San Diego Budget and Government Efficiency Committee Meeting - July 29, 2020
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San Diego Budget and Government Efficiency Committee Meeting - July 29, 2020
The Budget and Government Efficiency Committee met on July 29, 2020, at 5:00 PM UTC, conducted via teleconference under Order 29-20, which suspended certain Brown Act requirements due to the COVID-19 pandemic. Chair Bree presided, with Vice Chair Kate, Councilmember Campbell, and Councilmember Montgomery participating remotely. The meeting covered the FY2021 Statement of Budgetary Principles, a 5G fee exemption and refund program, and a presentation on COVID-19 tourism impacts. All roll call votes were unanimous.
Consent Calendar
- The committee unanimously approved the minutes from the March 11, 2020 meeting (3-0).
Public Comments & Testimony
- Non-Agenda Public Comment: Martha Welch criticized the city's actions, claiming illegality and lack of audits. Joy Sonia thanked the committee for the budget process and encouraged public participation.
- Item 1 (Budgetary Principles): Joy Sonia noted a last-minute revision and asked for clarification, and also pointed out missing words in the staff report.
- Item 2 (5G Fee Exemption): Martha Welch again criticized the city's lack of audits and questioned the financing.
- Item 3 (Tourism Impacts): Martha Welch commented on Mission Bay and urged proper budgeting. Joy Sonia expressed support for the tourism industry, emphasizing realism and equity.
Discussion Items
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Item 1: Proposed FY2021 Statement of Budgetary Principles
- Presented by Angela Colton and Andrea Tevlin of the Office of the Independent Budget Analyst (IBA). The document, IBA report 20-16, preserves the intent of the appropriation ordinance and establishes communication between the City Council and the Mayor. Key principles include: prior written notice to council before service level reductions, no unilateral changes to the appropriation ordinance, the mayor must fulfill legislative intent, and council needs the mayor's funding recommendation for budget changes. It also includes structural budget deficit principles from 2010, a five-year financial outlook update in November, and a performance dashboard (Perform SD). Councilmember Montgomery moved approval, Vice Chair Kate seconded, and the motion passed unanimously (3-0).
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Item 2: Authorization to Exempt General Plan Maintenance Fee on 5G Right-of-Way Permits and Establish Refund Program
- Presented by Diane Medella (Planning Department), with Marco Camacho and Tom Thomlinson. The FCC order preempts the city's General Plan Maintenance Fee (GPMF) of $451 on right-of-way permits for small wireless facilities (5G). The proposed actions: exempt the GPMF for such permits, establish a refund program for permits paid since September 2015 (estimated $950,000 total), and appropriate $734,040 (plus $734,040 from previously appropriated funds) to cover refunds. The inflationary adjustment for the GPMF would shift from May CPI to January CPI to improve budget planning. Councilmember Montgomery questioned whether the FCC had reviewed the city's fees; the city attorney confirmed no review. Councilmember Campbell moved approval, Councilmember Montgomery seconded, and the motion passed unanimously (3-0).
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Item 3: COVID-19 Tourism Related Budget Impacts (Information Only)
- Presentations by Colleen Anderson (San Diego Tourism Marketing District), Namara Mercer (Mission Bay Lessees Association), and Maurice Robinson (hotel consultant). Key statistics: TMD assessments dropped to $16 million from a $24 million forecast in May; TOT revenue fell from $249 million in FY19 to approximately $176 million in FY20; May 2020 visitation was 14% of normal; June occupancy was 36.2% (58% decline); group occupancy fell 94% year-over-year; and group business may not recover until 2021. Mercer and Robinson requested the city work with its lessees: pay percentage rent based on current revenue, defer minimum annual rent, and forbear defaults. They proposed repaying deferred rent starting October 2021 to June 2022. Committee members expressed support, emphasized employee protections, and noted upcoming discussions in September 2020 at the Economic Development Committee. No vote was taken.
Key Outcomes
- Approved the minutes from March 11, 2020.
- Unanimously approved the FY2021 Statement of Budgetary Principles.
- Unanimously approved the exemption and refund program for 5G permits, including a $734,040 appropriation.
- No action on the tourism impacts presentation; the committee noted the need for ongoing updates and discussions with the Real Estate Assets Department and City Attorney's office.
- The next meeting is scheduled for September 16, 2020, at 9:00 AM.
Meeting Transcript
Order 29-20, which suspends certain requirements of the Brown Act. Some of the council members will be participating via teleconference, and no members of the public will be in attendance at the meetings at this meeting in the interest of public health and safety. In addition, this meeting is being televised and live streamed on the city's website, and the committee liaison has made arrangements for the public to comment by phone and electronically. We appreciate the public's cooperation. I will now call the budget and government efficiency committee meeting of Wednesday, July 29th to order. We have several members of the committee and staff calling via teleconference. For purposes of the roll call. Those on teleconference include Vice Chair Kate, Councilmember Campbell, and Councilmember Montgomery. Each council member will be watching the meeting from their remote location via City TV, and they are live on our teleconference over the committee room where they will participate in this meeting remotely. Also present in chambers are independent budget analyst Andrea Tevlin, IBA staff member Angela Colton, Chief Financial Officer Rolanda Charval, and on the teleconference line is Deputy City Attorney Brett Bartalotta. The public may call in following the instructions posted on the agenda by calling 619-541-6310 and entering conference ID number 877-861 pound to be placed in the queue for public comment. You should do this when the item you wish to speak to is introduced. Please do not call in prior to that time. When the phone queue is empty, the public comment period will be closed. This same process will be used for each agendized item. When you are in the queue, you will be able to hear the meeting and all others that are providing comment. You will know that it is your turn to speak when you hear the system prompt saying your phone has been unmuted. When you hear the prompt, immediately state your name and make your comment. Then hang up. Each speaker will have one minute. Also, please mute the volume on your TV or computer before you begin to speak. If you call in during a non-comment period, your call will not be taken. Please monitor the meeting and ensure you are calling at the appropriate time. The public may view the meetings on public television on City TV Channel 24 for Cox Communication and Time Warner Cable or Channel 99 for ATT, or view the meetings online by going to the San Diego City Council Committee's homepage at Sandieago.gov and selecting the City TV Live Webcast blue button on the right hand side of the page. A quorum is now present. We will now dispense with the approval of the committee actions. The actions before you for approval are for the meetings of Wednesday, March 11th, 2020. Do I have a motion to approve the transactions? I can make the motion and is there a second on the phone. Also, Madam Chair. Thank you, Vice Chair Kate. Council Mr Kate. Right. Okay, we will now have each council member register your vote. Councilmember Campbell. I vote yes. Great. Councilmember Montgomery. I vote yes. Great. Vice Chair Kate. Yes. Great. That passes unanimously. Thank you. We will now take up non-agenda public comment. Mauricio, please proceed. Per temporary rule 2.6 non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda, but within the subject matter jurisdiction of the city council. Each speaker will have one minute. I am now unlocking the public phone-in system.
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