OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Government Efficiency Committee Meeting - April 13, 2022

Budget & Government Efficiency Committee — Wednesday, April 13, 2022
BodySan Diego, California
SessionBudget & Government Efficiency Committee
DateWednesday, April 13, 2022
StatusFILED
Video Record
Meeting Thumbnail
⇩ GET FROM SOURCE

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:22

Good morning.

0:24

Until further notice, committee meetings will be conducted pursuant to the provisions of California Government Code Section 54953E, added by Assembly Bill 361, which allows the city to use teleconferencing and to provide the public an opportunity to address the city council via a call-in option or an internet-based service option during a proclaimed state of emergency.

0:47

While the public is allowed to attend the meetings in person, we encourage you to maintain it six to maintain six feet of social distance as well as follow California mass guidelines where masks are strongly recommended.

0:58

In addition to being able to attend in person, this meeting is being televised and live streamed on the city's website.

1:03

And the committee liaison has will continue to make arrangements for the public to comment using the Zoom webinar platform.

1:10

Additionally, members of the public who wish to provide testimony via a call-in or internet internet-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first.

1:26

This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business.

1:32

We appreciate the public's cooperation.

1:35

I will now call the budget and govern government efficiency committee meeting of April 13th, 2022 to order, and I'll call the roll.

1:43

Vice Chair Elo Rivera.

1:47

Committee member Montgomery Step.

1:50

Oh.

1:51

Beautiful timing.

1:53

And committee member Vivian Moreno.

1:55

Present.

1:56

Also attending the meeting is Charles Monica, our IBA, Matthew Vespe, our Chief Financial Officer, Jessica Lawrence from the Mayor's Office, and Brett Barlata from the City Attorney's Office.

2:06

If you are in person, please complete a speaker slip located at the entrance of chambers and place it in the box indicated at the speaker's lectern at the front of the room.

2:16

Please do so in a timely manner to ensure proper meeting management.

2:19

Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link, which is listed online in the preamble language of the agenda on the city's webpage.

2:28

The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda.

2:33

To join the Zoom webinar by telephone, please dial 1669-254-5252.

2:39

When prompted, input webinar ID 161-771-9874 pound.

2:44

This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item.

2:50

Members of the public who wish to provide testimony via a call-in or internet-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first.

3:04

Please note that if you are watching via City TV 24 or online, there may be a delay.

3:09

Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak.

4:12

Please wait until the item you wish to speak to has been called before raising your hand to speak.

4:16

If you raise your hand during a non-comment period, your hand will be lowered.

4:20

When you are announced as the next speaker, please unmute yourself and offer your comments.

4:24

Also, please mute the volume on your TV or computer before you begin to speak.

4:30

A quorum is now present.

4:32

We will now take up the approval of the committee actions of March 3rd, 2022.

4:38

Anthony, please proceed with public comments.

4:53

Members of the public who wish to provide testimony via a call-in or internet-based service option.

5:00

Unless we enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before virtual speaking queue is exhausted, whichever comes first.

5:08

If you have already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak.

5:13

If you are what if you are watching on City TV or the live stream online and would like to call in and to the meeting to speak, please call 1669 254 5252 when prompted.

5:25

Input Webinar ID 161 771 9874 Pound.

5:30

As a reminder, virtual speakers, please raise your hand to speak.

5:34

You can also you can do so by selecting the raise your hand button or input star nine if by phone.

5:40

I will announce when it's time when is your turn to speak.

5:43

Unmute yourself by either selecting the unmute button or by inputting star six.

5:48

We currently have zero speakers who have submitted speaker slips and chambers.

5:54

And one uh one speaker in the virtual queue.

6:00

I'll allow this.

6:01

I'll allow the virtual speaker to speak.

6:06

Uh John Leake, go ahead with your comments.

6:11

Good.

6:12

You can hear me and see me.

6:13

Yes, sir.

6:15

Very good.

6:16

My name is John Leek, a citizen of San Diego.

6:19

Council members, our mayor's Keystone Parks policy to allot park resources more fairly to previously underserved community is under fire.

6:29

A scheme to defeat the policy comes to count.

6:31

Sir, I'm sorry.

6:32

Uh this is a non-agenda public comment.

6:34

I think you're you wish to speak during non-agenda.

6:37

I'll uh I'll call you back or I'll announce you uh when that's thank you, sir.

6:43

All right, in-person testimony is completed.

6:46

Um there are no other speakers in the queue, and that concludes public testimony on the committee actions.

Discussion Breakdown — Share of Meeting
Equal Opportunity Contracting██████████████████████22%
Budget███████████████████19%
Convention Center███████████████15%
Public Comment██████████████14%
Personnel Matters███████████11%
Public Engagement████████8%
Technology and Innovation█████5%
Procedural████4%
Parks and Recreation█1%
Summary of Proceedings

Budget and Government Efficiency Committee Meeting - April 13, 2022

The Budget and Government Efficiency Committee of the San Diego City Council met on April 13, 2022, to consider several items, including a consent agenda, an informational presentation on personnel expenditure savings, and two action items: a sales and marketing services contract for the San Diego Convention Center and an agreement for SAP technical support services. The committee also received the Fiscal Year 2021 Business Diversity Annual Report. All action items passed unanimously.

