Connect with us

San Diego, CA

City Staff Spent $6 million More on Rentals Without Council Approval. Councilmembers Want Answers

Published

on

City Staff Spent  million More on Rentals Without Council Approval. Councilmembers Want Answers


A year ago, San Diego city auditors found that staff spent millions more on rental equipment for city departments than what councilmembers approved. But the auditors couldn’t find who OK’d the additional spending.  

Over the last month, councilmembers have demanded answers from city staff after an audit found that a contract with Herc Rentals increased by more than $6 million without approval from the City Council.  

“I had asked on the dais on Oct. 6 where the $6 million had come from that was taken from the general fund and increased unlawfully to the Herc rental contract,” Councilmember Marni von Wilpert said during an Oct. 20 City Council meeting. “I’m still waiting for an answer.”  

The city has a contract with Herc Rentals to rent trucks, forklifts and other equipment and services. This equipment is used by city workers across several departments responsible for park maintenance, public safety and more.  

Advertisement

For fiscal year 2020, councilmembers approved spending up to $14.3 million on rentals. The contract now allows spending up to $65.5 million.  

City law requires the City Council to review and approve certain changes to city contracts. The Council is required to approve new contracts over $3 million and all adjustments to contracts over $200,000. 

The city auditor found that didn’t happen in 2023. That year, staff adjusted the Herc Rentals contract in October by $4 million and then again in December by $2.7 million. Other adjustments made to the contract were approved by the Council.  

The city auditor’s team said departments didn’t know whether their contracts needed Council approval.  

In a statement, Ombretta Di Dio, spokesperson for purchasing and contracting, said the contract was adjusted “to pay outstanding invoices and allow departments access to rental equipment and vehicles to address operational needs, with the intent of obtaining retroactive approval.” 

Advertisement

She said rental equipment and vehicles supported critical operations to the city. When some city vehicles were out for repair or missing parts, they used Herc rentals to help in emergency situations like the 2024 floods.  

The city auditor gave Voice of San Diego the list of every transaction with Herc Rentals from 2019 to 2024. The transactions are from dozens of departments like public utilities, homelessness strategies and solutions, and transportation.  

Di Dio said departments have “flexibility within their approved budget to manage non-personnel costs… When overages occur in one area, they are typically offset by savings in another—ensuring that operations continue without disruption.” 

According to the 2024 audit, “when contract alterations are brought to Council late, it puts pressure on Council’s approval responsibility. As a result, Council’s ability to provide meaningful oversight may be reduced if there is not time to consider other vendors without disrupting critical services.”  

In other words, when contracts are brought late to the City Council it limits their role and authority to make sound decisions on the contracts. Think of it like making charges to a shared credit card. Each department is charging to the credit card, unaware of how much other departments are spending on it too. Then, Council has to deal with the bill. 

Advertisement

Say a department spent more than $50,000 on rental vehicles. They have a better chance of getting that approved by Council if they bring it late, because, well, they have already spent it and now they owe Herc.  

So, Council might feel pressure to approve the action to adjust the contract so they can ensure Herc gets paid. But they don’t know if the departments have that money budgeted, they just know they owe Herc.  

Councilmembers either vote no – and risk interrupting services – or vote yes and continue to meet the demands for rental equipment across departments.  

The Herc contract is an example of these pressures. The Council recently approved an additional eighth amendment to increase the amount in July. The Council voted to increase the contract with the condition that they want to see a specific audit on it. 

“I think one of the things I struggle with sometimes is who will bear the consequences if these contracts aren’t approved,” said Councilmember Sean Elo-Rivera during the Council meeting on Oct. 6.  

Advertisement

“I think this is what puts us in a particularly difficult position as councilmembers… it is typically rank and file everyday employees who are doing the work.” 

It’s unclear why the city is spending so much with Herc. A spokesperson with the city said the transportation department received a mid-year adjustment in FY25 to account for increased needs so that other departments’ needs were not reduced.  

