San Diego City Council Budget Review Committee Meeting - May 7, 2019

The San Diego City Council Budget Review Committee met on May 7, 2019, to review proposed budgets for several city departments, including the City Attorney's Office, Civic San Diego, the Special Promotional Program (TOT), Government Affairs, the Office of Boards and Commissions, and the Performance and Analytics Department. Public testimony included allegations of a conspiracy to cover up child abuse at the San Diego Junior Theater, as well as strong support for arts and culture funding. The committee will reconvene on May 17 to consider the Fiscal Year 2020 May Revise.

Public Comments & Testimony

• Joyce Sunyatta (District 3) spoke about the Central Library, urging the committee to review security contract changes and support stressed staff. She expressed deep concern about security and staff well-being.
• Matt Valenti and several other speakers (including his daughter Sophia Valenti, Francia Cohen, Sean Evans, Ruth Mellon, and Jennifer Valenti) presented detailed allegations against the City Attorney's Office, claiming that City Attorney Mara Elliott and other officials conspired to obstruct justice and cover up child sexual abuse at the San Diego Junior Theater. They called for an independent investigation and for the city to withhold funding from Junior Theater. Specific allegations included: forwarding a confidential complaint to a board member, retaliating against whistleblowers, and rehiring staff with known inappropriate relationships with minors.
• Sophia Valenti (age 13) testified that she questioned City Attorney Elliott at a workshop about abuse at Junior Theater, and was told Elliott could not act because it was a nonprofit—a statement she believes was false.
• Sean Evans stated that as a theater director, he warned Junior Theater in 2015 about a predator, but was ignored; the predator later raped a child.
• Frances Cohen, a former employee, said she was threatened with a cease-and-desist letter for speaking out about an incident where the executive director shook a girl.
• Ruth Mellon, a former parent, described a campaign of intimidation by the board, including a cease-and-desist letter sent to her son.
• Jennifer Valenti alleged that Junior Theater rehired a teacher fired for an inappropriate relationship with a student and that the board president is under investigation for sexual abuse of a minor.
• Supporters of arts and culture (including Steve Snyder, Terrell Donnell Sledge, Natalia Valerdi Rogers, Jessica Barron, Shayla James, and Alan Ziter) spoke in favor of the mayor's proposed arts budget, emphasizing the economic, educational, and social benefits of arts funding. They urged the city to move toward full "Penny for the Arts" funding.

Discussion Items

• Office of the City Attorney: City Attorney Mara Elliott presented the department's budget request, highlighting the need to make 10.25 supplemental positions permanent, fund client parking at the Family Justice Center ($44,040), and continue the 211 navigation program ($25,000). The Independent Budget Analyst (IBA) agreed that the positions should be added to the budget, potentially offset by existing vacancy savings. Councilmembers expressed support for the Family Justice Center, gun violence restraining orders, and the SMART and PLEADS programs. Councilmember Ward noted the allegations but focused on the budget. Council President Gomez asked about the status of homeless court funding. Councilmember Sherman supported the 211 request.
• Civic San Diego: Andrew Phillips presented the FY2020 budgets for the Successor Agency and Civic San Diego. The Successor Agency budget is subject to state DOF approval and includes $100 million in disbursements. Civic San Diego's administrative budget is unchanged, but capital projects increased by $18 million. The IBA noted a pending settlement that may return planning and parking functions to the city. Councilmember Ward praised progress on East Village Green and the park at grade crossing. Councilmember Moreno asked about the settlement's impact, which would eliminate $1.5 million and 7 FTEs from Civic San Diego's budget.
• Special Promotional Program (TOT): The Department of Finance presented the $126.2 million special promotional program, funded by five cents of the TOT tax. Major increases include $11.4 million for lifeguard services and street sweeping. Arts and culture funding is $14.2 million, with a $3.9 million one-time transfer from the general fund to maintain levels. The IBA noted that this is the third consecutive year of one-time transfers and recommended ongoing funding. Councilmembers criticized the reliance on one-time funds and called for restoring the "Penny for the Arts" goal. Councilmember Moreno specifically asked for closer alignment with the one-cent TOT target.
• Government Affairs: Director Patrick Buteller presented the $1.4 million budget for the newly formalized department, which includes six FTEs (one new immigrant affairs position). The department focuses on legislative advocacy and grant coordination. Councilmember Ward noted the importance of the grant coordinator position starting in May. Councilmember Kate inquired about performance metrics; Buteller said they track progress on the legislative platform.
• Office of Boards and Commissions: Director Joel Day and Jonathan Gloos (Arts & Culture) presented. The office now has a full staff and is implementing audit recommendations, including quarterly training and standardized annual reports. The Arts & Culture budget is $14.2 million, with a 3% reduction applied to administrative and public art funds, not to core grants. Gloos announced plans for a citywide cultural plan and an access and equity assessment. Councilmembers praised the efforts but expressed concern about the 44 boards without dedicated staff. Council President Gomez asked to hold off funding for Junior Theater pending investigation. Councilmember Montgomery highlighted the Citizens Equal Opportunity Commission's need for resources.
• Performance and Analytics (PANDA): Director Behija Humphrey presented the $3.9 million budget for the team behind the Get It Done app. The department is expanding the app and launching Optimize SD, a data-driven budgeting initiative. The proposed budget includes a $117,000 reduction, which may delay enhancements like Spanish translation. Councilmember Campbell asked about the app's "closed" status communication and telecommuting. Councilmember Kate asked about paying for trash cans with credit cards (soon available). Councilmember Sherman asked about the impact of the reduction on enhancements. Council President Gomez stressed the importance of Spanish translation. The IBA noted that the budget does not address workload impacts on departments receiving Get It Done requests.

Key Outcomes

• No formal votes were taken; the committee heard presentations and public testimony for informational purposes. The committee will reconvene on May 17, 2019, to consider the Fiscal Year 2020 May Revise.
• Support for City Attorney requests: Councilmembers expressed general support for making supplemental positions permanent, funding Family Justice Center parking, and the 211 navigation program. The IBA recommended offsetting the cost with vacancy savings.
• Concerns about Junior Theater funding: Council President Gomez and others indicated they would seek to withhold or delay the $90,000 arts grant to Junior Theater pending further investigation into the allegations. Councilmember Kercy suggested placing the funds in escrow.
• Arts and culture funding: Multiple councilmembers called for moving toward the "Penny for the Arts" goal of one cent of TOT revenue (approximately $24.3 million), criticizing the reliance on one-time transfers. The city is currently at $14.2 million.
• Civic San Diego settlement: The anticipated settlement will reduce Civic San Diego's budget by $1.5 million and eliminate 7 FTEs, with planning and parking functions returning to the city. The May revise will reflect these changes.
• Optimize SD initiative: The Performance and Analytics Department will launch a data-driven budgeting approach in partnership with the Department of Finance, with briefings to the Audit Committee planned.
• Get It Done enhancements: The team will continue to improve the app, including adding credit card payment for trash cans and working toward Spanish translation, but the $117,000 reduction may delay non-essential enhancements.
• Public testimony on Junior Theater: The council president and other members acknowledged the seriousness of the allegations and stated they would follow up with the district attorney and consider independent investigation.