San Diego Rules Committee Meeting Summary - November 1, 2023

The Rules Committee of the San Diego City Council met on November 1, 2023, to consider an amendment to the master records schedule and receive an informational presentation from the Funds Commission. The meeting began with approval of prior committee actions and included public testimony on both agenda items as well as non-agenda topics.

Committee Actions

• Approval of Prior Committee Actions: Motion by Councilmember Lakava, seconded by Councilmember Lee, passed 3-0 (Councilmembers Montgomery Steppe and Moreno absent).

Public Comments & Testimony

• On Committee Actions: One speaker (name not given) expressed discomfort over a previous meeting's exchange between Mara and Sean, criticizing the postponement and describing the conduct as unprofessional.
• Non-Agenda Public Comment:
  • Dan Schmikowski commented on San Diego politics, asserting that all politics goes through Claremont and linking Councilmember Campbell's nomination of Bill Gore to the County Democratic Central Committee's opposition.
  • A speaker (original) promoted a vaccine injury support group meeting on November 2, 2023, at Superbloom Coffee and Juice in Mission Bay.
  • Blair Beekman discussed the ALPR (Automated License Plate Reader) program, recommending a bare minimum of 10-50 new ALPRs for FY24, a more open public review of the ubiquitous contract, and a timeline for final approval in mid-December to address litigation concerns.
  • Joyce Inata (District 3) praised Council President Elo-Rivera for initiating a conversation with a supportive services tenant at the previous council meeting, highlighting the courage of the tenant and the complexity of transitioning from homelessness.
• On Item 1 (Master Records Schedule):
  • Joyce Inata supported the amendment and the proposed delay for a full audit, giving five stars and emphasizing transparency and accountability.
  • A speaker (original) criticized the retention periods (e.g., 22 months for elections records), arguing that destroying records undermines transparency and that going electronic should not justify time limits.
  • Dan Schmikowski criticized the Ethics Commission's credibility, citing a personal experience where he was penalized for a $15.82 campaign misappropriation while a dark money PAC of over $200,000 was not investigated.
• On Item 2 (Funds Commission):
  • A speaker (original) criticized the cemetery fund for profiting from death and objected to library fund uses for events like drag queen story hour, alleging indoctrination and sexualization of children.

Discussion Items

• Item 1: Approval of Amended Master Records Schedule
  • City Clerk Diana Fuentes presented the proposed amendments, including 14 new record series (e.g., Ethics Commission records, advisory committees), changes to retention periods (e.g., grievance files to close+7 years, civil service commission hearing files to close+7 years), and title clarifications. She also updated the committee on the transition to a records management software, noting the need for a full audit before implementation, which may cause a delay.
  • Councilmember Lee moved approval, seconded by Councilmember Lakava. Councilmember Lee asked whether the new record series were previously held by departments; Clerk Fuentes confirmed they were.
  • Vote: 3-0 in favor.
• Item 2: Funds Commission Presentation (Informational per Council Policy 000-26)
  • City Treasurer Liz Curria introduced the presentation. John Peel (Vice Chair of the Funds Commission) provided an overview of the commission's oversight of seven trust funds, including the Mount Hope Cemetery Perpetuity Fund. Investment advisors Alison Bonnie (Northern Trust) and Jeff Nip (Siegel Marco Advisors) reviewed fund performance.
  • Performance: The cemetery fund (66% risk control, 34% risk assets) was up 2.5% year-to-date (net 2.03%) as of Q3 2023, with a 10% one-year return (net 9.7%). The other funds (65% stocks, 35% bonds) returned 5-5.5% year-to-date and 13.5% over one year, with longer-term (10-year) returns of 5.5-6%. The quarterly distributions for several funds are 1.25% of the three-year average market value (5% annually).
  • Councilmember Lakava asked about the vacant banker position on the commission, the relevance of the 40-year-old Council Policy 0-26, and whether the fund's investment policy aligns with the city's divestment from oil, gas, and coal. Treasurer Curria agreed to explore divestment and consider policy updates.
  • Councilmember Lee asked about distribution models for funds without regular distributions; Treasurer Curria explained that distributions are made upon request from the beneficiary department. For the cemetery fund, income from income-producing securities is distributed monthly per Charter Section 55.
  • Council President Elo-Rivera questioned the sufficiency of the Los Peñasquitos Canyon Preserve Fund; Parks and Recreation Director Andy Field indicated that rising costs (e.g., park ranger salaries) may require a supplemental budget request in the tens of thousands of dollars for FY2025.

Key Outcomes

• Approved the committee's prior actions (3-0).
• Approved the amended master records schedule (Item 1) with a 3-0 vote.
• Received the Funds Commission presentation as informational; directed further exploration of policy updates and divestment options.
• Next Rules Committee meeting scheduled for November 16, 2023, at 9:00 a.m.