Budget and Government Efficiency Committee Meeting - April 20, 2018
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Budget and Government Efficiency Committee Meeting - April 20, 2018
The Budget and Government Efficiency Committee met on April 20, 2018, to consider two major items: the fiscal year 2019 comprehensive user fee analysis and proposed adjustments to Development Services user fees. The committee heard public testimony from nonprofit and adult entertainment industry representatives, discussed fee impacts, and voted on both items.
Consent Calendar
- The committee approved the record of actions from the March 14, 2018 meeting by unanimous consent.
Public Comments & Testimony
- Fernando Lopez (San Diego Pride) expressed concern about rising special event permit fees for nonprofits, noting a 60% increase over the past few years and projected 27% and 36% increases in FY20 and FY21. He urged the city to find alternative ways to support nonprofits rather than passing public safety costs onto them.
- Jessica (adult entertainer) opposed fee increases for adult entertainment licenses, stating that 10 years ago fees were half as much and many dancers are single mothers or students trying to make ends meet. She noted the number of clubs has decreased while fees have doubled.
- Jennifer Silas (manager at Expose Gentlemen's Club) also opposed increases, recounting that license fees rose from ~$150 to over $400. She highlighted that many dancers are single mothers.
- Dino Palmiotto (adult industry representative) argued that adult clubs do not significantly increase crime, citing a financial impact report prepared by Luth Research. He invited the city to create a task force to recognize clubs as safe havens and to prevent human trafficking.
- Additional speakers from the adult industry and a pedicab operator voiced similar concerns about fee burdens.
Discussion Items
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FY2019 Comprehensive User Fee Analysis
- Financial Management staff (Tracy McCraner, David Oñate) presented the three-year review of over 300 user fees across 11 general fund departments. Proposed changes: 97 fee increases, 57 decreases, 25 eliminations, and 19 new fees, with a net revenue increase of approximately $100,000. Departments including City Clerk, Police, and Public Utilities presented their specific fee proposals.
- Police Department staff explained that special event fees would not increase for nonprofits in FY19 but would rise in FY20 and FY21. They detailed staffing for vice enforcement and special events.
- Committee members (Councilmember Ward, Vice Chair Kate, Councilmember Gomez, Chair Bree) asked about impacts on nonprofits, police staffing levels, and cost calculations. Vice Chair Kate proposed an amendment to pull massage establishment permits from the package for further analysis, citing ongoing policy work.
- The committee approved the staff recommendation with the amendment to hold massage permits.
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Development Services User Fee Adjustments
- Development Services staff (David Graham, Bob Fockey, Lisa Salaya) presented a proposed fee increase driven by costs from a new MOU, pension changes (SERS), office space needs (related to 101 Ash Street), and a water quality board settlement. The department is facing a deficit even with CPI increases.
- The Independent Budget Analyst (IBA) noted that the proposed 12% reserve target (vs. current 15%) should be discussed by council. Committee members expressed concern about linking fee increases to 101 Ash Street costs and lack of transparent communication.
- Councilmember Ward moved to forward the item to full council without recommendation, requesting that it be heard alongside the 101 Ash Street project and that council discuss the appropriate reserve target and funding. The motion was seconded and passed.
Key Outcomes
- Item 1 (User Fee Analysis): Approved by a vote of 4-0, with an amendment to pull massage establishment permits for further review and future consideration.
- Item 2 (Development Services Fees): Moved to full council without recommendation, with a request to coordinate timing with the 101 Ash Street discussion and for council to address the 15% reserve target and funding mechanisms.
Meeting Transcript
Good morning, everyone. I will now call the meeting of the budget and government efficiency committee to order. A quorum is now present, consisting of committee members myself, uh Ward, Vice Chair Kate, and um Councilmember Gomez. Uh we also have City Attorney Brant Will, uh CFO Rolanda Sharval, and our IBA Andrea Tevlin. Uh moving right along, um, the committee record of actions from the March 14th meeting will be approved by unanimous consent unless pulled for discussion. Do we have a request to pull the record of actions? Okay, seeing none, uh, we will now proceed with non-agenda public comment. Do we have any? Um this portion of the agenda provides an opportunity for members of the public to address the committee on items of interest not on the agenda. Uh we have one speaker. Uh Fernando Lopez. Uh, you will have um two minutes. Uh thank you, Council members. Thank you, Councilmember Bry and uh Brie, and thank you to my councilmember Ward and Gomez for talking to us about these city fees. Um my name is Fernando Lopez, and I have the privilege and responsibility of overseeing this region's largest Civic event, San Diego Pride. And as such, safety is always our number one priority. Our event brings in anywhere from 100 to 400,000 people every year. And only 36 percent of those are actually from the City of San Diego. Uh an economic impact study in 2014 showed that San Diego Pride events bring in approximately 11 million to 34 million dollars to this city. Um all of this is done as a small nonprofit with a small budget and thousands of volunteers. Our event isn't just a fun celebration, it's a way for the LGBT community to find resources and connection in a way that is not available to them the rest of the year. And we've become a destination city pride with visitors from over 464 cities and 27 countries around the world. We of course want to see safety as a priority and couldn't be more appreciative of all the cross-departmental support and our first responders who take care of us every single year. As a marginalized and targeted community, we understand the need for additional safety and would hope that our city would see that as a part of their core responsibility to protect its citizens rather than balancing the budget on the backs of our small nonprofits. Rates have gone up for us 60 percent over the last few years, and with the new fee increases, we see that that number will be closer to 80 percent. These increases may not seem a lot on a city line item, but for a small nonprofit that is led by volunteers. These increases damage our ability to run a financially feasible event and remain philanthropic. I hope you will reconsider this part of our city's budget. Thank you very much for your time. Um thank you. Um you really should have been under the next under the item when we discuss uh the fees, but I we didn't realize that, so it's okay. You don't need to stay though. I think, but I appreciate your coming. Great. Uh we have one speaker who submitted a slip and we don't know what item they want to speak about. Uh so called Dorique Thomas. Um Vicky will uh step to the side and you just let us know what item you want to speak about. Um we have any committee member, mayor, IBA, or city attorney comments today. Yep. Okay. Any requests for continuance? Nope. Um as we have no consent agenda items, we'll proceed directly to the action agenda. Um item one, uh, to review a report from financial management recommending council approval of fiscal year 2019, uh comprehensive user fee analysis. Um Tracy McCraner, and you'll introduce others uh when it's their turn. Great, thank you. So this is a big item with many presenters and with every item, staff will make their presentation in its entirety. Uh we'll then hear any IBA comment and move directly to public comment. Great. Thank you.
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