Good morning, everyone.

Welcome to the Economic Development and Intergovernmental Relations Committee meeting of May 13th, 2026.

Our committee liaison, Sarah Jordan, will provide information and instruction for the public to participate 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 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.

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.

Council Member Campbell.

Council Member Foster will join us soon, and I am present, so we have a quorum.

Also present with us is Noah Fleischmann, senior fiscal and policy analyst from the office of the IBA, Senior Deputy City Attorney Kate Malcolm from the Office of the City Attorney, and Chris Ackerman Avala, policy advisor from the Office of the Mayor.

Sarah, please continue with the public comment instruction.

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

Inputting webinar ID 160-340-6084-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.

Please note that if you're watching via City TV 24 or online, there may be delay, and please participate via the audio on your phone or mute and mute your TV or computer when it is your turn to speak.

If you wish to speak to a particular item, please wait for that item to be called.

And 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.

Quorum is now present just as a beginning note, and as we put up forth uh in communications and social media yesterday.

Item six will be returned to staff for their request.

We will now take up non-agenda public comment.

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.

Speaker will have two minutes and we'll begin with the non-person testimony.

Michael Brando, if you can please approach the lector, and you will have two minutes to provide your non-agenda public comment.

Wow.

You said that we respect and appreciate the public's input.

Well, I think it would be helpful if all of you as part of the economic development and intergovernmental relations committee.

Really take that to heart.

Because we see in the regular city council meetings vile behavior seven years into this nonsense that we've seen since March of 2020.

An example is Sean Elon Rivera and Vivian Moreno, even on the city camera, they're always chit chatting and visiting with one another and giggling while people are at the podium.

So when you say that we respect and appreciate input, do you hear the hypocrisy?

I know you do because you're a smart guy.

And you can use some of your influence to change that.

We're entering in a new era.

People are not buying into the games of the whole I've got to pick Trump or I've got to pick the Democrats because both sides are working with the same energy, the same negative energy.

And the good news is that things are changing.

When you take the pulse of connecting with people in real life one on one, they're seeing the games that are being played from the highest tier all the way down to the people on the local soil.

And I have confidence if some of you really want to reconsider the way you operate, you'll be able to make some changes in your own life because this all comes back to an identity issue.

When people realize themselves as whole W H O L E beings, they can create a beautiful world from the inside out, and it doesn't depend on government in the way that we've understood it in the past.

Thank you.

Thank you for your testimony.

I'll begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide non-agenda public at this time.

Each speaker will have two minutes.

We currently have four hands raised, and we will begin with Becky Rapp.

Please unmute and begin.

Good morning.

My name is Becky Rapp, and I wanted to raise some concerns regarding California Assembly Bill 2697, which is currently advancing through the state assembly and would allow marijuana storefronts to operate drive-through sales.

If this bill moves forward, we'd see an increase in normalization and commercialization of marijuana use.

Increased convenience leading to higher consumption, public safety concerns leading to impaired driving.

And if that's not enough, one major concern is that the bill contains no safeguards regarding children being present in vehicles during marijuana purchases.

An adult could potentially drive through a pot shop with children sitting in the back seat while purchasing high potency THC products.

We continue hearing from public health experts about increasing youth mental health challenges, rising THC potency, accidental ingestion, and normalization of drug use among children and teens.

Yet Sacramento is moving forward with policies that further commercialize and normalize marijuana consumption.

Drive through marijuana sales, send the message that marijuana should be treated like fast food or coffee.

It seems contradictory while the state and local jurisdictions continue investing millions into prevention, behavioral health, homeless response, and public safety.

Um this group to formally communicate with San Diego State Assembly members and ask them to oppose AB 2697.

Thank you.

Thank you.

Our next speaker is Hector.

Please unmute and begin.

Well hi, Hector here.

Hey, once again, we're in the age of Todd Gloria, Gloria Bill 2.0, and now we need to tax the rich, like some guys on the board here want to do.

So let's go after the politicians who have San Diego politicians that are rich.

I don't know if you call 60 million rich.

Sarah Jacobs on uh on the internet says she's worth 60 million.

And that Scott Peters is worth 600 million.

It's time to put a Sarah Jacobs Tax the Rich bill in San Diego.

Only tax are a million dollars a year for being rich and then also uh have her give her salary to the the general fund and even Scott Peters like Trump doesn't take his salary.

And then let's move to uh economic develop the middle uh civil civil cynic there in the center.

We're gonna tear it all down.

So let's move the city operations to Mission Valley, like the billing department has.

It doesn't have fire sprinklers.

And it would be a, you know, just just have a real estate guy get you a lease.

We're gonna take a like a four or five year lease because it takes that long to tear down this building and build a new one.

It's not gonna happen in a year or nothing.

But then also they can get donations to build the building, like Trump did.

He's building that big ballroom.

You guys should be able to come up with some donations.

A lot of people in San Diego are really wealthy if they're not moving yet because the tax on the wealthy guys are moving.

Starbucks is moving out of out of Seattle.

He's moving to like Tennessee.

So let's move the city and get get down to some great meetings.

Okay, bye.

Thank you.

Our next speaker, Blair Beekman, please unmute and begin.

All right, Blair Beakman.

Uh some things I wanted to uh continue to work on and to consider from last week.

Uh a budget meeting items.

Um, again, I was I'm really surprised by the uh retaliation level that's been going on in uh the SDPD and in the mayor's office.

I know uh it's it you guys are aware of the issue and you're trying to better address it.

I just want to uh add my two cents that I hope we can be working on it and uh finding ways to reduce it.

And I think it can uh create a real good betterment for ourselves in addressing our issues.

Good luck on those efforts.

Um retaliation is in a lot of cities, it's just uh city governments and communities.

It's just a matter that uh I hope we can take a special effort to try to work on it here in San Diego.

Um I also wanted to mention um from yesterday's meeting that you had a uh on the proclamations uh it was uh a notification of of uh Asian American Hawaiian uh Pacific Islander month, and um Heritage Month, or I I don't know what the heritage in there is.

But you know, it's uh respecting uh uh the month.

Uh and uh and being from Hawaii uh and and spending a lot of time in Maui, um because of the Lahaina fires a few years ago, they're trying to rebuild the Haina area.

Uh, there's a real emphasis to want to rebuild it in the old way, what Lahaina used to be like in the traditions before you know colonization.

Uh good luck in those efforts.

They're having a bit of trouble doing that.

I hope we can be working towards those goals.

And uh I I don't have enough time to mention the work of Oakland has once again they're really working on uh technology issues.

They and um like with the vendor AOPR vendor issue, they're changing the game.

I hope we can understand that.

Thank you.

This does conclude your time.

Thank you for your comment.

The five-minute timer has expired with three hands remaining in the queue.

We will take no other callers beyond these remaining three hands raised.

Continuing with Madison, please unmute and begin.

And again.

Hi, thank you.

Good morning.

I would like to respectfully urge your support for SB 936, authored by Catherine Bakespear.

This bill would prohibit the public retail sale of nitrous oxide canisters larger than the standard eight gram charger, while preserving legitimate medical, dental, culinary, and automotive uses.

Nitrous oxide, often called with it, is increasingly misused as a recreational drug.

Large flavored tanks are being sold in smoke shops and marketed in ways that clearly blur the line between baking and intoxication.

While sales to minors are already illegal, these oversized tanks remain widely accessible and inexpensive.

The health risks are serious.

The FDA recently warned of oxygen deprivation, neurological damage, and even death.

Repeated use can cause long-term nerve injury and cognitive cognitive impairment, particularly concerning for adolescents whose brains are still developing.

This is also an economic and intergovernmental issue.

Discarded cylinders are creating a growing waste management burden with local governments paying more to dispose of them than customers pay to purchase them.

Those costs are passed on to ratepayers.

Other California counties and cities have already acted.

SB 936 creates a consistent statewide standard while protecting legitimate businesses that use licensed distributors.

Supporting this bill aligns public health, fiscal responsibility, and responsible retail policy.

I ask this committee to support SB 936.

Thank you.

Thank you.

Our next speaker is phone number ending in 8700.

You can unmute by pressing star six.

Good morning, everyone.

Joy Sanyatra.

I want to begin with a uh I didn't have anything prepared this morning.

Uh thank you uh to the person who uh spoke in the committee room this morning, the only person I want to thank him for what he said.

And I want to uh thank everyone who has participated uh so often uh in the work of our government in your love of the community.

So I want to ask you to keep participating, and of course, the key words are respect, respect.

Now, my offering, this is the second time I believe I have said this.

My offering is asking not what your city can do for you.

Ask what you can do for your city.

So again, thank you uh for everyone who participates.

It's been very, very robust lately.

So uh appreciate you listening in love to all.

Thank you for your testimony.

And the final hand up in the queue is Laney Mendoza.

Please unmute and begin.

Hello.

Um, my name is Lonnie Mendoza Gasca, and I appreciate the opportunity to speak with you today to provide insight into secondhand smoke and its environmental impact.

I'm an employee of Social Advocates for Youth in the Policy Research Center on Tobacco in the Environment, a collaboration between Say San Diego and SCSU.

I am here today to speak on San Diego's smoke-free outdoor public places uh dining policy.

