OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Budget and Government Efficiency Committee Meeting - February 7, 2024

Budget & Government Efficiency Committee — Wednesday, February 7, 2024
BodySan Diego, California
SessionBudget & Government Efficiency Committee
DateWednesday, February 7, 2024
StatusFILED
Video Record
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Transcript — Verbatim
0:19

I'm just testing my uh my audio.

0:21

Can you hear me?

0:22

Yes, thank you very much, Council President.

0:23

I was just about to ask you.

0:25

Thank you.

0:26

Thank you.

2:27

Good morning, and uh welcome to the budget and government efficiency committee meeting of February 7th, 2024.

2:33

Our committee manager Ty Birch will go over instructions for today's meeting.

2:37

Thank you very much, Chair Lee.

2:39

While members of the public are able to attend this meeting in person, this meeting is being televised and live streamed on the city's website, and council administration will continue to make arrangements for the public to comment using the Zoom webinar platform.

2:49

Members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hands before the virtual queue closes.

2:55

The queue will close when the last virtual speaker finishes speaking or five minutes after the in-person testimony concludes, whichever occurs first.

3:02

This will allow for bury me management between the two platforms and ensure the committee is able to manage and conduct safe business.

3:08

We appreciate the public's cooperation.

3:09

Chair.

3:17

Vice Chair Moreno.

3:18

Council President Elo Rivera.

3:21

Present.

3:22

Council President Pro Tem Lakava.

3:23

Present.

3:24

And our Chair, Council Member Lee.

3:26

Here.

3:26

And Council President Elo Rivera, would you like to make your declaration at this time?

3:30

Yes, thank you, Ty.

3:31

I'm notifying the budget and government efficiency committee that I will be attending the meeting today remotely through just cause related to child care needs.

3:49

And I will update this this disclosure if that changes during the course of the meeting.

3:54

Thank you.

3:55

Thank you very much, Council President.

3:56

And with that, Chair Lee.

3:58

Thank you.

3:58

Um also attending today's meeting is Charles Charles Monica and Lisa Byrne from the Independent Budget Analysts' Office, Brett Bartalato from the City Attorney's Office, Matt Vespie, Chief Financial Officer, and Matt Yugin, Deputy Director of Paul Director of Policy for Mayor Tuck Gloria.

4:11

Tyler, please proceed with uh public comment instructions.

4:14

Thank you very much, Chair.

4:15

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 lecturer and at the front of the room.

4:22

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

4:25

In-person testimony will conclude before virtual testimony begins.

4:28

Members of the public can also join the Zoom 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.

4:36

If you need to participate by phone, you may dial 1669-254-5252 and input.

4:52

Thank you, Tyler, for reviewing those instructions for the benefit of the public.

4:55

A quorum is now present.

4:56

We will now dispense with the approval of the committee minutes of January 10th, 2024.

5:01

Uh, Tyler, please proceed.

5:03

Thank you very much, Chair.

5:04

The public comment period for the committee minutes of January 10th, 2024 is now open.

5:09

If you've already joined the Zoom webinar online and would like to speak on the committee minutes, you may raise your hand at this time.

5:15

Chair, we do not have any individuals that have some mid-speaker slips for the committee minutes in chambers, but we do have one individual in the virtual queue that has indicated they wish to speak.

5:23

So I will begin the five-minute timer and we will begin with the original.

5:28

You will have one minute.

5:31

Morning.

5:32

Um, yeah.

5:32

So for these meeting minutes, you were analyzing the budget process in strong mayor cities.

5:38

And you know, that is something that winds up taking the transparency out of you know, people being able or just their ability, it hinders the ability for the people to come in and really determine what is going on with the budget because the mayor was just putting in all of this um millions of dollars for the surveillance um before it was even okay, and things like that um don't show that he's willing to work with the people and make sure that he's being transparent instead of just arbitrarily putting things in there, assuming that it's going to be passed and that it's going to be used.

6:13

So I mean, if there isn't an ulterior motive or agenda going on, you would want to go through the process to have the people okay it and even the council before just adding it to a budget.

6:24

So that's why it actually can um, you know, harm the process of um the the job of the committee, whatever.

6:34

Thank you very much for those comments.

6:36

And with that, Chair, that will conclude public testimony on the past minutes.

6:41

Thank you.

6:41

We'll now vote on the approval of the committee minutes of January 10th, 2024.

6:44

I'll cut and make a motion um for the approval of those committee minutes.

6:48

Um, do we have a second?

