
[1:18:30] to make people be nonunion
[1:18:34] members and become middle
[1:18:35] managers And then they're paid
[1:18:35] sometimes doubled, sometimes
[1:18:36] tripled.
[1:18:40] I don't see you have controls
[1:18:40] And then of course I always
[1:18:44] have my big problem with
[1:18:44] the with the fund balance that
[1:18:45] you don't have all the fund
[1:18:49] balances you're included next
[1:18:50] to the original if you can
[1:18:53] please unmute after that will
[1:18:54] be 8700 and I mean obviously I
[1:18:55] don't and you guys have an item
[1:18:58] prior to this that shows that
[1:18:58] this is not working as
[1:18:59] Katherine was pointing out and
[1:19:03] it's like I don't understand
[1:19:04] how you could be getting awards
[1:19:07] for this when just the item
[1:19:08] before showing that for years
[1:19:11] nearly a decade there has been
[1:19:12] issues that this internal
[1:19:13] controls didn't catch didn't do
[1:19:18] anything about.
[1:19:18] I mean it constantly there are
[1:19:19] issues showing
[1:19:22] the mismanagement, fraud, waste
[1:19:23] and abuse that it's taking
[1:19:23] place in the city.
[1:19:24] So for you guys to sit here and
[1:19:27] give a presentation like this
[1:19:28] as though you know, this is
[1:19:32] working really well obviously
[1:19:32] it is not from the prior item.
[1:19:37] I don't know if you guys don't
[1:19:37] think about those things or if
[1:19:38] you're kind of just like
[1:19:39] throwing it in our face to be
[1:19:42] like Oh yeah, everything is
[1:19:42] fine.
[1:19:43] Just don't pay attention to
[1:19:44] the prior item that we had in
[1:19:46] question How the internal
[1:19:47] controls were working there and
[1:19:48] why they didn't stop these
[1:19:51] things for years Like it's for
[1:19:52] years this has been going on
[1:19:53] and for years you guys have
[1:19:56] been in debt and mismanaging
[1:20:01] the money So it's like weird
[1:20:01] that you can sit here and bring
[1:20:02] forward an item and act like
[1:20:03] your internal controls are
[1:20:05] working Really well.
[1:20:06] Are they working well to hide
[1:20:06] that stuff?
[1:20:10] Because if that's the case then
[1:20:11] sure yeah they're working
[1:20:11] extremely well because they're
[1:20:12] making sure that you know
[1:20:16] business as usual goes on with
[1:20:16] the you know, intentional
[1:20:21] willful negligence and and
[1:20:22] mismanagement of the people's
[1:20:26] money who work very, very hard.
[1:20:27] So it is a slap in the face to
[1:20:30] sit here and tell that
[1:20:31] everything is going well when
[1:20:32] you just proved prior to this
[1:20:35] that it wasn't And so I think
[1:20:36] you need to rethink the way
[1:20:36] that you're presenting this
[1:20:39] item and not claim that it
[1:20:40] works really well and you know,
[1:20:41] be all excited because you're
[1:20:45] getting awards because
[1:20:45] the people you're probably
[1:20:46] getting awards from are people
[1:20:47] that are also hiding things and
[1:20:50] just wanting to make it seem
[1:20:50] like things are hunky dory when
[1:20:55] in fact they aren't But
[1:20:55] everything is inverted and so
[1:20:56] we get an inversion inverted.
[1:20:59] Martino has concluded Next is
[1:21:00] 8700 After that will be Blair
[1:21:07] Beekman 8700 star six To unmute
[1:21:10] Joy Sonata pd three from
[1:21:15] the staff report rather
[1:21:15] the controls are intended to
[1:21:20] mitigate the risks of financial
[1:21:21] reporting errors to a level
[1:21:25] that is acceptable based on
[1:21:30] conditions of materiality and
[1:21:30] to quote I study materiality in
[1:21:34] this context and believe me I
[1:21:39] was not reassured in any way
[1:21:44] Also expenditure errors
[1:21:45] appeared to be in compliance
[1:21:49] Look up the word appeared in
[1:21:50] this context I was not
[1:21:54] reassured I am leaning on this
[1:21:59] in this way That risk is more
[1:22:03] discretionary and subjective
[1:22:04] And I'm sorry to have to say
[1:22:05] that because I love our
[1:22:05] Department of Finance.
[1:22:08] They know that and the people
[1:22:09] that are in there they're great
[1:22:10] people But something's wrong
[1:22:13] here.
[1:22:14] Do you see what is calling to
[1:22:14] us?
[1:22:18] It's a red flag of opportunity.
[1:22:26] Let us be except what happens
[1:22:27] if you look at it Go with an
[1:22:27] Eagles.
[1:22:31] I let us seize the opportunity
[1:22:36] to change to grow and to become
[1:22:36] a better city for all.
[1:22:40] When are we going to truly
[1:22:40] truly be willing to have
[1:22:45] the courage and the greatness
[1:22:45] to do that step?
[1:22:46] We're not there yet but let's
[1:22:50] try to do it together.
[1:22:51] >> Look to all Thank you.
[1:22:52] Next is Blair Beckman If you
[1:22:55] can please unmute The five
[1:22:56] minute timer also concluded
[1:22:57] that there were four speakers
[1:23:00] in the queue No additional
[1:23:01] speakers will be taken.
[1:23:02] >> Blair Beckman After that is
[1:23:05] Kathleen Lippert.
[1:23:06] All right, thank you.
[1:23:06] Beakman Thanks for this item.
[1:23:08] Thanks for the public comment
[1:23:09] on this item.
[1:23:14] I feel similar really nice work
[1:23:14] on the previous item.
[1:23:18] I think everyone is involved on
[1:23:19] the previous item and I think
[1:23:20] it relates to what you're
[1:23:23] talking about overall for this
[1:23:23] item Overall accounting and
[1:23:28] auditing issues for our city
[1:23:28] concerns.
[1:23:33] So a good history was presented
[1:23:34] on previous problems and what
[1:23:34] we need to do to address this
[1:23:38] is issues that stem far back
[1:23:39] before Mayor Gloria.
[1:23:43] We I good luck that we really
[1:23:44] can be addressing the previous
[1:23:47] item and how it relates to this
[1:23:48] item and I think we really can
[1:23:49] do it as a city These are
[1:23:52] the one of the projects that we
[1:23:52] work as a community at this
[1:23:53] time So I hope we don't get
[1:23:56] caught up in you know people
[1:23:57] get lost in the process and we
[1:24:01] really develop something really
[1:24:02] good with this going on for
[1:24:03] good ideas.
[1:24:06] Good luck with that and for for
[1:24:07] this type of thing, you know, I
[1:24:11] think we still have to
[1:24:12] acknowledge that we made
[1:24:15] mistakes in 2024.
[1:24:15] I mean why did that happen?
[1:24:16] At least we're holding
[1:24:19] ourselves accountable now.
[1:24:23] But what did we do wrong in
[1:24:23] 2024?
[1:24:24] And as much as I think
[1:24:25] the mayor's office and I had a
[1:24:28] part in bringing this to
[1:24:28] accountability at this time, i
[1:24:33] think it suggests the overall
[1:24:33] idea that, you know, council
[1:24:34] has been asking how do we
[1:24:38] create a better set of
[1:24:39] governance at this time There's
[1:24:42] something lacking in our
[1:24:43] governance policies that
[1:24:43] the strong mayor position is is
[1:24:48] is it lacks something in
[1:24:48] creating a better governance.
[1:24:52] I really hope and the strong
[1:24:52] mayor position because learn to
[1:24:53] take suggestions from our
[1:24:57] current city council on what
[1:24:58] can be better organizational
[1:24:58] practices and better governance
[1:25:02] practices and learn to be
[1:25:03] flexible in that thinking And I
[1:25:08] hope that can develop our
[1:25:09] future plan has concluded.
[1:25:12] >> Kathleen Lippert, if you can
[1:25:13] please join me after that is
[1:25:16] Judy Strang.
[1:25:16] Kathleen, I can hear me before
[1:25:21] you if it takes a minute to
[1:25:21] find the unmute button.
[1:25:25] >> Thank you.