San Diego is the largest city in the county that allows smoking in indoor dining patios.

15 out of the 19 jurisdictions have a comprehensive smoke-free outdoor dining policy.

Currently, only restaurants participating in the space as spaces as places program are required to prohibit smoking.

It's not a fair business practice for restaurants that prohibit smoking to those who do not.

And there's a lost revenue due to this misalignment.

Being in downtown, I can smell smoke as soon as I step out of the car.

I went to middle school in 6th Street.

Um, and a few years later, I'm still experiencing the same problem.

An outdoor dining experience in downtown means people will be less protected here in the neighboring cities, um, like Oceanside, Imperial Beach, Coronado, and others, San Diego not having a strong outdoor dining policy impedes the city's goal of helping build vibrant, economically strong and connected communities.

Again, the city of San Diego is the largest city in the county that allows smoking in outdoor dining patios.

It is in the best interest of the city and to implement a comprehensive outdoor dining policy that creates an even playing field for all businesses.

Thank you for your time and attention.

Thank you for your testimony.

And Chair, this concludes non-agenda public comment.

Thank you to the members of the public for their uh participation.

Um we will now move to committee members, mayoral staff, city attorney, and IBA comments seeing none.

Uh, do we have any requests for continuances?

Dr.

Campbell.

No, I was going to lose the consent and very good.

Well, we'll dispense with the approval of it and we'll first uh hear any public comment, but I know where I'm going for my motion.

Let's start with the public comment.

Thank you, Chair.

The consent agenda includes items number one and two.

Item number one is the approval of the committee minutes of April 16th, 2026.

And item number two is exclusive negotiation agreement of 7th and Market Street between the City of San Diego and the Robert Green Company.

Each speaker will have one minute per item.

Please indicate which item or item you'd wish to speak to.

We have received two speaker slips here in chamber in the committee room who would like to register position but do not wish to speak.

Robert Green and James Lawson have both submitted speaker slips in favor of item number two.

I'll begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide public comment on the consent agenda.

We will begin testimony with phone number ending in 8700.

Please unmute and indicate which item or items you wish to speak to.

Thank you, uh Joy Sanyata.

I believe I heard you right.

I was switching my uh technology around.

Uh I believe Mr.

Green is in the room and another uh important person.

Uh, if that's true, regardless, thank you.

I have followed the project on uh seventh and market for years, probably 15.

Started with CCDC, and you know what happened there, so please be diligent, be transparent, and just let it happen.

So I just I'm for this.

Keep negotiating.

Uh I'm glad this agreement is coming forward, and and just it's a it it's a big deal.

So I just am so glad that you're there or that you're available and and love to all.

Thank you.

Our next speaker is Blair Beekman.

Please unmute and indicate which item or items you wish to speak to on the consent agenda.

Hi, uh Blair Beekman.

Uh I'm wanting to speak on the uh seventh and market project.

Great.

One minute, please begin.

Okay, thank you.

Um I'm a bit confused uh about this project exactly.

Um, you've been talking about it for a long time.

Um, is this going to be an I I've I've seen parking lot, you know, our descriptions at the end of this parking lot is a very old uh historical landmark of a hotel, the Claremont.

And um, how is that the Claremont going to fit into all of these designs?

Uh and all these towers and stuff.

I'm interested uh because I think we have to keep the the Claremont, it's it's a historical landmark, and I think it deserves a certain um I don't know under the if it's under the city or state, but um I it is definitely a historical building and it needs to be respected.

And what is what is the process of how it uh uh the Claremont will fit into all of this designing, and uh I hope it can stay, and that the design really respects uh, thank you.

This does conclude your time.

And share with no other hands in the queue.

This concludes public testimony for items one and two.

Very good.

Thank you to the members of the public for your participation.

I'll go to committee members for questions and comments, and Councilmember Campbell, do we have a motion?

I move to consent agenda.

Very good.

Do I have a second second from the council president Pro Tem with a motion and a second?

I will call the roll.

Vice Chair Lee.

Yes, Councilmember Campbell.

Yes, and I am a yes.

That passes with three members present.

Let's move to our discussion agenda.

Sarah, please introduce item number three.

Thank you, Chair Campio.

Item number three, fiscal year 2027 Downtown property and Business Improvement District annual report and Budget.

If you're watching on City TV or the live stream online, and you'd like to call in to speak, please dial 1669 2545252.

And when prompted, input webinar ID 160 340 6084 Pound.

Very good.

From your department and the Downtown Partnership.

Good morning, Chair Kimpio.

I am just gonna hand it directly over to Rio Agonaldo on the team.

Very good, Miss Aguinaldo from Small Business Engagement Specialist from our EDD, Alonso Vivas, uh Senior Vice President Executive Director from Downtown Partnership.

Please let us know how much time you need and go ahead.

Great.

Good morning, Chair Campillo and committee members.

My name is Rhea Aguinaldo, Small Business Engagement Specialist with the Economic Development Department.

With me is Alanzo Vivas with the Downtown San Diego Partnership.

We are requesting seven minutes.

Very good.

The item before you request consideration of the fiscal year 2027 downtown property and business improvement district annual report and associated funding actions.

The downtown property and business improvement district, or PBID, was established under state PBID law to allow for the collection of property assessments to fund services over and above those provided by the city.

The PBID functions as a public-private partnership that enables downtown property owners to collectively invest in, maintaining and enhancing their neighborhoods.

As currently the only PBID in the city, the district was formed in 2000 and renewed for 10 year terms in 2005, 2015, and most recently last year in 2025.

The current district allows for the levy and collection of assessments through 2035.

The City of San Diego contracts with the downtown San Diego Partnership for Management of the PBID.

With that, I'll turn it over to Alonzo for an overview of services and operations.

Thank you, Ria.

Good morning, Chair Campillo and Committee members.

My name is Alonso Vivas, Senior Vice President with the Downtown San Diego Partnership and Executive Director of the Downtown San Diego PBID, also known as the Clean and Safe Program, which has served downtown San Diego for more than 25 years and supports a workforce of more than 86 team members dedicated to keeping downtown clean, safe, and welcoming.

I'd like to take a few minutes this morning to provide an update on the program since its renewal last year and highlight several operational improvements and service enhancements planned for fiscal year 26-27.

This map shows the downtown PBIT area where Clean and Safe operates daily since the program's renewal.

We've expanded services across all neighborhoods, including downtown parks such as Children's Park, Tweet Street Park, and MLK Promenade, and responded to over 41,000 service requests through the district via our Clean and Safe app.

The program also plays an important role in supporting downtown's economic vitality by helping maintain a clean, safe, and welcoming environment for residents, businesses, employees, and visitors.

Our team provides services seven days a week, 365 days a year, rain or shine, delivering consistent and reliable support throughout downtown.

Our cleaning team delivers high value daily services across downtown from church removal to sidewalk washing to graffiti abatement, helping maintain a clean and welcoming environment for residents, businesses, and visitors.

Beyond core services, we're also focused on enhancing the look and feel of downtown through gateway improvements, public art, and neighborhood level investments that help make downtown more welcoming and vibrant.

We've also made improvements by aligning our service routes with peak demand and shifting to app-based requests, allowing us to deliver more efficient responsive data-driven responses across downtown.

We've also expanded our sidewalk deep cleaning efforts, creating a visible difference in many neighborhoods by improving the overall cleanliness of the public right-of-way.

Once again, thank you for your time and continued support, and I'm happy to answer any questions.

And with that, I'll pass it back to Rhea.

Thank you, Alonzo.

The proposed expenditures for fiscal year 2027 for the downtown PBID total approximately 14.9 million, of which 14 million will be expended for services delivered by the downtown San Diego partnership.

A breakdown of cost is shown on the slide.

As you can see, just under half of the budget will go towards core cleaning and maintenance services.

The city will receive approximately 261,000 for city administration to fund assessment engineering services and personnel providing oversight, accountability, and other administration.

The plan services and activities for fiscal year 2027 are consistent with the district's management plan and engineers report.

The proposed actions for this item include approval of the fiscal year 2027 annual report for the downtown PBID and associated funding actions for implementation of the PBID in fiscal year 27.

Approval of this item will allow for the assessments to be submitted to the county by the August 10th deadline for placement on the property tax roll and will meet the legal requirements to provide the services described in the annual report.

This concludes our presentation.

We're happy to take any questions.

Thank you.

Thank you for that.

We really appreciate that.

Let's go to public comment on this item.

Thank you, Chair.

We've not received any speaker slips here in the committee room, so I'll begin the five-minute timer for those on the virtual queue to indicate if they wish to provide comment on item number three.

Each speaker will have two minutes.

We will begin with phone number ending in 8700.

You can unmute by pressing star six.

You will have two minutes.

So yes, on this item.

And uh if you get me started talking on uh clean and safe, we will, you know, go on forever till the cows come home.

But I just love them so much, and I I speak with them now and then, and the only confusion I have lately uh is that there seem to be two different groups of of people coming and cleaning and watching over the city.

Uh, there's clean and safe, and then there's something else.

I think it's part of that gateway project or you know, the 12 blocks or how excuse me if I'm getting wrong on that.