Discussion Breakdown — Share of Meeting
Budget█████████████████████21%
Public Comment███████████████15%
Stormwater Management██████████████14%
Living Wage█████████9%
Public Safety███████7%
Procedural█████5%
Prevailing Wage█████5%
Technology and Innovation████4%
Arts And Culture████4%
Summary of Proceedings

Budget and Government Efficiency Committee Meeting - February 7, 2024

The Budget and Government Efficiency Committee met on February 7, 2024, at 5:00 PM UTC to discuss the fiscal year 2025 updated budget priorities, the fiscal year 2024 mid-year budget monitoring report, and several technology contracts. The committee also received informational reports on the living wage and prevailing wage programs. The meeting featured extensive public testimony on the recent January 22 floods, stormwater infrastructure, arts funding, and homelessness. Key decisions included amendments to the budget priorities resolution and approval of the mid-year appropriation for storm recovery.

Consent Calendar

  • Item 1: Authorization to execute a contract with Zensar Technologies for Cisco network technology was approved unanimously (3-0, with Vice Chair Moreno absent).

Public Comments & Testimony

  • On Meeting Minutes (January 10, 2024): A speaker criticized the budget process in strong mayor cities, arguing that the mayor’s inclusion of surveillance funding without public or council approval hinders transparency.
  • Non-Agenda Public Comment:
    • Sally (D4 resident, Emerald Hills) urged prioritizing storm drain fixes for underserved communities (e.g., Chollas Creek) over bike lanes, stating the city must “put equity to work” for flood-prone areas.
    • A speaker alleged that cloud seeding experiments (Santa Ana Watershed Project Authority) caused the recent storms, calling for action against geoengineering.
    • Joyce (District 3) questioned how to prune 163 pages of priorities and lower expectations, referencing the “wake-up call” from the January floods.
    • Judy Strang expressed concern about a $250,000 settlement with a former city auditor who corrected supervisors, and asked about compliance audits for cannabis licenses.
  • On Consent Agenda (Item 1): A speaker warned that AI integration in Cisco/Zensar systems increases cyberattack risks and called it a “dangerous path.”
  • On Item 2 (Cellular Equipment): One speaker opposed 5G/ Wi-Fi expansion due to health concerns (radiation), while Joyce (District 3) supported the amendment and praised the digital equity hotspot program.
  • On Item 3 (Budget Priorities):
    • Shane Harris (People’s Association of Justice Advocates) requested stormwater be a top priority, citing a $1.6 billion funding gap and $275 million annual need. He advocated for EPA grants and lease revenue bonds instead of a new tax.
    • Rachel Clark (flood victim, 4150 National Avenue) described her experience: chest-high water, no time to escape, and a lack of hotel vouchers. She begged council not to neglect the vulnerable.
    • Christine Martinez, Kim Phillips P, Leslie Cohen, and Imani Robinson (Arts and Culture San Diego) urged allocating 6.5% of TOT to arts, citing 36,000 jobs and economic impact. They asked for continued support despite storm needs.
    • Sandy Miskowski (Lived Experience Advisors) requested maintaining and expanding homelessness services, including capital for the Neil Good Day Center, and noted arts as lifesaving.
    • Sally (again) called for returning to “basics” (housing, safety) and criticized prioritizing “sexy streets over sexy stormwater.”
    • Lori Saldania requested resources for processing sexual assault kits, sharing a friend’s recent drugging and assault; she argued the city has a poor record despite advocates’ claims.
    • Several speakers echoed support for flood recovery, arts funding, and equitable enforcement of wage laws.
  • On Item 4 (Mid-Year Budget):
    • Lori Saldania criticized police overtime spending on homelessness enforcement, arguing it traumatizes people and diverts resources from housing.
    • Dan Smyowski argued $10 million for flood recovery is too little; he blamed “incompetence” and suggested transitioning employees to Social Security.
    • Joyce (again) thanked staff for the report and supported the $10 million appropriation.
    • One speaker accused the city of mismanagement leading to flood damage, stating police overtime results from policy mistakes.
  • On Item 5 (Living Wage):
    • Lori Saldania urged focusing on underpaid workers from disadvantaged communities, especially women and Black/Latina workers; she asked for contractor workforce reports from the convention center.
    • Francine Maxwell (Southeastern San Diego) asked when webinars are offered, noting many workers hold multiple jobs.
    • A speaker questioned exempting nonprofits and small businesses from living wage, arguing this perpetuates poverty.
  • On Item 6 (Prevailing Wage):
    • Lori Saldania reiterated concerns about exemptions for small businesses and nonprofits, and criticized the police department’s backlog of sexual assault kits despite Council President Pro Tem Lacava’s defense.
    • A speaker noted that only 180 out of 890 contractors attended training, leading to widespread underpayments, and asked how recovered wages reach workers.

