Budget and Government Efficiency Committee Meeting - April 7, 2021
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Budget and Government Efficiency Committee Meeting - April 7, 2021
The Budget and Government Efficiency Committee met on April 7, 2021, via Zoom due to the pandemic. The committee approved consent items and discussed several contracts, financial matters, and informational items. All votes on action items were unanimous.
Consent Calendar
- Approved the committee actions from March 3, 2021.
- Approved two consent items: (1) proposed candidate nominating fee, and (2) agreements with Sharp Rees-Stealy Medical Group and Concentra Medical Centers for industrial medicine services.
Public Comments & Testimony
- Kevin Keppen, Assistant Chief of Finance for Otay Water District, opposed the proposed unitary recycled water rate on item 8, arguing it constitutes an unlawful tax on Otay customers who do not benefit from the North City Water Reclamation Plant. He requested a zonal rate structure.
- Michael Dwyer asked whether the staff report on item 8 included combined water and wastewater charges and whether Pure Water Phase One is funded from user fees.
Discussion Items
Item 3: Authority to Purchase from AMREP Manufacturing
- Casey Smith (Director of Fleet Operations) presented a sole-source five-year contract for new and refurbished parts and services for 97 automated sideloaders, with a not-to-exceed amount of $8.43 million. The contract is needed due to proprietary parts and warranty requirements. Councilmember Montgomery Steppe raised concerns about EEO underrepresentations; staff noted AMREP has been notified and will be monitored. Motion passed unanimously.
Item 4: Third Amendment to CGI Technologies Agreement
- Jonathan Banke (CIO) and Sean K. presented a $21.5 million increase to extend application development and maintenance services through June 2022 during a transition to new contracts. IBA noted expected cost increases in future contracts. CGI Vice President Shauna Patton highlighted local employment, community service, and diversity efforts. Motion passed unanimously.
Item 5: Second WIFIA Loan for Pure Water Phase One
- Alison Falkenstein (Debt Management) requested authorization for a $95 million EPA loan at an estimated 2.18% interest rate over 34 years, covering 86% of the water system's share of Pure Water costs. The loan is subordinate to existing obligations. Motion passed unanimously.
Item 6: Citywide Cooperative Agreements for MRO Items
- Claudia Barca (Interim Director of Purchasing) and Angela Arico presented five cooperative contracts for maintenance, repair, and operations items, with a cumulative not-to-exceed $44.4 million over five years. Councilmember Montgomery Steppe requested a cost-benefit analysis and noted EEO underrepresentations. Motion passed unanimously.
Item 7: FY2021 Amendment to Airport Fund Budget
- Penny Moss (Director of Real Estate) and Jorge Rubio requested $1.52 million from the airport enterprise fund for emergency cleanup after a February 13 aircraft accident ($911,000), operational needs ($337,000), and a master plan amendment ($272,000). IBA confirmed no general fund impact. Motion passed unanimously.
Item 8: Wastewater Cost of Service Study and Water Pass-Through (Informational)
- Staff from Public Utilities Department presented proposed rate increases: wastewater rates rising 5% in FY22, 4% in FY23-24, and 3% in FY25, with a single-family residential bill increasing from $40 to $48 per month (based on 7 HCF). A water pass-through of 2% is proposed to cover San Diego County Water Authority increases. IBA and Stantec are conducting an independent review. No action taken; item to return in June.
Item 9: FY2021 Revenue Update (Informational)
- Sarah Mayne (Assistant Director of Finance) reported major general fund revenues increased $8.5 million from mid-year, driven by higher franchise fees ($7 million). Projections incorporate impacts from the pandemic and American Rescue Plan funding ($306 million expected). Convention center operations and reopening guidance were discussed. No action taken.
Key Outcomes
- All consent and action items (items 3–7) were approved unanimously.
- Informational items (8 and 9) received no votes; further presentations are scheduled for May and June.
Meeting Transcript
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 April 7th, 2021 to order. And we will now call the role, starting with Vice Chair Whitburn. Sure. Councilmember Montgomery Step. And Councilmember Campio. Here. Each committee member is attending virtually. Also on the virtual meeting is Andrea Tevin, our Andrea Tevlin, our independent budget analyst, Angela Colton from the office of the IBA, Matt Vespe, our chief financial officer, Brittany Bailey from the mayor's office, and Brett Bartolotta from the City Attorney's Office. The public may view the meeting on public television and on City TV channel 24 or Cox Communications or Cox Communications 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 tab. To join the Zoom webinar by telephone, you may dial 1669-254-5252. When prompted, input webinar ID 161-771-9874 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each item. When I introduce the item you would like to comment on, you will raise your hand by either tapping the raise your hand button on your computer, tablet, or smartphone, or by pressing star nine on your phone. You'll be taken in the order in which you raise your hand. You may only speak once on a particular item. When our committee consultant Alan Young indicates it is your turn to speak, he will call you by your name as it appears on the Zoom webinar attendee list, or he will read out the last four digits of your phone number if you have called into the meeting. That is how you will know it is your turn to speak. If you have joined the webinar by computer, tablet, or smartphone, you will receive a pop-up notice to select 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're announced as the next speaker, please unmute yourself and offer your comments. Also, please mute the volume on your TV or computer before you begin to speak. A quorum is now present. We will now dispense with the approval of the committee actions of March 3rd, 2021. Do I have a motion to approve the actions? So moved. Thank you. We will now go in order to uh register your votes starting with Vice Chair Whitburn. Yes. Councilmember Montgomery Step. Yes. Councilmember Campillo? Yes. And I am also a yes. That motion passes unanimously. We will now take up non-agenda public comment. 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 per the rules of council. A maximum of eight callers is permitted per single issue.
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