So I just want to uh for the team on the clean and safe.

I hope there's a collaboration and teamwork that's encouraged between those two groups so that you know it's very cohesive and uh, you know, they're uh it all works together for us.

So love, love, love clean and safe.

They're absolutely get five stars plus.

So uh thank you for uh your statement that the uh the budget and so forth are data driven.

I really really appreciate and I'm I'm curious lately.

I've got to study this on you know, can we do both the quantifiable, which is very uh much, you know, part of the data driven base.

Can we do qualitative data?

I don't know if that's done because it's it can be so subjective.

So, but I I think both those components uh are are critical.

And I think I heard Kirby Bryant, Kirby Brady, excuse me, Kirby, Kirby Brady say many years ago uh about the two being uh encouraged.

Thank you.

This does conclude your time.

Thank you for your comment.

Thank you.

Our next speaker is Hector please unmute and begin.

Right.

I used to work down in East Village for a couple years a while ago when they were building that Target and the target guys pulled out and you guys are doing a great job of cleaning safe cleaning everything but it you it still smells like dog piss in the morning when you wait when you go down there seven eight.

'Cause every all the rich guy or the kids have dogs and everyone's got a dog but I'll let you guys get ten benches so when you have lunch you can sit down on a bench and um you know we can utilize the area and stuff.

There's very little places to sit down and have sandwiches.

I used to uh when I was working there I have lunch at the um food for less class sandwich.

It's when they were stealing stuff left and right and like the brazen shoplifting was going on they're trying to combat it the girls that work there.

They call the guy would take off with some stuff just blatantly and they'd call you know calling they stopped calling the cops and couldn't help them and then they got really brazen.

They started stealing things off old ladies and carts after they bought the stuff in the parking lot.

And you guys were chasing them.

You know but it was it's not as bad now but it's still going on but you guys are doing a good job and um that's part because our democratic leadership in California said it's okay to steal nine hundred and fifty bucks so it's just the total rampage and target pulled out for that same reason man.

Let's have a nice car oh no we can't do that man we're gonna lose all our stuff and food for less is I think waiting for someone to buy the place to build a high rise or something I don't know but just get some park benches and you can clean 'em like the bus stops or something where the homeless can't sleep on them but it'd be nice just walking around be able to sit down somewhere.

Okay you guys are doing a good job though.

Thanks a lot.

Thank you.

Our next speaker is Blair Beekman please unmute and begin.

Hi thank you Blair Beekman.

Yeah to uh some public restrooms in East Village would be nice also um I wanted to mention um thank you for this item um you know this was uh on a council item a couple of days ago uh appropriation stuff and um and downtown issues also uh so uh it's nice that it's here today thank you I like what I said uh in the beginning of the week I'm really uh hopeful that we can be considering our remaining old buildings in downtown and want to keep them and not get rid of them in the name of progress.

I I know you guys that land is just raring to go uh for high rises but I I hope you can really consider the just the environment and ambiance that our older buildings offer and you have something unique with your older buildings that most downtowns don't have and it's sad to think you'd give that up and San Jose has given that up a lot and they they suffer for it.

I mean it's there's a clear quality difference uh between you and San Jose and that department and I hope you guys don't lose that.

Um I also are uh oh I wanted to mention the Claremont is a historical landmark uh for the city of San Diego so um to note that and that I hope you can talk about uh the Claremont a lot in the uh seventh uh seventh and market project I I hope it's not destroyed and that you you incorporate it into the design and and make it a regular conversation and that it's safe to have that conversation.

And then to conclude the appropriation things that are going on I've heard through a few conversations that as much as the economic development department is a part of the appropriations process, they don't attend the appropriations uh public meetings at all, and that they uh they would like them to be there.

Thank you.

This does conclude your time.

Thank you for your comment.

And the five-minute timer has exhausted with one hand remaining in the queue.

Peggy Walker, please unmute and begin.

You'll have two minutes.

Hi, thank you.

Good morning.

This is a wonderful program.

And to further enhance it, I wanted to suggest a um focus on um single use E6 and vape disposal.

Um like cigarette butts, eCs and vapes present hazardous plastic and toxic chemical waste and the additional hazard hazardous waste problem of lithium ion batteries.

I wanted to suggest that to support the clean and safe goal, specific receptacles for ECIC and vape waste be placed around downtown and that fines be levied for those found to be discarding vapes and e-cigs improperly.

These pose a risk from uh lithium ion batteries and toxic chemicals seeping into the environment.

Thank you for hearing my concern.

Thank you.

And Chair, this concludes testimony on item number three.

Thank you, the membership from the public for your uh comments.

I want to thank uh our EDD staff as well as the downtown San Diego Partnership for their uh good work in putting forth this PBID.

Obviously, we just uh renewed this last year, and the good work speaks for itself.

Uh, to consider that uh over a million pounds of trash were collected uh in less than a year, July 2025 to March 2026, uh 64,000 uh incidents of cleaning up human and pet waste uh throughout downtown, and 42,000 uh times we see sidewalks power washed just shows that uh the uh state of our downtown economy and uh the lives of the residents uh is far better uh because of this program, and I really thank them for their very, very good work.

Uh so with that I will move approval of the item uh staff recommendation of the item.

And I see Dr.

Campbell is on the lights.

Yes, thank you so much.

I've been happy to set up the motion and uh thank you for the wonderful work that you do.

I thought there was an interesting comment from the public about uh disposal of batteries and vapes that would be interesting if we can do that.

But we can do that.

Let us know what you think.

Thanks so much.

Thank you for that second, Councilmember Campbell.

Um, seeing no further members on the lights, I will call the role of Vice Chair Lee.

Yes, Councilmember Foster.

Yes, and Council Member Campbell.

Yes.

And I'm a yes, that passes four with uh for zero with all members present.

Thank you, sir.

Let's proceed to the next item.

Thank you, Chair Campio.

Item number four is the approval of the fiscal year 2027 San Diego Tourism Marketing District reports of activity.

And if you're watching on City TV or the live stream and you'd like to dial in to speak, please call 1669-2545252, inputting webinar ID 160-340-6084 pound.

Chair.

Very good.

We will now hand over the presentation to Angelica Paulino, the interim community development coordinator from Economic Development Department.

Colleen Anderson, executive director of our San Diego Tourism Marketing District, and Carrie Kapich, the COO of the San Diego Tourism Marketing Authority.

Please let us know how much time you'll need and go ahead.

Very good.

This item is regarding the fiscal year 2027 report of activities for the San Diego Tourism Marketing District, commonly referred to as the TMD, which includes hotel and lodging businesses with 70 or more rooms in the city of San Diego.

The TMD was established to bolster the city's tourism industry through dedicated funding and assessments on lodging businesses, specifically a two percent assessment on hotels with more than 70 rooms.

The use of the TMD assessments collected are restricted to expenditures that demonstrate an increase of hotel room nights.

TMD funds are allocated to marketing efforts, tourism promotion activities, and special events to attract visitors to San Diego.

Almost 20 years ago, hotel industry representatives initiated an effort with the City of San Diego to create the TMD.

The district was established in January 2008 for a five-year term ending in December 2012.

The lodging industry then proposed a renewal of the district for an extended period of 39 and a half years, starting January 2013.

The TMD works closely with the economic development department, the Office of the City Treasurer, and the Department of Finance to oversee the use and management of assessment funds.

The economic development department oversees implementation of the TMD management plan to ensure full compliance with the operating agreement.

With TMD funds, dedicated city staff play a critical role in overseeing district funds by maintaining accurate account reconciliation, dispersing district funds on a monthly basis, consistently monitoring assessment collections, and tracking program reporting and performance requirements.

Each year, the TMD's annual performance report is presented at this committee to highlight accomplishments for the preceding fiscal year.

The fiscal year 2025 performance report was presented in February 2026.

We're here today to provide the report of activities for fiscal year 2027, which outlines plans and budget for the coming fiscal year.

I'd now like to pass it over to TMD Corporation Executive Director Colleen Anderson to provide further detail.

Thank you.

Good morning, and thank you for your commitment and support of tourism, a major economic driver in San Diego.

One in eight jobs in our region is tied to tourism, and in 2025 alone, we're projecting about 14.4 billion in visitor spending, generating roughly 20 billion in total economic impact.

As we look at fiscal year 25 and into fiscal year 26, the story is really one of mixed conditions and shifting travel behavior.

We ended fiscal year 25 and entered fiscal year 26 on a softer note.

Leisure travel pulled back somewhat, largely due to economic uncertainty.

People are still traveling, but they're being more cautious.

We're also seeing a shift where travelers are choosing destinations closer to home and taking shorter stays, which impacts overall room nights and spending.

The good news is that business travel has remained stable, and that's helped provide an important foundation.

Additionally, our citywide convention calendar has been strong, supporting both the convention center and the broader downtown economy.

We're also seeing strength in hotel-based meetings, particularly in areas like UTC, the I-15 corridor, and Mission Valley.

And importantly, we're seeing positive momentum.

Q3 of fiscal year 26 has been exceptionally strong.

That strength is coming from a more balanced mix of both business and leisure travel, which is exactly what we want to see for long-term stability.

So overall, while we're experiencing some near-term softness, the fundamentals remain strong.

