San Diego Budget and Government Efficiency Committee Meeting - June 22, 2022
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San Diego Budget and Government Efficiency Committee Meeting - June 22, 2022
The Budget and Government Efficiency Committee of the San Diego City Council met on June 22, 2022, at 5:00 PM UTC. The meeting was conducted virtually under California Government Code Section 54953E due to the state of emergency. The committee approved the consent calendar, two fleet vehicle contracts, a water rate adjustment notice, and the fiscal year 2023 appropriations ordinance. All items passed unanimously.
Consent Calendar
- Item 1 (Authorization of Public Facilities Financing Authority 2022 Water Revenue Bonds): Approved unanimously without discussion. The public comment period had no speakers.
Public Comments & Testimony
- Non-Agenda Public Comment: No speakers.
- Item 2 & 3 (Fleet Vehicle Contracts): One virtual speaker, Michael Dewyer (District 6), expressed concern that the average cost per light vehicle appeared excessive at $80,000, based on his calculation of $92 million for 1,100 vehicles. Staff clarified that the figure includes upfitting, inflation, and a $16 million contingency for new vehicle additions, and that the cooperative contract provides the best percentage off MSRP.
- Item 4 (Water Rate Adjustments): Two virtual speakers. Michael Schmidt (District 5) asked when water rates would be upgraded. Michael Dewyer (District 6) raised confusion about the timing of the 30-day notice and the availability of a user-friendly bill calculator after the September council vote.
- Item 5 (FY2023 Appropriations Ordinance): One virtual speaker, Laurie Soldania, questioned the source of funding for the proposed $132 million purchase of 101 Ash Street, noting the city attorney’s opposition and asking for public disclosure of funding analysis.
Discussion Items
- Items 2 & 3 – Fleet Vehicle Contracts: Donnie Wayne, Program Manager with Fleet Operations, presented two cooperative procurement contracts with 72 Hour LLC (National Auto Fleet Group). Item 2 (light duty vehicles: automobiles, SUVs, vans, light trucks) is for up to $92 million, expiring November 8, 2025, with a one-year option. Item 3 (medium and heavy duty vehicles: class 4–8 chassis) is for up to $47 million, expiring August 1, 2024, with a one-year option. The contracts cover approximately 75% of the city’s fleet. Director Casey Smith explained that the contracts authorize only the purchase authority; funding comes from department budgets, assignment fees, and debt financing, with debt financing packages requiring separate council approval. The committee discussed the high dollar amounts, vehicle replacement schedules, and supply chain delays (12–16 months). Councilmember Moreno requested follow-up on a prior contract. Council President Rivera noted the importance of explaining costs to the public. Both items passed unanimously after separate votes.
- Item 4 – Water Rate Adjustments & Proposition 218 Notice: Lisa Salaya (Executive Assistant Director, Public Utilities) and Adam Jones (Finance Deputy Director) presented the request to authorize a public hearing in September 2022 and provide written notice to customers of an up-to-3% pass-through increase in water rates, reflecting the San Diego County Water Authority’s wholesale cost increase. The pass-through applies only to purchased water costs, not other city operations. The increase is driven by higher energy costs from SDG&E (12–20% increase) and imported water costs. The Water Authority was scheduled to vote on the increase on June 23. The city has received $29.3 million in state arrears payment program funds and $1.75 million from the Housing Suitability Assistance Program to assist customers. A new State Low Income Household Water Assistance Program (LIHWAP) offers up to $2,000 per household. The city’s H2O program provides up to $100 credit over 12 months. The committee discussed outreach strategies, including coordination with council offices, social media, and community-based organizations. Councilmember Moreno emphasized targeted advertising, especially in Spanish, and requested email distribution of LIHWAP information to all council members. Council President Pro Tem Montgomery Steppe called for more systematic outreach. Chair Kate noted ongoing conversations at the Water Authority about rate impacts and future rate changes due to Pure Water and other projects. The motion to authorize the notice and public hearing passed unanimously.
