San Diego City Council Budget Review Committee Meeting - May 9, 2016

The Budget Review Committee of the San Diego City Council reconvened at approximately 10:00 AM on May 9, 2016, to review proposed budgets for several city departments. The meeting was chaired by Councilmember Todd Gloria and included members Lightner, Zap, Cole, Kate Sherman, and others. The committee heard presentations from Development Services, Planning, Economic Development, Fleet Services, Real Estate Assets, Purchasing and Contracting, Information Technology, and Human Resources, along with public testimony and independent budget analysis from the Office of the Independent Budget Analyst (IBA). No formal votes were taken; the committee discussed the budgets and requested additional information.

Public Comments & Testimony

• Troy Murphy (Council District 7, Community Forest Advisory Board) expressed support for restoring a dedicated, skilled tree warden position within code enforcement, arguing that the position would pay for itself through citations and fines and is critical for enforcing tree maintenance requirements on private property, particularly in parking lots, to support the city's Climate Action Plan canopy goals.
• Ann Feige (Chair, Community Forest Advisory Board) advocated for sufficient resources for urban forestry in the Planning Department, noting that a certified arborist is needed for compliance inspections, and highlighted progress on the urban forest management plan and tree canopy assessment. She also noted that the city's climate action plan requires additional staff.
• Martha Welch (public speaker) expressed strong opposition to the Planning Department's budget, stating she did not trust the department and believed it should receive no funding, also criticizing perceived corruption and lack of planning downtown.
• Ben Nichols (Executive Director, Hillcrest Business Association) requested funding for homeless engagement teams (triage teams) to connect homeless individuals to services, arguing that small business districts are overwhelmed by homelessness and that such teams would help both businesses and homeless individuals.
• Rodney Fowler (President of AFSCME Local 127) expressed appreciation for the budget but noted that Fleet Services is still recovering from managed competition and needs more mechanics, as the city's blue-collar workers continue to feel the impact of insufficient staffing.
• Laura Warner (Chair, Citizens Equal Opportunity Commission) and Lon Jefferson (Chair, Annual Report Ad Hoc Subcommittee) jointly recommended that the city fund a disparity study to improve participation of women, minority, disabled veteran, and LGBT-owned businesses in city contracting, and to provide a legal framework for goal setting.

