Budget and Government Efficiency Committee Meeting – February 3, 2021
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Budget and Government Efficiency Committee Meeting – February 3, 2021
The Budget and Government Efficiency Committee met virtually on February 3, 2021, to consider a mid-year budget monitoring report showing an $85.4 million general fund deficit, approve a $27 million Clean Water SRF loan for stormwater improvements in South Mission Beach, authorize a $15.5 million cooperative procurement contract for heavy construction equipment, and receive the 2021 committee work plan. The meeting was chaired by Councilmember King, with Councilmembers Whitburn, Montgomery Steppe, and Campillo participating. The public called in to comment on police funding, homelessness, and other issues.
Consent Calendar
- The committee approved the minutes of the January 20, 2021, meeting by a 3-0 vote (Vice Chair Whitburn absent).
Public Comments & Testimony
- Non-Agenda Public Comments:
- Alejandra Meriteran (OTI Mesa Chamber of Commerce) called for increased police resources, citing slow response times and lack of traffic management.
- Joy Sunyata (District 3) commented on the budget word “equity” and thanked the chair for humility.
- Miguel Ageary (property owner near the border) urged increased police funding, citing public safety threats at the National Gateway, including wildcatting and human trafficking.
- Amanda Broadnax criticized spending $15 million at the Convention Center for homeless shelter, arguing funds should go directly to housing.
- Marcella Turan (Pacific Beach/Mission Beach Neighborhood Watch) was redirected to speak on the budget item; she later supported police funding.
- Public Comments on Item 1 (Mid-Year Budget Report):
- Michael Friedman, Matthew Gardner (Mission Beach Town Council), Linda Pennington (City Heights), Parissa Dajadi (Disability Rights California), Glenn Volk, Cassandra Ferguson (high school student), Kathy Ives, Marshall Anderson (Downtown San Diego Partnership), Miguel Ageary (again), Carol Tosaku (Rancho Peñasquitos), Mrs. Grant, Maria Cortez, Greg Knight (Mission Beach), Barbara Gellman (University City), Marcella Turan, Michael Volk (District 8), Dale Ganzau (San Diego Employers Association), and James Lively all spoke in support of maintaining or increasing police funding. Parissa Dajadi urged the city to pursue its own non-congregate shelter funding via FEMA. James Lively called for budget transparency and investment in community engagement.
- Public Comments on Item 2 (SRF Loan): None.
- Public Comments on Item 3 (Hawthorne Contract): None.
- Public Comments on Item 4 (Work Plan):
- Haney Hong (San Diego County Taxpayers Association) recommended reducing operating costs proportionate to revenue loss, tying new programs to cost reductions, and exploring common pay scales with other jurisdictions.
- Joy Sunyata (District 3) requested information on overall service-level percentages.
Discussion Items
- Fiscal Year 2021 Mid-Year Budget Monitoring Report:
- Department of Finance (Rolanda Chavel, Sarah Mayan, Adam Jones) presented: General fund revenues are projected $86 million below budget (TOT shortfall of $65.5 million, sales tax $30 million below pre-pandemic estimates, department revenues $55.7 million short). Expenditures are nearly on budget. Net deficit is $85.4 million, partially offset by $14.5 million in unassigned fund balance, leaving $71 million to mitigate. Mitigation options include federal stimulus (uncertain), operational/capital reductions, and reserve use. The mayor’s office is not recommending immediate adjustments, waiting for potential federal aid. The committee was asked to forward the report to full council with a recommendation to delay action until the third-quarter report (due May 18).
- San Diego Police Department (Executive Chief Al Guadarama) reported on overtime and Neighborhood Policing Division (NPD) expenditures. Police overtime through Period 5 (November) was $13.47 million (40% of budget); projected to exceed the $17 million threshold by Period 7. NPD expenditures through November were $9.54 million (39% of budget); projected to stay at budget. NPD responded to 10,245 Get It Done calls and 9,000 radio calls; Clean San Diego abated 713 tons of trash; HOT connected over 1,000 individuals to shelter.
- IBA (Andrea Teblin) expressed concern over the $85 million deficit with only five months left, noted the mayor’s decision not to recommend mitigations, and highlighted the council’s authority under the municipal code to propose budget changes after receiving the mayor’s report.
- Clean Water SRF Loan for South Mission Beach Storm Drain and Green Infrastructure ($27 million):
- Debt Management (Kevin Warner, Lakshmi Fomi) presented: The loan carries a 0.9% interest rate over 30 years, with first payment due in FY2026. The project will reduce flood risk and improve water quality in Mission Bay. Staff are evaluating the revenue pledge and repayment structure. The committee was asked to authorize the mayor to execute the loan agreement.
