Budget and Government Efficiency Committee Meeting Summary - March 2, 2022
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Budget and Government Efficiency Committee Meeting – March 2, 2022
The Budget and Government Efficiency Committee of the San Diego City Council met on Wednesday, March 2, 2022, in a hybrid format with public participation via Zoom. Committee members present were Vice Chair Eli Rivera, Council President Pro Tem Monica Montgomery Steppe, and Councilmember Moreno. The committee addressed three discussion items, including a stormwater financing proposal, a development services permitting system upgrade, and an as-needed plan check and inspection services contract. All items were approved unanimously.
Consent Calendar
- Approval of committee actions from February 2, 2022, was moved by Vice Chair Eli Rivera, seconded by Council President Pro Tem Montgomery Steppe, and passed unanimously.
Public Comments & Testimony
- Non-agenda public comment: Chris Vamos, Chief Steward of Teamsters Local 911, representing ocean lifeguards, thanked the committee for supporting lifeguard requests in budget memos and stressed the importance of lifeguards to San Diego's beaches and bays.
- Item 3 (NV5 contract): Kathleen Higgins, MEA labor officer for Development Services Department, spoke on behalf of the Municipal Employees Association (MEA). She said DSD staff are experiencing burnout, stress, and anxiety due to high vacancy rates and workloads, and that MEA does not take outsourcing lightly but supports a compassionate approach given recruitment and retention challenges.
Discussion Items
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Item 1 – Stormwater Capital Improvement Program and WIFIA Loan Commitment:
- Staff from the Debt Management and Stormwater Departments presented a proposal to accept a U.S. EPA Water Infrastructure Finance and Innovation Act (WIFIA) loan commitment not to exceed $359 million to finance a stormwater program of up to $733 million. The city would provide the remaining 51% ($374 million) from various sources. A first loan installment of up to $212 million was expected in May. The loan would be a general fund obligation structured as a lease-leaseback, with total debt service estimated at $35 million annually starting in FY2029. The program includes corrugated metal pipe replacement, pump station rehabilitation, waterway restoration, green infrastructure, and integrated stormwater features.
- The Office of the Independent Budget Analyst (IBA), via Jordan Moore, noted the city's matching commitment of up to $374 million, which would be a significant increase in stormwater spending, and raised questions about workload capacity and the unidentified source of the match. IBA also noted that if the match had been included in the CIP outlook, it would have lowered the unfunded stormwater deficit by approximately $200 million.
- Committee members expressed strong support for the low-cost financing. Councilmember Moreno moved the item, seconded by Council President Elia Rivera. Discussion addressed staff capacity, NEPA requirements, and the risk of cost increases if the loan is not executed before May 15. The motion passed unanimously, forwarding the item to City Council.
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Item 2 – Accela Implementation Phase 2 and Cannabis Grant:
- Development Services staff requested approval to increase the CIP budget by $859,292.19 for CGI Technology Services to complete the Accela online permitting system implementation. This includes converting more than 28,000 active hybrid PTS projects into Accela and migrating 500,000 historical permits and inspection records. The department also requested approval to accept a $764,261 grant from the California Department of Cannabis Control, with $393,750 allocated to develop a cannabis licensing and permitting module.
- The IBA had no significant comments on this item. Council President Pro Tem Montgomery Steppe moved approval, seconded by Councilmember Moreno. Discussion focused on customer benefits, including 24/7 access and virtual appointments. The motion passed unanimously.
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Item 3 – Agreement with NV5 Inc. for Plan Check and Inspection Services:
- Development Services staff presented a request to award a one-year, not-to-exceed $250,000 contract to NV5 Inc. to augment existing staff. DSD reported 20% vacancy rates among permit processing and inspection positions, over 62,000 permit applications received in 2021, 120,000 field inspections completed, and 28,000 hours of overtime. The contract would be cost-recoverable through permit fees.
- IBA noted that this item highlights the need for a full discussion of vacancies citywide during the budget process.
- Councilmember Moreno supported the temporary measure but emphasized the need to hire city employees long-term. Council President Elia Rivera asked how the city could support DSD further; DSD Director Elise Lowe stated that $250,000 is less than half a percent of DSD's $93 million budget, will likely be insufficient, and additional actions may come before the committee. She also noted 40 hires are in process and that an additional 110 positions were requested in the FY23 budget. The motion, moved by Montgomery Steppe and seconded by Moreno, passed unanimously.
Key Outcomes
- Item 1: The committee voted unanimously to forward the stormwater WIFIA loan financing ordinance to the City Council, docketed for March 15, 2022.
- Item 2: The committee voted unanimously to authorize the CFO to increase the CIP budget, appropriate $859,292.19, accept the cannabis grant, and establish a special interest-bearing account if required.
- Item 3: The committee voted unanimously to authorize the NV5 agreement, expenditure not to exceed $250,000, and related appropriations.
- The committee adjourned to a special meeting on Wednesday, April 13, 2022, at 9:00 a.m.
Meeting Transcript
Good morning. Per California government code section 54953G added by Assembly Bill 361, which allows the city to use teleconferencing and to provide the public an opportunity to address the council committee via a call-in option or an internet-based service option. The committee members will be participating being actually all here. But 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 now call the budget and government efficiency committee of March 2nd, 2022 to order, and I'll call the roll. Vice Chair Eli Rivera. Present. Council President Pro Tem Montgomery Step. Here. And Councilmember Moreno. Present. So each committee member is in person. Also in this meeting is Charles Monica from the IBA, Matthew Vespi, our chief financial officer, Javier Governments from the Mayor's Office, and Brett Bartlotta from the City Attorney's Office. The public may view the meeting on public television on City TV channel 24 for Cox Communication and Spectrum or Channel 99 for ATT Uverse, 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 button on the right hand side of the page. The committee meetings will be held via in a high in hybrid form using the Zoom webinar platform. Members of the public can offer public comment on items by accessing the Zoom webinar online using a computer, tablet, or smartphone, or by calling into the meeting using a smartphone, cell phone, or landline. The link to join the community 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 on 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'd 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. When our committee consultant 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 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 unmute your device. If you've called into the meeting by phone, press star six on your phone to unmute yourself. 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 February 2nd, 2022. The public comment period for this item is now open. If you've joined the Zoom webinar online or by phone, please raise your hand if you wish to speak. If you're watching on TV or the live stream and like to call in, please call 1669-2545252 and then put webinar ID 161-771-9874 pound and press star nine to raise your hand to speak or select the raise your hand button. Do we have any commenters in the queue, Mr. George? No speakers in the queue. Very good. May I have a motion to approve the committee actions. So moved. Motion by Vice Chair Ill Rivera, seconded by Council President Pro Tem Montgomery Step. Are we doing pressing the button or are we just can we do hands? All please say aye. Aye. That motion passes unanimously. Very good. We will now take up non excuse me, take up non-agenda public comment per temporary rule 2.6.
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