[1:25:26] >> My name is Kathleen Letter
[1:25:27] in Good afternoon.
[1:25:30] The public is really served so
[1:25:31] well by individuals such as
[1:25:31] Katherine Rhodes in order for
[1:25:36] their candor I am also confused
[1:25:37] as to why the city receives so
[1:25:40] many accolades for audits when
[1:25:45] they are clearly in deficit
[1:25:45] when they clearly are sending
[1:25:46] there they are doing fit
[1:25:49] fiscally in responsible things
[1:25:50] like spending out all of their
[1:25:54] reserves, finding everywhere to
[1:25:55] look under overturning every
[1:25:59] rock to find taxpayer money,
[1:26:00] not taking the money out of
[1:26:05] the city budget card San Diego
[1:26:05] has the worst fiscal health of
[1:26:09] any city in the county.
[1:26:09] That's hardly something to brag
[1:26:14] about and they while serving in
[1:26:15] the California Senate and one
[1:26:15] of the senators decided to
[1:26:19] prepare a fiscal ranking of
[1:26:19] the cities when cities are
[1:26:23] delinquent paying real property
[1:26:24] tax I'm sorry when taxpayers
[1:26:28] are delinquent in paying real
[1:26:29] property tax on their homes
[1:26:30] Even one day the county
[1:26:34] treasurer taxes them a 10%
[1:26:34] penalty of the amount that
[1:26:35] they're due.
[1:26:39] So why the Sacramento allow
[1:26:39] cities to be so complacent in
[1:26:43] their fiscal reporting
[1:26:44] responsibilities?
[1:26:44] Having due dates and penalties
[1:26:48] should at least be a two way
[1:26:48] street.
[1:26:53] Also the city is not served by
[1:26:54] one party or the other having a
[1:26:58] total say without having
[1:26:59] alternative opinions because
[1:27:03] clearly you all need to get out
[1:27:04] of your echo chambers and
[1:27:08] listen to alternative opinions
[1:27:08] which typically prove to have
[1:27:12] some merit.
[1:27:13] The last thing is strong public
[1:27:13] employee unions tend to
[1:27:18] influence the outcome of who is
[1:27:18] elected to the city councils
[1:27:19] and when they control who
[1:27:22] becomes their bosses they tend
[1:27:23] to get a little greedy as time
[1:27:27] has concluded to a string.
[1:27:32] Good afternoon San Diego City
[1:27:36] Council I just have kind of an
[1:27:37] a comment or an observation
[1:27:41] that I've been making because I
[1:27:42] think everyone on city council
[1:27:46] has some of the same concern
[1:27:47] about receiving the revenue
[1:27:51] that we need and what are
[1:27:51] the internal financial controls
[1:27:52] that can make that happen.
[1:27:56] But I noticed on the last item
[1:27:57] that my own city council person
[1:28:01] Joe LaCava was missing and we
[1:28:01] were talking about Mission Bay
[1:28:06] and it made me wonder about all
[1:28:07] the city council people Are
[1:28:07] they missing in action?
[1:28:11] Do you know in your city
[1:28:12] council district which are
[1:28:12] the city leased public
[1:28:15] properties?
[1:28:16] Do you know what's been going
[1:28:17] on and have those leases been
[1:28:20] negotiated And recently do you
[1:28:21] know what sort of loss of
[1:28:25] funding has happened because of
[1:28:26] those leases not being
[1:28:26] negotiated?
[1:28:30] Are you aware that they might
[1:28:35] be presenting the visual
[1:28:36] the optic if you will, of
[1:28:39] preferential treatment Because
[1:28:40] perhaps that's the problem is
[1:28:44] that you all don't have a good
[1:28:45] handle on who it is within your
[1:28:49] city council district that hold
[1:28:50] leases of public property And
[1:28:54] we in the public of course very
[1:28:55] difficult for us to understand
[1:28:59] who in our neighborhoods might
[1:29:00] want public land in our
[1:29:01] neighborhoods might be under
[1:29:05] lease And so hard for us to
[1:29:06] know whether we're receiving
[1:29:09] the funding we need.
[1:29:10] So maybe the buck doesn't stop
[1:29:10] at the mayor's office.
[1:29:14] Maybe the buck doesn't stop
[1:29:15] with middle management.
[1:29:15] Maybe it stops at the city
[1:29:19] council or at least it's
[1:29:20] something for us all to
[1:29:20] consider And this is our
[1:29:23] opportunity that this report is
[1:29:24] providing us to take a look at
[1:29:28] our our own 90 our own nine
[1:29:29] city council districts and ask
[1:29:29] ourselves if we've got a good
[1:29:33] handle on it.
[1:29:33] >> Thank you.
[1:29:34] Thank you.
[1:29:34] Next And our final speaker is
[1:29:40] Tony, if you can please unmute
[1:29:40] .
[1:29:41] Yes, Hello City Council.
[1:29:41] Good afternoon.
[1:29:45] I just wanted to speak and
[1:29:45] comment on the this audit issue
[1:29:46] that's going on with these
[1:29:49] parks right now, these issues
[1:29:50] that we're having being under
[1:29:53] budget on the whole about $120
[1:29:54] million And I wanted to speak
[1:29:58] to an issue that Bob Kaye has
[1:29:59] been coming to city council for
[1:30:01] for the last 20 years.
[1:30:02] He's been talking about how in
[1:30:06] Joe the Culver's district,
[1:30:07] the La Hoya Glider Port Park is
[1:30:11] getting away with paying off.
[1:30:14] I think it's only 5000 or
[1:30:14] $10,000 a year is what their
[1:30:15] leases and they're making
[1:30:18] millions of dollars off of a
[1:30:19] public park and they're paying
[1:30:23] a super tiny minimal lease that
[1:30:24] they've been locked into for
[1:30:24] the last 20 years And it's
[1:30:25] really depressing.
[1:30:28] I go to city council chambers
[1:30:29] and Bob tells me that he's been
[1:30:32] raising this issue for over 20
[1:30:33] years and I was there in person
[1:30:33] when he asked you all to play
[1:30:36] the video of him speaking
[1:30:37] before this city council and
[1:30:38] bringing this issue to the city
[1:30:42] council's attention back then.
[1:30:43] This was back in 2006 and he
[1:30:43] played this video in front of
[1:30:47] you And still I'm not seeing a
[1:30:48] single one of you taking this
[1:30:48] issue by the reins and
[1:30:52] investigating this issue.
[1:30:53] It's really depressing as
[1:30:53] somebody that tries to weigh in
[1:30:56] and tries to make a difference
[1:30:57] in city council understanding
[1:30:57] that y'all are supposedly
[1:31:01] listening to our inputs and our
[1:31:02] opinions and y'all are supposed
[1:31:03] to take what we say seriously
[1:31:06] and then I see somebody who's
[1:31:07] been working on this same issue
[1:31:07] of corruption of the city not
[1:31:11] getting paid its its due fair
[1:31:12] share for a park that it
[1:31:16] publicly owns And he's been
[1:31:17] raising the alarm on this issue
[1:31:18] for over 20 years and it still
[1:31:21] hasn't been addressed.
[1:31:22] It's like if this issue doesn't
[1:31:22] get addressed, how many other
[1:31:26] issues you know get swept under
[1:31:27] the rug that people have to
[1:31:30] continue fighting for and
[1:31:31] coming to city council meetings
[1:31:31] for?
[1:31:32] It's not an easy thing to do to
[1:31:36] clock out of work to go to city
[1:31:36] council in person.
[1:31:39] I've gotten four parking
[1:31:39] tickets in the last five months
[1:31:40] from my involvement in these
[1:31:44] city Council meetings and still
[1:31:44] these issues aren't being
[1:31:45] addressed.
[1:31:46] >> So your time has concluded
[1:31:48] and that does conclude public
[1:31:49] comment on item 2a1 Thank you
[1:31:50] Council PRESIDENT Pro Tem Thank
[1:31:54] you.
[1:31:54] Thank you for the presentation
[1:31:55] and see no other comments.
