Budget and Government Efficiency Committee Meeting Summary - March 4, 2026

The Budget and Government Efficiency Committee of the San Diego City Council met on March 4, 2026, at 9:00 AM. The meeting covered five action items and one informational report, with a focus on codifying the Division of Race and Equity within the Independent Budget Analyst's (IBA) office, approving several technology and supply contracts, and receiving an update on the city's enterprise resource planning (ERP) modernization project. All votes were unanimous (4-0).

Consent Calendar

• Item 1: Approved the committee minutes from February 4, 2026. Passed 4-0 without discussion.

Public Comments & Testimony

• Non-Agenda Public Comment: Blair Beekman (in-person) commented on parking issues and urged local peace practices. Andrea Ebbing (virtual) requested clarification on how verbal public comments are documented and questioned a city employee salary. Joy Sanyata (virtual, CD3) thanked Chair Foster, Vice Chair Moreno, and Supervisor Montgomery Steppe for their equity work, and praised the KPI audit.
• Item 2 (Race and Equity ordinance): Blair Beekman expressed support and encouraged continued equity work. Becky Rapp (virtual) questioned the necessity and cost of the division given the budget deficit, suggesting funds could go to core services. Andrea Ebbing noted racial disparities in the criminal justice system and called for Brady listings of prosecutors. Joy Sanyata asked if KPIs can be both quantifiable and qualifiable, and requested public release of budget equity impact statements.
• Item 3 (IGM Technology contract): Blair Beekman commented on tech accountability. Joy Sanyata noted the contractor's EEO pledge and urged attention to workforce reports.
• Item 4 (Konica Minolta contract): Blair Beekman asked about the $4.7 million cost. Joy Sanyata pointed out underrepresentation of African American and female employees in tech jobs at the firm.
• Item 5 (Electrical lighting contract): Blair Beekman referenced trust ordinance for inventory. Joy Sanyata highlighted underrepresentation in the contractor's workforce and the need for an EEO plan. Andrea Ebbing requested adding Trim Light as a subcontractor for its energy-efficient lighting.
• Item 6 (ERP modernization): Blair Beekman emphasized cybersecurity best practices. Joy Sanyata questioned the 20-year system lifecycle and asked about future system longevity. Hector (virtual) urged hiring people of color who are intelligent and suggested eliminating pension benefits to save money.

Discussion Items

• Item 2: Division of Race and Equity Ordinance Revision: Charles Matica (IBA) and Kim Desmond (Division of Race and Equity) presented revisions to align the division's responsibilities with the IBA's charter. Key changes include updated definitions (equity, social equity), clarified roles in analyzing budget equity impacts, and formalizing Tactical Equity Plans (TEPs) and budget equity impact statements. Kim Desmond emphasized that equity work is about addressing disparities, not discrimination. The City Attorney explained that anti-discrimination language was added to guard against potential federal litigation under the Trump administration. Chair Foster strongly defended the division's necessity, and council members echoed that equity analysis is critical during budget deficits. Councilmember Ila Rivera warned that no clause can fully protect against a racist administration. The motion to approve the ordinance passed 4-0, with a directive to develop a council policy on TEPs, budget equity framework, and equity implications.

• Item 3: First Amendment to Contract with IGM Technology Corp for GASB 87 Lease Software: Jeff Peel (Finance) presented a one-year extension (FY2027) with no cost increase ($15,844) and an optional FY2028 year ($17,174). The software automates lease accounting under GASB 87. Approved 4-0.

• Item 4: Cooperative Procurement Contract with Konica Minolta for Managed Print Services: Jonathan Banke (IT) and Sam (unidentified) presented a five-year contract with a $4.7 million not-to-exceed amount, modernizing the city's multifunction device fleet and reducing costs. Approved 4-0.

• Item 5: As-Needed Citywide Contract for Electrical Lighting Equipment with Consolidated Electrical Distributors (CED): Claudia Barca and Vanessa Delgado (Purchasing) presented a $24.5 million contract over five years (3+2). The contract ensures reliable supply for traffic signals, street lighting, water facilities, and city buildings. Approved 4-0.

• Item 6: Informational Report on ERP Modernization Project: Jonathan Banke and Arlo McPantai (IT) updated the committee on replacing the city's 20-year-old SAP system before 2030 end-of-support. Estimated total cost is $178 million (up from $138 million), with $69.5 million from the general fund ($4.5M annual impact). The IBA noted a $28.6 million increase in debt financing that was not in the five-year outlook, raising policy concerns. No action was taken; the committee will monitor as RFPs are issued.

Key Outcomes

• Item 2: Ordinance approved (4-0) to codify the Division of Race and Equity within the IBA. Chair Foster directed staff to work with her office on a council policy for Tactical Equity Plans and budget equity framework.
• Item 3: Approved (4-0) the first amendment to IGM Technology Corp contract.
• Item 4: Approved (4-0) the Konica Minolta contract.
• Item 5: Approved (4-0) the CED contract.
• Item 6: Received as information. IBA raised concerns about cost increases and debt financing implications; further analysis expected when action items are brought forward.
• Next meeting: Wednesday, April 8, 2026, at 9:00 AM.