San Diego auditors found the city improperly increased contract spending by $155 million over six years without required Council approval, and a year later still couldn't determine who authorized a $6.7 million overrun on a single rental contract
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What happened
A July 2024 performance audit by the Office of the City Auditor found that 42% of reviewed contract modifications — totaling $155 million between 2017 and 2023, spanning the Faulconer and Gloria administrations — were brought to the City Council late, retroactively, or not at all, in violation of municipal-code contract-approval thresholds. In October 2025, councilmembers Marni von Wilpert and Henry Foster publicly pressed city staff after learning a Herc Rentals equipment contract had been increased by $6.7 million since 2023 without documented council authorization; City Auditor Andy Hanau said his office could not identify who approved the increase and committed to a dedicated follow-up audit of the Herc contract and similar vehicle-rental agreements.
By the numbers (2)
● confirmed by a primary document · ○ reported
Figures
1 source
- www.sandiego.govDocument
contract modifications, representing $155 million, were not properly brought to Council for approval
1 source
- Voice of San Diego
City staff increased a Herc Rentals contract by $6.7 million without City Council approval
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Response
Contacted — no response by publication.
What happened next (0)
No outcome recorded yet.