[1:31:59] Well I'll turn first to
[1:31:59] COUNCILMAN Realer Rivera Thank
[1:32:02] you council PRESIDENT Pro tem I
[1:32:05] just want to say thank you for
[1:32:10] the report here the public
[1:32:15] comment here I was very
[1:32:15] predictable.
[1:32:16] >> I spoke with my team about
[1:32:19] this last week when we were
[1:32:20] going through the agenda and it
[1:32:25] completely understand why in a
[1:32:25] moment like this one where
[1:32:29] we're going through the budget
[1:32:30] challenges we are that this
[1:32:34] conversation can feel detached
[1:32:35] from reality But it's also it's
[1:32:39] a technical response to a
[1:32:40] technical question And I just
[1:32:43] want to kind of ask for you all
[1:32:48] to reiterate that the report
[1:32:49] out that we heard is not a
[1:32:53] declaration that everything is
[1:32:54] being done perfectly or that
[1:32:58] every decision it's been made
[1:32:59] has been ideal but instead a
[1:33:03] answer to the question as to
[1:33:03] whether or not specific
[1:33:07] internal financial controls are
[1:33:08] in place and best practices are
[1:33:08] being adhered to.
[1:33:13] It is that correct?
[1:33:13] >> That is that is correct.
[1:33:18] Council member Sheila Rivera
[1:33:18] intent of the report is to
[1:33:22] basically say do we have a
[1:33:23] strong enough system control to
[1:33:23] be able to produce financial
[1:33:27] statements that are reliable
[1:33:28] that that investors can look at
[1:33:28] and are properly following
[1:33:32] the accounting standards and
[1:33:32] the rules of accounting that
[1:33:33] the auditor goes through and
[1:33:37] verifies that that's the that
[1:33:38] there is still of course
[1:33:38] there's materiality It's never
[1:33:42] perfection will never be
[1:33:42] the goal because to get a
[1:33:43] perfect financial statements
[1:33:46] would be extremely expensive.
[1:33:47] But is it materially accurate
[1:33:47] enough?
[1:33:52] Do we have a strong system of
[1:33:52] internal controls that that's
[1:33:53] really the question to
[1:33:53] answering.
[1:33:53] >> Okay.
[1:33:56] I I appreciate that and I'm
[1:34:01] glad that we're doing things in
[1:34:06] such a way that ensures that
[1:34:07] investors see us in the way
[1:34:08] that you just mentioned and
[1:34:08] that we're doing the things
[1:34:11] that we need to be that need to
[1:34:11] be done on that front.
[1:34:12] And at the same time I just
[1:34:13] think it's important to
[1:34:13] acknowledge that just because
[1:34:16] we are saying that we are we
[1:34:17] are checking those boxes and I
[1:34:21] don't mean that in a in a
[1:34:22] flippant way but again in a
[1:34:25] technical way just because
[1:34:25] we're checking checking those
[1:34:26] boxes does mean that we think
[1:34:29] that everything's perfect and
[1:34:30] we don't need to do things
[1:34:31] differently when it comes to
[1:34:34] the city's finances and we have
[1:34:35] different opinions as to
[1:34:35] the best way to do that.
[1:34:38] But again, I want to say thank
[1:34:39] you And then I just wanted to
[1:34:43] kind of acknowledge disconnect
[1:34:44] here between having a
[1:34:45] conversation where we say we're
[1:34:49] we're doing things right and
[1:34:50] then two days from now we're
[1:34:51] going to be presented with a
[1:34:51] budget.
[1:34:54] It's going to be telling us all
[1:34:54] the ways that things aren't
[1:34:58] okay And and while that can
[1:34:59] feel incongruent in this
[1:35:02] instance, it's just because
[1:35:02] we're answering kind of two
[1:35:03] different questions.
[1:35:03] >> Thank you.
[1:35:07] Council PRESIDENT Pro Tem.
[1:35:07] Thank you.
[1:35:08] Next up is council member
[1:35:12] Yvonne Wilbert from Thank you
[1:35:13] And thank you Councilor Rivera
[1:35:14] because I was going to make
[1:35:17] the same comment about how we
[1:35:17] saw that earlier item that
[1:35:18] we're not collecting revenue
[1:35:21] from leases that we should be
[1:35:22] and now we're going to say
[1:35:23] we're doing a good job with
[1:35:27] financial controls but it's I
[1:35:27] understand it's a very
[1:35:28] technical question.
[1:35:28] I mean I've also been very
[1:35:31] upset by the lack of city
[1:35:32] staff's ability to conform to
[1:35:36] budgeted contracting items and
[1:35:36] allowing contracts to expire
[1:35:37] And we're still spending money
[1:35:41] that's not been authorized by
[1:35:42] the city council And I know we
[1:35:42] had an audit about it.
[1:35:43] We're going to have an audit of
[1:35:45] the herc rental contract which
[1:35:46] is one of the ones that
[1:35:46] spiraled out of control.
[1:35:48] I am glad that we do have a new
[1:35:49] improvements to Ariba and
[1:35:54] contracting processes.
[1:35:55] It's still it's it's really
[1:35:58] hard for us to get our heads
[1:35:59] around this when one of the big
[1:35:59] biggest budget items we're
[1:36:03] going to see next week or in
[1:36:04] the few days is you know,
[1:36:05] external contracts or outside
[1:36:08] contracts with hundreds of
[1:36:09] millions of dollars And it's
[1:36:09] very hard for us to dig into
[1:36:10] it.
[1:36:11] And now that I'm seeing so many
[1:36:13] contracts come through that are
[1:36:14] overdue that are past due and
[1:36:14] we're just expected to rubber
[1:36:18] stamp them, it has made me very
[1:36:19] frustrated.
[1:36:19] And so something on on
[1:36:20] the PowerPoint slide is that
[1:36:23] highlights of c y 2025 revenue
[1:36:23] compliance program process
[1:36:27] improvement in system upgrades
[1:36:28] Can you tell me more about what
[1:36:31] those are?
[1:36:32] I think it's Slide seven in
[1:36:36] the PowerPoint.
[1:36:37] I think that relates to
[1:36:41] the deck economic development
[1:36:46] the leases and we can have we
[1:36:47] could have our liaison from
[1:36:47] economic development speak to
[1:36:52] that.
[1:36:53] Thank you for the question
[1:36:59] Councilmember Belmore Pert This
[1:36:59] is the least system upgrade
[1:37:00] that I spoke to on the previous
[1:37:05] four item So we're currently in
[1:37:06] version six for upgrading now
[1:37:09] to version 11 and the more in
[1:37:10] the process of doing an rfp for
[1:37:12] a future system.
[1:37:13] Okay.
[1:37:18] And can I ask what is the plan
[1:37:19] going forward to upgrade city
[1:37:19] software?
[1:37:22] I know that is a budget issue
[1:37:23] but when I was first elected
[1:37:27] the water department wasn't
[1:37:28] billing residents for water and
[1:37:29] I went over to Pudi and was
[1:37:33] given a presentation of
[1:37:33] the system.
[1:37:34] They had to go through
[1:37:34] the software system and it
[1:37:37] honestly looked similar to what
[1:37:38] I used the Oregon Trail as a
[1:37:42] video game in middle school and
[1:37:43] finally it has been upgraded
[1:37:44] and they hired new staff who
[1:37:47] understand how to do billing
[1:37:48] and it's working and we're
[1:37:48] getting more revenue into
[1:37:49] the city.
[1:37:51] But why is it that our economic
[1:37:52] development department is still
[1:37:57] using software from its 11 that
[1:37:57] was six It could be you know,
[1:37:58] ten, 15 years ago.
[1:38:00] You know what is our internal
[1:38:01] processes to make sure we're
[1:38:02] updating software.
[1:38:05] I know it comes at a cost but
[1:38:06] do we have any kind of
[1:38:06] management plan for this for
[1:38:10] software for our city?
[1:38:11] We we do.
[1:38:11] Councilmember And there is a
[1:38:15] strategic plan especially when
[1:38:16] you have legacy systems like
[1:38:16] the one that we're referring to
[1:38:19] and where you can actually
[1:38:20] cause vulnerabilities in terms
[1:38:20] of cyber security and things
[1:38:21] like that.
