San Diego Budget and Government Efficiency Committee Meeting – March 14, 2018
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San Diego Budget and Government Efficiency Committee Meeting – March 14, 2018
The Budget and Government Efficiency Committee met on March 14, 2018, to discuss several key items including the Convention Center marketing contract, grants approval process, commercial paper programs, a community workforce development proposal, and the IT strategic plan. The meeting lasted approximately three hours, with public testimony and committee debate on multiple issues.
Consent Calendar
- The committee record of actions from the February 1, 2018 meeting was approved by unanimous consent.
Public Comments & Testimony
- Victoria Hoffman (retired traffic engineer, animal shelter volunteer, member of San Diego Rescue Coalition) spoke during non-agenda public comment. She urged the city to include language in the pending contract with the San Diego Humane Society requiring the Humane Society to contact local rescues for all animals at risk of euthanasia, similar to the County Department of Animal Services. She noted that the Humane Society had not made such a promise, and that hundreds of animals deemed unhealthy or untreatable are euthanized each year.
Discussion Items
Item 1 – Convention Center Tourism Authority Sales and Marketing Contract
- Gil Cabrera (Chair, San Diego Convention Center Board) and Rip Ripeau (CEO, Convention Center) presented the proposed contract with the San Diego Tourism Authority for marketing services. The previous contract expired June 30, 2017, and the new agreement includes a one-time $40,000 payment to cover a funding gap, a minimum escalator clause, and enhanced termination provisions. The contract allows the Tourism Authority to discount room rental rates up to 15% to attract events. The scope of work will be approved annually, including room night goals and revenue targets. The committee moved the item forward to City Council.
Item 3 – Municipal Code Amendment for Grants Approval Process
- Natasha Kalera (Executive Director, Corporate Partnerships) and Sarah Brennan (Program Manager) proposed streamlining the grants approval process, allowing the mayor to approve grants up to $5 million. During the previous two fiscal years, 66 of 69 grants were under $5 million. The IBA recommended lowering the threshold to $1 million, noting that would still allow the mayor to approve 90% of grants. Councilmember Gomez moved to adopt the $1 million threshold, with a second from Councilmember Kate. The motion passed 3-1.
Item 5 – General Fund Commercial Paper Notes Program
- Lakshmi Comey (Debt Management Director) and Kevin Werner (Debt Coordinator) presented a proposal to authorize up to $80.5 million in commercial paper notes to fund general fund capital projects. The program would provide short-term financing (90-150 days) with projected interest costs of $500,000 in FY2019 and $1.2 million in FY2020. The IBA expressed concern about predetermining project allocations (proposed: $48 million streets, $18 million storm drains, $9 million facilities, $5 million unallocated) without committee discussion. Staff clarified that the allocations are not final and will be discussed at the April 25 infrastructure committee. Councilmember Gomez moved to forward the program without specific allocations, seconded by Councilmember Kate. The motion passed unanimously.
Item 4 – SANDAG Transnet Commercial Paper Program for West Mission Bay Drive Bridge
- Ben Baraglia (Transportation and Stormwater) presented a memorandum of agreement to participate in SANDAG’s commercial paper program, borrowing up to $40 million on an as-needed basis to bridge cash flow gaps during construction of the West Mission Bay Drive Bridge. The project is fully funded through federal grants and local matching funds. The committee approved the item unanimously.
Item 6 – Community Workforce Development Program (Higher SD)
- Councilmember Gomez and staff presented a three-part proposal: local hire requirements, skilled and trained workforce mandates (aligning with state law), and expansion of prevailing wage to affordable housing and economic incentive projects. The goal is to combat income inequality and create middle-class jobs. Public testimony was divided: opposing speakers (Shandon Harbour, ABC; Sean Karafin, Chamber; Matthew Adams, BIA; Brad Barnum, AGC) raised concerns about cost increases, constitutionality of local hire, and disproportionate impact on affordable housing. Supporting speakers (Dr. Boxamusa, Tom Lemon, Dr. Peter Brownell, Rodney Fowler, Carol Kim) argued that the program would train local workers, reduce poverty, and improve project quality. Councilmember Gomez moved to request legal analysis from the City Attorney, an IBA report on operational/fiscal impacts, and to docket a future actionable item. The motion passed 3-1, with Councilmember Kate opposed.
Item 7 – IT Strategic Plan FY19-20
- Jonathan Banke (CIO) presented the Department of Information Technology’s strategic plan, covering modernization, cloud services, public safety radio expansion, and security. The city has a lean IT budget compared to national averages but has received awards for digital services. Key performance indicators include 99.999% availability for public safety radios. The item was received as information.