And with the right investments and continued focus, San Diego is well positioned to stay competitive.

The San Diego Tourism Authority monitors the health of our region's tourism economy, excuse me.

We work with tourism economics, a division of Oxford economics to forecast performance for total visits, visitor spending, and hotel sector performance.

We also work with future partners to do ongoing monthly tracking of tourism sectors, including air arrivals, attraction performance, and traffic patterns.

The nation's travel economy continues to face headwinds with modest GDP growth, geopolitical challenges, low international demand, and uncertain oil futures.

For fiscal year for 207, tourism economics predicts visits to San Diego to increase 1.9% and visitor spending to grow 3.6%.

Overall hotel occupancy is projected to grow 1 8.8% to 72% and average daily rate to grow slightly to 216 dollars countywide.

TMD funds are a vital dedicated resource, completely separate from the City of San Diego's general budget.

Established exclusively to promote tourism.

This steady protected funding stream empowers San Diego to compete as a top-tier travel destination.

Without it, our ability to attract visitors would diminish, putting at risk the vitality of our tourism economy and threatening one of the city's most critical revenue streams, TOT, which is the largest source of funding for essential public services.

The estimate of available funds for fiscal year 27 is approximately 56 million.

Of this, 46.3 million is from assessments, interest and penalties, and 10 million is from prior year savings and carry forward of restricted reserve funds.

TMD funding is allocated through a transparent public process.

SDTA is funded first, followed by other qualified applicants.

All applications are reviewed, discussed, and ranked in public meetings with evaluations based on projected return on investment, as well as key factors such as seasonality and average daily rate.

Each October, the TMD annual funding cycle begins with an invitation to interested organizations to attend workshops to learn more about TMD funding opportunities.

SDTA and Sports San Diego are the largest recipients of TMD funding and with strong returns on investment.

The others on this list are legacy recipients who continue to deliver strong ROI and creative ways to draw new audiences.

The newcomer for fiscal year 27 is Old Town Chamber of Commerce, Dia de las Mortas in October 2026.

Now I'd like to turn it over to Carrie Kapich, COO of the San Diego Tourism Authority to share insights of SDTA's marketing strategies.

Thank you, Colleen, and thank you, everyone.

So with the reduced budget as we're going into the next fiscal year, we're going from 46 million to 41 million.

What we've done is really make sure that we are focused in on those markets that drive the most demand for hotel visitation into San Diego.

Leisure travel is essential to our tourism economy.

70% of hotel room night sales throughout the county and city are leisure visitors, coming mostly from the Western region United States and large population centers out of New York, Chicago, and Dallas.

With all of the uncertainty that we've been facing, we have been increasing our efforts into more Southern California, Arizona, and Nevada markets.

We recently updated our brand campaign with a come to the bright side message, and we're still touting special promotions like Awesome All Year, which focuses in on all the major events that happen throughout our region, and also Kids Free October, which is a value messaging program.

Our paid advertising is boosted with social media and social influencers, as well as us pitching journalists to do stories on San Diego so we can continue to communicate the depth of what we have on offer here.

Meetings and conventions have been a bright spot for San Diego's tourism economy for the last several years, and they are critical to our success.

These events typically book many years out, so we work closely with meeting planners to make sure that San Diego is top of mind.

We do work with the convention center to make sure we have business on the books throughout the year, and we've been really focused in on making sure that we fill in those peaks and valleys appropriately to get as much demand for the destination as possible.

So when we talk about uh San Diego, we do talk about the fact that we are America's brightest city, and that is something that has helped us to attract events like TUD in 2027, which is a global event and will be at our convention center.

We are excited about the upcoming upgrades to the convention center and welcoming new customers as we go forward.

On the international side, we have had to take quite a bit of budget cuts out of the international market segment, which is appropriate based on how much international demand is coming into San Diego and into the United States.

So it is important that we continue to market internationally.

We're focused in on high-yield markets in countries like Canada, Mexico, the UK, and Germany.

We still work with Visa California to leverage global sports events, and we have some programs around World Cup coming up, and we will be preparing for LA 28 for the Olympics.

We are making sure that we work closely with SAN, the International airport on flight development and route success, and that continues to be a main part of our activities.

When we take a look at our budget, we will be uh reduced by five million this next year.

So for allocation, we have prioritized again consumer advertising.

That is at 24 million in advertising media along with other programs such as uh public relations, social media.

We're running uh in a variety of media outlets, including television, out of home, digital, social media, and addressable TV.

Direct sales is how we are reaching our meeting planners and travel trade professionals.

We attend trade shows, host customer events, and conduct fam trips into San Diego so that our customers can actually see San Diego and experience San Diego, and that does help us convert quite a bit of business for the destination.

And then finally, we continue to be very good stewards of the funds that we receive from the tourism marketing district, with less than 10% of our revenues invested into administration and IT.

Finally, just a note in terms of the work that we do that goes beyond the sales and marketing.

It's the work that we're doing to really make sure that we're supporting our overall community.

We work closely with the arts, culture, culinary, and entertainment businesses that are throughout San Diego, making sure that we are communicating all that's on depth of offers here in San Diego.

We again are very focused in, as I said, in terms of domestic and some international markets, and then we work closely with our local community.

We have a thousand member businesses.

We also have the program Tourism Accelerator, which is now in its fifth year, which is helping small diverse businesses reach and tap into the tourism sector and grow their business and opportunities.

And of course, we work with all of the local BIDs.

So on the grounds grassroots important to us.

So with that, I'll turn it back over to the team to wrap up.

In closing, the requested items for action by this committee are the approval of the fiscal year 2027 annual report of activities and associated expenditures, including cost recovery for city administration and authorization of outstanding fiscal year 2026 reimbursements and associated expenditures.

This concludes our presentation.

Thank you for your time today.

We are available for any questions.

Thank you very much for the presentation.

Let's go to public comment.

Thank you, Chair.

The public comment period for item number four is now open.

We've not received any speaker slips here in the committee room, so I'll begin the five-minute timer for those in the virtual queue to indicate if they wish to provide virtual comment at this time.

Each speaker will have two minutes, and we currently have five hands raised and we'll begin testimony with Madison.

Please unmute and begin.

Okay, thank you.

For the work being done through the San Diego Tourism Marketing District to support one of the most important parts of our local economy.

For my family, I know we're especially excited for the World Cup coming up next month.

It's really fun to live in an area that is a destination for people from all over the world.

A tourism industry generating roughly 20 billion in economic impact is something San Diego should absolutely continue to strengthen and take advantage of, especially during a difficult budget cycle.

As a mom raising three young children here, I think it is important that we connect these economic discussions back to the everyday needs of families.

Strong tourism revenues can help support the services and spaces that make San Diego a great place to raise children.

Our parks, libraries, recreation centers, beaches, public safety services, and youth programs.

When visitors come to San Diego, they support local jobs, restaurants, hotels, and small businesses, but they don't live and raise their kids here.

I hope the city continues looking for ways to ensure the economic benefits of tourism help strengthen the quality of life for residents, especially children and youth.

Investments in clean parks, safe public spaces, after school programs, recreation opportunities, and community amenities are not separate from economic development.

They are part of what makes San Diego attractive to both families and visitors.

A thriving tourism economy should help us not only market San Diego well, but also invest well in the next generation growing up here.

Thank you.

Thank you.

Thank you.

Our next speaker is Hector.

Please unmute and begin.

All right, Hector here.

Hey, the whole world changed a few months ago.

All the tourist world.

Millions of people go to Dubai every year throughout the whole world.

London, the rollers go to Dubai once a year, maybe even more.

There's a huge marking for those guys to come to San Diego.

Maybe get another flight from Paris to San Diego, Air France.

Everybody they're gonna go somewhere they can't go to Dubai.

The missiles are flying.

Those guys have money serious coin.

They can hop on a plane and come to San Diego.

I'd pass out three pitchers of beer coupons at the airport in London or give them some you guys are marketing guys.

I wouldn't even market uh Phoenix and Tucson they those guys when you're born in Arizona you know about San Diego.

You want to go there.

You know it's 120 degrees in Arizona.

Everybody wants to come to San Diego.

It's a given some of them can't afford it but they do they do come they drive here.

I don't need I don't even know if we need to market anything to them.

Just put a couple of billboards up in Phoenix and have a couple hot babes with their surfboards on the boardwalk going we miss you in San Diego.

That'll get all those guys over here you know that they'll have to clear it with their wives or something but their kids and you know it's a no brainer.

I wouldn't even advertise it in Arizona no more but Dubai is the gold mine.

We gotta get them in the San Diego.

You guys I'm sure you guys know that but you didn't mention it but it totally changed the tourism world picture.

No more Middle East tourism they gotta go somewhere so anyway thanks for listening to me thanks.

Thank you.

Our next speaker is Catherine Rhodes please unmute and begin.

Hello Catherine Rhodes and I like that to Dubai idea and everything you you just said.

So anyway um I wanted to talk about the eight point four million dollars that you guys have in your opportunity catastrophic fund.

