San Diego City Council Budget Review Committee Meeting – May 6, 2020
STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE
San Diego City Council Budget Review Committee Meeting – May 6, 2020
The Budget Review Committee, chaired by Council President Pro Tem Barbara Bry, met virtually on May 6, 2020, to review portions of the Fiscal Year 2021 proposed budget, including Environmental Services, Fleet Operations, Engineering and Capital Projects, and the Capital Improvement Program (CIP). The meeting featured staff presentations, IBA (Independent Budget Analyst) reviews, public phone-in testimony, and council member questions. No formal votes were taken; all items were informational, and the committee adjourned to May 7, 2020, at 9 a.m.
Public Comments & Testimony
- Bruce Summers (caller) attempted to comment on Redland Drive paving in El Trio, but was informed that item had already been heard; staff suggested emailing comments.
- John Stump (taxpayer/resident) urged the council to stop requiring renters to pay for waste management services while homeowners do not, despite both paying property tax. He also cited SUE Global as a contractor on city land among the top five bay polluters and asked Environmental Services to enforce zero waste, stormwater pollution compliance, and Climate Action Plan requirements.
- J.D. Stump (during the CIP item) raised concerns about unsafe walking conditions when CIP projects close sidewalks, flooding at Whiteman Park due to undersized undercrossings along Auburn Creek, the proposed Fairmont Avenue fire station adjacent to sensitive receptors (school, senior park, environmentally sensitive MHCP area), and argued that the Pure Water program would triple water and sewer rates and should be halted.
Discussion Items
Item 5 – Environmental Services Department Budget
- Environmental Services reported 66 vacancies, 27 of which are general fund positions.
- Clean SD program costs: $2.9 million over the last two years, including 3 FTEs and $2.5 million in contracting capacity; currently at budget.
- Residential trash tonnage has increased about 15% (~1,000 tons/week) due to stay-at-home orders, with a projected additional $500,000 disposal cost over the next three months.
- Councilmember Campbell asked to preserve additional summer trash collection in Mission Beach.
- Councilmember Moreno opposed planned Clean SD expansion (7 FTEs/$3.2M one-time plus 4 FTEs/$321K; total FY21 funding $6.8M, up $121K plus $719K in refuse disposal fund), saying he would seek to eliminate the program to protect frontline services.
- Council President Gomez also expressed opposition to Clean SD expansion and said he would call for its elimination.
- The reductions in general fund positions are mostly vacant: 7 sanitation driver positions vacant, 1 hazardous materials inspector currently filled.
Items 6 & 7 – General Services Branch Overview and Fleet Operations Budget
- Deputy COO Alia Corey presented the General Services Branch: Fleet Operations maintains over 4,000 vehicles; the department will be renamed Engineering and Capital Projects in FY21.
- Fleet Operations has converted over 63% of the refuse fleet to CNG; anticipates first fully electric vehicles and 100 hybrid police pursuit vehicles next fiscal year.
- FY21 fleet budget includes a net $6 million decrease in the operating fund and a $5 million increase in the replacement fund. The replacement fund totals about $71 million: $58.2M for vehicle purchases ($32M debt-financed, $23M cash from non-general funds), $11.4M debt payments, and $1.2M interest.
- Fuel savings of $2.4M are projected due to lower prices; a $4.8M general fund vehicle replacement fund balance will be transferred back to the general fund.
- IBA noted fuel savings assume lower prices through Q1 FY21; adjustments may come later.
- Kearny Mesa Repair Facility (formerly the Othello project) still needs $13.8M; IBA said commercial paper for other projects may free cash. Construction would take 12–18 months once funded.
- Councilmember Moreno asked for a list of general fund contracts and vacancy details (22 vacancies); he expressed disappointment over the lease cost and said he had voted no. Staff agreed to provide savings/cancellation analysis.
- Chair Bry asked for a list of all city leases with termination dates and suggested the city may be able to negotiate better deals due to the commercial real estate downturn. She also asked the IBA to identify available fund balances that could be repurposed.
Item 8 – Engineering and Capital Projects Department Budget
- The department (renamed Engineering and Capital Projects) is a special revenue fund, not general fund. It has 825.5 FTEs, unchanged from FY20, with a net budget change of only $5,518.
- In FY20 to date: 54 construction contracts totaling $253M; expected >$350M by year-end; 28 architecture/engineering contracts valued at $7.9M; CIP expenditures expected to reach $575M.
- FY21 plans include 135 projects with an estimated $1.3B in construction awards, including 10 Pure Water Phase 1 contracts.
- The budget assumes $1.6M in non-personnel reductions (training and contracts); staff said they will shift to more in-house training.
- IBA noted 139 vacancies (though the director later said 148) and a hiring freeze; the engineering and capital fund deficit is projected to improve from $11.5M to $8.8M through an increased overhead rate.
- Director James Nagelvoort said the department had 148 vacancies, that internal city transfers would be prioritized, and the weak economy may make hiring easier.
- Councilmember Moreno asked about the impact of the $1.6M reduction; Council President Gomez asked about consultant spending (~40% of design work, ~$30M/year) and the deficit. Staff agreed to report on whether pay adjustments helped retain employees.
Item 9 – State of the CIP, FY21–25 Outlook, and FY21 Proposed CIP Budget
- State of CIP (FY20 mid-year): James Nagelvoort reported 950 active projects; FY20 CIP budget $710.8M (adjusted to $719.7M); first-half expenditures $274M. Pure Water Phase 1 design is complete but delayed by litigation. Progress was highlighted on streets (97.4 miles in six months; 1,400 miles since 2015), sewer repair (18.44 miles toward a 215-mile goal), and water main awards (10.38 miles; 13 miles tied to Pure Water). Construction awards improved from 88 to 78 days. SLBE (small, local, and emerging business) contracting reached 25% of dollar amounts. Consultant design spending was 41% ($10M) vs. $14.8M in-house.
