Budget & Government Efficiency Committee Meeting – April 8, 2026

The Budget and Government Efficiency Committee met on April 8, 2026, to consider a consent agenda, several discussion items, and informational updates. The meeting included public testimony on non-agenda items, approval of the consent agenda, a contract extension for parking citation software, a new contract and labor compliance software system, authorization for tax and revenue anticipation notes (TRANs), and informational reports on prevailing wage, living wage, and the city's reserve policy. Votes were taken on items 1 through 5.

Consent Calendar

• Item 1: Approval of the committee minutes from March 4, 2026.
• Item 2: Fourth Amendment to vendor agreement and first amendment to sole source number 4249 with Risk Connect Incorporated.
• Both items passed unanimously 4-0.

Public Comments & Testimony

• Non‑Agenda Public Comments: Members of the public addressed the committee on various topics:
  • Blair Beekman raised concerns about meeting scheduling, quorum issues under the Brown Act, and the need for a clear path for public forum when quorum is lost.
  • Catherine Rhodes (co-sponsor of ballot measures) expressed frustration that no one from the mayor's office, IBA, city attorney's office, or rules committee had contacted her in three weeks to schedule a meeting to finalize language for two ballot propositions. She highlighted Measure 1 (clarifying definition of operator and writ) which she claimed would bring $120 million annually and Measure 2 (convention center tax ending in nine years).
  • Terry Ann Skelly (planning group member, parent) opposed marijuana storefronts, citing health costs and impacts on youth, and urged prevention to save city money on first responders and homelessness.
  • Francine Maxwell (Southeastern San Diego resident) criticized the city for lack of pathways for African Americans and black women/men in city employment, referenced the city public liability fund, and alleged misleading allegations.
  • Becky Rapp raised financial concerns about the proposed social equity cannabis program, estimating it would cost $5‑10 million for 36 equity permits, and questioned whether this is the best use of limited resources given budget pressures on infrastructure, public safety, and flooding response.
  • Peggy Walker (public health professional) cited National Academy of Science, Engineering, and Medicine studies warning of marijuana's health impacts (lower IQ in youth, increased psychosis, suicidal ideation, cancer, stroke, heart disease) and urged against using limited public funds for the program.
  • Madison (public health advocate) urged prioritization of youth cannabis prevention, referencing a JAMA Health Forum study showing double the risk of psychotic and bipolar disorders in teens who used cannabis, and argued that prevention reduces long-term city costs.
  • Kathleen Lippitt (public policy researcher) argued Proposition 64 was written by the marijuana industry, that social equity was not in Prop 64 but later added by the state, and that equity programs are discriminatory on their face; she urged not wasting taxpayer money on a program that would harm residents.
• Consent Agenda Public Comments:
  • Blair Beekman spoke on the minutes (item 1) and the Risk Connect amendment (item 2), expressing hope for the equity department and future conversations.
  • Phone number ending in 870 (likely Joyce Yabata) spoke on item 2, noting underrepresentation of African Americans, Latinos, and females in professional categories and supporting the transition to a new claims management system.
• Item 3 (Duncan Solutions): Blair Beekman commented on parking issues and the need for transparency in Balboa Park parking allocation funds. Phone number ending in 870 asked about preparedness for increased citations and customer service complaints and noted the contract exempt from EOC evaluation due to only 15 employees; she supported the item.
• Item 4 (B2G Now software): Blair Beekman praised the item as good accounting practice. Phone number ending in 870 noted EOC underrepresentation concerns and questioned company reviews, wondering if lack of reviews was a red flag.
• Item 5 (TRANs): Blair Beekman acknowledged creative budget ideas. Catherine Rhodes again urged support for her ballot measures. Phone number ending in 870 expressed protectiveness of the general fund and referenced Councilmember Campbell's comments on property tax share.
• Item 6 (Prevailing Wage Report): Blair Beekman expressed hope for a future office of immigration. Phone number ending in 870 noted the scale of contracts ($3.64 billion) and asked about equity in who performs the work.
• Item 7 (Living Wage Report): Blair Beekman again referenced the idea of an office of immigration and wage theft issues.
• Item 8 (Reserve Policy): Blair Beekman spoke about best practices and moving past COVID-era funding. Phone number ending in 870 quoted the budget principles and stressed maintaining cash reserves to address the structural deficit.