Discussion Items

  • Item 2: Amendment to Cellular Equipment Agreement with AT&T, Verizon, T-Mobile
    • Presenters: Jonathan Banke (Chief Information Officer) and Denise Wasika (Deputy Director, Department of IT).
    • The amendment increases the not-to-exceed amount from $20.4 million to $68 million and extends the term to August 2029. The contract supports emergency services, field operations, and the digital equity hotspot program. The increase includes 5% annual growth and additional capacity for hotspots (now 4,000, with >90% adoption). City departments can choose among three providers.
    • Council President Pro Tem Lacava questioned the 50% cost increase; staff explained it reflects inflation, growth in digital services, and hotspot expansion. The contract is “as needed” and subject to annual budget approval.
    • Unanimously approved with motion by Vice Chair Moreno and second by Council President Pro Tem Lacava.
  • Item 3: FY2025 Updated City Council Budget Priorities
    • Presented by Lisa Byrne and Sergio (IBA). The report (IBA Report 2402) summarizes majority-supported priorities from council members’ memos (submitted before the Jan 22 floods). New majority items: Heat Action Plan, expansion of neighborhood shuttle services, LGBTQ+ community fund pilot, and fire stations.
    • A new process: the council must recommend use of one cent of the 10.5-cent TOT. The Economic Development & Intergovernmental Relations (EDNIR) Committee recommended allocating 6.5% of TOT (est. $21.5M) to arts/culture/community festivals, with remainder ($10M) to balance the general fund.
    • Vice Chair Moreno moved to adopt staff recommendation with additions: (A) funding for an enhanced stormwater maintenance program in underserved neighborhoods, including a Chollas Creek stormwater CIP; (B) the EDNIR recommendation for arts funding (6.5% TOT).
    • Council President Elo Rivera requested an additional amendment to prioritize flood disaster response and recovery, including staff time and fee waivers. This was incorporated.
    • Council President Pro Tem Lacava seconded, noting the city faces a $130M shortfall and tough choices; he emphasized that stormwater disinvestment is decades old and equity must guide decisions.
    • Chair Lee commended the inclusion of arts funding but acknowledged the budget squeeze.
    • Unanimously approved.
  • Item 4: FY2024 Mid-Year Budget Monitoring Report
    • Presented by Ben Bitalia, Rolando Charvel, Chris Purcell (Department of Finance). General fund revenues projected $28.3M under budget (sales tax -$27.6M, TOT -$6.5M, partially offset by property tax +$9.6M). Expenditures projected $18.1M over budget due to overtime ($19.1M increase, led by Police $7.8M, Fire $3.2M, Transportation $3M, Environmental Services $2.1M, Parks & Rec $1.8M). Non-personnel savings reduce net deficit to $41.5M change from budget. Available fund balance after reserve contribution projected at $14.9M, but a requested $10M appropriation for storm recovery would reduce it to $4.9M.
    • The report does not include storm impacts yet; costs are being tracked for FEMA reimbursement. Mitigation actions: suspension of non-essential spending, fund blocks, potential use of excess equity.
    • Police Department (Chief Nisleit) presented on overtime: $7.8M over budget due to staffing challenges; Neighborhood Policing Division overtime up 36% ($1.1M) for Get It Done requests (wait times down from 27 to 9-10 days) and Clean SD. The Homeless Outreach Team made 7,000 contacts, 2,600 assisted to shelter.
    • IBA (Charles Monica) noted the mid-year projections reduce anticipated excess equity from $56M to ~$5M, making FY2025 very difficult; he stressed the need for structurally balanced budgets.
    • Vice Chair Moreno moved to approve staff recommendation with a request for updated projections on the Housing Commission’s $2.25M flood housing fund and a breakdown of the $10M appropriation, prior to council consideration. Council President Pro Tem Lacava seconded, clarifying the $10M is not a cap.
    • Council President Elo Rivera asked about accounting for mitigation costs; Finance and Stormwater directors explained that mitigation will be multi-year and tracked for potential FEMA reimbursement.
    • Chair Lee requested continued analysis of storm recovery financing options.
    • Unanimously approved.
  • Item 5: FY2023 Living Wage Ordinance Annual Report (Informational)
    • Presented by Christiana Gagger, Erin Leah Ender Lunis, Leslie Cerritos. The living wage rate is $19.98/hr ($16.85 base + $3.13 health), effective Jan 1, 2024. In FY2023, staff reviewed 136 exemption applications, approved 129. Investigated 5 worker complaints: 2 violations resulted in $1,680 restitution; also assisted minimum wage recovery of $8,900 at Pachanga Arena. Outreach: 17 events.
    • Council President Pro Tem Lacava noted the living wage is not truly a living wage in San Diego and called for revisiting the methodology. Chair Lee agreed, noting the base rate matches minimum wage.
    • No action required (informational).
  • Item 6: FY2023 Prevailing Wage Annual Report (Informational)
    • Presented by Angel Bustos. In FY2023, the city awarded 890 prevailing wage contracts (including 99 construction/repair, 40 architectural, 751 goods/services). The unit monitored 1,996 active projects. Conducted 166 site visits, interviewed 208 workers, completed 395 audits, identified $330,000+ in underpayments, recovered $54,000 through voluntary compliance, and reported $78,000 in underpayments to DIR. Issued 273 delinquency notices (225% increase over FY2022). Apprenticeship violations reported for 26 contractors. Staffing now full with 3 new compliance officers.
    • Public comments urged better enforcement for disadvantaged workers and questioned training attendance rates.
    • No action required (informational).

