OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Special Economic Development and Intergovernmental Relations Committee Meeting - October 2, 2024

Economic Development & Intergovernmental Relations Committee — Wednesday, October 2, 2024
BodySan Diego, California
SessionEconomic Development & Intergovernmental Relations Committee
DateWednesday, October 2, 2024
StatusFILED
Video Record
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0:37

All right, Chair Campia, we have quorum, so whenever you're ready.

0:41

Thank you very much and good afternoon.

0:43

Welcome to the special economic development and intergovernmental relations committee meeting of October 2nd, 2024.

0:50

I am notifying the committee and the public I'm attending today's special meeting remotely due to just cause related to traveling on official business for the city in pursuance to the Brown Act, disclosing that there's no individual 18 years or older in the room with me.

1:01

And I will update this disclosure if anything changes during the course of the meeting.

1:04

Our committee liaison Sarah Jordan will provide information and instruction for the public to produce participate in today's meeting.

1:10

Thank you, Chair Campio.

1:12

Well, members of the public are able to attend the meeting in person.

1:14

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.

1:22

Members of the public who wish to provide virtual testimony must send to the virtual queue by raising their hand before the virtual queue closes.

1:28

This queue will close when the last virtual speaker finishes speaking or five minutes after in-person testimony ends, whichever occurs first.

1:34

This will allow for better meeting management between the two platforms and ensure the committee is able to manage and conduct city business.

1:40

We appreciate the public's cooperation.

1:42

Chair Campio.

1:43

I'll now call the special meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, October 2nd, 2024 to order and call the role.

1:52

Councilmember Foster.

1:59

I'm sorry, hearing here.

2:01

Oh, thank you.

2:02

And uh Councilmember Campbell is absent today.

2:04

I'm present virtually.

2:06

Uh also present with us is Gillian Andalina, our deputy director from the office of the IBA, Deputy City Attorney Kate Malcolm from the Office of the City Attorney and Stephen Hill, Senior Policy Advisor from the Office of the Mayor.

2:15

Sarah, please continue with our public comment instruction.

2:18

Thank you, Chair.

2:19

If you are in person, please complete a speaker slip located at the entrance of chambers and place it in the tray indicated at the table at the front of the room.

2:25

Please do so in a timely manner to ensure proper meeting management.

2:28

In-person testimony will conclude before virtual testimony begins.

2:32

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.

2:41

Please dial 1669-2545252.

2:44

And when prompted, input webinar ID 161-965-4979 pound.

2:49

This information is also available on the agenda and it will appear on the screen during the public comment period for each agenda item.

2:54

As a reminder, members of the public who wish to provide virtual testimony must enter the virtual speaking queue by raising their hand before the queue closes.

3:01

The queue will close when the last virtual speaker finishes speaking, or five minutes after the conclusion of in-person public testimony, whichever happens first.

3:08

Please note that if you're watching via City TV channel 24 or online, there may be a delay.

3:12

Please participate via the audio on your phone and meet your TV or computer when it is your turn to speak.

3:16

If you wish to speak on a particular item, please wait for that item to be called and then raise your hand by to speak by tapping the raise your hand icon, or if you're a call and participant by pressing star nine on your cell phone or landline.

3:27

If you raise your hand during a non-comment period, your hand will be lowered.

3:32

Thank you, Sarah, for reviewing those instructions for the benefit of the public.

3:35

A quorum now being present.

3:36

As a note to the public, we will take non-agenda public comment at the end of our meeting after we have heard the agendized item.

3:42

Uh, we'll now move to uh committee members, mayoral staff, uh city attorney, and IBA comments.

3:47

Do we have any comments?

3:49

Hearing and seeing none at this point, do we have any requests for continuances?

3:54

Hearing none at this point, we'll move on to our agenda.

3:57

Uh let's dispense with the approval of our consent agenda.

4:00

Do you have any requests to pull?

4:03

Hearing none, Sarah, please proceed with our public comment.

4:06

Thank you, Chair.

4:07

The public comment period for the consent agenda is now open.

4:09

The consent agenda includes the approval of the committee minutes from September 4th, 2024.

4:14

And Chair, we will begin with in-person testimony.

4:18

Allegedly, Audra, if you would please approach the elector, and you will have one minute to share your testimony.

4:28

So I wanted to say normally the minutes aren't recorded that good when they're doing the public comment.

4:35

And this was actually pretty spot on with what I had to say, which was I gave comment on the negative impacts of the Sandy of San Diego serving as a sanctuary city, illegal border crossings, rising crime, accounts of sexual violence, and redirecting budget funds towards communities.

4:50

I wanted to be specific that the budget funds that are going towards anything that has to do with the sanctuary city and harboring and housing illegals aiding and abetting this invasion should be redirected to the communities that need it the most because we have people in our communities that are suffering.

