San Diego Mayor Todd Gloria is facing criticism from city auditor Andy Hanau after he found the California Democrat systematically engaged in unauthorized behavior and handling millions of dollars without proper guardrails.
The Gloria administration changed multiple city contract deals after approval to add millions of dollars to costs without proper clearance from the San Diego City Council, according to a 50-page report from Hanau.
The report, which was released in late July, states Gloria made a total of roughly $154 million worth of changes to 42% of contracts without obtaining the necessary approval.
In one case, the council approved $14 million in equipment rentals, with an amendment adding $4 million to the contract.
Under Gloria’s leadership, the contract was changed twice without the approval of the city council, adding nearly $7 million to the deal.
In another example, auditors found a three-year, $1.6 million contract from 2017 for water treatment and supply equipment. Three years later, the Gloria administration raised the contract to $3 million without blessing from the council.
Our audit of San Diego’s contract management found that the City altered contracts by $15 million without required City Council approval, and brought another $139 million in alterations to Council late or with little time remaining. Read more: https://t.co/UoRWU4oQtW pic.twitter.com/ubmRGyb0OY
— Andy Hanau (@SDCityAuditor) July 17, 2024
“While we acknowledge there may be a need for some flexibility to continue vital services, without documentation … it cannot be determined whether changes were permissible or if proper procedures were followed,” the audit reported.
Gloria served on the city council between 2008 and 2016 before serving as a Democratic state representative from 2016-2020. For the past four years, Gloria has overseen San Diego as mayor.
Hanau’s audit concluded the Gloria administration’s frequent violation of city contracting rules and failure to seek amendments for additional spending increases for approved projects was fueled by confusion over bureaucratic regulations.
“Contract administration roles and responsibilities are not well-defined, and the city lacks a formalized contract alteration process,” the report found.
“Staff noted that they defer to their department’s deputy city attorney to determine the applicability for council approval but have heard different interpretations depending on the attorney they speak with,” the report added.
Hanau proposed 13 recommendations to prevent further obstruction of city rules, including amending the municipal code to clarify the council’s approval rules and developing a policy outlining where contracts are digitally stored and handled.
Auditors had previously provided recommendations to the city years ago in four similar reports that would decipher “unclear responsibilities, the need for written policies, and improved internal controls.”
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Hanau reminded the city that many of the dated recommendations have yet to be implemented, leading to the same problems detailed in the latest report.
The Washington Examiner reached out to Gloria’s office for comment.