San Diego, CA
City Staff Spent $6 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.
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.”
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.
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.
“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.
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.”
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.
County leaders are keeping their options open for a future county-backed tax hike as a citizens coalition pushes a November sales tax measure.
Officials in late April quietly extended a contract with consultants tasked with researching and poll-testing potential county revenue options for a Board of Supervisors subcommittee led by Chair Terra Lawson-Remer and Vice Chair Monica Montgomery Steppe. The extension is for up to two years and the price tag remains up to $320,000.
Other county supervisors’ offices told Voice of San Diego they weren’t notified of the change – and one is now working on a policy proposal to force public updates on subcommittee-directed contracts.
County spokesperson Tammy Glenn said staff directed the contract extension “in consultation with the subcommittee” and based on prior board approval last September to create the Sustainable Fiscal Planning Subcommittee. The item allowed the subcommittee to hire and pay consultants up to $500,000 to explore multiple options to increase county revenues and taxes.
An initial January 2026 contract called for Chula Vista-based Ironwood Public Affairs and four subcontractors including a prominent local Democratic campaign consultant to survey county residents, prepare revenue estimates for potential tax hike options, conduct focus groups and outreach and submit a report by May 1.
On April 30, county staff amended the contract with Ironwood to “deliver any requested ballot measure language, report, and presentations no later than June 30, 2028.”
Five days later, a coalition that includes labor groups and advocates submitted signatures to the county registrar’s office for a proposed countywide sales tax hike projected to raise $360 million annually to fund healthcare, child care, solutions to the Tijuana River sewage crisis and public safety. The registrar’s office has since confirmed the measure qualified for the November ballot.
Lawson-Remer has rallied behind the sales tax proposal and argued that a “local revenue measure” could shield the county from Trump administration-backed cuts. The county has projected that the One Big Beautiful Bill Act could cost the county $300 million annually.
In a statement, Lawson-Remer’s office noted that a board majority voted last September to create the subcommittee and hire a consultant.
“With the Trump Administration threatening healthcare, food assistance, behavioral health, and other core services — and federal decisions being announced, reversed, paused, challenged, and revived in real time — the county and Fiscal Subcommittee has a responsibility to plan for multiple scenarios, including federal cuts, state shortfalls, taxpayer savings, state advocacy, and whether any local funding option does or does not materialize,” Lawson-Remer’s office wrote.
In a separate statement, Montgomery Steppe also pointed to board approval of the subcommittee and its work “evaluating fiscal risks and options to help inform future Board decisions.”
A few months after the September vote to approve the subcommittee, the county hired Ironwood Public Affairs led by former county staffer Victor Aviña. Aviña’s company subcontracted with prominent Democratic campaign consultant Dan Rottenstreich’s company Amplify Campaigns, polling firm FM3 Research, Los Angeles revenue forecasting firm Economic & Planning Systems and Los Angeles-based law firm Kaufman Legal Group.
Glenn said the county has thus far paid Ironwood $96,000 for planning tasks that the initial contract said should be completed by early this year.
The county has yet to provide documents to Voice that the contractor submitted to the county about its work a month after a public-records request.
Spokespeople for the county’s three other elected supervisors said this week they weren’t notified about the changes to the contract.
Supervisors Joel Anderson and Jim Desmond, the two Republicans on the board, have criticized the lack of transparency surrounding the subcommittees and consultants at least two of them have hired.
At an April board meeting, Desmond argued that subcommittees shouldn’t be allowed to spend county money or secure contracts without a review by the full board.
And Anderson has pushed for reforms to increase transparency for subcommittees that have met behind closed doors. The board on Thursday unanimously approved changes to make more of those meetings more public.
Anderson’s office said he is now working on a board proposal that, among other changes, would also require updates to the full board on work that outside consultants are doing for subcommittees. He expects to bring the proposal to the board in August.
“There’s no possibility of secrecy when a vendor/contractor reports to the entire board,” Anderson wrote in a statement.
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San Diego, CA
Streetsblog San Diego Launches July 27 — Help Us Build the Future of Transportation Journalism – Streetsblog California
For years, Streetsblog readers in Southern California have asked us the same question: “When are you coming to San Diego?”
Friends…we’re excited to announce that we have an answer: Streetsblog San Diego will officially launch on July 27. Excited? Consider making a donation to help us lift off…
The new site will cover transportation, housing, climate, public space, safe streets, transit, and active transportation issues across San Diego County, and some of its neighbors. From bike lane projects and transit expansions to housing near transit and climate policy, Streetsblog San Diego will provide the kind of accountability journalism and solutions-focused reporting that has made Streetsblog a trusted voice across California.
What’s especially exciting about this launch is how it is coming together. You may have noticed over the last couple of months, increased local coverage in San Diego (collated here) as we’ve been getting ready for the launch.
We’ve been able to do that because Streetsblog San Diego is being built as a collaboration between leaders and volunteers from Streetsblog California, Bike SD, Ride SD, San Diego 350, and other community organizations and advocates who share a vision for safer, more sustainable transportation and land-use policies. At launch, much of our content will be produced by a growing team of volunteers and freelance contributors who care deeply about the future of San Diego’s streets, transit systems, and neighborhoods.
This community-powered model allows us to begin covering a region that desperately needs more transportation journalism while we work to build a sustainable long-term funding base.
But that’s where we need your help.