[1:38:24] But absolutely this scenario
[1:38:25] that I know the Christina
[1:38:29] Biller had flagged for us a few
[1:38:30] years back and we're moving
[1:38:31] forward with the rfp for this
[1:38:35] particular software in MAY Just
[1:38:36] to redirect a little bit
[1:38:38] the discussion here with this
[1:38:39] particular report is the scope
[1:38:40] is very narrow.
[1:38:44] It's is about any time that we
[1:38:44] are producing financial
[1:38:48] information for external use
[1:38:49] for example financial
[1:38:50] statements, official statements
[1:38:53] when we issue bonds.
[1:38:54] So this is really something
[1:38:54] that was added to the municipal
[1:38:58] code after all the issues that
[1:38:59] we saw in the early 2000 to
[1:39:03] make sure that if there was an
[1:39:04] issue in internal internal
[1:39:04] controls for financial
[1:39:05] reporting that we would be
[1:39:08] presenting that to the city
[1:39:09] council.
[1:39:09] So we recognize that there are
[1:39:12] issues operational issues in
[1:39:13] other financial problems
[1:39:14] throughout the city.
[1:39:14] But the scope at least for this
[1:39:18] particular report is is very
[1:39:18] narrow.
[1:39:19] It's that we are actually
[1:39:23] reporting the fiscal condition
[1:39:23] of the city to the investors.
[1:39:27] But I understand that that's
[1:39:28] why this is accurate this
[1:39:28] statement.
[1:39:32] But it is a sad state of
[1:39:33] affairs that we do have to
[1:39:34] report So things to the city
[1:39:36] that they're not running so
[1:39:36] well.
[1:39:37] So but I do understand
[1:39:38] the difference and thank you
[1:39:42] for your work.
[1:39:42] You guys are always keeping us
[1:39:43] early.
[1:39:44] I appreciate you know, Rolando,
[1:39:46] since you've taken over you've
[1:39:47] been completely accessible and
[1:39:47] transparent.
[1:39:48] I know the employee groups are
[1:39:51] enjoying working with with you
[1:39:51] as well.
[1:39:52] So I know that you know
[1:39:53] the Department of Finance is
[1:39:56] not responsible for all
[1:39:56] the operational needs of
[1:39:57] the city and often you have to
[1:39:58] and try and answer questions
[1:40:01] about them when your job is
[1:40:01] just to properly make sure
[1:40:02] they're funded.
[1:40:02] So I just I appreciate what you
[1:40:03] do and thank you for continuing
[1:40:09] to work with us.
[1:40:09] Okay.
[1:40:09] Thank you.
[1:40:13] Seeing no other speakers that
[1:40:14] will conclude this item.
[1:40:14] Thank you for the presentation.
[1:40:20] Once again as a reminder that
[1:40:21] was an informational item only
[1:40:22] so no motion was required.
[1:40:26] We will now take up non agenda
[1:40:26] public comment.
[1:40:27] The council members respect and
[1:40:28] appreciate the public's input
[1:40:30] and are fully committed to
[1:40:31] protecting every participant's
[1:40:32] free speech rights at council
[1:40:35] and committee meetings quickly
[1:40:36] please proceed with public
[1:40:36] comment.
[1:40:37] >> Thank you.
[1:40:37] Council PRESIDENT Pro Tem We do
[1:40:41] have a couple of speakers here
[1:40:41] in council chambers Pearl 2.7
[1:40:42] and Agenda Public comment is an
[1:40:45] opportunity for members of
[1:40:45] the public to comment on items
[1:40:46] that are not on the agenda but
[1:40:47] within the subject matter
[1:40:50] jurisdiction of the city
[1:40:50] Council.
[1:40:51] Each speaker will have two
[1:40:51] minutes.
[1:40:52] Please note there are eight or
[1:40:54] more speakers on a single topic
[1:40:54] .
[1:40:55] The maximum time for the topic
[1:40:56] will be 16 minutes.
[1:40:56] If you're in chambers please be
[1:40:59] sure to submit your speaker
[1:41:00] slip now or if you are joining
[1:41:00] us virtually press the raise
[1:41:04] your hand icon or star nine if
[1:41:08] I can have Jabali Gutierrez
[1:41:09] please come up to
[1:41:17] the microphone after that out
[1:41:17] Del Mastro and Alan Benson
[1:41:19] Please come up to the first
[1:41:19] row.
[1:41:20] If I've already called your
[1:41:22] name you should come up to
[1:41:26] the first row Now.
[1:41:27] >> Good afternoon.
[1:41:28] My name is Julie Gutierrez.
[1:41:31] Thank you.
[1:41:32] Council PRESIDENT Council
[1:41:32] members I am a resident of this
[1:41:33] community.
[1:41:36] I'm here today since we're
[1:41:36] seeing in our downtown area
[1:41:37] it's not just a policy issue.
[1:41:41] It's a human one.
[1:41:41] Every day more individuals are
[1:41:42] living without stable shelter.
[1:41:45] We see people sleeping on
[1:41:46] sidewalks and doorways and in
[1:41:50] places never meant for rest or
[1:41:50] safety.
[1:41:51] This is not because they chose
[1:41:55] to live this way or it's just a
[1:41:56] factor that's pushed them.
[1:41:56] Many factors have pushed them
[1:42:00] to live this way but also
[1:42:00] there's not enough accessible
[1:42:04] and adequate shelter options
[1:42:05] available to them Long waitlist
[1:42:09] and long waitlist and denied
[1:42:10] requests remain common leaving
[1:42:11] many individuals without
[1:42:11] immediate help Despite a
[1:42:15] population of about 1.4 million
[1:42:15] residents, the 2025 point in
[1:42:18] time count report in 9905
[1:42:19] people experiencing
[1:42:20] homelessness county wide
[1:42:27] including 5714 unsheltered 4191
[1:42:28] in shelters, according to
[1:42:29] the University of San Diego,
[1:42:31] which conducted a research as
[1:42:32] of MAY of 2025 nearly 994% of
[1:42:36] unhoused individuals seeking
[1:42:37] shelter were denied primarily
[1:42:38] due to lack of space.
[1:42:41] This crisis also reaches
[1:42:42] diverse groups such as seniors
[1:42:42] families struggling to make
[1:42:45] ends meet and students who
[1:42:46] cannot find housing they can
[1:42:50] afford the people we see
[1:42:51] experiencing homelessness are
[1:42:51] not statistics.
[1:42:52] They are individuals with
[1:42:55] families hard emotions and
[1:42:56] human needs which is why I am
[1:42:59] speaking about their dignity as
[1:43:00] well.
[1:43:00] The contrast is especially
[1:43:01] striking in downtown San Diego
[1:43:05] yet alongside this prosperity
[1:43:05] is visible human suffering When
[1:43:06] homelessness becomes just
[1:43:10] another part of the scenery,
[1:43:10] indifference takes root Which
[1:43:14] is why I am asking and I'm also
[1:43:15] bringing awareness to this
[1:43:15] issue demands both urgent
[1:43:18] action and long term solutions
[1:43:19] grounded in empathy.
[1:43:20] I urge the Council to expand
[1:43:20] shelter capacity in
[1:43:24] the downtown area, invest in
[1:43:24] transitional housing and
[1:43:25] partner with local
[1:43:29] organizations.
[1:43:33] >> Thank you Domestic Mastro
[1:43:38] Hi, my name is Aldo Mastro and
[1:43:38] ex blue collar worker.
[1:43:39] I'm a disabled veteran.
[1:43:43] I'm a senior and yes, I'm a
[1:43:44] small mom and pop landlord.
[1:43:47] I've been a landlord for over
[1:43:48] 20 years.
[1:43:49] I've destroyed my body through
[1:43:52] my hard work and my service to
[1:43:53] this country and the community.
[1:43:54] I live in a five plex in
[1:43:57] Claremont.
[1:43:58] I never bought a house because
[1:43:59] I wanted to be a responsible
[1:44:02] senior.
[1:44:02] This new law that the city
[1:44:03] council is putting on
[1:44:06] the ballot in JUNE is extremely
[1:44:07] misleading.