- Item 5 – FY2023 Appropriations Ordinance: Ben Bitalia (Assistant Director, Department of Finance) presented the final step in the budget process, which appropriates the $5 billion budget based on the salary ordinance and budget resolution approved June 13 and signed June 17. Two new delegated authorities were proposed: (1) allowing the CFO to appropriate fund balance in water and sewer funds to pay down short-term debt (commercial paper) when financially beneficial, and (2) allowing internal service funds to appropriate available fund balance certified by the CFO to continue uninterrupted services. Technical adjustments include updating project lists for San Diego Regional Parks Improvement Fund and Mission Bay Park Improvement Fund, adding technology projects (T-projects) to CIP project types, and minor language updates. The IBA recommended that use of these authorities be reported in budget monitoring reports. Council President Pro Tem Montgomery Steppe questioned the treatment of T-projects and the DIF framework; staff confirmed that new DIF funds would be incorporated in the FY2024 AO. The motion passed unanimously.
Key Outcomes
- Approval of Committee Actions of May 25, 2022: Unanimous.
- Consent Agenda (Item 1): Unanimous approval.
- Item 2 (Light Duty Vehicle Contract): Unanimous approval.
- Item 3 (Medium/Heavy Duty Vehicle Contract): Unanimous approval.
- Item 4 (Water Rate Adjustment Notice): Unanimous approval to authorize the Proposition 218 notice and set a public hearing in September 2022.
- Item 5 (FY2023 Appropriations Ordinance): Unanimous approval, with recommendation from IBA to report delegated authority usage in budget monitoring reports.
- The meeting adjourned to a special meeting on Wednesday, July 13, 2022, at 9:00 AM.
Meeting Transcript
Good morning. Until further notice, the budget and government efficiency committee meetings will be conducted pursuant to the provisions of Calve 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 committee via a call-in option or an internet best 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 six feet of social distance as well as California mask guidelines for 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 clerk and council committee liaison will continue to make arrangements for the public to comment using the Zoom webinar platform. Additionally, members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever happens 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. Our committee consultant Anthony George will go over the specifics of how the public can participate and give their public testimony. Mr. George, please call the roll. Vice Chair Eli Rivera. Present. Councilmember Montgomery Step. Here. Councilmember Vivian Moreno. And I am also here. Also in the meeting is Charles Monica, our IBA, Matthew Besby, our chief financial officer, Halbert Gomez from the mayor's office, and Brett Bartlotta from the City Attorney's Office. Anthony, please proceed. If you are in person, please complete a complete a speaker slip located in the entrance of chambers and place it on top of 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. In person testimony will conclude before virtual testimony begins. Members of the public can also 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. If you need to participate by telephone, you may dial 1669-254-5252. Webinar ID 161-486-3189 pound. This information will also per will also be available on the agenda and will appear on the screen during public comment period for each agenda item. As noted by committee chair, members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the queue closes. The queue will close when the virtual when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever happens first. Thank you, Mr. George, for reviewing those instructions for the public. A quorum is now present. We'll now dispense with the approval of the committee actions of May 25th, 2022. The public comment period for this item is now open. If you've 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, like to call into the meeting to speak, please call 1669-254-5252. When prompted, input webinar ID 161-771-9874 pound. To raise your hand to speak, select the raise your hand button or press star nine. And when it's not your turn to speak, you can either um unmute yourself by either selecting the unmute button or by inputting stars 6. Mr. George, do you have any speakers in the queue for the minutes? Currently there is no speakers in uh in chambers or in the virtual queue. Perfect. That concludes public testimony on the committee action. Thank you very much. And I would entertain a motion for the minutes. So moved here. Moved by Council President Elo Rivera, seconded by Council Member Moreno, and we'll go through on voice vote starting with Council President Pro Tem Montgomery Step. Yes. Council President Elo Rivera. Yes.
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