Consent Calendar

  • Approved committee actions from March 3, 2022, unanimously.
  • Approved a reimbursement resolution for stormwater capital improvement program expenditures (consent agenda item) unanimously.

Public Comments & Testimony

  • Non‑Agenda Public Comments:
    • John Leek (citizen) opposed a scheme to defeat the mayor’s Keystone Parks policy, arguing that creating a tourist attraction in La Jolla on state trust land for marine mammals would violate the Marine Mammal Protection Act. He urged the city not to assume management responsibility for federally protected marine mammals.
    • Joy Signata (District 3) requested assistance in understanding the full FY23 budget after learning that $20 million from the general fund would be used for organic waste recycling. She also expressed support for fair employee wages and the Climate Action Plan.
  • Item 4 – Personnel Expenditure Savings Presentation:
    • Corrine Wilson (San Diego Municipal Employees Association, MEA) expressed appreciation for recent recruitment and retention efforts but noted that MEA‑represented positions face 20–30% vacancy rates, with some even higher. She argued that vacancy savings come at the cost of overworked employees and unsustainable service levels, and urged continued investment in city staff.
    • Joy Signata again spoke, praising the presentation and requesting more data on reasons for resignations and support for the pay equity study.
  • Item 2 and Item 3 – no public comments were submitted.
  • Item 5 – Business Diversity Annual Report – no public comments.

Discussion Items

1. Budget Personnel Expenditure Savings Presentation (Informational Item)

Rolando Charvel, Director of Finance, presented an overview of the city’s vacancy situation, budget practices for vacancy savings, and recent recruitment/retention efforts. Key points:

  • As of January 2022, there were approximately 1,800 vacancies (about 15% of the budgeted 12,000 FTEs).
  • Causes include non‑competitive compensation (after years of stagnant wages), macroeconomic factors (hot labor market, Great Resignation), and special circumstances (e.g., new sanitation driver positions for SB 1383, pandemic‑related losses of hourly employees in parks and libraries).
  • The city uses a “vacancy factor” to estimate savings, which are redirected to other budget priorities. Historical variance between estimated and actual personnel expenditures has been less than 0.33% over the past five years, demonstrating accuracy.
  • Recent mitigation actions include a total compensation philosophy to reach market median, pay equity studies, special salary adjustments for 180 positions (3–40% increases), and labor negotiations with MEA, Local 127, and safety groups.
  • A preliminary analysis of the $270 million general fund contracts budget revealed that about 40% ($108 million) is for internal services (e.g., fleet, energy), and approximately $51 million represents external services that could potentially be reduced by filling vacancies.

Committee members (Councilmember Moreno, Council President Pro Tem Montgomery Steppe, Council President Ilo Rivera, and Chair Kate) discussed the importance of filling vacancies, the need to raise salaries for positions underpaid compared to other agencies (park rangers – 32% less, management analysts – 28% less, library assistants – 22% less), and the desire for better tracking of service levels and the impact of outsourcing.

2. Sales and Marketing Services Contract – San Diego Convention Center Corp. & San Diego Tourism Authority (Action Item)

Presented by Carol Kim (Convention Center Board Chair), Carlos Coda (Vice Chair), Rip Rapatto (President/CEO of the Convention Center), and Julie Coker (President/CEO of the Tourism Authority). Key details:

  • The contract covers long‑term sales and marketing services for the Convention Center, previously approved in 2012 and 2017, with the current term expiring June 30, 2022.
  • Proposed new term: five years (July 1, 2022 – June 30, 2027) with an option to renew for an additional five years.
  • Annual cost: $2.65 million, with a 3% escalation per year. This represents a savings compared to maintaining the prior contract structure (which would have been $2.8 million in the first year).
  • Efficiencies include merging two VP‑level sales positions into one, reducing sales staff while focusing on quality (higher ancillary revenue from food & beverage, AV, etc.), and having the Tourism Authority take over convention services (arranging off‑site events, hotel rooms).
  • Metrics will be tracked via an annual Program of Work, including room‑night goals, facility rental fees, attendance growth strategies, and an Event Scoring Profile (ESP) that incorporates ancillary revenues.
  • IBA noted that funding comes from the city’s COP fund (non‑general fund); last transfer was $2.1 million in FY20.

The committee unanimously approved the item (motion by Councilmember Moreno, second by Montgomery Steppe).

3. Agreement with Deloitte Consulting LLP for SAP Technical Support Services (Action Item)

Presented by Jonathan Banke (Chief Information Officer, Department of IT) and Arlo McPanty (Deputy Director). Key details:

  • The city’s SAP ERP system, in use since 2009, supports payroll, financials, procurement, asset management, and HR.
  • The current contract with CGI expires in June 2022. After an RFP process with 26 firms, Deloitte was selected based on highest cumulative score (including 25% SLBE participation commitment).
  • Proposed contract: five‑year term with a not‑to‑exceed amount of $23 million, covering 17 full‑time equivalent positions for technical support (security, system administration, development) plus a 20% contingency for future modernization/enhancement projects.
  • The hybrid model (consultants augmenting city staff) is necessary because the city cannot recruit and retain staff with required SAP skills.
  • IBA noted no concerns and confirmed the approach is effective.

