Budget and Government Efficiency Committee Meeting - July 16, 2025
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Budget and Government Efficiency Committee Meeting - July 16, 2025
The Budget and Government Efficiency Committee convened on July 16, 2025, with Chair Foster presiding. The committee addressed a consent agenda and four discussion items. The meeting opened with non-agenda public comment primarily focusing on the fiscal and public health implications of the city's marijuana policies. All votes taken during the meeting were unanimous (4-0).
Non-Agenda Public Comment
- Becky Rapp expressed concern about expanding the marijuana industry without a current financial analysis. She cited a city auditor report indicating fewer than 50% of marijuana businesses were paying taxes and that 10 of 36 permitted shops were not operating, calling the system underperforming. She urged revisiting the auditor's recommendations.
- Megan Stewart urged caution on marijuana policy, citing CDC data on youth frequent use and a 62% increase in marijuana-related traffic deaths in California following legalization. She asked the committee to prioritize long-term safety and health.
- Blair Beekman expressed disappointment that the council did not continue a prior item for further debate on environmental issues, specifically hillside development and CEQA review.
- Judy Strang, speaking as a PTA legislative chair, expressed concern that marijuana storefronts contribute to poor physical and mental health and place a cost burden on the city's first responder systems.
- Madison urged the committee to prioritize caution given federal policy uncertainty on cannabis rescheduling, noting rising emergency room visits and youth access to high-potency products.
Consent Calendar (Items 1-5)
The consent agenda included approval of committee minutes from June 18, 2025 (Item 1), an eighth amendment to the HERC Rentals contract for equipment (Item 2), a first amendment to the Invictus Security contract for citywide security (Item 3), ratification of the Poway Weapons and Gear contract for police range access (Item 4), and authorization for MRO maintenance contracts (Item 5).
- Public Comment: Blair Beekman praised the council's legal language regarding the ALPR contract review process. A virtual speaker questioned EEO plan compliance for the Invictus and MRO contracts and asked whether the large contract increases were covered in the adopted FY26 budget.
- Committee Discussion: Vice Chair Moreno requested updates on fleet scheduling to reduce reliance on HERC rentals. The Director of General Services stated a target for implementing scheduling functionality is the end of the calendar year 2025. Moreno expressed hesitancy over the rental contract but supported the amendment. She also questioned the status of other unapproved contracts identified in the city auditor's report. Councilmember Ilo Rivera questioned the necessity and two-year duration of the HERC contract. Deputy COO Alia Corey explained the term is needed to complete a planned cost-benefit analysis. Chair Foster noted a correction to Item 5: the White Cap contract amendment value was decreased to $10.3 million, correcting the cumulative MRO contract total to $41 million.
- Key Outcome: The consent agenda was approved unanimously (4-0).
Discussion Item 6: Motorola Radio System Infrastructure Contract
- Discussion: CIO Jonathan Banke and staff presented a request for the First Amendment to the Motorola cooperative agreement for public safety radio infrastructure. The amendment seeks to increase the not-to-exceed amount from $25 million to $50 million and extend the contract term to August 2038. Staff noted the system supports 140,000 911 calls per month with less than six minutes of allowed downtime annually.
- Public Comment: The in-person speaker supported incremental funding increases and urged mindful budgeting. A virtual speaker strongly supported the contract and praised the IT team.
- Key Outcome: The committee voted unanimously (4-0) to approve the ordinance, forwarding it to the full council.
Discussion Item 7: Fiscal Year 2026 Statement of Budgetary Principles
- Discussion: IBA staff (Lisa Byrne, Charles Modica) presented the proposed principles, which clarify budget administration roles between the mayor and council. A substantive new principle, Section C7, proposed requiring council members to present and discuss any proposed budget amendments at the final Budget Review Committee (BRC) meeting prior to council's final budget adoption.
- Public Comment: Speakers criticized the strong mayor system and requested precise language regarding elimination of the structural budget deficit. One speaker commended the council for creating a balance of power.
- Committee Action: Vice Chair Moreno expressed concern that the language in C7 could prevent amendments from being made at the final council vote. After receiving confirmation from the IBA and City Attorney that it would not prevent amendments, she moved to replace the word "will" with "are encouraged to". Council President Pro Tem Lee offered a friendly amendment to further revise the language to "encouraged to discuss any proposed amendments with the office of the IBA prior to the council's final budget adoption meeting." Councilmember Ilo Rivera supported the change, emphasizing the council needs full authority on budget adoption day. Chair Foster stressed the need for balanced accountability between the council and mayor, noting the mayor had more time with the budget and provided no upfront information on his veto.