The city auditor is planning to do an individual audit on the Herc contract and any other vehicle contracts. 

“We will begin the audit in the near future,” said City Auditor Andy Hanau. 

Claudia Abarca, director of purchasing and contracting, said they implemented eight recommendations of the 13 made by the city auditor in the last year. One of these recommendations includes updating the Council approval threshold and clarifying alterations for goods and services contracts.  

Advertisement

Still, councilmembers are frustrated and looking for answers.  

“Do you realize we had a budget fight this past year for over $4.5 million in which the mayor vetoed it and we overrode the veto?” said Councilmember Von Wilpert during the Council Meeting on Oct. 6.  

“Somebody had to use a city computer and make that adjustment unlawfully. It’s against the municipal code to do that, so who did that?” 

Councilmember Raul Campillo also chimed in to ask if the city disciplined the employees who made the illegal adjustments. Abarca said they did.  

“I’m really hopeful that’s what happened here, because this wasn’t a few dollars over,” said Councilmember Campillo. “This was several million dollars over.” 

Advertisement

Abarca said that city departments were behind on payments and in a deficit of what they owed Herc. She said her staff was directed to make the unauthorized adjustments when they ran it up the chain of command.  

“I don’t know that it went to the mayor himself, I know I did bring this up to the DCOO (deputy chief operating officer) and we’ve been working on this contract for quite some time,” said Abarca. “We’ve done several refinements on how we are monitoring and actually managing the spend for each department to ensure we don’t get to this place again.”  

Abarca added they have not altered any contracts above $200,000 without it coming forward to the City Council since 2023. 

It’s still unclear who is directly responsible for the contract changes, and where each department pulled money from their budget to pay Herc. 

Advertisement



Source link

San Diego, CA

Gloria announces effort to add more townhomes, cottages to San Diego neighborhoods

Published

on

Gloria announces effort to add more townhomes, cottages to San Diego neighborhoods


Mayor Todd Gloria announced an initiative Wednesday intended to expand housing options in neighborhoods by integrating small-scale residences such as townhomes, rowhomes and cottages into an area’s existing character.

The Neighborhood Homes for All of Us initiative is also intended to support community land trusts — nonprofit organizations that acquire land to create permanent affordable housing.

“Since Day 1 of my administration, I have been focused on building more homes that San Diegans can actually afford — and getting them built faster,” Gloria said at a news conference Wednesday. “‘Neighborhood Homes for All of Us’ is the latest piece of that puzzle. This innovative program will break down the barriers that have gotten in the way of building the type of housing that I believe is ideal for young families and first-time homebuyers for whom the dream of homeownership has long felt out of reach.”

Around 80% of land zoned for housing in the city is restricted to single-family homes, which continue to increase in price, Gloria said. And a significant portion of new housing being built consists of apartment buildings with primarily studio and one-bedroom units, leaving working-class families fewer and fewer options for homes.

Advertisement

Neighborhood Homes for All of Us is intended to increase the housing supply and allow community land trusts to keep housing affordable in disadvantaged communities for low- to middle-income families.

“San Diego is an incredible place to raise a family, and more families need the opportunity to do that in San Diego’s existing, highly desirable single-family neighborhoods where their kids can learn and play in a great community,” City Planning Director Heidi Vonblum said. “But today, that comes at a price that is out of reach for too many. Integrating more options for families requires careful and thoughtful planning, with input from existing and future community members across the city, to ensure these new home opportunities for San Diego’s families are built in ways that best enhance and benefit San Diego’s amazing neighborhoods.”

The initiative will roll out in two phases. In the first phase, beginning this week and continuing through next summer, San Diegans can help determine what the neighborhoods can look like. The public will be able to see renderings showing small-scale neighborhood homes within San Diego’s existing communities, along with new regulations that “provide a clear pathway for building these homes,” according to a statement from Gloria’s office.

Phase 1 will also include an open house and ways for the community to provide feedback and concerns.

