San Diego Budget and Government Efficiency Committee Meeting - March 16, 2016

The Budget and Government Efficiency Committee met on March 16, 2016, at 9:00 a.m. (17:00 UTC) to consider six items: SDCERS charter amendments, a revised reserve policy, an amendment to the CGI IT services contract, an MOU with the County for a case management system, an increase in expenditure authority for office furniture, and a report on hiring process improvements. All items were approved unanimously, some with modifications. Chair Gloria noted he would leave at 11 a.m. for a ground-breaking ceremony; Vice Chair Sherman would take over.

Consent Calendar

• Approval of committee actions from the February 24, 2016 meeting was granted by unanimous consent.
• No non-agenda public comment was requested.

Public Comments & Testimony

• No members of the public spoke on any agenda item.

Discussion Items

1. SDCERS Charter Amendments (Item 1)

• Presentation: Johnny Trent, SDCERS, presented two proposals to clarify the City Charter: (1) incorporate the group trust powers (already approved by council in 2007) and (2) make charter language consistent with the California Constitution regarding investment plenary authority. He argued the current language is outdated and unnecessary.
• City Attorney Position: Joan Dawson stated the charter already references the California Constitution and the amendments are unnecessary. She also noted that striking the auditor/controller oversight language could affect CFO’s ability to stop certain payments to SDCERS.
• CFO Comment: Ms. Lewis confirmed that the CFO still needs ability to withhold payments for non-pension services (e.g., retiree health administration).
• Committee Discussion: Members expressed that while the changes might be nice, a ballot measure is costly; higher-priority charter changes exist. They agreed to recommend to the Charter Review Committee not to advance these changes.
• Vote: Motion by Cole, seconded by Sherman, to oppose the amendments. Passed unanimously.

2. Revised Reserve Policy (Item 2)

• Presentation: CFO Mary Lewis and Budget Coordinator Michael Clark proposed increasing the general fund reserve from 14% to 16.7% over five years, establishing a pension payment stabilization reserve at 8% target, and funding risk management reserves (public liability, workers’ comp) to current policy levels. Total contributions of $96.9 million over five years, with $27.2 million from FY2016 excess equity.
• IBA Position: Andrea Tevlin supported the policy but recommended deferring the actual funding allocations to the FY2016 year-end report and FY2017 budget process to maintain council flexibility.
• Committee Discussion: Chair Gloria, supported by IBA, moved to approve the policy but defer funding decisions. Councilmember Sherman asked to strike the IBA’s suggested modification #2 (which would have removed a specific funding date), fearing delays. Chair agreed, and the motion was amended.
• Vote: Motion by Chair, seconded by Cole, as amended by Sherman. Passed unanimously.

3. CGI Technology Solutions Contract Amendment (Item 5, taken out of order)

• Presentation: CIO Jonathan Banke requested a two-year, eight-month extension and an increased not-to-exceed amount of $144 million (from $70.6 million). The contract supports application development and maintenance for over 300 city applications. Savings from competitive rates: $7.1 million in first four years; blended hourly rate of $64 vs. $78 (SDDPC) and $93 (County). Customer satisfaction scores were high (8–10 out of 10).
• Discussion: Councilmember Kate asked about modernization progress and SLBE participation ($10 million projected). Savings since dissolving SDDPC were estimated in the range of $7.4–$20.1 million; staff expect to confirm within six months.
• Vote: Motion by Kate, seconded by Cole. Passed unanimously.

4. Case Management System MOU with County (Original Item 3)

• Presentation: Tanya Tomlinson, City Attorney’s Office, described a long-standing partnership using the District Attorney’s custom case management system. No initial software cost; annual costs average $60,000. The system handles misdemeanor prosecutions, allows easy case transfers, and includes recent updates for body-worn cameras.
• Discussion: Councilmember Sherman praised the low cost and collaboration. The current MOU had expired about a year ago; no interruption of service occurred.
• Vote: Motion by Sherman, seconded by Kate. Passed unanimously.

5. GM Business Interiors Furniture Contract (Original Item 4)

• Presentation: Christina Peralta, Purchasing & Contracting, requested a $7.6 million increase for a cooperative furniture contract (expiring Dec 31, 2016). Funds cover moves for several departments (e.g., Development Services, Code Compliance) and unscheduled moves. Cost per employee (~$3,900) includes full office furnishings.
• Discussion: Councilmember Sherman noted the need for modern workspaces. Councilmember Cole linked furniture investment to building upgrades. Chair asked about lease negotiations; staff confirmed that moves depend on successful lease agreements.
• Vote: Motion by Sherman, seconded by Cole. Passed unanimously.

6. City Hiring Process Improvements (Item 6)

• Presentation: YA? (Yahida) and Doug Edwards, Personnel, reported on progress since 2014 IBA and Auditor recommendations. Key metrics: time to provide eligible list dropped from 100 days (2012) to 46 days (2015) when recruitment needed; from 17 to 11 days when no recruitment needed. Hiring volume increased: 910 hires in 2012 to 1,375 in 2015; recruitments from 203 to 356. Efficiencies include online hiring center (NeoGov), digital fingerprinting, and out-of-state recruiting for police.
• Discussion: Councilmember Sherman requested additional breakdowns by department. Councilmember Kate acknowledged need for more resources; staff mentioned budget requests for additional personnel to support expanded recruiting. Chair thanked staff and IBA.
• Vote: Motion by Sherman to accept the report, seconded by Kate. Passed unanimously.

Key Outcomes

• All six agenda items passed unanimously.
• The committee formally recommended to the Charter Review Committee that the proposed SDCERS charter amendments not be advanced.
• The revised reserve policy was approved, but actual funding allocations for FY2016 and FY2017 will be addressed in the year-end and budget processes.
• The CGI contract amendment was approved, extending the term and increasing the expenditure cap; savings will be tracked in the coming months.
• The MOU with the County was retroactively approved.
• Expenditure authority for the GM Business Interiors contract was increased by $7.6 million.
• The personnel department’s hiring process report was accepted; staff will provide additional data and pursue budget requests for more recruiters.
• The next meeting is scheduled for April 13, 2016 at 9:00 a.m.