5:00

I wanted to be specific that the budget funds that are going towards anything that has to do with the sanctuary city and harboring and housing illegals aiding and abetting this invasion should be redirected to the communities that need it the most because we have people in our communities that are suffering, and we've actually had a little girl that's been raped by an illegal that is being hidden from the public.

5:12

So I think that it's important to not encourage that, but to make sure that our communities are taken care of.

5:18

And if we can't do that, then we shouldn't be adding other people to the plate.

5:22

So thank you.

5:24

Thank you for your testimony.

5:26

And with no other speaker slips here in chambers and seeing no hands raised in the virtual queue, this concludes public comment on the consent agenda.

Discussion Breakdown — Share of Meeting
Arts And Culture██████████████████████████████████34%
Budget Equity Analysis████████████████16%
Transient Occupancy Tax█████████9%
Public Engagement████████8%
Public Comment███████7%
Cannabis Regulation██████6%
Toxicity████4%
Public Health████4%
Homelessness████4%
Summary of Proceedings

Special Economic Development and Intergovernmental Relations Committee Meeting - October 2, 2024

The Economic Development and Intergovernmental Relations Committee held a special meeting on October 2, 2024, at approximately 2:00 PM. Chair Raul Campillo presided virtually, joined by Vice Chair Marni von Wilpert and Councilmember Sean Elo-Rivera (Councilmember Foster). Councilmember Campbell was absent. The committee considered a consent agenda and a main discussion item on the annual recommendation for the council discretionary portion of the Transient Occupancy Tax (TOT), specifically to fund arts and culture at 9.52% of TOT revenue. The meeting also included non-agenda public comment on various topics.

Consent Calendar

  • Approval of Minutes (September 4, 2024): Approved unanimously (3-0) after one public comment. The speaker expressed opposition to San Diego's sanctuary city policies, alleging negative impacts from illegal border crossings and calling for redirection of budget funds away from sanctuary-related programs toward community needs. No other public testimony was received.

Public Comments & Testimony

On Consent Agenda:

  • One speaker (Audra) opposed sanctuary city policies, claiming rising crime and sexual violence, and urged redirecting funds to local communities.

On Discussion Item #2 (TOT Recommendation for Arts):

  • Joy Sanyata (District 3) supported the recommendation but requested that resource availability be discussed earlier in the budget process.
  • Cesar Javier expressed support but warned about corruption and urged honesty in budget allocations.
  • Christine Martinez (Arts and Culture San Diego, representing 160+ groups) strongly supported the proposal, stating that arts funding creates jobs, education, and community identity.
  • Phil Johnson (Artistic Director, Roustabouts Theater Company) supported arts funding, noting its role in providing inspiration, connection, and addressing difficult social issues.
  • Carlos Cristiani (Fleet Science Center) supported the proposal, highlighting that city funding leverages state and federal grants, supports community programs, and serves over 400,000 individuals annually.
  • Eric Meyer (Fleet Science Center) supported, describing STEAM education programs in districts including B-WISE for girls and library partnerships.
  • Kim Phillips P (Arts and Culture SD, face painter/event planner) supported, emphasizing arts funding creates jobs and supports community events.
  • Peter Concutoni (nonprofit Lao SD) supported, stating arts and cultural festivals attract over 25,000 attendees and create jobs in multiple sectors.
  • Audra urged caution, arguing that if the promise was to fund arts from TOT only, then funds should not be taken from other services given crises like homelessness.
  • Francine Maxwell (virtual, Black Arts and Cultural District) registered support, calling art a great equalizer.

Non-Agenda Public Comment:

  • Joy Sanyata read from a "Declaration of Interdependence for San Diego Tijuana," promoting cross-cultural exchange.
  • Perita Javier complained about a ceramics business emitting toxins in a residential zone, alleging inadequate regulation.
  • Audra criticized the committee for inattentiveness and questioned priorities, asserting they do not serve the people.
  • Jan Bourgeois urged TOT funds be used for homeless services and low-income housing, citing downtown homeless issues.
  • Terry Anscelly (virtual) supported youth workforce programs but opposed marijuana businesses due to health risks to young adults.
  • Megan Stewart (virtual) cited statistics that only 27% of marijuana businesses are profitable, questioning economic benefits and noting public health harms.
  • Devin Rapp (virtual) discussed enforcement actions against illegal cannabis operations, calling for worker protections and fairness.
  • Peggy Walker (virtual) urged data collection on marijuana's social costs, citing Colorado's finding that each dollar of tax revenue costs nearly $5 to mitigate harms.

