San Diego Budget Review Committee Meeting - May 8, 2018

The Budget Review Committee, chaired by Councilmember Barbara Bree, met on May 8, 2018, to review the FY19 capital improvement program (CIP) budget, the five-year capital infrastructure outlook, and presentations from the Infrastructure and Public Works (IPW) branch. The meeting included public testimony on various infrastructure needs and committee discussions on capacity, funding gaps, and project priorities.

Public Comments & Testimony

• Martha Welch: Commented on budget and sales tax, stating that "sell tax is not legal in this county because we voted only 2,000 points 2000 25%" and that sidewalk repairs should include new sidewalks, not just replacement and repair.
• Renee Smith (Balboa Park advocate): Argued for a focused investment of at least $20 million per year in Balboa Park infrastructure, citing a facility condition assessment showing an immediate need of $80 million and a backlog of $235 million, which is increasing. He urged the committee to address deterioration before it worsens.
• Coral Van Landingham (San Diego native, business owner): Requested immediate safety improvements on El Cajon Boulevard, including a traffic signal and crosswalks at Mississippi Street, due to numerous accidents. She provided a letter with bullet points, emphasizing pedestrian, bicycle, and traffic safety.
• Steve Hisson (General Manager, Lafayette Hotel): Supported the request, noting he witnessed many accidents at the intersection and that new development will increase foot traffic.
• Kevin Cox (business owner): Emphasized that the request is for safety, not financial gain, to protect people crossing between Texas and Florida Streets.
• Janet Rogers (Chair, Grand North Condominiums): Supported funding for upgrades to the "Fatal 15" deadliest pedestrian crossings identified by Circulate San Diego, many of which are downtown, stating it is "life and death" for pedestrians.
• Maya Rossus (supporter): Thanked the mayor for Vision Zero projects but requested reallocating a portion of SB1 gas tax funds to three high-priority unfunded projects: University Avenue Mobility Plan, Market Street 47 to Euclid Complete Streets, and Market Street Euclid Tapita improvements.
• Robert Robinson (Broadway Heights resident): Asked that commercial paper funds be allocated to complete the Dr. King street project, noting that after years of promises, this is the only surface street named after Dr. King in San Diego and needs funding.
• Ana Reynoso (Environmental Health Coalition / Community Budget Alliance): Supported funding for Hawk Lights at Altadena and El Cajon Boulevard, citing a community member hit by a car. She requested keeping the funds in the budget to prevent future injuries.
• Esperanza Gonzalez (City Heights resident, promotora): Also supported the Hawk Lights funding, noting the intersection is dangerous and that the location needs improvement after a February accident.
• Dr. Hill (Pastor, Christian Fellowship Congregational Church): Advocated for additional dedicated funding for Emerald Hills Community Park, which has not been upgraded since 1960 and lacks basic amenities. He noted that Hart Court repairs are appreciated but insufficient.

Discussion Items

• Infrastructure and Public Works (IPW) Overview: Deputy COO Paz Gomez presented the IPW branch, comprising Public Works, Transportation & Stormwater, Public Utilities, Environmental Services, and Infrastructure Asset Management (IAM). The branch has over 3,700 FTEs and a proposed FY19 budget of $1.3 billion. Key accomplishments included the successful IAM San Diego go-live (facilities in December 2017, other departments in March 2018), and awards from the American Public Works Association (APWA). Pure Water construction is set to start next fiscal year. The branch requests over 40 FTEs and a budget increase of over $31 million.
• Capital Improvement Program (CIP) Presentation: Public Works Director James Nagelvoort presented the FY18 mid-year state of the CIP, the five-year (FY19-23) CIP outlook, and the proposed FY19 CIP budget. Key points:
  • Citywide, 1,287 capital projects were active; 35 construction contracts worth $200.8 million were awarded; 43 new construction starts and 51 project completions in the first six months.
  • Seven new parks opened; Mission Hills/Hillcrest Library groundbreaking occurred.
  • FY19 proposed CIP budget: $553 million (largest in city history), plus $376 million anticipated, for a $9 billion multi-year program.
  • Five-year capital needs estimate: $4.34 billion; available funding: $2.7-2.8 billion; funding gap of $1.5-1.6 billion, primarily for general fund assets.
  • Soft costs (non-contractor) at 51%, slightly above the statewide average of 48%; streamlining efforts ongoing.
  • Key performance indicators: expenditures up, encumbrances up, but time to award contracts increased to an average of 98 days (target 90). Small local business (SLBE) participation dropped from 34% to 21.2% of dollars.
  • Challenges: industry competition, staffing shortages, increasing construction costs.
• Committee Questions and Discussion:
  • Councilmember Kerch (chair of infrastructure committee) asked about capacity to handle the large CIP increase; Nagelvoort noted that Pure Water is a major driver and that capacity may improve after the program tapers off in three years. He recommended using the five-year outlook for planning.
  • Councilmember Alvarez questioned soft costs, SLBE participation, and ADA improvements. He noted unspent sidewalk funds ($4.4 million carried over) and asked how new $5 million would be spent. Staff responded that dedicated sidewalk engineers are being added and a plan exists.
  • Councilmember Ward expressed concern about SB1 gas tax repeal risk; staff noted they programmed the full year but could reallocate commercial paper if needed. She requested metrics on change orders and construction management.
  • Council President Cole highlighted 12 CIP projects for his district, including Emerald Hills Park upgrades (tennis courts, basketball courts, playground equipment) and the MLK Promenade. He also requested a CIP for Oak Park Library expansion.
  • Councilmember Gomez noted that 85% of CIP funding goes to sewer and water (including Pure Water), leaving little for sidewalks, lighting, and bike infrastructure. She requested a simpler chart showing discretionary funds and expressed concern about the balance between street improvements and other modes. She also raised questions about the Castle neighborhood lighting deficit and the complete streets boulevard study.
  • Councilmember Sherman asked about staffing difficulties; Nagelvoort cited low unemployment and high demand for technical skills. Sherman also cautioned that commercial paper creates debt and noted that small park upgrades can trigger costly ADA and stormwater requirements.
  • Councilmember Kay requested a breakdown of anticipated funding sources and specific project lists for group jobs. Staff indicated page 31 of volume three provides a summary; a project-by-project breakdown can be provided.

Key Outcomes

• The committee heard presentations and public testimony; no formal votes were taken.
• Staff will provide additional information on sidewalk spending capacity, ADA improvements, change order KPIs, funding source breakdowns, and responses to council concerns.
• The public is invited to an evening budget hearing on May 14, 2018, at 6 p.m. to provide further input on budget priorities.
• The committee will continue budget hearings, with afternoon sessions scheduled for operating budgets of transportation, stormwater, and other departments.