Budget & Government Efficiency Committee Meeting – September 15, 2021
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Budget & Government Efficiency Committee Meeting – September 15, 2021
The Budget and Government Efficiency Committee of the San Diego City Council met virtually on September 15, 2021, due to California Executive Order N-21-21. The committee approved consent items, heard non-agenda public comment, and considered three discussion items: approval of cooperative procurement contracts for data networks and communication services (CalNet Next Gen), extension of the commercial paper notes program, and adoption of key dates for fiscal year 2023 budget development and fiscal year 2022 budget monitoring. All actions passed unanimously.
Non-Agenda Public Comments & Testimony
- Jan Hintsman, President of the Friends of the College Rolando Library, spoke about a real estate assets issue in District 9. She stated that the library, constructed in 2005 for about $4 million, may need to be replaced (current cost ~$18 million) due to city neglect of an option to purchase land used for library access and parking. She urged Mayor Gloria to act before an investor moves to upzone the property, which would jeopardize library function. She noted that the Planning Commission recommended a community benefit agreement for a permanent easement or deed restriction. She described the situation as an emergency.
Discussion Items
- Item 3: Approval of CalNet Next Generation Cooperative Procurement Contracts for Data Networks and Communication Services – Jonathan Banke (CIO, Department of IT) and Sean Kilpak (Deputy Director) presented. The ordinance authorizes contracts with AT&T, Charter Communications, Crown Castle Fiber, Granite Telecommunications, Level 3 Communications, NWN Solutions, and MCI Communication Services for a cumulative amount not to exceed $45.65 million over approximately 6.5 years. The contracts are based on the state of California's competitively bid CalNet Next Gen contracts, used by over 2,400 agencies. Services include internet connectivity, data network connections, emergency notification systems, and connections to city data centers and cloud services. The term is 3.5 years base with three optional one-year extensions. The Department of IT confirmed via an RFI that the CalNet Next Gen contract offers the best overall value. IBA representative Charles Modic confirmed the terms are cost-competitive. Councilmember Campillo asked about the projected increase from ~$4.6 million per year (historical average plus 5% buffer) to $6.7 million in FY23; staff explained increased bandwidth demand due to digitization, virtual meetings, and cloud services. Councilmember Montgomery Steppe requested confidential briefings on legacy services, and staff agreed to provide them.
- Item 4: Authorization to Extend Letter of Credit, Retain Bond Counsel, and Continued Administration of City's Lease Revenue Commercial Paper Notes Program – Richard Eyer (Debt Manager) presented. The ordinance extends the direct pay letter of credit with Wells Fargo Bank at the existing fee rate to November 2024, extends the contract with Hawkins, Delafield & Wood as legal counsel for a not-to-exceed amount of $25,000 per fiscal year, and ratifies other program components. The commercial paper program capacity remains at $88.5 million. Expected annual operating costs are unchanged. Councilmember Montgomery Steppe noted ELC (Equal Employment Opportunity Commission) underrepresentation at Wells Fargo in categories including African American, Asian, and female in professional roles, and Latino female in sales and Latino in administrative support, but supported the item.
- Item 5: Fiscal Year 2023 Budget Development and Fiscal Year 2022 Budget Monitoring Key Dates – Charles Modic (IBA) and Matthew Vesky (Chief Financial Officer) presented a calendar of key budget-related dates. Key dates for budget monitoring include: November – CIP monitoring report, five-year financial outlook, Q1 budget monitoring report; January – five-year CIP planning outlook, mid-year budget monitoring report; May – year-end monitoring report, Q3 budget monitoring report; October – final operating budgets year-end financial performance report. For budget development: January – council budget priority memos due; early February – approval by resolution; April 15 – mayor's proposed budget released; two weeks later – IBA review; May – council budget hearings, mayor's May revision, council budget modification memos; June 13 – final consideration and adoption. Changes from last year include an extra week for council budget priority memos and budget modification memos, and an additional week for the Department of Finance to release the mid-year and year-end reports to include more actual data. The CIP call memo release was shifted from September 3 to September 10 with responses due October 15. Chair Kate noted the importance of oversight and offered to facilitate additional reviews.
Key Outcomes
- Consent Calendar (two items): Approved unanimously. Items: (1) First Amendment to agreement with Revelation Software Concepts for RevTrack software licensing, maintenance, and support; (2) Extension of Ontario Systems contract for maintenance and support of the Revenue Plus Collector system.
- Item 3 (CalNet Next Gen Contracts): Motion by Vice Chair Whitburn, seconded by Councilmember Montgomery Steppe. Approved unanimously. The ordinance will be forwarded to the full City Council.
- Item 4 (Commercial Paper Program): Motion by Vice Chair Whitburn, seconded by Councilmember Montgomery Steppe. Approved unanimously. Forwarded to the full City Council.
- Item 5 (Budget Development and Monitoring Key Dates): Motion by Vice Chair Whitburn, seconded by Councilmember Montgomery Steppe. Approved unanimously. The calendar will be forwarded to the full City Council with noted modifications.
- The next special meeting of the committee is scheduled for Wednesday, October 13, 2021, at 9 a.m.
Meeting Transcript
Good morning. Per California Executive Order Night 21, which spends certain requirements of the Brown Act. The committee members will be participating via Zoom. 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'll 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 September 15th, 2021 to order. And I will call the role. Starting with Vice Chair Whitburn. Here. Councilmember Montgomery Step. And Councilmember Campillo. Here. Each committee member is attending virtually. Also on the virtual meeting is Charles Monica from the IBA, Matthew Vesky, our chief financial officer, and Brittany Bailey from the mayor's office and Brett Barlotta from the City Attorney's Office. 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 if you meet or via 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 the desktop computer, laptop, tablet, or smartphone, or by calling into the meeting using a smartphone, cell 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 1 tap. 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'll 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 commit when our committee consultant old Anthony George 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 your last four digits of your phone number if you have called into the meeting. That is how you will note 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 unmute your device. If you've 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 July 21st, 2021. So have a motion to approve those actions. So moved. We have a motion by Vice Chair Whitburn, which I will second. We will now call the roll for votes, starting with Vice Chair Whitburn. Yes. Councilmember Montgomery Step. Yes. And Councilmember Campillo. Yes. And I am also a yes. So that motion passes unanimously. We will now take up non-agenda public comments per temporary roll 2.6, non-agenda public comment as 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.
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