Um I think right now we're in a uh could could uh um could catastrophic um phase right now with our budget um I think some of this eight million dollars um I would I would like if you could use some of it um for the arts programs that are being cut during this budget season and the thing is that this only has to be uh be done for a two year period because right now there's um I believe 34 million dollars owed for the um conven previous convention center expansion and in two years after paying eight million dollars a year um there's going to be um eight eighteen million dollars excuse me eighteen million dollars a year that's now going to be available as part of the four percent TOT that's supposed to go to visitor serving stuff and so um I I would um ask if you could use part of your eight point four million dollars for the arts this year and maybe next year um you know during this cat catastrophic time um one thing I also um didn't I'm not exactly sure about um you know the online travel agencies do you guys get your full two percent of the the TMD um from the online travel agencies or not I'm not sure you know I know that the hotels don't get their um their full thirteen point um seven five TOT from that from the online travel agencies I'm not sure if you do but if you don't then um if we ever get the ballot wording change you guys could have a 34% increase in your um in your revenue coming in just by some wording changes that um that add online travel agents to um the list of hotel operators thank you if this does conclude your time thank you for your comment and the five minute timer has exhausted with three hands remaining in the queue we'll take no other callers beyond these remaining three hands raised phone number ending in eight seven zero zero you can unmute by pressing star six.

You'll have two minutes.

I thank you uh Joy Sonyata.

Yes on this item.

A big yes.

And uh thank you for the presentation.

I've been with you since the beginning two thousand and eight and uh the TMD really has become an important part of our uh our city, and thank you for that.

And yes, I'm glad that you pointed out we we are aware of this because we we feel it in ourselves in certain ways too that travelers are uncertain and cautious, and so uh we'll we'll go from there.

You're doing a great job with how you're responding to our current uh situations.

So uh I may not get these right, but I hope I'm on point.

I think you said a 1.9 increase is expected.

I think that was in the number of tourists, and then you said 3.6 on the spending.

So I thought that was very interesting.

That was an increase, I believe, on the spending.

I don't know if I'm right on that, but that that I wondered how if we can fan that flame as to uh you know why people are spending more uh and less people are coming, perhaps.

So, and the other interest on uh on money for me is thank you for the 10% uh admin uh amount and uh please continue your diligent use of of funds.

So here's the good news: nature is on our side.

We have sun, we have blue sky, and we have ocean beaches.

Nature is exciting and inviting, and it's here to stay.

So you're doing a really really good job.

Keep it up.

Uh, you're facing our situation beautifully.

You're teaching us in many ways how to meet the moment and to find the opportunity.

Thank you.

This does conclude your time.

I'd love to all thank you for your comment.

Our next speaker is Blair Beekman.

Please unmute and begin.

Hi, uh, Blair Beekman.

Um, yeah, I'm concerned about um uh it seems like a time that uh local travel will be important, how to bring people from you know different areas of the county.

Um, how do we talk about that?

You know, we've made some pretty strong statements, and I I hope we can learn how to uh uh back up those statements with I mean just uh a path that San Diego does have towards care and giving.

Uh that's I think unique among cities of California.

They they San Diego is set out on a real course to be uh a giving city and and that it shares its wealth basically, and uh we have to learn uh how to uh express that more, I think, in the future, and maybe that can be a way to bring people uh back to San Diego.

Uh you know, and it's a tough time we're in good luck how we can be working with it.

Um the work I do with tech accountability, um, also um I think is an important concept.

I tried to talk about it last week at budget time, that if we are I always try to say it, if we try to you know offer good tech practices, people want to be in San Diego to see that in action.

Like I've been trying to describe Oakland is working on a really important set of new tech accountability practices with ALPR vendors, with how uh uh police use their uh surveillance data uh tech.

Um, you know, that's what I've been trying to mention recently, and they're doing it slowly and methodically and and an evolving community over the next year to make these changes.

So it can be a slow evolving process.

But I hope San Diego learns, and once they do, people want to be around that.

They want to see those sort of good changes that we're working towards the good fight, and that that's a draw.

Thank you.

Thank you.

This does conclude your time.

And the final speaker in the queue is Judy Strang.

Please unmute and begin.

Good morning, economic development and interpersonal relations.

And uh just an FII, City Council Person Campbell, when you are speaking, I think maybe your uh mic was turned off, and I'd always particularly like to hear from you.

Thank you for all of you who serve on this committee.

Uh as we say goodbye to City Council Person Campbell.

I have appreciated all your comments.

That's why I was a little sad that I couldn't hear you.

I've particularly noted your attention to health and safety and quality of life issues here at the city and it's to these quality of life issues I'd like to speak to in relationship to tourism.

I noted that there was the comment that travel had weakened and people were cautious.

And on the other hand we know that 70% of people who come here come for leisure.

So I'm thinking what is it that we could do to San Diego to make us look safer be safer of course and look more gracious.

This morning's UT that above the pole took up 50% of it was a horrid picture billboards couldn't be uglier stretch of Pacific highway glaring made us look like we had never cleaned our streets never cared about how we displayed ourselves to anyone who would come to visit and I noticed one of them is a huge marijuana dispensary billboard ugly.

I recognized it Haikaya because it also has a big billboard in Barrio Logan next to an apartment that houses military families and they don't have a high in barrio logan but boy they couldn't get there fast enough to advertise I think we need to look at TOT funds and see what we could do with it to make our city look cleaner safer and more gracious thank you.

Thank you for your testimony and chair this concludes comment on item number four.

Thank you to members of the public for your participation and thank you to our presenters today.

I just want to first extend a sincere thank you to our economic development department and the team members who support the development and review of this item and your coordination with the tourism marketing district the clear the clarity and transparency clear is a mix of clarity and transparency provided in this report reflects the strong partnership between the EDD staff and the tourism marketing district board and this work ensures that the city continues to benefit from well managed and data informed tourism and a marketing strategy that has clearly worked for years and years and years.

So thank you for your expertise and supporting the economy here.

Obviously what I'm what I gather from the presentation and years and years and years of working alongside you is how we need the ecosystem to thrive and that requires multiple components to work together and not undermine any particular part of it.

We have folks throughout the country throughout the world who are not prioritizing our local economy, our state economy, our national economy, our international economy, but the work you do keeps people employed, keeps people paying their bills and keeps our region very strong.

So I thank you for that and I can I just want to say on behalf of all the small businesses and the employees who live in district seven who work in the hospitality and in the tourism industry they are very grateful for your work behind the scenes and of course right now at the at this committee and at full council so with that I'll make a motion to approve the staff's recommendation on this item and I see Dr.

Campbell is on the lights.

Thank you and thank you for that reminder I've turned on the microphone.

Thank you I'd like to first of all second the motion and I want to thank you so much for all your hard work you know uh one half of the general fund budget is due to sales tax and tour uh TOT money so we really appreciate all the work that you do.

I'm so sorry that you have to cut your budget this year it's you're hitting all of us and it's a shame and hopefully this too shall pass as soon as possible.

But in the meantime I just wanted to ask you question I ask you every year and that is the the uh return on investment for every dollar that the city puts in how much return we get and it's usually tremendously high from from your work.

Do you have that number this year?

For fiscal 27 it's about a 28 to one return.

That's great.

For every dollar we put in, $28 dollars back.

Thank you so much for that.

Really appreciate it.

And I'd I'd also like to just take this moment to suggest that all the good work that we have done in San Diego, I've been almost eight years on the council now.

We've provided uh much more affordable housing than we used to have, and we're working on making that even more so, especially with changing the Midway area into a brand new neighborhood with 2,000 units of affordable housing, as well as uh 2,400 other units.

Um so what I'd like to just say is that all the initiatives toward housing, plus all our hard work to help our homeless brothers and sisters, is tremendously important because without that help and getting them into a productive stream of life and back to being contributing members of society.

Um without doing that, we really suffer throughout our economy.

First of all, it's a moral imperative that we do that because it is the correct thing, the right thing to do.

But on the other hand, without doing that, we have in past years suffered because of too many homeless people having to live on the streets, and that is not a condition which encourages tourism.

So we really need to keep that in mind as we go through our budget process, that homeland homelessness strategies that have worked must be continued and expanded so that we can continue the economic growth that uh doing the right and moral thing for our brothers and sisters who are not housed can bring to our city.

So I just wanted to mention that, and I want to thank you for for all the work that you do and bringing the guests to our city, and I want to remind the public that we are a million and a half people strong in our city, and we are among the top number one or two almost every year now in the last few years, in low crime rate.

So we're very safe big city, and uh we really appreciate our public safety personnel for keeping us that way.

Um, and every year the crime rate goes down.

So we really appreciate their work too.

Thank you so much.

Thank you, uh Dr.

Campbell.

We have a motion and a second.

We'll go to Council President Pro Temley.

Thank you, Chair.

Uh, certainly we'll be supporting the motion and just thought I'd take a moment to thank you for coming in and preparing this update.

Um I think for for those who always may not distinguish um the tourism marketing district operates off of an assessment that you're able to collect that is separate from the city's financial challenges.

Um, but that's not to say that you're not facing some of the same headwinds that we are uh, especially with um uh TOT, you know, sort of matching it with TMD in terms of when you see d decreases.

Um so thank you for sharing how you're you're looking to address that.

Um, but I I don't want to detach what's happening at the city with what's happening your front as well.