Discussion Items

• Development Services (DSD) – Director Robert Vocke presented the FY2017 proposed budget, including 23 new FTEs (e.g., assistant traffic engineers, plan review specialists, program manager) and adjustments totaling $600,000 in non-personnel expenditures and $1 million in revised revenue. IBA analyst Chris Ojeda noted that the code enforcement division has no new positions and that the department is implementing recommendations from a city auditor's performance audit. Committee members discussed high vacancy rates (75 vacancies at start of calendar year, with a goal to fill 36 by year-end, but progress has slipped due to retirements and promotions). Councilmember Alvarez raised concerns about processing delays and suggested exploring a self-certification pilot program for certain permit reviews. Councilmember Lightner asked about the transfer of historical resources staff from Planning to DSD, which DSD defended as putting like with like for permit review efficiency. The committee also discussed the Acela project tracking system, electronic submittal, and flat fee permits.
• Planning Department – Director Jeff Murphy presented the budget, highlighting completion of the Climate Action Plan, community plan updates, and a new citywide parks master plan (three-year project, $200,000 in FY2017). The IBA noted that no additional resources are allocated for community plan updates beyond the FTEs added in FY2016. Councilmember Lightner asked about performance indicators and the timeline for the University Community Plan amendment. Councilmember Gloria expressed urgency to complete the Golden Hill, North Park, and Uptown community plan updates, noting they have been in process for over seven years. The committee also discussed the transfer of the code monitoring team to Planning and the proposed transfer of the historical resources division to DSD.
• Economic Development (EDD) – Director Eric Caldwell presented the budget, including $250,000 for Connect to Careers (maintaining current level, not expanding), $200,000 for the Open Counter online business portal, $170,000 to expand the SERIAL program, and $150,000 for the San Diego Regional EDC. The IBA noted that the $250,000 for Connect to Careers maintains existing funding, not an increase. The committee discussed the small business ambassador role (now part of a team led by Liz Studebaker), the timeline for a small business bonding program, and the need for a disparity study. Councilmember Cole expressed disappointment that no funding was included for the small business bonding program and requested a timeline. Councilmember Gloria supported the Open Counter portal and asked about the user experience. The committee also discussed the Climate Action Plan implementation budget, with Cody Hooven explaining that the FY2017 budget includes $1.5 million in new funding for CAP-related activities, but much of it is indirect (e.g., Pure Water, stormwater). Councilmember Gloria requested more detailed tracking of CAP expenditures.
• Fleet Services – Deputy Director Ali Ocorey presented the budget, including $1 million for car wash repairs, $750,000 for facility upgrades, $525,000 for software upgrades, and one new FTE team lead. The IBA reported that the department has filled 20 of 24 positions from FY2016. Councilmember Alvarez questioned the $15 million in savings attributed to managed competition, asking for a detailed breakdown. Councilmember Cole asked about working conditions for mechanics. Councilmember Gloria noted reduced complaints about street sweepers and highlighted progress from 21 street sweepers now in service.
• Real Estate Assets – Director Sabelle Thompson presented the budget, including $2.6 million for tenant improvements and office relocations, one new property agent, and $50,000 for appraisal services. The IBA noted an increase in revenue from Mission Bay hotel leases. The committee discussed the future of the City Operations Building (COB) and the negotiated lease to move Development Services out of COB, with costs expected to be covered in the move budget. Councilmember Leitner asked about the status of the Qualcomm Stadium early termination fee if the Chargers leave. Councilmember Cole requested assistance identifying land for new fire stations in Encanto and Paradise Hills.
• Purchasing and Contracting – Director Christina Peralta presented the budget, highlighting the procure-to-pay (P2P) project and new procurement classification. The IBA provided a report on disparity study costs (approximately $1 million, with a 12-18 month timeline). Public speakers from the Citizens Equal Opportunity Commission urged funding for a disparity study. Councilmember Cole and Gloria expressed support for including the study in the May revise.
• Information Technology (IT) – CIO Jonathan Banke presented the budget, including $1.5 million for new citywide projects (e.g., document management, procurement improvements), enhancements to public safety radio coverage, and cybersecurity. The IBA noted that the department requested a program manager for the application roadmap but it was not funded. Councilmember Leitner asked about cybersecurity (4 million weekly attacks, zero successful). Councilmember Gloria raised concerns about the indefinite email retention policy ($145,000 annual cost) and the need for a retention schedule, and asked about PCI compliance status (pursuing, with $70,000 budgeted for FY2017).
• Human Resources (HR) – Director Judy Von Kalinowski presented the budget, including 4.66 new FTEs (two PRA coordinators, transfer of EAP from Risk Management). The IBA had no report. The committee discussed the volunteer program (31,000 volunteers, 425,000 hours) and the youth development program (900 youth opportunities, 81,000 hours). Councilmember Gloria emphasized the value of tracking volunteer data and praised the centralized PRA system.

Key Outcomes

• The committee reviewed the proposed budgets for all departments and will consider adjustments (e.g., funding for disparity study, tree warden position, additional code enforcement positions) in the May revise.
• Councilmember Alvarez requested a written response on the feasibility of a self-certification pilot program for permit reviews.
• Councilmember Gloria requested that historical data on fleet service savings from managed competition be provided to the committee.
• Councilmember Leitner requested an update on the Qualcomm Stadium early termination fee should the Chargers relocate.
• The committee expressed interest in receiving updates on the IT application roadmap, the 1SD dashboard projects, and the wireless coverage gap analysis.
• The committee indicated support for including a disparity study in the budget, with potential cost savings through partnering with other jurisdictions.
• The committee requested that the IT department provide information on email retention costs and PCI compliance progress.
• The committee will continue budget deliberations at a later date.

Note: The meeting was adjourned in the evening after completing all scheduled presentations.