[1:44:07] I guess even a judge has made
[1:44:12] them reworded it from a
[1:44:12] vacation home to an empty home
[1:44:16] law because how misleading that
[1:44:17] was The true ugliness for me is
[1:44:22] this law would pardon me if it
[1:44:26] takes me longer to renovate an
[1:44:29] apartment than six months or
[1:44:33] 183 days I'm going to be fined
[1:44:33] $8000 to $10,000.
[1:44:38] The deal is 90% of all mom and
[1:44:41] pop landlords are over the age
[1:44:42] of 55 to 80.
[1:44:43] So if one of us gets cancer or
[1:44:47] wife dies or anything like that
[1:44:47] happens, we're going to get a
[1:44:48] fine on top of it.
[1:44:52] This is about as ugly a law
[1:44:52] that you guys are.
[1:44:53] I know you guys aren't that bad
[1:44:56] of people that would anybody
[1:44:57] would put forth I think since
[1:45:00] the judge even changed about it
[1:45:01] the first time when I saw this
[1:45:02] being presented was it was for
[1:45:06] millionaires who own houses and
[1:45:06] mansions and a lawyer But it
[1:45:10] affect anybody that has an open
[1:45:11] property no matter unless I go
[1:45:11] into a nursing home.
[1:45:16] If you read the details, if I
[1:45:16] don't go into an immersion home
[1:45:17] and I have a heart attack or my
[1:45:19] spouse dies, I'm getting an 8
[1:45:20] or $10,000 fine on top of it
[1:45:24] and margins are real slim with
[1:45:25] us Now we still I my wife and I
[1:45:26] both still have parents who are
[1:45:29] alive and we still take care of
[1:45:29] them.
[1:45:34] And so this is this is a little
[1:45:34] cruel.
[1:45:35] >> I don't know if I should be
[1:45:36] doing this to handicapped
[1:45:39] people disabled.
[1:45:39] That concludes your Thank you.
[1:45:40] Thank you.
[1:45:43] Dylan Benson Hello.
[1:45:47] >> You can excuse the customs
[1:45:48] and courtesies just talking
[1:45:53] about some things today
[1:45:53] Councilmember Ella Rivera your
[1:45:54] super quick to talk about how
[1:45:58] investors view us I think now
[1:45:59] is the wrong time to like look
[1:45:59] at those kind of things
[1:46:02] especially when our huge
[1:46:03] margins are just missing money
[1:46:04] And then when we're looking at
[1:46:07] like you guys are already
[1:46:08] getting paid more than
[1:46:12] congressman Congresswoman all
[1:46:12] of you Todd Gloria is getting
[1:46:17] you are actually And MISS
[1:46:21] Campbell, when the people were
[1:46:22] having the comments on agendas,
[1:46:23] you got up and started clipping
[1:46:23] your toenails behind You
[1:46:26] haven't cared about what anyone
[1:46:27] has said today.
[1:46:28] I've watched you We're talking
[1:46:31] about Councilmember Campbell.
[1:46:32] You also said sometimes we need
[1:46:35] to give things up to get other
[1:46:36] things done.
[1:46:36] Is that including your personal
[1:46:37] salary which once again is more
[1:46:40] than the congressmen and women
[1:46:40] ?
[1:46:41] Probably not.
[1:46:41] So you guys will be hearing
[1:46:42] from me.
[1:46:45] We're talking about these money
[1:46:46] problems.
[1:46:46] It's long standing You guys
[1:46:50] have been this money problem
[1:46:50] for what, two decades now?
[1:46:51] I'm not a big money guy but
[1:46:52] I'll be coming back with more
[1:46:55] facts next time and they'll be
[1:46:56] customs and courtesies next
[1:46:56] time.
[1:47:00] But I just want to I appreciate
[1:47:00] the time for letting me speak
[1:47:01] today.
[1:47:01] So thank you.
[1:47:01] Thank you.
[1:47:05] I started the five minute timer
[1:47:06] going to those participating
[1:47:06] remotely.
[1:47:07] We currently have nine people
[1:47:07] in the queue with their hands
[1:47:10] raised starting with
[1:47:10] the original.
[1:47:14] If you can please unmute I love
[1:47:15] when people come in and you
[1:47:19] know really hold you guys
[1:47:20] accountable because there's
[1:47:21] more accolades a lot of times
[1:47:21] and people are misled thinking
[1:47:24] that what you guys are doing is
[1:47:24] actually beneficial to their
[1:47:25] lives.
[1:47:25] But you know what Dylan was
[1:47:28] saying It's like you guys get
[1:47:29] paid exorbitant amounts of
[1:47:30] money and you're never willing
[1:47:33] to cut back on that but you're
[1:47:34] willing to make cuts to
[1:47:34] the people And it's sad because
[1:47:38] there's so much fraud waste and
[1:47:38] abuse.
[1:47:39] And Shawn, as you guys are
[1:47:40] sitting here trying to explain
[1:47:42] away those last two items, I
[1:47:42] don't think it's really fair
[1:47:43] because it's like if you're in
[1:47:47] terminal controls were working
[1:47:48] then they would be working in
[1:47:48] this kind of stuff wouldn't be
[1:47:51] taking place.
[1:47:52] But it's like I mean people
[1:47:56] will come in as has been stated
[1:47:56] before about you know from
[1:47:57] the Glide report and talking
[1:48:01] about that lease for 20 years.
[1:48:02] >> So imagine how much money is
[1:48:05] actually being lost due to
[1:48:06] the you know, quid pro quo
[1:48:11] that's going on here And these
[1:48:11] people are, you know,
[1:48:12] benefiting from making, you
[1:48:15] know, millions of dollars off
[1:48:16] of that site while the city
[1:48:16] isn't.
[1:48:17] So who's getting the kickbacks
[1:48:20] for that Because it makes you
[1:48:21] wonder like when things aren't
[1:48:22] being addressed when it's
[1:48:26] decades long issues and you
[1:48:26] guys have this all the time
[1:48:27] where it's like people will
[1:48:30] come in and tell you they're
[1:48:31] really egregious things that
[1:48:32] are taking place that you guys
[1:48:35] should be mitigating.
[1:48:36] I mean it's even like Tent City
[1:48:37] and we know that you know, if
[1:48:37] Stephen Whitburn is friends
[1:48:40] with Theresa Smith then
[1:48:41] obviously you guys aren't going
[1:48:42] to do anything about making
[1:48:42] sure that the people in Tent
[1:48:46] City are actually, you know, be
[1:48:46] being provided the services
[1:48:47] that they're supposed to that
[1:48:50] they're getting into housing.
[1:48:51] So it's like you guys sit here
[1:48:51] and you virtue signal and you
[1:48:55] gaslight the people as if we
[1:48:56] can't see through what you're
[1:48:56] doing And it's like and you
[1:48:59] literally sit up there and act
[1:49:00] like everything is fine when
[1:49:01] time and time again it does all
[1:49:04] you have to do is come to a
[1:49:05] meeting and you can see that
[1:49:05] things are and that you're
[1:49:06] mismanaging money and that
[1:49:08] there's missing money or that
[1:49:09] money's going from here to
[1:49:10] there and this project can't be
[1:49:11] completed because of this or
[1:49:11] we're not going to shut this
[1:49:13] down because I'm getting
[1:49:14] kickbacks from it.
[1:49:14] It's very transparent what
[1:49:19] you're going do you're doing
[1:49:19] and that's the only thing
[1:49:20] you're transparent about
[1:49:21] everything else you're not Your
[1:49:21] time has concluded Khaya if you
[1:49:26] can please unmute.
[1:49:31] Hello?
[1:49:32] >> Yes we can hear me okay.
[1:49:32] Hi.
[1:49:33] Actually my name is Sue Taylor.
[1:49:35] This is my daughter's computer.
[1:49:36] i just wanted to talk about
[1:49:40] some general information about
[1:49:40] leases.
[1:49:41] I did listen to the item on
[1:49:46] the performance audit and I
[1:49:46] wanted to know that as of
[1:49:47] today.
[1:49:47] Background I worked in the real
[1:49:50] estate department for 41 years
[1:49:51] and retired a couple of years
[1:49:51] ago.
[1:49:55] As of today there's 825 total
[1:49:55] leases.