I know in our discussions prior to this, we talked about how the proposal that's on the table with the budget that largely guts arts and culture support within the city, um, a lot of funding that's been pulled from small business support that I think has gone to help with some of the uh BADs and others that you have partnered with in the communities.

I did want to take the opportunity to ask where you see those impacts possibly impacting your work in promoting the city as well, because I I think they're ultimately interconnected, correct?

Sure.

So arts and culture, and we've talked about this quite a bit, they're an essential part of the fabric of our community, and so from our perspective, it is something that we do tout when we talk about why come to San Diego or why extend your stay in San Diego.

So it's not the primary purpose for travel here, but it is something that deepens the storytelling and gives people reasons to stay longer.

So it's something that is important to the storytelling that we do.

So it's featured in our advertising, it's talked about within our social media, it's part of the pitches that we do when we're talking to journalists.

So I know it's a challenging budget time, and we hope that you know there will be things that can be done to support the arts going forward because it is part of the story we tell, along with talking about small businesses.

So restaurants are critical.

The culinary story is critical to any travel destination.

We've worked closely with the restaurant community, um, small farms.

That's part of that storytelling, too.

So that's also really, really important.

And we've done programs like Tourism Accelerator, which is for small businesses who maybe have not had opportunities before.

We work with council district offices and the BIDs to share the opportunity to be part of that program, trying to help small businesses uh basically thrive.

So that's something that we do.

BIDs, of course, they're on the ground.

They have what's happening within their neighborhoods.

We're only 74 employees, and it's a large community to cover.

So we always appreciate the storytelling that comes to us.

And as I said, we are a thousand member businesses, so that definitely helps us too in terms of depth of what's on offer.

Um, so it's important to to everybody.

Thank you for sharing that.

I think that interconnectedness is really helpful for us understand as we're navigating the next couple of weeks, since every action we take has a has a reaction and sometimes in areas that we don't think.

And so, as much as you're separated in terms of funding and some of the work that you're doing, the success of that work also depends on the city, um, helping to support the same sectors that drive uh the revenue that that everyone collects.

So thank you.

Thank you, Chair.

Thank you, Council President Pro Ten.

We'll now go to Councilmember Foster.

Thank you, Chair, and thank you for the presentation.

Um and thank you for that um question, uh Pro Tem Lee.

Um arts and culture is very important to um District 4.

Um and I just want to, as we talk about um marketing, we do have an event coming up, our um music festival.

Um we are actually going to um be combining this event now with a um previous event that was um noted in district for the Encanto Street Fair.

So now we are going to um call this event the block party, and it is um slated for Sunday, July 12th, 2026.

Um and just as we're in this this committee, um, we're partnering with organizations uh such as Black San Diego, the Diamond BID, uh the San Diego African American uh Museum of Fine Arts and San Diego Melanin.

So when we talk about how arts and culture impacts communities, um as you can see the organizations and how important it is in what we do in all of our all of our um districts um in the arts and culture just really play very, very important part.

So um we'll begin some information over to you, appreciate your efforts last year.

Um, but we're looking to grow this um and working with you, and again, thank you for everything that you do to bring folks to the city of San Diego so they can um touch, feel um our sunshine, our good people in our diverse communities.

So thank you.

Thank you, Councilmember Foster.

Uh, I'll wrap us up here.

Do want to thank uh our team from the Tourism Authority and Tourism Marketing District.

Uh thank you for being here.

Uh, President CEO of the Tourism Authority, Daniel Cooper Schmidt, and I appreciate the conversations uh we've all had uh to try to figure out how to draw more people here, how to make it more affordable to come to San Diego, uh continuing to look at ways to have more fun things in San Diego that draws people here, and then it all builds upon itself.

So uh I can say from a personal point of view, uh we have some really good uh thinkers uh who are leading the way here.

So uh with that I made the motion.

Councilmember Campbell made the second.

I will call the roll.

Uh Vice Chair Lee.

Yes, Councilmember Foster.

Yes, Councilmember Campbell.

Yes.

And I am a yes, that moves uh forward four to zero with all members present.

Thank you very much for your good work.

Let us now move to our information agenda.

Please introduce item number five.

Thank you, Chair.

Thank you, Chair Campio.

Item number five is the update on federal legislative and appropriations actions.

And if you're watching on City TV or the live stream and you'd like to call in to speak, please dial 1669-2545252.

Inputting webinar ID 160 340 6084 Pound.

Thank you very much.

Uh we will hand it over to uh Mr.

Bishop.

Good to see you, sir.

Uh you look well-rested.

Director of Government Affairs for the City of San Diego.

Please introduce yourself and uh let us know how much time you need.

Uh, good morning, Chair.

Uh, need uh 10 minutes for our presentation today.

Very good, thank you.

Uh, Chair Campillo and honorable members of the uh Economic development intergovernmental Relations committee.

We're here to provide our biannual federal legislative and appropriations update.

Uh joining me today from the nation's capital are Evo Toole and Joseph O'Brien from our federal lobbying team from Manette Phelps and Phillips.

And I am happy to hand it over to them to take you through today's presentation.

Joe and Eve.

Thank you, Walt.

Um, thank you, Chair and Council members.

Um, hello from Washington, DC.

Um, we are going to, and next slide.

We are going to run through a couple of things today.

But we're going to do a federal funding recap, uh, discuss FY 2027 appropriations, budget reconciliation, surface transportation reauthorization, housing and homelessness, touch on the midterm elections and sort of what this year looks like.

Um, so just to start in terms of federal funding recap, as you know, Congress struggled to finalize their FY 2026 appropriation bills in 2025, and then passed a majority of them in Q1 of this year, with the exception of the Department of Homeland Security, which uh was shut down for 76 days.

Um, on an April 30th, the House finally voted to fund all of the Department of Homeland Security except its immigration enforcement agencies.

Also, in terms of FY 2026 funding package, um, as you've probably seen too, Congress rejected many of the cuts that the Trump administration had proposed in its budget, uh, and essentially um level funded transportation, health, education, housing, community development programs, and number of the programs that you care about at similar levels uh from last year.

Uh next slide, and I'm going to turn it over to Joe.

Thanks, Eve.

Thanks, Walt, and good morning, everyone.

So, as we speak, Congress is drafting an advancing fiscal year 2027 appropriations bills to fund the federal government for fiscal year 27.

Uh, President Trump a couple of weeks ago released his FY 27 budget request calling for about a 10% reduction in domestic spending and a 42% increase for defense funding.

Now, of that 10%, uh, we saw a lot of that uh, you know, reflected in steep cuts, steep proposed cuts to education, community development, transportation, housing, and health.

Uh, but I think you know, a key reminder is that we saw a lot of these proposals the last time around for FY26, and Congress rejected those cuts and opted to fund many programs, many programs that uh you know were tracking for the city uh at level funding or in some in some uh cases slight increase.

So I think for FY27, we're expecting to see something similar as well.

Uh the House Appropriations Committee, uh, literally as we speak is marking up appropriations bills.

They have set a very, very, very aggressive timetable to get these bills done on their side of things, whereas the Senate's a little bit farther behind.

Uh, they have not taken up a bill yet for markup, but cabinet and agency heads have been visiting both houses and appropriations committees to discuss their respective budget requests.

Um, even though the house is taking a pretty aggressive uh you know stance on getting these bills done, Congress is likely going to need an extension past September 30th to continue funding.

You know, there just aren't a whole lot of legislative days between now and September 30th, believe it or not.

I think with the midterm elections and August recess, there just isn't a whole lot of time.

So with that, you know, we're expecting to see some sort of extension, which could, you know, bring us into December, potentially Q1 of 2027, like what we saw for FY26 for them to get these bills done.

And next slide, please.

Uh on earmarks, so members of the federal, uh, the city's federal delegation has been incredibly supportive of the city's uh committee project funding or congressionally directed spending requests.

We also call them earmarks in Washington, DC.

Uh earmarks allow members of Congress to direct federal funds to projects in their districts, in this case, the city, uh spending, you know, transportation, public health, uh infrastructure, water, housing, uh, environment, um, all things.

So the city of San Diego submitted 19 project requests, totaling about 25 million in funding.

And submission to the committees, the House and Senate Appropriations Committees, is a crucial first step towards receiving final funding.

So over the course of the coming weeks and months, we'll have a greater understanding of which projects will be advanced for further consideration.

Next slide.

And I'll turn it over to Walt really briefly to talk about these projects that have been proposed.

Thanks, Joe.

Yeah, we continue to uh to have uh some great success on the community project front.

As Joe mentioned, we submitted uh 20 projects this year, which is the most we've ever submitted as part of the CPF process, uh totaling 25 million.

Um as the uh committee uh committees have weighed in um and members have decided to what they're gonna submit.

We've had eleven of our 20 projects uh submitted to the committee uh or included by the committee.

Um as you can see, that those projects are listed on the slide above.

Uh again, focusing on uh some of our core priorities of stormwater, vision zero improvements, addressing homelessness, wildfire prevention.

Um so uh last year we had 10 projects included in the FY26 budget for a little over 10 million dollars, and hopefully, we'll have a similar uh amount of projects funded this year uh at a significant dollar value.

