San Diego Budget Review Committee: Infrastructure and Public Works Day - May 2, 2019
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San Diego City Budget Review Committee: Infrastructure and Public Works Day - May 2, 2019
On May 2, 2019, the San Diego City Council Budget Review Committee convened for Session 2 of Infrastructure and Public Works Day. The meeting featured presentations from the Public Works, Public Utilities, Transportation and Stormwater, and Environmental Services departments, covering their Fiscal Year 2020 proposed budgets, accomplishments, and challenges. Councilmembers and public speakers addressed staffing vacancies, infrastructure deficits, service cuts, and environmental compliance.
Public Comments & Testimony
- Johnny Perkins, Deputy Chief Operating Officer for Infrastructure and Public Works, opened the session, noting the branch's focus on safety and customer service. He highlighted $610 million in CIP expenditures in FY19 and a planned $1.3 billion in construction contract awards.
- Kathleen Higgins (San Diego Municipal Employees Association) expressed support for Public Works and Public Utilities, advocating for additional corrosion engineer positions and stating that MEA is "keeping track of the recruitment and retention."
- Patrick McDonough (San Diego Coastkeeper) urged the city to address the massive shortfall for stormwater funding, noting that a bulk of funding will likely need to come from a public measure and emphasizing the need for community engagement.
- Mary Beth Cruden (University Heights resident) presented a petition with over 600 signatures requesting brush abatement in the Vermont Street Bridge canyon, citing two fires in 2018 and a citation from the fire marshal that had not been fully addressed.
- Maya Rosus (Circulate San Diego) called for more Vision Zero funding, noting 35 pedestrian deaths in 2018 and requesting priority for two bicycle master plan projects.
- Andy Hanshaw (Mobility Board) urged implementation of Vision Zero projects, continuation of the downtown mobility plan, and maintenance of existing bike facilities.
- Ann Fage and Jackie Higgins spoke against the proposed tree trimming reductions, stating that uninspected trees pose liability and that the cuts would undermine the climate action plan.
Public Works Department
Director James Nagelfort presented the proposed operating budget for the Engineering and Capital Projects (ECP) branch. Key points:
- FY19 achievements: 73 construction contracts awarded ($725M), 32 architectural engineering contracts ($235M), $610M in invoices paid.
- FY20 request: 43.75 additional FTEs ($11.9M) to support Pure Water, private development, 5G permits, and other needs. This would bring ECP to 789.5 FTEs ($110.7M).
- ECP fund deficit: projected $13M (updated to $11.5M), due to vacancies and a lowered overhead rate (from 94.7% to 155.9% by FY20).
- Vacancy rate: 95.5 vacant positions (14%). Director noted difficulty hiring due to market competition; a 16% pay raise for engineers was implemented but results are pending.
- Councilmembers Moreno, Montgomery, Kate, Gomez, Campbell, Sherman, and Kirsey expressed concerns about adding positions on top of vacancies. Director responded that the positions are needed to meet demand and that unfilled positions would increase reliance on consultants.
- Council requested a mid-year update on vacancy filling and discussed creative strategies (signing bonuses, earlier pay raises).
Public Utilities Department
Interim Director Matt Vespi presented the FY20 proposed budget, emphasizing a reorganization to become customer-focused.
- Total budget: $1.65B (up 19% from FY19), with $1.62B in revenues. CIP accounts for 43% ($703M), driven by Pure Water.
- Operating budget increases 6% ($27.7M), including 52.4 net new FTEs (96 added, 31 eliminated, 8 transferred).
- Water rate increase: 6.1% (below the approved 7% cap). No sewer rate increase.
- Reorganization: new Pure Water operations division, business support branch, dispersal of long-range planning functions.
- Key performance indicators: water main breaks and sewer overflows below targets.
- Public speaker Kathleen Higgins (MEA) supported the reorganization and requested corrosion engineers.
- Councilmembers asked about vacancies (10-13% historically), rate case timeline (early 2020), reservoir closures (one additional day per month for recreation), and water quality testing (100,000 tests per year).
- Council President Gomez highlighted equity concerns in rate design; Councilmember Sherman questioned the tiered rate structure.
Transportation and Stormwater Department
Director Chris McFadden presented the FY20 proposed budget, noting significant cuts.
- Achievements: exceeded mayor's 1,000-mile street repair goal (October 2018); 40,000 potholes filled in FY19; 37,000 trees trimmed; $14M in grants secured.
- FY20 plans: 430 miles of street repair, 6 million in sidewalk contracts, 8,500 sidewalk slicing locations.
- Proposed general fund reductions: $1.1M for tree trimming (eliminates non-palm trimming, reducing frequency from every 9 years to every 43 years); $300K for graffiti abatement (eliminates private property contract); $310K for stormwater monitoring; $1M for channel maintenance; $500K for green waste mitigation credits.
- Use of infrastructure fund ($4M) and gas tax ($13.9M) to support general fund operations, avoiding deeper cuts.
- IBA highlighted a $3.1B need for stormwater infrastructure through FY2035 and warned of potential fines for non-compliance.