Phase 2, scheduled for the second half of 2026, will be for city staff to develop regulations allowing for the building of more neighborhood homes in a way informed by the public feedback.

Advertisement

The initiative is partly funded through a Regional Early Action Planning grant from the San Diego Association of Governments.



Source link

Continue Reading

San Diego, CA

Affordable housing project for San Diego Unified teachers moves forward

Published

on

Affordable housing project for San Diego Unified teachers moves forward


The first of five affordable housing projects for San Diego Unified School District teachers was approved on Wednesday night.

The school board voted unanimously in favor of working with the developer who bid on the project at the Instructional Media Center on Cardinal Lane. The Affordable Workhouse Housing project promises 100% affordability, with 108 one-, two- and three-bedroom units, and some surface lot parking.

“It’s a practical solution to a very real problem, and it sends a message that we are committed to stability, not just for employees but for the students,” one speaker said.

Board members say the project will be fully funded by the developer, DECRO Corporation based in Culver City, and that the estimated annual rent revenue is $125,000 dollars. It is expected to increase 2.5% each year.

Advertisement

Some in the neighborhood are concerned.

“We are one way in and one way out. We are built in a canyon,” neighbor Callie Grear said.

“Parking here is horrible,” neighbor Paul Grear said. “Everybody is parking in front of our street. I can’t even park in front of my house.”

“The safety of our neighborhood is in jeopardy with this plan,” neighbor Patricia Torres said. “We are already overcrowded. We are asking this board to reconsider building on this site.”

Despite the pushback, board members unanimously voted in favor of moving forward with the developer on this project. Unless exempt, it will first undergo city scrutiny. There are still four other locations still on which SDUSD wants to build.

Advertisement

A vote for housing on those other four properties has been postponed until January so that the school board can hold a workshop and appropriately question the developers that are bidding on those projects.

In all five projects, San Diego Unified hopes to build 555 units in the next 10 years.



Source link

Advertisement
Continue Reading

San Diego, CA

San Diego City Council allows license plate reader technology to continue

Published

on

San Diego City Council allows license plate reader technology to continue


After nearly six hours of public comment and council discussion, the San Diego City Council voted Tuesday evening to approve the continued use of 54 surveillance use policies by the San Diego Police Department.

The council voted unanimously for 52 of the policies, which included items such as SWAT robots and vehicle trackers. The remaining two items proved far more contentious.

“Smart Streetlights” and automated license plate reader technologies were the final two approved — by 6-2 and 5-3 votes, with Councilwoman Jennifer Campbell absent.

Hundreds of San Diegans spoke at the meeting, with the majority in opposition to ALPR technology, but the council took the advice of the SDPD to continue its use, physically tied to the Smart Streetlights contract approved with Ubicquia in 2024.

Advertisement

“These technologies have delivered consistent results, even thought we’ve had them for just a year and a half,” said Councilwoman Jennifer Campbell, who tried to downplay a recurrent fear by speakers the technology could be used by the Trump administration.

“The federal government already has all of us on their list. Thank you Elon Musk.”

ALPR technology is used as part of crime-fighting strategy that involves the identification of vehicles associated with suspects, witnesses or victims. The technology utilizes police ability to focus its investigative resources to deter crime and enhance public safety, according to the San Diego Police Department.

Speakers during the meeting — and Councilmember Henry Foster III — brought up a “breach” of the Flock Safety ALPR technology when it was first installed in the city and outside agencies were able to access information.

The future of law enforcement using those controversial license plate readers in San Diego will be decided this week. For the past two years, San Diego Police have been using the technology. NBC 7’s Adonis Albright shows us the controversy surrounding the readers and why some are worried about how the information it collects is being used.

Advertisement

San Diego Police Department Chief Scott Wahl, in a testy exchange with Foster, admitted the unauthorized access to the data but said it was a brief mistake that was quickly rectified by the SDPD and Flock alike.

“It was an honest miss,” Wahl said. “There was nothing nefarious there.”