[1:49:58] Of those 164 are at
[1:49:58] the airports.
[1:49:59] And of those a good portion of
[1:50:03] those like over 100 are
[1:50:03] probably airport Titan
[1:50:04] agreements, airplane tie down
[1:50:06] agreements which don't require
[1:50:11] a whole lot of work.
[1:50:11] And that leaves there's about
[1:50:12] 60 that are where the city is a
[1:50:13] lessee.
[1:50:16] So that would be like your
[1:50:17] office space buildings or it
[1:50:17] could even be the bridge kiosks
[1:50:20] And on and over the 15 things
[1:50:21] like that.
[1:50:24] So that leaves about 600
[1:50:24] agreements that would have to
[1:50:28] be handled by those 13 people.
[1:50:29] Then also regarding holdovers
[1:50:33] in general, there's 180
[1:50:33] holdovers.
[1:50:38] Probably the most egregious are
[1:50:38] the samba school where there's
[1:50:39] 22 of those.
[1:50:40] Now the reason why I say that
[1:50:43] is because, you know, a couple
[1:50:43] of years ago there was a
[1:50:44] program coordinator added just
[1:50:47] to work on those leases But
[1:50:48] that has not been done.
[1:50:49] But a lot of the other
[1:50:52] holdovers like Mission Bay
[1:50:53] Yeah, there's 11 two of those
[1:50:54] went out to rfp.
[1:50:57] Those are the big ones.
[1:50:58] Six of them are storage.
[1:50:59] So they're like canoe storage
[1:51:02] for the different rowing clubs
[1:51:03] which bring in 200 to 300 a
[1:51:03] month.
[1:51:07] So those are permits like three
[1:51:08] year permits to get renewed,
[1:51:09] not major leases.
[1:51:12] Two of our telecommunication
[1:51:13] sites which do get yearly
[1:51:13] increases even though they're
[1:51:17] on hold over.
[1:51:18] And one of them is the Boy
[1:51:19] Scouts on Fiesta Island.
[1:51:20] So whatever you guys want to do
[1:51:22] with that, I just wanted to say
[1:51:22] that sometimes the holdovers
[1:51:23] are non-revenue and there's no
[1:51:23] value there.
[1:51:27] But the high value ones are
[1:51:27] the ones that should be worked
[1:51:28] on.
[1:51:28] Thank you.
[1:51:28] Thank you.
[1:51:32] Next is Peggy Walker if you can
[1:51:32] please.
[1:51:32] >> On you.
[1:51:33] Thank you.
[1:51:36] Good afternoon.
[1:51:37] I'm a public health
[1:51:37] professional and if you are
[1:51:41] people are a priority and they
[1:51:42] should be.
[1:51:42] I ask you to look at
[1:51:45] the science and data to
[1:51:46] consider real consequences of
[1:51:46] adding more marijuana
[1:51:50] businesses a c program
[1:51:51] proffering more high potency
[1:51:55] products will only increase
[1:51:55] adverse health and economic
[1:51:56] outcomes.
[1:52:00] Economic downsides include
[1:52:00] increased need for health care
[1:52:01] treatment and access especially
[1:52:05] for young people.
[1:52:06] You know there's already a
[1:52:07] problem when 40% of San Diego
[1:52:10] County's marijuana related er
[1:52:15] admissions are aged 12 to 17
[1:52:18] and those 15 to 24 have
[1:52:19] the highest number of cannabis
[1:52:23] related er visits of all ages.
[1:52:24] You know there's a problem when
[1:52:27] Rudy's Children's Hospital
[1:52:28] reports 600 child admissions
[1:52:28] for cannabis related treatment
[1:52:32] last year and the county
[1:52:36] predicts a 129% increase is in
[1:52:37] use substance treatment needs
[1:52:41] in the future.
[1:52:41] Studies show teens living
[1:52:42] within ten minutes of
[1:52:46] dispensaries Those on Medicaid
[1:52:46] and those from lower income
[1:52:50] neighborhoods are more likely
[1:52:51] to use marijuana and have
[1:52:52] higher psychosis rates.
[1:52:55] Ironically this worsens
[1:52:56] existing mental health
[1:53:00] inequities right and seats
[1:53:01] target targeted communities.
[1:53:05] Remember the pot industry's
[1:53:06] business model is to keep
[1:53:06] existing users dependent and to
[1:53:10] hook future generations.
[1:53:11] And no reparation or tax
[1:53:15] revenue justifies the resulting
[1:53:16] child poisonings Addiction
[1:53:20] cannabis hyperemesis psychosis
[1:53:21] drops out suicide dui injuries
[1:53:25] or death.
[1:53:26] Now a young person's future is
[1:53:26] worth that tradeoff.
[1:53:30] We don't need more marijuana
[1:53:30] businesses.
[1:53:31] We need drug free kids.
[1:53:35] Thank you for listening.
[1:53:36] Thank you.
[1:53:36] Blair Beckman If you can please
[1:53:39] unmute me.
[1:53:40] >> All right.
[1:53:40] Thank you.
[1:53:44] Very.
[1:53:45] Thanks for the meeting today.
[1:53:49] It was an important meeting on
[1:53:49] ideas of accountability.
[1:53:50] We need it.
[1:53:54] I like accountability ideas.
[1:53:55] Good luck what we could be
[1:53:55] doing.
[1:53:58] i was councilperson LaCava was
[1:53:58] here today.
[1:53:59] Good luck How he can be
[1:54:00] returning to upcoming city
[1:54:02] council meetings.
[1:54:03] Um I wanted to comment a thank
[1:54:07] you from public comment today.
[1:54:08] I'm also interested in the idea
[1:54:12] that we continue dialog on not
[1:54:13] just council but the mayor can
[1:54:17] take a slight reduction in pay
[1:54:18] and how that can be good faith
[1:54:23] efforts and ideas to really
[1:54:23] address the budget in
[1:54:24] the future.
[1:54:24] Good luck in really considering
[1:54:25] that issue.
[1:54:27] I think it's worth considering
[1:54:27] .
[1:54:28] I also wanted to comment at
[1:54:32] this time you know I'm trying
[1:54:33] my best to learn how to balance
[1:54:33] that.
[1:54:37] The fact that we're in a
[1:54:38] current war in Iran and how
[1:54:42] that connects to our lives here
[1:54:43] at the local level do we have
[1:54:46] to be in deep fear or do we
[1:54:47] have to be in slight fear or I
[1:54:51] mean unbelievably we don't seem
[1:54:51] to have to be in fear.
[1:54:52] Things seem to be in check.
[1:54:53] I think GOD's really lucky on
[1:54:59] our end.
[1:54:59] >> What are we doing?
[1:55:00] I hope we can be continuing to
[1:55:04] address important matters from
[1:55:04] that and that you know in
[1:55:08] noting how things are going
[1:55:09] around the world we we then can
[1:55:12] balance best practices and best
[1:55:13] ideals And when we do that
[1:55:14] stuff here I keep saying at
[1:55:18] the local level openly and
[1:55:18] clearly it simply gives
[1:55:22] everyone around the world ideas
[1:55:23] of better reasoning and peace
[1:55:24] And so it's working towards our
[1:55:28] best selves that it's how to
[1:55:28] address war and not to
[1:55:32] continuously hide and be
[1:55:32] secretive because of war.
[1:55:33] It's an important lesson we're
[1:55:37] learning and I hope we practice
[1:55:38] it well and I hope we practice
[1:55:42] dialog instead of harm in
[1:55:42] the future and trust luck how
[1:55:43] we can do that.
[1:55:43] >> Thank you.
[1:55:46] Thank you.
[1:55:47] Next is Madison After that
[1:55:47] Francine Maxwell in Madison
[1:55:50] Please unmute.
[1:55:51] >> Hi, good afternoon.
[1:55:56] I'm a mother of young children
[1:55:56] and I'm here today to speak
[1:55:57] about the public safety risks
[1:56:00] associated with high thc
[1:56:01] cannabis and what that means
[1:56:01] for our roads.
[1:56:05] A recent federally funded study
[1:56:06] highlighted something important
[1:56:10] We still do not have a reliable
[1:56:11] practical way to measure
[1:56:12] marijuana impairment at
[1:56:15] the roadside like we do with
[1:56:16] alcohol.