- Key Outcome: The committee voted unanimously (4-0) to forward the principles to the full council with the agreed-upon amendments.
Discussion Item 8: Biennial Update of the City's Debt Policy
- Discussion: Department of Finance staff presented the biennial debt policy update. Key proposed changes included limiting required council review to years with material changes, expanding EIFD formation guidelines, and instituting a five-year horizon for debt ratio analysis with allowances for temporary spikes.
- Public Comment: A speaker noted the difficulty of viewing $3.8 billion in outstanding debt as a positive and referenced Moody's credit rating actions. Another speaker urged the city to conduct risk analyses.
- Committee Action: Vice Chair Moreno expressed a preference to retain a mandatory council review every two years, even if only informational. She also sought and received confirmation that a proposed five-year project completion rule would not strictly prohibit long-term projects as exceptions would be called out. She moved an amendment requiring the Department of Finance to provide an informational overview to the committee if no material changes exist. Council President Pro Tem Lee asked about the EIFD formation process, specifically whether it could be initiated by a council district.
- Key Outcome: The committee voted unanimously (4-0) to approve the policy update with the informational overview amendment.
Discussion Item 9: SAP As-Needed Consulting Services Contract
- Discussion: CIO Jonathan Banke requested approval of a resolution authorizing contracts with 10 vendors for SAP consulting services for a total not-to-exceed amount of $30.4 million over five years through October 2030. Staff noted the contract is critical for ongoing system maintenance and future ERP modernization projects.
- Public Comment: The single virtual speaker expressed strong support for the item, praising AI capabilities and data-driven decision making.
- Key Outcome: The committee voted unanimously (4-0) to approve the resolution.
Discussion Item 10: Parking Meter Contract with IPS Group Inc.
- Discussion: The Office of the City Treasurer requested approval of an ordinance for a five-year, approximately $10 million contract with IPS Group for parking meters and related services. Staff corrected the initial request from a ten-year term to a five-year term. The contract includes a text-to-pay option, robust data ownership clauses, and a five-year warranty on new equipment.
- Public Comment: The single speaker urged an open community process regarding data collection technology in parking meters.
- Committee Action: Councilmember Ilo Rivera raised significant concerns regarding data privacy and compliance with the city's surveillance ordinance. He specifically asked about data sharing with the federal government without a judicial warrant. The mayor's office representative, Matt Yagyagan, agreed to work with Councilmember Rivera's office on a deeper dive into the contract language before the full council hearing.
- Key Outcome: The committee voted unanimously (4-0) to approve the contract, with the understanding that data privacy and surveillance ordinance compliance issues would be addressed prior to the full council vote.
Meeting Transcript
Good morning, Council President Proton. Can you please do an audio check? We cannot see you. Council presents. Yeah, we can hear you. It's it's just very quiet. Um I'm trying to turn up the volume. So we might just have to do that. Oh yeah, we can hear you. Good morning and welcome to the budget and government efficiency committee meeting of July 16, 2025. Our committee liaison, Natalie Kessler will provide information and instruction for the public to participate in today's meeting. Thank you, Chair. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website in the council administration. We'll 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 queue by raising their hand before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair. Thank you for that. I will now call the meeting of the budget and government efficiency committee. Meeting of July 16, 2025 to order. Natalie, please call the role. Vice Chair Moreno. Present. Council President Pro Tem Lee. Here. And I'll take this opportunity to notify the committee that I am attending today's meeting virtually due to just cause for care of sick child. And I have no one in the room with me, 18 years of age or older, and we'll update the committee if anything changes. Thank you. Thank you. Councilmember Elo Rivera and Chair Foster. Here. Also attending the meeting today is Charles Modica and Lisa Byrne from the Office of the Independent Budget Analyst, Deputy City Attorney David Powell from the City Attorney's Office, Director of Policy, Matt Yagyagan from the Office of Mayor Todd Gloria, Matt Vespee, Chief Financial Officer, and Jacqueline Kennedy, committee consultant. If you're in person, please complete a speaker slip located at the entrance of the committee room and place it on top of the box indicated at the speaker's lecture in 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 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 phone, please dial 1669-2545252. The webinar ID is 161 771 0317 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Please note that if you're watching via City TV Channel 24 or online, there may be a delay. Please participate via the audio on your phone and meet 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 icon. Or if you're a call-in participant, press star nine on your phone. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Natalie, for reviewing those instructions for the benefit of the public. A quorum is now present. We will now take up non-agenda public comment.
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