The department states that since ALPR was installed in the city in 2024, the technology has assisted the SDPD in more than 600 investigations, including the recovery of at least 20 firearms, $5.8 million in stolen property involving 440 stolen vehicles and resulted in more than 420 arrests.

In the first year of ALPR use, vehicle theft dropped 20% between 2023 and 2024, police officials stated.

The Smart Streetlights System, which includes the situational cameras and the ALPR cameras, have been attached to streetlight poles throughout San Diego since last year.

Advertisement

Total Installation, activation and relocation costs for the Smart Streetlight Program was $3,519,300, according to the SDPD.

Every councilmember acknowledged the efficacy of ALPR technology, but some were less enthusiastic than others.

“I’m not going to deny the effectiveness if you are watching everyone, all the time,” Councilman Sean Elo-Rivera said. “Flock is a proven bad actor who is unwilling or unable to stop their technology from being abused.”

There are new concerns over immigration enforcement and the use of surveillance technology, such as the San Diego Police Department’s Automated License Plate Reader technology. NBC 7’s Shelby Bremer has the details.

A major concern of public speakers and multiple councilmembers was the possibility of the ALPR technology being used by the Trump administration and Immigration and Customs Enforcement specifically to terrorize the community.

Advertisement

“Last year, a configuration error allowed law enforcement agencies within the state of California to run license plate searches against our database for a brief amount of time,” Mayor Todd Gloria said in a statement. “That breach should never have happened. We have since shut off that feature and strengthened user access, and now conduct weekly auditing of the system to ensure compliance.

“Importantly, license plate reader data is not shared with federal immigration agencies, and it cannot be used to track people seeking reproductive care. Data is only kept for 30 days, access is limited to trained users, and every search is logged and reviewed.”

The 30 days the San Diego Police Department is allowed by local law to keep the date matches La Mesa and National City as the least amount of time in the county. The San Diego County Sheriff’s Office and Coronado, Oceanside, Carlsbad and Chula Vista allow the data to be kept for a year. In Escondido, that increases to two years.

“Though I sympathize with those who worry about potential misuse of these cameras, the thought of doing away with ALPRs is short-sighted and goes against the city’s mission to protect both residents and visitors alike,” said Councilman Raul Campillo. “Also missing from the conversation: San Diego has one of the strongest use policies for this technology so data is not misused or sold, and must not allow fear to harm already-worried communities by making them less safe.”

Chief Scott Wahl sits down with NBC 7 to talk about the multi-agency investigation at a Southcrest home, as well as the information obtained by license plate reader technology.

Advertisement

In 2025, 20 places throughout the country have voted to disable, reject or terminate the use of Flock technology due to security complaints.

The San Diego Police Department was clear on how they envisioned the technology’s usage.

“The operation and access to ALPR data shall be for official law enforcement purposes only,” an SDPD statement read. “The San Diego Police Department will also use ALPR systems to enhance and coordinate responses to active critical incidents and public threats, safeguard the lives of community members by using this technology to locate at-risk missing persons and to protect assets and resources of the city of San Diego.”

On Nov. 5, the city’s Privacy Advisory Board issued formal recommendations that San Diego cease the use of the Flock ALPR system. On Nov. 12, the City Council’s Public Safety Committee voted unanimously to ignore the Privacy Advisory Board recommendation.

Concerns outside the city’s borders include El Cajon’s willingness to share ALPR technology with federal law enforcement, which drew a lawsuit from California Attorney General Rob Bonta.

Advertisement

The Attorney General’s Office sued El Cajon in October for allegedly violating state law by sharing the data with federal authorities and law enforcement officials in more than two dozen other states.

The suit filed in San Diego Superior Court alleges that El Cajon has flouted Senate Bill 34, a 2015 law prohibiting ALPR-data sharing with out-of- state law enforcement agencies despite the California Department of Justice contacting El Cajon’s police chief over the issue.



Source link

Advertisement
Continue Reading

Trending