Discussion Items

Item 2: Annual Recommendation on Council Discretionary Portion of Transient Occupancy Tax (TOT)

  • Presentation: Kerry Shaw (Policy Advisor for Chair Campillo) presented the proposal to allocate the council discretionary 1% of TOT (equivalent to 9.52% of total TOT) to arts, culture, and community festivals, estimated at $32.4 million for FY2026 based on current projections. This would fully fund the "Penny for the Arts" goal established in 2012. Shaw noted that in FY2025, the final allocation was $16.1 million (4.93% of TOT), far short of the 9.52% goal. All nine council members supported increasing arts funding in their FY2025 budget priorities, with six suggesting at least 6.5%. The recommendation does not commit funding but provides a formal council input to the budget process.
  • IBA Comments: Jillian Andolina (Office of the IBA) stated that the IBA will release a report on October 10 analyzing council budget priorities. She noted the city faces a structural budget deficit of $156–$233 million (five-year outlook). Achieving the full $32.4 million would require significant reductions to other city services absent new revenue.
  • Committee Deliberation:
    • Chair Campillo strongly supported fully funding Penny for the Arts, calling arts an economic engine and honoring a 12-year-old promise. He made a motion to approve the recommendation.
    • Vice Chair Lee expressed support but questioned what changed from the previous year's 6.5% recommendation. He noted the structural deficit and proposed a mid-year review of arts funding to align with actual revenue. He stated he would prefer a recommendation more consistent with the city's financial position but would support the item as it moves to the Budget and Government Efficiency (BGE) Committee. He also stressed that the council's 1% discretionary TOT should not be the sole mechanism for funding Penny for the Arts.
    • Councilmember Foster acknowledged fiscal responsibility concerns but supported the recommendation as a starting point in the budget process. He seconded the motion, agreeing that the 1% discretionary TOT should not be the only source for achieving Penny for the Arts. He emphasized the need for further analysis during the budget process.

Key Outcomes

  • Motion Approved: The committee voted 3-0 (Vice Chair Lee, Councilmember Foster, Chair Campillo) to recommend allocating 9.52% of total TOT revenue (estimated $32.4 million) to arts, culture, and community festivals for FY2026. The recommendation will be forwarded to the Budget and Government Efficiency Committee for further consideration on October 16, 2024.
  • Consent Calendar: Minutes from September 4, 2024 approved unanimously.
  • Next Steps: The BGE Committee will review and possibly modify the recommendation. The IBA will update its budget priorities report accordingly. Council will consider a resolution on October 28, 2024. The mayor will consider the recommendation in developing the FY2026 proposed budget.
  • Non-Agenda Public Comment: No committee action taken; comments were received for informational purposes.

Adjournment

The meeting adjourned at approximately 3:30 PM. The next regular meeting is scheduled for October 30, 2024, at 2:00 PM.

Meeting Transcript

All right, Chair Campia, we have quorum, so whenever you're ready. Thank you very much and good afternoon. Welcome to the special economic development and intergovernmental relations committee meeting of October 2nd, 2024. I am notifying the committee and the public I'm attending today's special meeting remotely due to just cause related to traveling on official business for the city in pursuance to the Brown Act, disclosing that there's no individual 18 years or older in the room with me. And I will update this disclosure if anything changes during the course of the meeting. Our committee liaison Sarah Jordan will provide information and instruction for the public to produce participate in today's meeting. Thank you, Chair Campio. Well, members of the public are able to attend the meeting 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 send to the virtual queue by raising their hand before the virtual queue closes. This 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. I'll now call the special meeting of the Economic Development and Intergovernmental Relations Committee of Wednesday, October 2nd, 2024 to order and call the role. Councilmember Foster. I'm sorry, hearing here. Oh, thank you. And uh Councilmember Campbell is absent today. I'm present virtually. Uh also present with us is Gillian Andalina, our deputy director from the office of the IBA, Deputy City Attorney Kate Malcolm from the Office of the City Attorney and Stephen Hill, Senior Policy Advisor from the Office of the Mayor. Sarah, please continue with our public comment instruction. Thank you, Chair. If you are in person, please complete a speaker slip located at the entrance of chambers and place it in the tray indicated at the table 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 1669-2545252. And when prompted, input webinar ID 161-965-4979 pound. This information is also available on the agenda and it will appear on the screen during the public comment period for each agenda item. As a reminder, 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 public testimony, whichever happens first. Please note that if you're watching via City TV channel 24 or online, there may be a delay. Please participate via the audio on your phone and meet 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 by to speak by tapping the raise your hand icon, or if you're a call and participant by pressing star nine on your cell phone or landline. If you raise your hand during a non-comment period, your hand will be lowered. Thank you, Sarah, for reviewing those instructions for the benefit of the public. A quorum now being present. As a note to the public, we will take non-agenda public comment at the end of our meeting after we have heard the agendized item. Uh, we'll now move to uh committee members, mayoral staff, uh city attorney, and IBA comments. Do we have any comments? Hearing and seeing none at this point, do we have any requests for continuances? Hearing none at this point, we'll move on to our agenda. Uh let's dispense with the approval of our consent agenda. Do you have any requests to pull? Hearing none, Sarah, please proceed with our public comment. Thank you, Chair. The public comment period for the consent agenda is now open. The consent agenda includes the approval of the committee minutes from September 4th, 2024. And Chair, we will begin with in-person testimony.

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