Launching a new newsroom takes resources. We launched a pre-fundraiser for “friends and family” of the core group that has been working on making Streetsblog SD a reality, and raised enough funding to cover the fees associated with the launch of the website, and put aside a couple hundred dollars towards our next goal: raising $18,000 for a freelance fund and short video fund that will ensure regular written and video coverage.
Even with volunteer writers and editors donating countless hours, there are still costs for freelance reporting, editing, website maintenance, photography, public records requests, event coverage, video production, and the many other expenses that go into producing quality journalism. There’s a lot of ways you can donate, if you’re interested in helping, you can get started here. If you’re one of those donors who gives through a DAF, the non profit that publishes Streetsblog is called the Southern California Streets Initiative and our EIN is 27-3421838. We are a federally recognized 501c(3) non-profit.
Your donation today will help us:
- Pay local freelance reporters, photographers, and videographers
- Expand coverage across San Diego County
- Cover transit, housing, and climate issues that often go underreported
- Train and support volunteer contributors
- Build Streetsblog San Diego into a permanent part of the region’s media landscape
In the long run, we will be seeking funds for a part-time or full-time editor. Every donation, no matter how large or small, will help us attract major donors, foundations, and advertisers so Streetsblog SD will be staffed similarly to the ones in Los Angeles and the Bay Area.
The challenges facing San Diego are too important to ignore. The region is making critical decisions about transit investments, housing production, street safety, climate resilience, and public space. Residents deserve independent journalism that explains those decisions, holds decision-makers accountable, and highlights solutions that can improve people’s daily lives.
That’s what Streetsblog has done for two decades and what will do in San Diego
Here is some of the dining news from across San Diego County, as well as some upcoming events for foodies.
Cala café opens in La Jolla: From 6 to 9:30 p.m. Saturday, Amy de Leon will host the grand opening of her new restaurant Cala La Jolla Café in La Jolla’s historic Arcade building. Cala will offer what she calls an “omakase” coffee and matcha experience, breakfast and lunch menus and fresh-made pastries. De Leon, a real estate agent, also owns a coffee shop on the UC San Diego campus. 7 a.m. to 6 p.m. daily. 7910 Girard Ave., La Jolla. 858-333-8610, calalajolla.com.
Board & Brew opens in Midway District: This sandwich-and-draft beer quick-service restaurant chain has opened a new location near the USS Midway Museum. Founded in 1979, the company now dozens of locations in California, Arizona and Texas. Shop hours are 10 a.m. to 9 p.m. daily. 825 N. Harbor St., Suite 109, San Diego. boardandbrew.com.
Vincenzo debuts pasta program: Vicenzo Cucina & Lounge in Little Italy has introduced an in-house pasta program powered by its new artisan pasta-making machine that guests can see churning out different varieties of pasta in the restaurants’ front window. The handmade pasta wil be served with lunch and dinner entrées. 550 W. Date St., Suite A, San Diego. vincenzosd.com
Urban Plates new summer menu: Urban Plates, with 22 locations statewide including Carlsbad, Del Mar and La Jolla, has unveiled new drinks and dishes this month for its summer menu. New dishes include a BBQ jalapeño cheesebuger, Southwest grilled chicken salad and a superfood grilled chicken salad. There’s also a new lineup of refreshing fruit-based “cooloer” drinks priced at $4.50. They include strawberry basil lemonade, pineapple coconut lime, organic lemonade and dragon fruit and strawberry. urbanplates.com
Del Mar festival lineup announced: This year’s Del Mar Wine & Food Festival, returning with seven events Sept. 30 through Oct. 3, has unveiled some of the culinary headliners who will be cooking at the event. They are Michelin-starred chef Drew Deckman; cookbook author and TV food show judge Aarti Sequeira; Camelback Mountain executive chef Beau MacMillan; “Top Chef” victor and now chef/co-owner of Huson in Manhattan’s Tribeca neighborhood, Buddha Lo; cookbook author and Weelicious.com media platform founder Catherine McCord; L.A.-based chef Jackson Kalb; Pei Wei culinary executive, Food Network host and contestant and cookbook author Jet Tila; Clutch Chicken restaurang group founder and TV cooking show contestant Kelsey Murphy; chef, author TV personality and Morph Hospitality Group co-founder Maneet Chauhan; and James Beard-nominated chef of the Colorado restaurant Mawa’s Kitchen, Mawa McQueen. Tickets are now on sale at delmar.wine
Lion’s Share + Animae family-style collab: On July 9, two downtown restaurants will collaborate on ANIMAENIACS, a family-style dinner for parties of six. The Lion’s Share chef Dante Romero and Animae chef Tara Monsod will create a multicourse meal that draws on Romero’s Mexican heritage and Monsod’s Filipino heritage. The all-inclusive meal will include three beverages per person including cocktails, beer or non-alcoholic, and an after-party. Seatings are available at 5 p.m. and 8:30 p.m. July 9. $1,080 for a party of six. The Lion’s Share, 629 Kettner Blvd., San Diego. Reservations at exploretock.com/the-lions-share-san-diego.
Tiki Oasis returns: The annual Tiki Oasis convention, which takes place each summer at the Town & Country Resort in Mission Valley, has announced its 2026 dates and theme. This year’s 26th convention, titled “Psychadelic Tiki,” will run Aug. 5-9. This year’s convention will include an art exhibition, more than 40 seminars, a 150-vendor marketplace, live entertainment and more. There will also be a sunset luau dinner at The Catamaran Resort. Details at tikioasis.com.
Pam Kragen, Union-Tribune
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