City officials say they did not discipline staff who adjusted a contract by $6.7 million without Council approval. They said staff made those changes on orders from upper management who intended to ask the City Council to retroactively approve the millions in extra spending.
In October, councilmembers expressed frustration after city auditors found the city spent millions on rental equipment without City Council’s approval in 2023. They demanded to know who made the adjustments.
On Thursday, Voice of San Diego obtained the names of the individuals who made the contract adjustments, but the city requested we not publish them because they were acting on the directive of their superiors.
“As was stated in the Council meeting on Oct. 6, the adjustments were made in Ariba (the city’s procurement system) in order to ensure the vendor was paid for services rendered and to avoid a breach of contract, which would have presented serious risks to the city,” said Nicole Darling, spokesperson for the city in an email statement, on Friday.
“The services included rental equipment that was necessary for critical operations and to address emergency situations, including the 2024 floods during which crews cleared several miles of streets and storm channels.
The adjustments were made in Ariba with management’s awareness and with the intent of obtaining retroactive approval from the City Council.”
Management from the purchasing and contract department said they intended to get retroactive approval of more than $6 million used on a contract with Herc Rentals, for things like forklifts, trucks, and other equipment.
The audit found city staff adjusted the contract twice in 2023 without Council approval.
First in October by $4 million, and then again in December by $2.7 million.
City law requires the Council to approve new contracts over $3 million and all adjustments to contracts over $200,000. The adjustments without Council approval frustrated elected leaders.
“That’s against the law,” said Councilmember Marni von Wilpert at the Oct. 6 Council meeting. “The reason is we [the City Council] need to know where our money is going.”
In a phone call on Friday, Darling said, “No discipline was issued.”
The employees who made the adjustments were just following the chain of command, said Claudia Abarca, director of purchasing and contracting, during the Council meeting.
“My staff did that, we own that,” Abarca said. “And again, it was because we owed the vendor several millions of dollars without having the appropriate purchase orders in place.”
Von Wilpert demanded to know who called the shots on the making the adjustments.
Abarca said at the time she didn’t know whether it went to the mayor himself but, “I know I did bring this up to the (deputy chief operating officer).”
A memo to Councilmember von Wilpert on Oct. 28 shared with Voice details which departments spent the most dollars and where the money came from.
These departments include transportation, stormwater, and public utilities. The city said each department used their non-personnel expenditures to spend on Herc Rentals and had discretion to do so “to effectively deliver services and programs.”
But the city said no departments or services were impacted by the unapproved spending.
Instead, Chief Financial Officer Rolando Charvel said overages by city departments were offset by savings in others.
In the memo, Charvel said the Department of Finance closely monitored city budgets when the unapproved spending happened, and that they closed fiscal year 2024, which ended in June 2024, with a balanced budget.
NAKED MAN 4 SDCC D2 http://www.dannytri.org Look for the naked part, ok?
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Was the money for Herc equipment being used for the Pure Water Program? It looks like the Pure Water Program is at a standstill on Morena; like they ran into some sort of problem.
Interesting the curbside trash calendar came out, with no changes reflected on recycling. So we’re being charged for trash, yet paying for weekly recycling while it remains bi-weekly. Seems I’m not getting what I’m exorbitantly paying for.
As a former City employee, I know there are times when staff have to act immediately. For example, when vandalism creates an unsafe condition at a library or other public facility, repairs cannot wait for a purchase order or a future Council agenda item. In those moments, lower level staff are following direction and doing their jobs, with the expectation they will be backed up when things hit the fan. Acting first and seeking approval afterward can make sense in true emergencies. The windows, pipes, etc., have to be fixed. That said, retroactive approvals should not become routine. Clear limits, prompt disclosure, and Council oversight are still essential so urgency does not become a workaround for normal procurement procedures. But there has to be a way to just get something done same day when needed.
Do you think that allows for 6.7 million?
I think $6.7 million in vandalism would make the news. This is a systemic problem that must be addressed.
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Tony the Tiger speaks on San Diego City Council elections.
Hey everyone, it’s your beloved Tony the Tiger. I want you to know that we have another election next year on June 02nd. Since you all love and respect me, I’m asking for your vote. As you know, since 1952, I have represented America’s brand. This fact is undisputable. We never lose elections because America never refutes the brand.
I am further elated to announce that major donors, special interests, super elites, outside political action committees, and of course our granddaddy, the local GOP and Democratic Parties have all welcomed me back to another victory this June in the City Council elections. Listen everyone, we cannot lose. We are invincible and almighty.
But beware, there is a generic brand of frosted flakes appearing in San Diego grocery stores. I’m not worried over competition however, because I have had your unwavering trust for seventy-five years. You never let me down at the polls because of this trust. Afterall, would you vote against mama and apple pie? Of course not! Please do me a favor and do not read anything I write, just vote early and vote often, ok? Trust me in being honest and genuine because I am the ONLY Tony the Tiger.
Geez, I feel so powerful and positive over the election because year after year, decade after decade you put me in office. If I was a basketball player, I would be the slam dunk candidate. I feel sorry for the generic ignored candidates. They get no respect but as they say, that’s baseball.
These generic people running are worthless as we all agree. No one in America votes for a non-brand political wannabe. So, as you always do, never read a word they write. These candidates can never be elected because in America we the people always support the familiar. We already know our boy Tony is going to get elected.
Just a few final words, dear supporters. We don’t like weird names. We don’t like independent thinkers because they create problems with our status quo public policy. We don’t like candidates who take public transportation and refuse a great juicy pension. I know everyone believes me as you have since 1952.
But I must be honest. There is this guy born in 1953 who is a candidate running against me and he eats generic frosted flakes. He is one year younger than me, and he scares me. Never vote for those who espouse the truth.
Dan Smiechowksi is a candidate for San Diego City Council District 2
http://www.dannytri.org