Thanks.

Thanks, Walt.

Moving on, I wanted to touch on budget reconciliation.

So uh as you likely know, Congress funded the Department of Homeland Security for FY26, uh, but did not include funding for ICE and CBP due to events in uh you know what we saw throughout the country and Minneapolis.

So um Republicans in the House and Senate have turned to the budget reconciliation uh process, which allows them to pass funding, a funding bill essentially without um democratic votes and instead just using a simple majority in the Senate, 51 votes in the Senate to get it over the finish line.

So Republicans are right now advancing a budget reconciliation measure to the tune of about 72 billion dollars for funding for ICE and CBP over the next three years.

Uh also in that is about you know a couple hundred million for DOJ and then one million for the Secret Service.

Senate Republicans plan to put this package on the floor the week of May 18th.

Um, I will also just note that ICE and CBP did receive tens of billions of dollars via HR one.

So even during the federal government shutdown, they were able to continue to operate because they received money uh money outside of the regular appropriations process via HR one or the one big beautiful bill.

So advancing the reconciliation uh package, you know, the House advanced a package, and the Senate is now marking up our plans to mark up these packages, you know, brings Republicans one step closer to meeting President Trump's June 1st deadline to get this funding bill on his desk.

Um I wanted to touch really briefly though on reconciliation 3.0.

There are discussions in the primarily the House Republican conference of putting forward a third reconciliation package.

HR1 was the first, this one being the second, and then reconciliation 3.0 is right now just an idea, but House Republicans, you know, are targeting some other policy priorities that you know, some of which fell out of the first reconciliation effort.

So there are ongoing discussions on a third package to address energy and cost of living issues, but I'll just note that you know lack of time and perhaps political will prevent this package from coming to fruition before the end of the year and the beginning of the 120th Congress.

Next slide, please.

Another key legislative item happening right now in the 119th Congress is the surface transportation reauthorization.

That is the multi-year federal law that authorized and funds the nation's highways, bridges, public transit, and rail programs.

The current authorization, uh, the infrastructure investment and jobs act or the bipartisan infrastructure law passed back in 2021, allocated about 1.2 trillion to, you know, across all, you know, many federal infrastructure uh programs and projects that includes things like water as well.

It's not just um transportation, you know, rail, uh highways, etc.

House and Senate committees are beginning to draft uh their respective portions of the bill.

The House Transportation Infrastructure Committee, uh in this case, and much like appropriations, trying to go trying to sort of beat their Senate colleagues and release a bill first.

So uh the committee chair Sam Graves um hopes to release a bill uh possibly as soon as May 20th, um, and then bring it to markup to try and meet the September 30th deadline.

But uh I think that given that uh it is actually uh quite later on than when he initially wanted to release the bill.

I think they were talking about January or February, and now we're in May.

It's likely they'll need some sort of extension uh of authorities as they continue to work uh to get the bill across the finish line because the Senate also has to release a bill, and then they'll have to uh they'll have to negotiate.

Next slide, please.

So just a few quick things in terms of what we're looking at for the next uh transportation reauthorization.

Chair Graves said he really wants to focus on supporting traditional infrastructure like roads and bridges.

It doesn't sound like they want to do another, you know, one point something trillion uh infrastructure law again.

Uh and they could look to consolidate or eliminate some of the programs that were created in that infrastructure law.

They're also looking at potential uh permitting reforms to help speed federally sponsored infrastructure projects.

Public transit is also a big item that they're negotiating over.

Public transit received about 21.4 billion dollars a year under the IIJA.

That's a major major negotiating point.

Democrats are working really hard to protect that number and make sure it doesn't go lower, whereas Republicans might try to uh decrease.

Um, but you know, I think at the end of the day, Democrats and Republicans are going to need to come together to find a deal, and it's going to need to be bipartisan.

So, you know, certain provision you know, certain proposals, you know, shot out there by the White House, such as decreasing transit funding.

You know, I I I would be skeptical that they'd be able to make it into the final bill.

Then lastly, on my end, I wanted to talk about housing, which I know, you know, is such a key issue in the city is a native San Diegan.

Um, so right now the House Financial Services Committee and the Senate Banking Committees, which are the House and Senate committees with primary jurisdiction over uh federal housing policy, have released separate bills to make sweeping changes to federal housing programs.

Um the House sent its housing for the 21st century act to the Senate on a bipartisan vote.

And on March 2nd, the Senate released updated text known as the 21st Century Road to Housing Act, uh, which used the original Senate bill, the Road to Housing Act, as a base and drew certain aspects of the House bill in an attempt to sort of reconcile the two bills and get something done.

Um generally speaking, both bills are very similar.

They seek to streamline federal views for housing projects, modernize housing programs, uh incentivize local governments to address barriers to housing development and increase veterans' access to federal housing programs.

Other reforms include adding affordable housing construction as an eligible use under uh CDBG and exempting new activities from NEPA to expedite housing production.

Uh we are actually, you know, potentially about to see a new version and new a new text from the House as soon as really this week or next week, uh, in an attempt to sort of uh answer what the Senate sent over the uh 21st Century Road to Housing Act.

President Trump actually went and endorsed the 21st Century Road to Housing Act right before the House was supposed to uh release new text.

So uh it is it is literally as we speak, Congress is working to release new text and get something over the finish line.

Um, and I think that this is definitely a key issue uh, you know, as we sort of get to the end of the 119th Congress and members look for wins uh before the midterm elections.

But um, yeah, I'll turn it over to Eve.

Thanks, Joe.

And just keeping on housing, um, the continuum of care program, which you know provides important homeless assistance grants, has been under attack by HUD.

Uh the department wants to significantly reduce funding for permanent supportive uh housing uh and try to in its uh NOFO that is noticeable funding opportunity for last year.

Um advocates and several states sued in federal court, which led to a temporary pause in HUD's efforts, and then Congress doubled down on that and basically said, you know, HUD, you need to immediately renew um, you know, grants under the existing process, and so right now we are awaiting um HUD's 2026 uh continuum of care notice of funding opportunity, which they are supposed to release by June 1st.

So we are closely monitoring um what that looks like.

Next slide.

We thought we would just touch on a little bit in terms of what the midterm elections look like.

Republicans currently hold a 2020 to 2012 majority in the House.

Democrats need to need a net gain of just three seats to flip control.

Um, as you know, several states, including California, um, Texas, Missouri, and North Carolina um are going to be using newly redrawn district maps.

And then I think the open question right now is the impact of the very recent Supreme Court ruling of the voting rights act and how that impacts the midterm elections.

Next slide.

In terms of the Senate, Republicans are looking to defend and grow their 53 to 47 majority in 2026.

Democrats have to defend seats in Georgia and Michigan, which Trump won in 2024, and really the Democrats are focused in terms of trying to get the majority in defeating incumbents in Maine, Alaska, Ohio, and Texas.

And then you also have a vacancy left by Senator Tom Tillis, Republican uh from North Carolina, which could present a potential pickup opportunity for former Democratic governor Roy Cooper.

Next slide.

And then just in terms of you know, looking ahead this year, I mean, with the midterm elections, you know, it's it's unclear that a lot of this will get done.

Um, but what you have out there is you've got, you know, the farm bill, which of course funds farm and nutrition programs, which the House passed.

Um, but you know, the Senate will likely propose changes to the House bill.

Um, I I think at this point we're see this as unlikely as moving forward.

Um they also have to do their National Defense Authorization Act um annually, a permitting reform, which Joe um touched on a little bit.

Um, you know, they've been trying to move something forward on a bipartisan basis, but it has been a real struggle.

You also have FEMA reform uh out there as well, as well as the Water Resources Development Act.

And that concludes our conversation, and we'd love to open it up for questions.

Thank you, Chair.

Thank you very much.

Let's go to public comment.

Thank you, Chair.

We've not received any speaker slips here in the committee room.

So I'll begin the five-minute timer for all those in the virtual queue to indicate if they wish to provide comment on item number five.

Each speaker will have two minutes.

We will begin with Catherine Rhodes.

Please unmute and begin.

Hello, this is Catherine Rhodes.

And what I wanted to talk about that um could be something for your legislative group to look into is um what what's called a national marine sanctuary status that's provided by NOAA, and what it does is it provides for free park rangers for our beaches in Mission Day, it funds docent um training um training programs, it funds educational studies and provide science grants who for anybody who wants to study the ocean or marine science, and um one thing that it it very much does is it stops oil drilling off the coast of um of California.

And so if we um applied for it and how you apply for it, is you have to get your congressperson to um to to put in that the city of San Diego wants to look into um having a national marine sanctuary.

And the one good thing that we have here in San Diego is we have all the scientific evidence ready to go.

Usually it takes like a decade to um coalate all this great scientific evidence, but because of all the different things that happened before with the um state marine um parks, that we we all the scientific evidence is there.

All we have to do is package it up in a report that's like um less than a hundred pages and put it towards um and you know and put it um through the process of getting it um federally recognized, and this is what President Obama did in his um last year in office.

He created two national marine sanctuaries for the whole state of Hawaii, and I believe we can create a national marine sanctuary here in San Diego County to st um the first main reason is to actually stop oil drilling off the coast, and the second reason is because it gives you money, free money to um uh to have San Diego internationally, so it pays for international advertisements.