[1:56:16] Researchers are now working on
[1:56:20] a new thc breathalyzer using 3d
[1:56:20] printed technology.
[1:56:21] But they do acknowledge it's
[1:56:25] only a proof of concept and
[1:56:25] requires significant further
[1:56:29] validation while marijuana use
[1:56:30] becomes more normalized and
[1:56:30] accessible.
[1:56:34] Our ability to keep impaired
[1:56:34] drivers off the road has not
[1:56:35] kept pace.
[1:56:39] The study makes clear that
[1:56:39] there is a growing need for
[1:56:40] fast reliable roadside tools
[1:56:44] due to the increase in cannabis
[1:56:45] use and that the current lack
[1:56:49] of such tools raises the risk
[1:56:49] of accidents and fatalities
[1:56:50] caused by intoxicated drivers.
[1:56:53] Even more concerning, federal
[1:56:54] researchers and agencies have
[1:56:58] acknowledged that thc levels in
[1:56:59] the body do not reliably
[1:57:00] correlate with impairment
[1:57:03] the way alcohol does.
[1:57:04] That means law enforcement is
[1:57:04] left without clear objective
[1:57:08] standards making it much harder
[1:57:08] to identify and prevent
[1:57:12] impaired driving in real time.
[1:57:13] At the same time we know thc
[1:57:13] affects reaction time, motor
[1:57:17] coordination and judgment all
[1:57:18] of which are critical for safe
[1:57:18] driving.
[1:57:22] When you combine increased
[1:57:23] access to high potency products
[1:57:26] with limited enforcement tools
[1:57:27] you create a real and growing
[1:57:28] public safety gap.
[1:57:31] >> This is especially relevant
[1:57:32] as the city considers expanding
[1:57:32] marijuana storefronts more
[1:57:36] retail access means more use
[1:57:37] and more inevitably increases
[1:57:41] the risk of impaired driving on
[1:57:41] our roads.
[1:57:42] We should not be expanding
[1:57:43] access to an intoxicating
[1:57:46] substance faster than we can
[1:57:47] responsibly manage its
[1:57:47] consequences.
[1:57:51] I urge you to take a cautious
[1:57:51] approach and prioritize road
[1:57:52] safety for this issue.
[1:57:52] Thank you.
[1:57:55] Thank you.
[1:57:56] >> Francine Maxwell If you can
[1:58:00] please unmute.
[1:58:01] >> Good afternoon Francine
[1:58:01] Maxwell.
[1:58:02] Thank you for allowing me to
[1:58:02] speak.
[1:58:05] I'm asking for the City Council
[1:58:10] to reimagine the cpp, reimagine
[1:58:11] you engaging in getting more
[1:58:15] involved especially since for
[1:58:15] the last five years so many
[1:58:16] things have been classified as
[1:58:19] miscellaneous.
[1:58:20] You should have the police
[1:58:20] department give you an
[1:58:25] explanation in of why they're
[1:58:26] labeling so much miscellaneous
[1:58:29] and not telling the cpp.
[1:58:30] When we used to get a
[1:58:31] spreadsheet of all complaints
[1:58:34] made to the San Diego Police
[1:58:35] Department that's what
[1:58:36] the measure be calls for.
[1:58:39] I would also like the City
[1:58:39] Council to have some bold
[1:58:44] leadership and demand that Joan
[1:58:44] Dawson be interviewed with you
[1:58:48] guys in closed session and ask
[1:58:49] why a city attorney is
[1:58:50] rewriting the policies and
[1:58:53] procedures for an independent
[1:58:53] commission.
[1:58:54] The cpp is independent.
[1:58:58] The city attorney's office is
[1:58:58] the sdp.
[1:58:59] These attorneys we're supposed
[1:59:03] to have our own attorney an
[1:59:03] independent attorney.
[1:59:04] Can you guys ask your colleague
[1:59:08] Marni when she takes a break
[1:59:08] from running for Congress, when
[1:59:09] she's going to get us our
[1:59:12] independent attorney?
[1:59:12] We have a new executive
[1:59:17] director that absolutely needs
[1:59:17] help.
[1:59:18] We need a legal voice on our
[1:59:19] independent commission.
[1:59:22] Where's the Help City Council?
[1:59:27] You are in charge of c p for
[1:59:28] those of you that are running
[1:59:28] for reelection.
[1:59:29] >> Those of you that are
[1:59:32] looking for your next office
[1:59:32] out of city council think about
[1:59:33] how we're going to attach this
[1:59:37] to your leg that you did not do
[1:59:38] what Measure b has called for
[1:59:39] you to do.
[1:59:42] We respect, meet and confer.
[1:59:43] They can take as long as they
[1:59:47] want to but to have the city
[1:59:48] attorney butting in to the cpp
[1:59:51] to have a city council person
[1:59:52] chair of public safety not
[1:59:53] secure as our own attorney you
[1:59:57] should be ashamed of
[1:59:57] yourselves.
[1:59:59] >> Our next speaker is Kathleen
[2:00:00] Lippert.
[2:00:09] If you can please unmute
[2:00:10] Kathleen Lippert.
[2:00:11] >> I can't I mean for you I
[2:00:15] will need to move on to
[2:00:15] the next speaker.
[2:00:16] >> I know.
[2:00:16] There you are.
[2:00:17] Sorry.
[2:00:20] I'm trying.
[2:00:20] Okay.
[2:00:20] Thank you.
[2:00:21] Good afternoon.
[2:00:24] The earlier comment on
[2:00:25] the glide report that is making
[2:00:29] millions while it enjoys
[2:00:30] the benefit of profiting by a
[2:00:30] sweetheart lease is really
[2:00:34] troubling.
[2:00:35] There are a number of similar
[2:00:39] issues where either on going
[2:00:39] support the city's ongoing
[2:00:40] support of a failed policy or
[2:00:45] the absence of a policy that
[2:00:45] really should be in place.
[2:00:48] Both are critical to look at
[2:00:49] city policy should be evaluated
[2:00:53] for their costs versus benefits
[2:00:54] and the city policies that have
[2:00:58] led to higher city costs in
[2:01:02] terms of low law enforcement
[2:01:03] diverted limited resources,
[2:01:07] emergency etc..
[2:01:12] Those are where your policies
[2:01:13] are either absent or they're
[2:01:13] not working.
[2:01:18] The failure to regulate and
[2:01:18] audit city smoke shops is a
[2:01:19] good example.
[2:01:23] They continue to sell products
[2:01:23] that have been banned by
[2:01:24] the state.
[2:01:24] These products harm.
[2:01:27] Are youth and their futures as
[2:01:28] well as undermine the profits
[2:01:32] of permitted shops that are
[2:01:33] operating according to city
[2:01:33] regulations.
[2:01:37] The city has allowed alcohol
[2:01:37] retailers that unfairly draw
[2:01:42] limited long foresman resources
[2:01:43] resources over serve customers
[2:01:47] that lead to customers leaving
[2:01:48] and getting into crashes.
[2:01:52] Do you or are hitting
[2:01:57] pedestrian injuries or death or
[2:01:57] getting into fights or
[2:01:58] committing rapes?
[2:02:01] The city needs an on sale
[2:02:02] conditional use permit to hold
[2:02:03] them accountable.
[2:02:07] And last please stop with all
[2:02:07] the euphemisms.
[2:02:08] The public is tired of ballot
[2:02:11] measures, initiatives etc. That
[2:02:12] say one thing but when you read
[2:02:16] the fine print means something
[2:02:16] totally different.
[2:02:20] The Inflation Reduction Act
[2:02:21] Perfect example.
[2:02:22] Drug dealers became caregivers
[2:02:27] Federal schedule one being
[2:02:28] called medicine Marijuana.
[2:02:33] Sorry your time is patient Your
[2:02:33] time is concluded Catherine
[2:02:35] wrote If you can please on meal
[2:02:36] .
[2:02:39] Hello Catherine wrote You know
[2:02:40] the 1998 Torrey Pines glider
[2:02:41] Port sweetheart lease was given
[2:02:45] to retired city of San Diego
[2:02:45] employee who's making so much
[2:02:49] private money for themselves
[2:02:50] and paying the city very little
[2:02:54] in lease revenue.
