Economic Development and Intergovernmental Relations Committee Meeting – July 12, 2023
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Economic Development and Intergovernmental Relations Committee Meeting – July 12, 2023
The Economic Development and Intergovernmental Relations Committee met on July 12, 2023, at 10:00 AM. The meeting included approval of consent items, a federal affairs update, and a discussion on establishing a legislative process to direct the council's discretionary 1% of Transient Occupancy Tax (TOT) toward the "Penny for the Arts" goal.
Consent Calendar
- Item 1: Approved first amendment to consulting agreement with Adam Frank Incorporated for the Presidio Public Art Project.
- Item 2: Approved first amendment to consulting agreement with Regelman LLC for the East Village Green Public Art Project.
- Both items passed unanimously.
Public Comments & Testimony
Non-Agenda Public Comment:
- Joyce Sanyata (District 3) suggested participatory art activities (tarot, face painting, balloon art) and craft booths along the downtown promenade, and linking to the 2024 World Design Capital event.
- Jim Boujo (East Village) urged the city to lease (not sell) the Citter City Center property, incorporate the civic center, and support homeless projects with showers, transportation, and financial literacy.
- Barbara Gordon opposed prioritizing the marijuana industry, citing youth health risks.
- Terri Ann Skelly supported internship programs but opposed marijuana businesses near youth; urged positive direction toward public service and tech.
- Blair Beekman advocated for softer enforcement of encampment ordinances, reducing ALPRs, extending the smart streetlight program timeline, and supporting Balboa Park artists.
- Becky Repp requested committee support for AB 1207 (Cannabis Candy Child Safety Act) to protect children from marijuana products.
- Original DRA raised concerns about human trafficking, criticized pride flags as promoting pedophilia, and opposed microchipping children.
- Katrina Price (parent and teacher) supported the Employee and Empower youth program but opposed expanding marijuana businesses near schools.
- Dan Schmikowski called for bringing Roman Polanski home and celebrating Bastille Day; criticized a councilmember for blocking him on Twitter.
- Judy Strang (retired social worker) praised the youth employment program and opposed the proposal to expand marijuana businesses.
Item 3 – Penny for the Arts:
- Joyce Sanyata expressed cautious support, emphasizing the IBA's input.
- Aaron Bullard (Villa Musica) supported sustainable arts funding, noting programs serving 4,000 participants.
- Valentina Lunati (Moxie Theatre) and Desiree Clark supported funding to sustain diverse voices and workforce.
- Carlos Cristiani (Fleet Science Center) supported the proposal, noting it does not take from general fund.
- Alex Villafuerte (Pacific Arts Movement) supported sustainable funding for youth documentary programs.
- Bob Lehman (San Diego Museum Council) supported, citing economic impact and job creation.
- Lynn Vasquez (New Children's Museum, La Jolla Historical Society) supported for sustainable planning.
- Kim Thomas (San Diego Civic Youth Ballet) supported, noting 450 families served.
- Fernando Ramirez (Japanese Friendship Garden) supported, highlighting service to veterans.
- Keith Opstead (Chicano Park Museum, Arts Commission) supported.
- Jennifer DePoyen (Space for Art) supported, noting 30% OSP funding reduction.
- Original DRA urged inclusion of buskers in arts funding.
- David Bennett (San Diego Opera) supported, noting a $1.4 million revenue gap post-COVID.
Item 4 – Federal Affairs Update:
- Original DRA criticized the Pure Water initiative, pandemic treaty, human trafficking, and lithium battery safety.
- Blair Beekman appreciated fentanyl-related federal efforts and discussed homeless programs.
Discussion Items
Federal Affairs Update (Item 4 – Information):
- Walt Bishop (Deputy Director of Government Affairs) and consultants Eve Toole and Lori Hedinger presented the 2023 Federal Affairs Update.
- Key points: House leadership challenges; debt ceiling agreement through January 2025; FY2024 appropriations process; the city secured $24 million in earmarks over FY22-23; for FY24, the delegation advanced $31.6 million in requests.
- Priorities include housing/homelessness vouchers, Point Loma wastewater treatment (Oprah 2 legislation), Tijuana River Valley funding (estimated $630 million needed), and lifting WIFIA loan caps for Pure Water.
- The bipartisan infrastructure bill (IIJA) and Inflation Reduction Act (IRA) implementation: city applied for Safe Streets, RAISE, EV charging, and tree planting grants.
- FAA reauthorization, fentanyl legislation (HALT Fentanyl Act, FEND Off Fentanyl Act) noted.
- Councilmember Lee praised the team's work and funding coordination. Chair Campillo inquired about Regional Technology and Innovation Hubs, CHIPS Act, and Safer Communities Act. The team responded that EDC is leading on tech hubs; IRA NOFOs are slower to release.
Penny for the Arts Process (Item 3 – Discussion):
- Sana Luando (Deputy Director of Policy, District 7) presented a proposal to establish an annual legislative process for the council's discretionary 1% of TOT to fund Penny for the Arts, with amendments to Council Policy 100-03.