- Councilmembers Campbell, Ward, Gomez, Moreno, Montgomery, Kirsey, and Sherman opposed the cuts, particularly tree trimming, graffiti abatement, and stormwater monitoring. Councilmember Moreno requested a summary of tree-related liability claims.
- Councilmember Ward noted that brush management funding was reduced in FY18 and that fire marshal citations are not followed up.
- Director stated that the department will work with fire department to address high fire hazard areas.
Environmental Services Department
Director Mario Sierra presented the FY20 proposed budget.
- General fund: $47.9M for 172 FTEs. Non-general funds (recycling, refuse disposal) total $68M for 256 FTEs.
- Clean SD expansion: $2.7M in one-time funds for 3 term-limited code compliance FTEs and contracts. IBA expressed concern about using one-time funds for ongoing service levels.
- Recycling fund: $2.7M revenue reduction due to China's National Sword policy. New curbside recycling contract expected to require city payment, potentially leading to AB 939 fee increases.
- Proposed reductions: asbestos/lead inspector (from 8 to 7), assistant engineer, security guard services, and others.
- Council President Gomez questioned the loss of HUD grant funding and asked about zero waste plan updates. Director noted industry changes and need to revisit the plan.
- Councilmember Moreno asked about the lead inspector reduction; Director stated consultants can provide backup.
Key Outcomes
- Councilmembers indicated they will seek to restore several proposed cuts in the May revise, including tree trimming, graffiti abatement, stormwater monitoring, channel maintenance, and asbestos inspector positions.
- Committee requested a mid-year review of Public Works vacancy filling and hiring progress.
- Council directed staff to provide updates on the 5G permit process, the mobility action plan, and the rate structure review.
- No formal votes were taken; decisions will be made as part of the overall budget adoption process.
- The meeting adjourned at 9:00 p.m. to reconvene the following morning at 9:00 a.m.
Meeting Transcript
You're watching City TV twenty four. Your access to City Hall of the United States. Councilmember Campbell. Councilmember Ward. Councilmember Montgomery. Councilmember Kercy. Councilmember Kate. Councilmember Sherman. Councilmember Moreno. Council President Gomez. Council President Pro Tambri. Here. Let's uh start with our first presenter of the afternoon, Mr. Johnny Perkins. Thank you, Council President Pro Tembri, Council President Gomez, members of the budget review committee, city council, city attorney, independent budget analyst, and city clerk. My name is Johnny Perkins, and I am the Deputy Chief Operating Officer for Infrastructure and Public Works. Welcome to session two of Infrastructure and Public Works Day. This afternoon, we will present the operations budget for each department and discuss the highlights and accomplishments for fiscal year 19 and what to expect in fiscal year 20 as it relates to the proposed budget. With a focus on safety and customer service, the infrastructure and public works branch manages the city's infrastructure and related services. Last year, the environmental services department expanded Clean San Diego and implemented a get it done to allow for better customer service. Looking ahead, additional funding is being requested to support the expansion of Clean San Diego. In fiscal year 19, public works will see the highest expenditure of CIP funds in the city's history at $610 million. And looking forward, the plan is to award approximately 1.3 billion, yes, 1.3 billion in construction contract value. The transportation and stormwater department in fiscal year 19 completed the mayor's goal of 1,000 miles of street repair, nearly two years ahead of schedule. And in fiscal year 20, TSW will increase the miles of street repair and maintenance from 350 to 430. And finally, the public utilities department received your support and approval to initiate a 1.1 billion construction activity for pure water. And this month, May, construction will commence with major construction projects to be initiated in fiscal year 20. This afternoon, each department will discuss its operational budgets. However, in terms of general fund expenditures in fiscal year 19 versus fiscal year 20, the largest addition in ESD, as I mentioned, is going to be the Clean San Diego expansion. Transportation and Stormwater will highlight the services and their operational budget and funding changes in contract services. On the non-general fund ledger, some of ESD's additional funding is due to equipment, services, and overall operational efficiencies at the Miramar Landfill. Environmental Services Director Mario Sarah will provide those details. And public utilities in fiscal year 20. Expenditures include support for the mission-driven centrics of providing customer service in public utilities that exceeds expectations, along with investments in water and wastewater infrastructure. And in the public works department, due to a larger capital demand and more private development in the utility space, expenditures are increasing. And the consulting services that supported that are now being transferred to the general fund. In closing, every organization is defined by its people, their commitment, their passion, and their dedication. The infrastructure and public works branch and its team of nearly 4,000 provide a level of service that is extraordinary. With its many challenges and branch with its many challenges, the branch remains focused on safety and customer service resolved to exceed expectations. That's very critical. Safety and exceeding customer expectations. And with that, it's my pleasure to introduce our city engineer, public works director, Mr. James Nagelfort. Thank you. James, how much time do you need for your presentation? I'm going to try to keep it under 15. Okay. And I'm not going to bring the same energy level as Johnny. Sorry. I'm going to try, but uh good afternoon, everybody.
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