Key Outcomes

  • Consent Calendar (Item 1): Unanimously approved (3-0).
  • Item 2 (Cellular Equipment): Unanimously approved.
  • Item 3 (Budget Priorities): Motion by Vice Chair Moreno, seconded by Council President Pro Tem Lacava, amended to include stormwater maintenance funding (including Chollas Creek CIP), flood disaster response/recovery priority, and the EDNIR recommendation for 6.5% TOT to arts. Unanimously approved.
  • Item 4 (Mid-Year Budget): Motion by Vice Chair Moreno, seconded by Council President Pro Tem Lacava, approving staff recommendation (including $10M storm recovery appropriation) with a request for updated housing fund and $10M allocation breakdowns prior to full council. Unanimously approved.
  • Items 5 and 6: Informational; no votes taken. Council members expressed intent to revisit living wage methodology and prevailing wage enforcement.

Meeting Transcript

I'm just testing my uh my audio. Can you hear me? Yes, thank you very much, Council President. I was just about to ask you. Thank you. Thank you. Good morning, and uh welcome to the budget and government efficiency committee meeting of February 7th, 2024. Our committee manager Ty Birch will go over instructions for today's meeting. Thank you very much, Chair Lee. While members of the public are able to attend this meeting in person, this meeting is being televised and live streamed on the city's website, and council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hands before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after the in-person testimony concludes, whichever occurs first. This will allow for bury me management between the two platforms and ensure the committee is able to manage and conduct safe business. We appreciate the public's cooperation. Chair. Vice Chair Moreno. Council President Elo Rivera. Present. Council President Pro Tem Lakava. Present. And our Chair, Council Member Lee. Here. And Council President Elo Rivera, would you like to make your declaration at this time? Yes, thank you, Ty. I'm notifying the budget and government efficiency committee that I will be attending the meeting today remotely through just cause related to child care needs. And I will update this this disclosure if that changes during the course of the meeting. Thank you. Thank you very much, Council President. And with that, Chair Lee. Thank you. Um also attending today's meeting is Charles Charles Monica and Lisa Byrne from the Independent Budget Analysts' Office, Brett Bartalato from the City Attorney's Office, Matt Vespie, Chief Financial Officer, and Matt Yugin, Deputy Director of Paul Director of Policy for Mayor Tuck Gloria. Tyler, please proceed with uh public comment instructions. Thank you very much, Chair. 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 lecturer and at the front of the room. Please do so in a timely manner to ensure proper main management. In-person testimony will conclude before virtual testimony begins. Members of the public can also join the Zoom 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 phone, you may dial 1669-254-5252 and input. Thank you, Tyler, for reviewing those instructions for the benefit of the public. A quorum is now present. We will now dispense with the approval of the committee minutes of January 10th, 2024. Uh, Tyler, please proceed. Thank you very much, Chair. The public comment period for the committee minutes of January 10th, 2024 is now open. If you've already joined the Zoom webinar online and would like to speak on the committee minutes, you may raise your hand at this time. Chair, we do not have any individuals that have some mid-speaker slips for the committee minutes in chambers, but we do have one individual in the virtual queue that has indicated they wish to speak. So I will begin the five-minute timer and we will begin with the original. You will have one minute. Morning. Um, yeah.

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