The committee unanimously approved the item (motion by Montgomery Steppe, second by Moreno).

4. Fiscal Year 2021 Business Diversity Annual Report (Informational Item)

Presented by Claudia Barca (Director, Purchasing & Contracting) and Christian Silva (Program Manager, Equal Opportunity Contracting). Key data:

  • The Small Local Business Enterprise (SLBE) program, adopted in 2010, has 404 certified firms (construction, goods & services, professional services, suppliers).
  • FY21 CIP aspirational goal of 20% was exceeded by 8% (28% achieved).
  • Total SLBE/ELBE awards: $54.9 million for construction and A&E contracts; $58.4 million across all contract types (construction, A&E, goods & services).
  • However, overall SLBE participation decreased compared to prior years (10% of $568.8 million total awards, the lowest in five years), partly due to large Pure Water projects with different subcontracting requirements.
  • Women‑owned business awards also declined.
  • The “unidentified” ethnicity/gender category will be eliminated in the FY22 report.
  • Staff noted understaffing in EOC and commitment to implementing disparity study recommendations (to be presented to committee in May 2022, then to full council).
  • Committee members (Montgomery Steppe, Moreno, Ilo Rivera) expressed interest in bringing the report to full City Council for action, expanding the program, and improving outreach metrics.

Key Outcomes

  • Action Items Approved Unanimously:
    • Sales and Marketing Services Contract between San Diego Convention Center Corp. and San Diego Tourism Authority (5‑year term, $2.65 M/year + 3% escalation).
    • Agreement with Deloitte Consulting LLP for SAP technical support services (5‑year term, not‑to‑exceed $23 M).
  • Informational Items Received:
    • Budget Personnel Expenditure Savings Presentation – staff will continue recruitment/retention efforts; further analysis of external contracts anticipated.
    • FY21 Business Diversity Annual Report – staff directed to bring disparity study implementation plan to committee in May 2022 and to consider scheduling the report for full council discussion.
  • Next Meeting: The committee adjourned to its next regularly scheduled meeting on May 25, 2022 at 9:00 a.m., with budget review committee meetings to follow.

Meeting Transcript

Good morning. Until further notice, committee meetings will be conducted pursuant to the provisions of California Government Code Section 54953E, added by Assembly Bill 361, which allows the city to use teleconferencing and to provide the public an opportunity to address the city council via a call-in option or an internet-based service option during a proclaimed state of emergency. While the public is allowed to attend the meetings in person, we encourage you to maintain it six to maintain six feet of social distance as well as follow California mass guidelines where masks are strongly recommended. In addition to being able to attend in person, this meeting is being televised and live streamed on the city's website. And the committee liaison has will continue to make arrangements for the public to comment using the Zoom webinar platform. Additionally, members of the public who wish to provide testimony via a call-in or internet internet-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the council is able to manage and conduct city business. We appreciate the public's cooperation. I will now call the budget and govern government efficiency committee meeting of April 13th, 2022 to order, and I'll call the roll. Vice Chair Elo Rivera. Committee member Montgomery Step. Oh. Beautiful timing. And committee member Vivian Moreno. Present. Also attending the meeting is Charles Monica, our IBA, Matthew Vespe, our Chief Financial Officer, Jessica Lawrence from the Mayor's Office, and Brett Barlata from the City Attorney's Office. If you are in person, please complete a speaker slip located at the entrance of chambers and place it in the box indicated at the speaker's lectern at the front of the room. Please do so in a timely manner to ensure proper meeting management. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link, which is listed online in the preamble language of the agenda on the city's webpage. The link to join the committee meeting webinar by computer, tablet, or smartphone is listed on the agenda. To join the Zoom webinar by telephone, please 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 agenda item. Members of the public who wish to provide testimony via a call-in or internet-based service option must enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before the virtual speaking queue is exhausted, whichever occurs first. Please note that if you are watching via City TV 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. 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 computer before you begin to speak. A quorum is now present. We will now take up the approval of the committee actions of March 3rd, 2022. Anthony, please proceed with public comments. Members of the public who wish to provide testimony via a call-in or internet-based service option. Unless we enter the virtual speaking queue within five minutes after the conclusion of in-person public testimony or before virtual speaking queue is exhausted, whichever comes first. If you have already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak. If you are what if you are watching on City TV or the live stream online and would like to call in and to the meeting to speak, please call 1669 254 5252 when prompted. Input Webinar ID 161 771 9874 Pound. As a reminder, virtual speakers, please raise your hand to speak. You can also you can do so by selecting the raise your hand button or input star nine if by phone. I will announce when it's time when is your turn to speak. Unmute yourself by either selecting the unmute button or by inputting star six. We currently have zero speakers who have submitted speaker slips and chambers. And one uh one speaker in the virtual queue. I'll allow this. I'll allow the virtual speaker to speak. Uh John Leake, go ahead with your comments. Good. You can hear me and see me. Yes, sir.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com