Budget Committee Meeting on Dec 7, 2022: Contracts, Loans, and Water Rates
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San Diego Budget and Government Efficiency Committee Meeting – December 7, 2022
The committee met to consider several financial items including ratification of an emergency food service contract, an amendment to a citywide security agreement, a state revolving fund loan for a water valve station, and an informational presentation on proposed water rate increases. The meeting also included non-agenda public comment and farewell remarks for the outgoing chair.
Consent Calendar
- Item 1: Fourth amendment to cooperative agreement with Herc Rentals Inc. for rental of large equipment. Approved unanimously (3-0, with Councilmember Montgomery Steppe absent).
Public Comments & Testimony
- John Stump (City Heights) urged the elimination of tiered rates that privilege homeowners over renters, calling for one affordable housing rate for all. He also requested the committee consider climate change, equity, and transparency in its decisions.
- Joy Sanyata (District 3) spoke in support of security at Central Library, noting officers are professional and necessary, but expressed sadness that the library feels overly secured.
- Lori Saldania raised concerns about private security guards lacking state-level training and accountability, citing past settlements for excessive force and deaths.
- Lori Saldania (again on water items) questioned the city's borrowing practices and urged analysis of total debt sustainability. She also argued that proposed water rate increases disproportionately impact low-income residents and that the city should ensure compliance with state and federal regulations.
- John Stump (on water) questioned the need for multiple residential water tiers and suggested the city should have saved for infrastructure rather than borrowing.
- Daryl agreed with others that the four-tier water structure should be reworked.
- IBA (Charles Modica) thanked Chair Kay for his service and noted the IBA would continue to review the water cost of service study with Stantec.
Discussion Items
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Item 2: Ratification of emergency sole source contract with Service America Corporation (dba Centerplate) for food services at Operation Shelter to Home. Director Claudia Barca presented, apologizing for the delayed ratification (should have been brought in late 2021) due to staffing changes. The emergency contract was initiated in April 2020 during COVID-19 to provide individually boxed meals at the Convention Center shelter. The committee expressed concern about the delay and urged better contract tracking. Councilmember Moreno suggested a contract management system. The item passed unanimously.
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Item 3: Second amendment to citywide security services agreement with Invictus Security CA Corporation (dba Allstate Security). The amendment increases the contract amount from $24.9 million to $28.9 million. Drivers included increased use for homeless initiatives, adding armed guards trained to administer naloxone at Central Library (17 lives saved since Nov 2021), and a living wage increase exceeding the typical 5% cap. Library staff noted additional guards needed due to suicide attempts. Council President Elo Rivera highlighted the need for mental health crisis response alongside security. Concerns were raised about workforce diversity underrepresentation (Asian and female in admin; African American, Asian, Native American in security guard roles). The item passed unanimously, with an expectation that a diversity plan be presented at full council.
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Item 4: Authorizing a Drinking Water State Revolving Fund loan up to $55 million for the Lakeside Valve Station Replacement Project. Alison Falkenstein (Finance) presented. The loan is at an estimated 2% interest (saving $20 million over 30 years compared to bonds). The valve station is old and deteriorating. The item passed unanimously.
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Item 5 (Informational): Water Cost of Service Study. Public Utilities staff (Lisa Slaya, Adam Jones) presented a proposed rate adjustment study. Key points:
- Last rate increase was in 2020; rates were kept flat using one-time revenues ($78 million from local water savings, Qualcomm sale, MWD settlement).
- Proposed increases: monthly service charge and commodity rates; a typical customer using 9 HCF would go from $81 to $95 in year 1, up to $103 in year 2.
- Tier structure changing from four tiers to three tiers, with first tier up to 5 HCF based on state indoor use recommendations.
- The study is the first step; a public hearing is expected in June 2023, with effective date November 1, 2023.
- IBA will release a review with Stantec in February 2023.
- Councilmembers expressed concerns about affordability and urged robust community outreach. The committee took no action; the item was for discussion.
Key Outcomes
- Approved Consent Calendar (Item 1) unanimously (3-0).
- Approved ratification of emergency food service contract (Item 2) unanimously.
- Approved security services contract amendment (Item 3) unanimously, with expectation of a diversity plan at full council.
- Approved state revolving fund loan for Lakeside Valve Station (Item 4) unanimously.
- No action on the informational water cost of service study; further review and outreach planned.
- The meeting adjourned at approximately 11:00 AM, with the next regular meeting scheduled for January 11, 2023.
Meeting Transcript
Good morning. The last hurrah. Until further notice, the budget and government efficiency 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 committee via 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 six feet of social distance as well as California Mass 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 council committee is able to manage and conduct city business. We appreciate the public's cooperation. Our committee's manager, Tyler Birch will go over the specifics of how to how the public can participate and give their public testimony. Tyler, please call the roll. Thank you, Chair Kate. Vice Chair Elo Rivera. Present. Councilmember Montgomery Step and Councilmember Vivian Moreno. Here. Tyler, please proceed. Thank you, Chair Kay. If you are in person, please complete a speaker slip located at the entrance of chambers and place it on top of the box indicated at the speaker's lecture and 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 a computer tablet or smartphone by accessing the link, which is online in the preamble language of the agenda on the CA's webpage if you need to participate by phone. As noted by the 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 last virtual speaker finishes speaking, or five minutes after in-person testimony ends, whichever occurs first. Please note that if you are watching by C T V 24 or online, there may be a delay, so please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on a particular item, wait for that item to be called and then raise your hand to speak by tapping the raise your hand button icon, or if you're a column participant, star nine on your phone or landline. If you raise your hand during a non-agenda, uh during a non-comment period, your hand will be lowered. Chair Kate. Thank you, Tyler, for reviewing those instructions. The quorum is now present. We'll now dispense with the approval of the committee actions of November November 18th, 2022. Mr. Birch. Thank you. The public comment period for the committee actions is now open. If you've already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak on the committee actions of November 18th, 2022. If you're watching on CETV or the live stream online and would like to call into the mean to speak, please call 1669-254-5252 and 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. I will announce what it's your turn to speak. You may unmute yourself by either selecting the unmute button or inputting star six. Uh Chair, we do not have any speakers in chambers that have submitted speaker slips on this item, nor do we have anybody in the virtual queue. So that will conclude public testimony on the action committee actions. Thank you very much. Entertain a motion. Motion by Council President, second by Councilmember Moreno. We'll go through voice vote starting with Council President Eli Rivera. Councilmember Moreno? Yes. And I am also yes. That motion passes three to zero with Council President Pro Tim Montgomery step absent.
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