[2:02:55] Why don't you have it be a
[2:02:56] percentage of the lease
[2:02:56] instead?
[2:02:58] Right now it's a gift to public
[2:02:58] funds.
[2:02:59] In fact there was a 2022 San
[2:03:04] Diego County Grand jury report
[2:03:04] on the Torrey Pines quite
[2:03:05] important lease.
[2:03:08] So far nothing has happened.
[2:03:09] You know that It's pathetic.
[2:03:09] So anyway, your new budget
[2:03:14] comes out next Wednesday.
[2:03:14] Why is everybody going to get
[2:03:18] 10% at least in the nba going
[2:03:18] to get 10% raises.
[2:03:19] And the management analysts are
[2:03:23] going to get like 18.8% raises.
[2:03:24] How could they possibly get
[2:03:27] raises when we have a
[2:03:28] structural budget deficit?
[2:03:31] Plus since 2023 they already
[2:03:32] got a 23% rate.
[2:03:35] So they've gotten 23% in
[2:03:36] the last three years.
[2:03:37] Now they're going to get
[2:03:37] another 10% more.
[2:03:41] And remember in 2013 is when
[2:03:41] I'm mayor or inner mayor todd
[2:03:45] Gloria started using the league
[2:03:45] legal loophole in the city
[2:03:49] charter to violate the five
[2:03:49] year pitch double pay freeze by
[2:03:50] creating the middle managers at
[2:03:54] that point there were 70
[2:03:54] million middle managers.
[2:03:59] Now the another u-t report came
[2:04:00] out and the San Diego County
[2:04:00] Taxpayers Association came out
[2:04:04] that the middle managers that
[2:04:07] are nonunion workers have
[2:04:07] exploded by 461% over 15 years.
[2:04:12] And then also during closed
[2:04:17] session last week you guys
[2:04:17] didn't report.
[2:04:18] You didn't report out that you
[2:04:18] had all these tentative
[2:04:22] agreements with all the unions
[2:04:22] .
[2:04:23] In fact, you didn't say you you
[2:04:26] you didn't say anything about
[2:04:26] any tentative agreement.
[2:04:27] So I don't know why I think
[2:04:31] that the city attorney should
[2:04:31] talk about that.
[2:04:36] And so I don't see how you
[2:04:36] could possibly be giving
[2:04:41] anybody any raise More time has
[2:04:42] concluded if you're raising
[2:04:42] your hand after the five minute
[2:04:46] timer has concluded already.
[2:04:47] So you MAY take any additional
[2:04:48] comments.
[2:04:50] The city clerk at San diego.Gov
[2:04:50] and those will be distributed.
[2:04:51] Becky up.
[2:04:55] Please proceed.
[2:04:55] >> Good afternoon.
[2:04:59] My name is Anne Burghoff and I
[2:05:00] come here to ask you to please
[2:05:03] prioritize public health in
[2:05:04] relation to marijuana
[2:05:04] consumption.
[2:05:05] It's more important than ever
[2:05:09] before that accurate science
[2:05:10] speak for me is presented to
[2:05:13] this Council and to the public
[2:05:13] serves.
[2:05:14] A recent report from
[2:05:15] the National Academies of
[2:05:18] Sciences Our nation's leading
[2:05:18] scientific advisory board is
[2:05:23] recommending federal action to
[2:05:23] address the serious health
[2:05:24] risks associated with marijuana
[2:05:24] consumption.
[2:05:29] This is a clear warning from
[2:05:29] the science community that it
[2:05:32] is not aligned with serious
[2:05:33] public health risks.
[2:05:33] The report highlights some
[2:05:37] critical turns dramatically.
[2:05:43] It is apparently in doubt and
[2:05:47] the abundance of toxic sulfate
[2:05:48] phc being sold at our local
[2:05:50] tobacco and smoke shops These
[2:05:57] pot.
[2:06:02] Hello.
[2:06:03] We lost you.
[2:06:04] Barbara Gordon your final
[2:06:07] speaker.
[2:06:07] Thank you.
[2:06:12] Good afternoon.
[2:06:13] I am concerned as a public
[2:06:16] health advocate that nearly
[2:06:17] every week a new intoxicating
[2:06:22] mind altering product emerges
[2:06:22] often unnoticed and until
[2:06:23] reports surfaced as people
[2:06:27] being harmed and the physical
[2:06:28] and mental health of our youth
[2:06:28] is in jeopardy.
[2:06:32] Products like intoxicating thc
[2:06:32] hemp and create them are
[2:06:36] dangerous and addictive
[2:06:37] Intoxicating compounds like
[2:06:41] Delta eight, Delta ten and many
[2:06:41] others.
[2:06:42] The products are available in
[2:06:46] convenience stores, vape shops
[2:06:46] online without any oversight
[2:06:51] and in many places without any
[2:06:51] age restriction.
[2:06:55] Potent kratom compounds become
[2:06:56] especially dangerous when it is
[2:07:00] concentrated in products like
[2:07:00] dummies, drinks, powders,
[2:07:04] Capsules are also sold in smoke
[2:07:05] shops, gas stations,
[2:07:09] convenience stores and online
[2:07:10] marketed as natural.
[2:07:11] These products can be just as
[2:07:14] harmful as synthetic opiates
[2:07:15] posing serious danger.
[2:07:19] The fda warns that kratom
[2:07:20] products like 708 is not
[2:07:23] approved.
[2:07:24] It's not lawful and unsafe with
[2:07:28] risk including seizures,
[2:07:29] depression, anxiety, addiction
[2:07:33] withdrawals and overdose like
[2:07:34] symptoms.
[2:07:35] I am urging the city Council to
[2:07:39] treat intoxicating products as
[2:07:39] a public health issue not as a
[2:07:43] product that is in the gray
[2:07:44] area as it could be.
[2:07:45] As a community we need to
[2:07:48] insist that any mind altering
[2:07:49] substance that are manufactured
[2:07:53] packaging marketed should not
[2:07:54] be allowed to be sold in in
[2:07:54] the marketplace.
[2:07:58] Public safety is the city's
[2:07:59] primary responsibility.
[2:08:04] Thank you for letting me speak.
[2:08:04] >> Thank you.
[2:08:05] Big wrap.
[2:08:05] I am coming back to you.
[2:08:08] I'm not sure if the issue was
[2:08:08] on my end or not.
[2:08:12] Thank you And I appreciate had
[2:08:13] one minute left.
[2:08:13] Great.
[2:08:13] Thank you.
[2:08:14] I was just reading about
[2:08:17] the National Academies of
[2:08:17] Sciences and their
[2:08:18] recommendations and I just
[2:08:22] wanted to add that here in San
[2:08:23] Diego our emergency departments
[2:08:24] and pediatric specialists are
[2:08:27] seeing these real impacts youth
[2:08:28] experiencing psychosis, severe
[2:08:32] anxiety and cannabinoid
[2:08:32] hyperemesis syndrome.
[2:08:33] I urge this council to invite
[2:08:37] physicians from Rady Children's
[2:08:38] Hospital and doctors from our
[2:08:38] local emergency departments to
[2:08:42] come and speak directly to you.
[2:08:43] Let them share what they're
[2:08:43] seeing firsthand.
[2:08:47] Let this Council hear directly
[2:08:47] from the medical community
[2:08:48] about these products and how
[2:08:51] they're affecting our youth and
[2:08:51] our families.
[2:08:52] The National Academies report
[2:08:56] is clear We need better public
[2:08:57] education, better data and
[2:08:58] policies grounded in public
[2:09:02] health not just access and
[2:09:02] revenue.
[2:09:03] >> Thank you.
[2:09:03] Thank you.
[2:09:04] That does conclude the agenda
[2:09:05] Public comment for today's
[2:09:09] meeting.
[2:09:10] Thank you.
[2:09:15] And with that we will now
[2:09:15] adjourn Council to
[2:09:16] the regularly scheduled council
[2:09:19] meeting on Tuesday, APRIL 14th,
[2:09:19] 2026 at 10:00 am.