Item 8 – 2018 Committee Priorities and Work Plan
- Chair Bree presented a draft work plan based on common themes from committee members: vacancy review, IT contract oversight, budget outreach, grant performance, corporate partnerships, cannabis tax revenue, performance measures, and San Diego Works program. Vice Chair Ward suggested adding a review of the mid-year ordinance, earned sick leave/minimum wage compliance, and possible exploration of a municipal bank. The work plan was accepted.
Key Outcomes
- Item 1 – Approved for forwarding to City Council.
- Item 3 – Approved with amendment to reduce the threshold from $5 million to $1 million (3-1 vote).
- Item 5 – Approved to forward the commercial paper program authorization to City Council without specific project allocations (unanimous).
- Item 4 – Approved to enter into MOA with SANDAG for West Mission Bay Drive Bridge CP program (unanimous).
- Item 6 – Approved to request legal analysis, IBA report, and docket future action (3-1 vote).
- Item 7 – Received as information.
- Item 8 – Committee priorities and work plan accepted with potential additions.
Meeting Transcript
Staff and family will be joining me to walk on the 24th. Thank you for allowing me to take a moment to recognize the national school walkout. Okay. Moving along. The committee record of actions from the February 1st, 2018 meeting will be approved by unanimous consent unless pulled for discussion. No. Okay. Seeing none, we'll now proceed with non-agenda public comment. Okay. Is this the only one? Okay, we have one speaker, Victoria Hoffman. You will have two minutes. Good morning. My name is Victoria Huffman. I am a retired City of San Diego traffic engineer, an animal shelter volunteer full-time, and a volunteer with Holly's Garden Rescue, a member of the San Diego Rescue Coalition. The San Diego Rescue Coalition is a group of over 20 local rescues whose mission is to support and reduce the San Diego homeless population. As the contract is being negotiated for the San Diego Humane Society to perform animal services for the City of San Diego. Particularly the recommendation that the San Diego Humane Society reach out to rescues for all animals at risk of euthanasia. The County Department of Animal Services already contacts rescues for almost all animals at risk in their facility. The San Diego Humane Society should at least do the same. I am sure you have all heard of the Getting to Zero Initiative. Getting to zero does not mean animals are not euthanized. It just means that animals that are considered healthy or treatable are not euthanized. But there are hundreds of animals each year that are considered unhealthy and untreatable who are at risk and who are euthanized. Gary Weissman, in his March 8th letter to the San Diego Rescue Coalition, has made no such promise as to contact local rescues for animals at risk. In February of 2017, over one concluding sentence, please. Yes, please include that local dog local animal rescues be included in the contract for animal services with the San Diego Humane Society. Thank you for taking the time to come today. Thank you. Okay. Do we have any committee member mayor IBA or city attorney comments today? Okay. We are going to continue staff item two, the contract between the City and GoForth and Marty for Herman Miller System Brand Office Furniture and Related Services. Are there any other requests to continue an item on today's agenda? Okay. One other item of note we will be taking item five before item four this morning. As we have no consent item agendas item consent agenda items, we will now proceed directly to action agenda items, starting with item number one to review a report from the San Diego Convention Center recommending Council approval of the Convention Center San Diego Tourism Authority Sales and Marketing Contract. Welcome. Good morning. Morning, Councilmember Bree and Councilmembers Kate and Gomez. My name is Gil Cabrera. I am the Chair of the San Diego Convention Center Board of Directors. With me at the table this morning is Rip Ripetau, the CEO of the San Diego Convention Center Corporation and Joe Tursey, the CEO of the San Diego Tourism Authority. I also wanted to note that in the audience with us is two of our board members, Rabbi Laurie Koske is with us and Elvin Lye is also with us. January. And that is Mardine Maddox. Mardine is a uh long-term and long-term employee of the uh San Diego Convention Center, and uh we were very pleased to um see her uh apply for and ultimately get uh the Chief Financial Officer position after a national uh search that we did go through. With that, I wanted to talk to you today about the uh contract between the San Diego Convention Center Corporation and the San Diego Tourism Authority, as you all know by way of background. Uh the Tourism Authority and the Convention Center entered into an agreement uh back in um July of 2012 for the purposes of handling the Convention Center's long-term marketing uh needs. That agreement was approved by the City Council in 2012, and we have been operating under that agreement ever since.
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