Thank you.

This does conclude your time.

Thank you for your comment.

Our next speaker is Madison, please unmute and begin.

Hi, thank you for the presentation here.

Um, so with the federal affairs update and the work being done to advocate for San Diego in Washington, I strongly support the city pursuing every reasonable opportunity to bring federal dollars back to San Diego, especially during a difficult budget year.

Our residents are feeling the effects of budget strain in very real ways.

Families notice when parks are not maintained, when libraries reduce services, when recreation programs are stretched in, or when infrastructure projects are delayed.

That is why these federal funding opportunities matter so much.

I'm encouraged to see the city pursuing funding for infrastructure, stormwater upgrades, wildfire suppression, public safety, and homeless response.

Every federal dollar we can secure helps relieve pressure on our local budget and allows the city to focus more local resources on core neighborhood services.

I especially hope successful federal advocacy can help protect and strengthen programs that benefit children and youth.

Families need safe parks, clean recreation centers, libraries, after school programs, and community spaces that give young people healthy opportunities to learn and grow.

Those investments pay off for generations.

I also appreciate the city continuing to pursue housing and transportation funding that supports long-term economic stability for working families.

San Diego taxpayers send enormous amounts of money to Washington.

We should absolutely continue fighting to ensure our city receives its fair share back, especially when those resources can help stabilize our budget and improve quality of life in our neighborhoods across the city.

Thank you.

Thank you for your testimony.

Our next speaker is Hector, please unmute and begin.

All right, thanks.

She should uh thank Trump and ICE for lowering the crime rate in San Diego City and County in the pa in the paper.

It said uh in 14 months, ICE has deported 17,000 people from San Diego County.

So they've done it pretty incognito, but that's the what's going on.

So ICE has really contributed to the lower of our crime rate in our in our city and county.

And then if you're gonna beg to Trump, you want some money from him, you might want to just say, you know, we're tired of being a sanctuary city, we're gonna go for the mass deportation of illegal aliens in our county.

It that will open up a lot of housing, a lot of hub funds for US citizens that reside in the city of San Diego.

That'd be a great turnaround.

We could get all those funds, no funds to illegal aliens, we're not playing that game no more.

But during our leadership with uh the Gloria Bill 2.0, which is going on, and our governor who presides over the fourth richest economy in the world, but he's scamming 14 billion bucks on a railroad to nowhere while our sewer line is open sewer line in South County, polluting our kids' lungs, and while the governor sits by and wants to build the train somewhere, and then our our mayor cuts funding to all the kids' programs.

That's like a criminal act.

So we gotta turn this.

We need a state of the art sewer system in San Isidro now.

We want to tax, we'll tax the Mexicans for it.

Get the Mexican tariffs and build a like a billion dollar treatment plant down there so the rich guys can come to Coronado and not have and can be swimming in the ocean.

Your time has expired.

Thank you.

The five-minute timer has also exhausted with three hands remaining in the queue.

We will take no other callers beyond these remaining three hands raised.

Phone number ending in 8700.

You can unmute by pressing star six.

Phone number ending in 870.

Please press star six to unmute and begin.

Are we okay, Sarah?

Yes, please begin.

I'm very sorry about that.

I have no idea what happened.

That was my fault.

Okay, a great great presentation.

I need to say this first.

The federal government tunnel, which I'm struggling about.

I saw no light at the end of that tunnel.

Then I heard what that beautiful woman said.

She said hello from Washington, DC.

Was that the most beautiful hello?

I it just changed things for me.

It's so simple, but I just wanted to say that.

Thank you.

So on the appropriation earmarks, my likes are stormwater infrastructure, vision zero safety, encampment reduction process for the homeless.

And a big thank you for giving us an update on uh the HUD things that are going on.

That that really is critical, and I know you're on top of that for us.

And I love lastly, I love what you said.

Uh Democrats and Republicans will need to compromise.

Democrats and Republicans will need to compromise.

Now, from me, that's a rallying cry.

Totally on point.

Thank you.

I give you five stars plus for all of your work.

It just makes me feel better.

And I just love the hello from Washington, DC.

Love to all.

Thank you.

Kathleen Lippett, please unmute and begin.

Yes, good morning.

Um, as usual, Catherine Rhodes makes an excellent suggestions for protecting local budgets.

She astutely points out that all scientific evidence is ready to go in order to apply for grants to protect marine science activities.

That sounds like fabulous idea.

Because there the overwhelming evidence is also available in other areas.

Those areas the city has chosen to ignore.

So redirecting funding from prevention efforts to harm reduction is not in the long-term best interest of city residents or children.

And when the farm bill is funded for farm and nutrition, and that's the description, it likely belies what is also in farm bill.

Please remember that in 2018 it was the farm bill that had loopholes built in it that allowed the hemp industry to exploit those loopholes and create high potency products that were not in the best interest of the public.

Also, when you see 20% increases to for funding for efforts that have failed so far, your policies need to be changed.

Please reconsider the policies that contribute to increasing the trends that you were trying to mitigate.

They do not deserve extra funding.

And wherever that funding is going, it is a pop obviously being wasted.

So please do something different.

You can't keep doing the same thing and expect you're gonna get better results because we are not getting better results.

Focus on the homeless problems that have to do with drugs.

Thank you for letting me speak.

Thank you for your testimony.

The final hand in the queue, Blair Beekman, please unmute and begin.

Hi.

At this time.

I'm understanding that uh because uh DHS is back in service again at the federal level.

Uh they have worked out the uh UASI funding for um the different UASIS.

There's 44 UASIs all together, they're getting a total of 540 million dollars in funding.

Now, how about spread across 44 UASIs?

I'm not sure.

So I don't know what San Diego UASI is gonna get.

I don't know what the the Bay Area UASC is gonna get.

They the no normally the San Francisco Bay UASI gets about 30 million uh a year, and they are having it's questionable they're gonna get that much.

They're looking more like a 20 to 25 million.

So I have to in fact go up there uh today because they're having their quarterly meetings.

They have public meetings, by the way, in the Bay Area, and they're gonna have another one, and they're going through a difficult time trying to work out the future of uh being an open democratic process.

I feel and uh so I want to be up there and kind of give my support towards that idea.

Um so during a time of transition.

Good luck what they can be doing, and good luck what San Diego UASI can be doing in their budgeting and how to keep them an open, clear process, uh working with the uh San Diego Office of Emergency Services.

From that, at the state level, I'm understanding that it's my feeling that all the good work that's going on in Oakland right now with tech ideas is coming from state ideas, um, and they're passing them down to Oakland, and that I hope can arrive to San Diego soon.

I mean, like I said earlier, it's a slow methodical approach, it invites the community that I hope person people like uh Campillo will be very interested in in tech future stuff.

Thanks.

Thank you for your concluding remark and chair.

This concludes testimony on item number five.

Thank you to the members of the public for their participation on this item, and thank you to our presenters uh for watching what's going on in Washington.

For us, there's a lot to watch.

Uh we will start with Dr.

Campbell.

Thank you so much, Chair.

Um, I Walt, thank you for all the hard work you do, and um I just wondered if you had I I know for eight years you've heard this.

I would just like to know how what's going on with the potential to change the percent of our tax dollar that goes in property tax to the county.

What would it take to increase our percent back to the city so that it's more in line with the amount of services that the city provides to the people of San Diego?

Thank you for the question, Councilman.

Yeah, obviously, it's uh the we require a change at the state level that we're looking at certain avenues that would have to absolutely go through the legislative process, but we're looking at a cute uh few different possibilities that um obviously gonna be an uphill climb for anything because you're taking money away from uh out of the county coffers.

Um, but we're we're looking at a few different scenarios uh potentially next year at the state level that we might be able to explore.

Great.

I hope you can uh give us updates on that as it as it goes by.

It must have been 10 or 12 years ago when our current mayor was in the state legislature that I asked him about this, and he found out for me the entire procedure that was necessary to make the change, and it does indeed involve the state legislature.

Um, but uh just you know, we keep hearing from citizens.

I pay my taxes and I want my city to do this, but little do they know how very little percent of their taxes our city gets.

So I've I wondered about let's get things in gear to try and move that.

Probably the other cities in California are starving similarly in terms of revenue.

Thank you so much for your for your hard work on everything.

And especially on this.

We need more revenue for our cities.

Thank you.

Thank you, Dr.

Campbell.

Uh I don't have too much to add other than the president proposes six hundred and sixty billion in non defense decreases and one point five trillion for defense increases.

And uh I'm really really hopeful that our uh five members of our delegation in whatever gets passed can get those nineteen project requests uh that were submitted uh funded because it's it's really really important that we get those done.

And I appreciate all of them for their for their work on that.

And our states and our senators as well.

Um, Senator Pia and Senator Schiff, who do good work for us down here.

Seeing no other comments or questions, I thank our team for their good work and continue to wish them good luck.

They will need it.

Uh, we will uh call the end of that item.

Uh no motion is needed on the information item.

And that brings us to the end of our agenda.

We will adjourn until Wednesday, May uh Wednesday, June tenth, twenty twenty six at two PM.

Have a great day.

Um