- FY21–25 CIP Outlook: Myrna Dayton presented the sixth annual report (previously given February 10, 2020). Total five-year needs are $6.03B; anticipated revenue $3.8B. Priority needs gap is $1.2B; discretionary gap is $875M. General fund assets carry the gap.
- FY21 Proposed CIP Budget: Karen McGriff presented a proposed FY21 CIP budget of $358.9M as part of a $10.61B multi-year program, down 49.5% from FY20 due to Pure Water carryover. Funding includes $136.6M sewer, $153.4M water, $22M TransNet, $18.9M gas tax, $2M trench cut fees, and $10M utilities undergrounding, among other sources. An additional $281M is anticipated later in the year.
- IBA comments: The IBA noted the $56M general fund infrastructure investment (transcribed as “higher” than the FY20 adopted $58M, though the figures suggest lower) falls short of $469M in identified needs, with $297M for priority projects. It also noted $26M for street repaving vs. $68M need, rising overlay costs from $400K to $600K per mile, and that CIP transparency summary sheets were omitted from the proposed budget.
- Councilmember priorities and questions: Members raised numerous district-specific projects, including sidewalks (no repair/replacement funding in FY21), fire station 48 in Black Mountain Ranch, parks and libraries, streetlight goals (lowered from 750 to 490 per year), and equity in street resurfacing. Councilmember Ward requested an unfunded needs list; Councilmember Montgomery requested street project lists; Councilmember Kate asked about Mira Mesa Community Park; Councilmember Moreno listed District 8 projects and asked for confirmation that streets would be resurfaced after utility work. Chair Bry asked for funding source details for emergency projects and SLBE consultant data, and requested that Public Utilities bring a five-year financial outlook focused on Pure Water costs to the committee.
Key Outcomes
- No votes were taken; all budget items were informational.
- Staff will provide: a list of general fund contracts for Fleet Operations, analysis of Kearny Mesa Repair Facility cancellation savings, a list of all city leases with termination dates, the unfunded CIP needs list, street project lists, SLBE consultant data, and a report on whether pay adjustments helped staff retention.
- Staff will follow up on specific council requests: Tupman Joint Use Project status, Chollas Triangle GDP timeline, City Heights Pool discussion, and further information on emergency project funding.
- The IBA was asked to help identify fund balances that could be redirected to services.
- No non-agenda public speakers called in; the committee adjourned to Thursday, May 7, 2020, at 9 a.m. for continued budget hearings.
Meeting Transcript
The council line, could you please mute your phone? We're getting some feedback from your phone lines. Thank you. The council posted online. All written submissions received after the start of the meeting will be made a part of the permanent record. These comments will no longer be read into the record because we are now able to provide for phone-in live testimony from the public. The public may call in following the instructions posted on the agenda by calling 619-541-6310 and entering conference ID 105-579 pound to be placed in the queue for public comment. You should do this when the item you wish to speak is introduced. Please do not call in prior to that time. When you are in the queue, you will be able to hear the meeting and all others that are providing comment. You will know that it is your turn to speak when you hear the system prompt saying your phone has been unmuted. When you hear the prompt, immediately state your name and make your comment. Each speaker will have one minute. Also, please mute the volume on your TV or computer before you begin to speak. This is not a question and answer period. This is your time to provide a statement to the council. Once you have concluded your statement within the allotted time, please hang up or the call will be ended. If you wish to provide comment on other items on the agenda, you should call back during those comment periods and you will be placed in the queue for those items. If you call in during a non-comment period, your call will not be taken. Please monitor the meeting and ensure you are calling at the appropriate time. We appreciate your patience and participation as we aim to provide the best possible access during these unprecedented times. The public may view the meetings on public television on City TV channel 24, Fox Communication, and Time Warner Cable on Channel 99 for ATT, or view the meeting online by going to the City Clerk homepage at San Diego.gov and selecting the City Council Live webcast blue button on the right hand side of the page. Thank you, Clerk, for reviewing those instructions for the benefit of the public. A quorum is now present. We will now take up our information agenda beginning with the items trailed from this morning's agenda. We will begin with public testimony for item number five. Clerk, please proceed. So item five is the environmental services department. I will now unlock the public phone-in system. If you give me one second. This conference is unlocked. The public comment period for this item is now open. Please call 619-541-6310, conference ID 105-579 pound to be placed in the queue. I will leave the line open for three minutes to allow for members of the public to call in. Yeah, at the moment there's nobody on the line, but since we were going to start, we need to leave uh three minutes on the line for folks to call in the same thing. So we do have our first caller on the line. I'll continue to run the three-minute clock down if no other people come on. We do have two callers on the line now, so we'll just we will uh continue. I will uh unmute Mr. Bruce Summers. Hey, hello uh hi. I um uh one does call as a regard to um paving uh Redland drive and the El Trio community. Um I've been living here since 2011. And uh the street was in fairly bad shape. Um a few years ago they did uh a large contract where they installed the uh sidewalk modifications for disabled people and they probably some big large end loaders or excuse me, sir. They did quite a bit of damage to it. I don't mean to interrupt you. We're we're on the environmental services budget. Is that the budget you're addressing? Oh, okay.
openpublica.com