- Background: TOT levy is 10.5 cents per dollar – 5.5¢ to general fund, 4¢ to TOT fund for promotion, 1¢ council discretionary. Penny for the Arts (2012 resolution) aims for 9.52% of TOT (equal to council discretionary 1%).
- Current gap: FY24 arts funding is $15.3 million; Penny goal is $31.1 million (gap $15.8 million). TOT grew 28% from FY23 to FY24, but arts funding did not keep pace.
- Proposed process: EDIR committee annually recommends use of discretionary 1% to Budget Committee, which then forwards to full council. IBA would analyze adequacy and recommend modifications.
- IBA comments (Nikki Bennett): Diverting discretionary 1% from general fund would require offsetting cuts or revenue. Clarification needed on “adequate” and process for further modifications.
- Council discussion: Councilmember Lee noted potential trade-offs and suggested exploring an ordinance to codify Penny for the Arts. Councilmember Campbell supported, noting TOT is low compared to other cities and referencing Measure C. Council President Pro Tem Montgomery Step supported but raised concerns about finite resources and ensuring the process yields real results.
- Chair Campillo moved to approve staff recommendation and request city attorney to draft revisions to Council Policy 100-03. Motion seconded by Councilmember Lee.
Key Outcomes
- Consent items (1 & 2) approved unanimously.
- Item 4 (Federal Affairs Update) received as information; no vote.
- Item 3 (Penny for the Arts process) motion passed unanimously (Vice Chair Montgomery Step, Councilmember Campbell, Councilmember Lee, Chair Campillo all yes). The item will be forwarded to the Budget and Government Efficiency Committee for further consideration, with a redline version of Council Policy 100-03 to be prepared.
Meeting Transcript
Good afternoon and welcome to the Economic Development and Intergovernmental Relations Committee meeting of July 12th, 2023. Our committee liaison Sarah Jordan will provide information and instruction to the public on participating in today's meeting. Thank you, Chair Campio. While members of the public are able to attend the meetings in person, this meeting is being televised and live streamed on the city's website, and the council administration will continue to make arrangements for the public to comment using the Zoom webinar platform. Members of the public who wish to provide virtual testimony must enter the virtual queue by raising their hand before the virtual queue closes. The queue will close when the last virtual speaker finishes speaking, or five minutes after in-person testimony ends, whichever occurs first. This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business. We appreciate the public's cooperation. Chair Campio. Thank you. We will now call the meeting of the Economic Development Intergovernmental Relations Committee of Wednesday, July 12th, 2023 to order calling the role of Vice Chair Montgomery Step. Here. Council Member Campbell. Councilmember Lee. Here. Thank you, Chair. If you are in person, please complete a speaker slip located at the entrance of chambers and place it in the box indicated at the speaker's lecture and at the front of the room. Please do so in a timely manner to ensure proper meeting management. In-person testimony will conclude before virtual testimony begins. Members of the public can join the webinar by computer, tablet, or smartphone by accessing the link which is listed online in the preamble language of the agenda on the city's webpage. To join the Zoom webinar by telephone, please dial 1 669-2545252. And when prompted, input webinar ID 160-381-2925 pound. This information is also available on the agenda and will appear on the screen during the public comment period for each agenda item. Members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hand before the queue closes. The queue will close when the last virtual speaker finishes speaking or five minutes after the conclusion of in-person testimony ends, whichever occurs first. Please note that if you are watching via City TV channel 24 or online, there may be a delay. Please participate via the audio on your phone and mute your TV or computer when it is your turn to speak. If you wish to speak on a particular item, please wait for that item to be called and then raise your hand to speak by tapping the raise your hand icon, or if you are a calling participant by pressing star nine on your telephone. If you raise your hand during a non-comment period, your hand will be lowered. Chair. Thank you, Sarah, for reviewing those instructions for the benefit of the public and a quorum now being present. We will dispense with the approval of our committee actions from May 17th, 2023. Please proceed. Councilmember Campbell. Councilmember Lee. Yes. And I also vote yes. That passes unanimously with all members present. Let's now take up non-agenda public comment. The council members respect and appreciate the public's input and are fully committed to protecting every participant's free speech rights at council and committee meetings. Sarah, please proceed with the non-agenda public comment. Thank you, Chair. Per rule 2.7, non-agenda public comment is an opportunity for members of the public to comment on items that are not on the agenda but are within the subject matter jurisdiction of the committee. Each speaker will have two minutes. If you have already joined the Zoom webinar online or by phone, please raise your hand if you wish to speak. If you're in person, please come up to the reserve seats at the front of the room. And when your name is called, be prepared to come up to the lecture and in the order called. Members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hand before the queue closes. Um chair, currently we have two speaker slips submitted, so we will begin with Joyce and Yada. Okay, thank you so much.
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