- Councilmember Montgomery Steppe requested that contracts for the project be brought to committee. The motion passed unanimously.
- Cooperative Procurement Contract with Hawthorne Equipment Company ($15.5 million):
- Fleet Operations (Casey Smith) presented: The contract will replace approximately 78 pieces of heavy equipment (34 general fund, 44 enterprise/internal service). Funding comes from assignment fees. The contract is through SourceWell and expires May 2024. Councilmember Montgomery Steppe noted deficiencies in the contractor’s EEO report and requested an EEO compliance review. The motion passed unanimously.
- 2021 Committee Work Plan (Informational):
- Chair King presented the draft work plan, incorporating priorities from committee members: vacancy savings presentation (March), monitoring revenue projections and COVID-19 relief, small business technical assistance program, review of real estate contracts, and service-level analysis. Committee members expressed support.
Key Outcomes
- Mid-Year Budget Report: Moved to forward to full City Council with a recommendation to delay proposing budget adjustments (including use of reserves) until the third-quarter report. Vote: 3–1 (Councilmember Montgomery Steppe dissented, citing the appropriation ordinance not being honored).
- SRF Loan (South Mission Beach): Authorized the mayor to implement the $27 million loan and establish necessary funds. Vote: 4–0.
- Hawthorne Contract: Authorized execution of the cooperative procurement contract not to exceed $15.5 million and approval of future budget appropriations. Vote: 4–0.
- Committee Work Plan: Received as informational; no vote required. The next committee meeting was set for March 3, 2021, at 9:00 a.m.
Meeting Transcript
I'm gonna open the webinar up and you can proceed, Councilmember King. Good morning. Per executive order 29-20, which suspends certain requirements of the Brown Act. The committee members will be participating via Zoom, and no members of the public will be in attendance at the 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 using the Zoom webinar platform. We appreciate the public's cooperation. I will go over the specifics of how to join the webinar and will give details on how the public can offer their public testimony. I will now call the budget and government efficiency committee meeting of February 3rd, 2021 to order. For the purpose of the role, we have Councilmember Montgomery Step and Councilmember Campillo on the webinar, and Council or Vice Chair Whitburn will be joining us soon. Each committee member is attending virtually. Also on the virtual meeting is Angela Colton from the IBA. Um Adam IBA Andrea Teblin, Matthew Vespee from the Chief of the Chief Financial Officer, Brittany Bailey from the Mayor's Office, and Brett Bartalata from the City Attorney's Office. The public may view the meetings on public television on City TV channel 24 for communication and time water cable or channel 99 for ATT or view the meeting online by going to the City Council Committee's homepage at San Diego.gov and selecting the City TV Live Webcast Blue button on the right hand side of the page. The committee meetings will be held virtually using the Zoom webinar platform. Members of the public can offer public comment on items by accessing the Zoom webinar online using a desktop computer, laptop, tablet, or smartphone, or by calling into the meeting using a smartphone, cellular phone, or landline. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda on how to join by iPhone one tap. To join the Zoom webinar by telephone, you may dial either 1669-254-5252. When prompted, input webinar ID 161 771 9874 pounds. If you have joined the webinar by computer, tablet, or smartphone, you will receive a pop-up notice to select to unmute your device. If you have called into the meeting by cell phone or landline, press star six on your phone to unmute yourself. We will review these instructions briefly again when the public comment period on an item is open. Please wait until the item you wish to speak to has been called before raising your hand to speak. If you raise your hand during a non-comment period, your hand will be lowered. When you are announced as the next speaker, please unmute yourself and offer your comments. Also, please mute the volume on your TV or your computer before you begin to speak. A quorum is now present. We will now dispense with the approval of the committee actions at February 20th, 21, January 20, 2021. And do I have a motion to approve these committee actions? I so moved, Mr. Chair. And I will second. Perfect. We have a motion by Councilmember Campillo, seconded by Councilmember Montgomery Steph. We will now take the vote. Councilmember Montgomery Step. Yes. Councilmember Campillo? Yes. And I am also a yes. So that motion passes three to zero with Vice Chair Whitburn absent. We will now take up non-agenda public comments 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 committee. Each speaker will have two minutes. The public comment period for non-agenda public comment is now open. If you have already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak. If you're watching on City TV or the live stream online and would like to call into the meeting to speak, please call 1669-254-5252. When prompted, input webinar ID 16171874 pounds. To raise your hand to speak, select the raise your hand button or press star nine. When our consultant lets you know it is your turn to speak, unmute yourself by just selecting the unmute prompt that will appear on your device or by pressing star six on your cell phone or landline. We will keep the line open for a minimum of two minutes to allow members of the public to phone in.
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