Discussion Items

• Item 3 – Extension of Duncan Solutions Contract: The parking program manager presented that the city processes approximately 514,000 parking citations, 446,000 payments, 30,000 appeals, 13,400 parking permits, 48,000 calls, and mails 500,000 parking notices annually. The current contract with Duncan Solutions expires November 9, 2026. The committee approved an ordinance to exercise the five optional one-year extensions, increasing the not-to-exceed amount to approximately $6 million, with about $3.1 million remaining for the extension period. Motion passed unanimously 4-0.
• Item 4 – Contract with B2G Now (Ask Reply Inc.) for Contract and Labor Compliance Software: The deputy director from the Office of the City Treasurer presented that the current system (PRISM) has been in place since 2009. The new system will provide unified labor compliance, workforce diversity data, contract compliance, and SLBE program certification. The contract is for an initial five-year term at $1,303,899, with five one-year options increasing 5% annually, total potential $2.9 million over 10 years. Councilmember Ilo Rivera moved approval, seconded by Council President Pro Tem Lee. Councilmember Pro Tem Lee noted the current vendor (PRISM) is a minority- and women-owned business and expressed concern about a nearly 100% annual cost increase. He requested additional information and voted no. The motion passed 3‑0, with Chair Foster voting no.
• Item 5 – Authorization for FY27 Tax and Revenue Anticipation Notes (TRANs): Finance staff explained that due to exhaustion of COVID relief funds, drawdown of excess equity, and lack of reserve contributions since FY23, the city needs short-term borrowing to cover cash flow gaps (e.g., pension payment on July 1). The projected borrowing is $300‑350 million at an estimated 2.5% interest, yielding approximately $7.6 million in interest, partially offset by investment earnings. The IBA recommended moving forward. Council President Pro Tem Lee moved approval. Vice Chair Moreno expressed lack of confidence in the administration's fiscal decisions and voted no. Councilmember Ilo Rivera seconded; motion passed 3‑1.
• Item 6 – FY25 Prevailing Wage Annual Report (Informational): Staff reported that in FY25, the city executed 728 contracts subject to prevailing wage totaling $1.3 billion, and monitored 1,246 active contracts worth $3.64 billion. Compliance activities included 456 site visits, 590 worker interviews, recovery of nearly $96,000 in underpaid wages, and 22 violation notices to the state. Since the ordinance's adoption in 2013, contract volume increased six-fold and value 11-fold, while staffing only doubled. The report identified opportunities for municipal enforcement tools, a citywide administrative regulation, and potential cost recovery mechanisms.
• Item 7 – FY25 Living Wage Annual Report (Informational): Staff reported monitoring 1,022 active agreements, 312 covered employers, and $794 million in contract value. In FY25, the program recovered over $157,000 in back wages for 65 employees, advanced debarment proceedings against one janitorial provider (D2 Distributors), and updated the rules implementing the ordinance for the first time since adoption. The program has two budgeted positions.
• Item 8 – Informational Update on City’s Reserve Policy (Informational): The CFO presented a benchmarking analysis of general fund reserves compared to 10 other large cities. San Diego's formal reserves stand at about 10.3% of revenues ($207 million), below the policy target of 16.7% (two months of operating resources). The city has not made significant reserve contributions since FY23. The IBA noted that under proposed contribution levels, it could take 10–20 years to reach the target. Policy considerations discussed included maintaining the two-month target, using one-time revenues (e.g., property sales) for contributions, adding objective triggers for accessing reserves, and clarifying replenishment plans. No vote was taken; the Department of Finance will return in June with a refined proposal.

Key Outcomes

• Consent Agenda (Items 1 & 2): Approved unanimously (4-0).
• Item 3 (Duncan Solutions): Ordinance approved to extend contract up to five years with not-to-exceed amount of $6 million. Passed 4-0.
• Item 4 (B2G Now Software): Ordinance approved to authorize agreement with B2G Now for up to 10 years, initial not-to-exceed $1,303,899. Passed 3-0 (Chair Foster voted no).
• Item 5 (TRANs): Committee forwarded the item to full City Council for approval. Passed 3-1 (Vice Chair Moreno voted no). Timeline: Council action June 8/9, pricing June 18, closing July 1.
• Items 6, 7, 8: Informational only; no votes. Staff will bring a refined reserve policy proposal to the committee in June 2026.

Next meeting: Wednesday, June 17, 2026, at 9 a.m.