Legislative Update
May 2024
By Craig Benedetto & Marshall Anderson, Legislative Advocates
City of San Diego
LABOR COUNCIL, UNITE HERE, SEIU, AND IATSE CALL FOR $25 MINIMUM WAGE INCREASE FOR SERVICE WORKERS IN THE CITY OF SAN DIEGO
This month, the San Diego & Imperial Counties Labor Council, including Unite Here, SEIU, IATSE, and other labor and activist groups marched from Bayfront Park to City Hall, demanding a $25/hour minimum wage for commercial ‘service’ and hospitality workers in the City of San Diego. Unite Here’s President, who also happens to be head of the Labor Council, Brigette Browning, has stated that she hopes the city council will consider an ordinance by summer 2024, with a January 1, 2025, implementation date. To date, there is no hearing date nor available language, although social media posts and interviews indicate the desire to raise wages for commercial janitorial and security workers. To view the proponents’ online petition, click HERE. BOMA is working with a broad coalition on a strategy to address the proposal. To read more, click HERE.
SAN DIEGO CITY COUNCIL APPROVES DSD MOVE TO MISSION VALLEY
In an 8-1 vote, the San Diego City Council voted to approve a four-year lease for a building in Mission Valley to house a portion of Development Services Department (DSD) staff. The lease, which commences this summer, will cost the city $10.2 million. While some council members expressed reservations about lease terms and associated expenses, others emphasized the urgent need to address the deteriorating conditions of the downtown City Operations Building. A second lease to accommodate DSD staff that need to be close to city hall, is pending and was not a part of the approval earlier this week.
BLUEPRINT SAN DIEGO, COMMUNITY PLAN UPDATES TO GO BEFORE PLANNING COMMISSION MAY 30th
Blueprint SD, a General Plan refresh aimed at identifying citywide housing, climate, and mobility goals, will come before the Planning Commission on May 30th. Blueprint SD uses citywide data to identify future housing, job center, mobility, and other planning needs via a framework that will be used to amend the city’s General Plan. The plan also includes a citywide environmental impact report that would help expedite future community plan updates. If approved, Blueprint SD could lay the foundation for more than doubling annual housing production with a select emphasis on building homes near transit priority areas (TPA’s). To learn more about Blueprint SD, please click HERE. To view the Planning Commission agenda, click HERE.
The Planning Commission will also take action on updates to the University Community Plan and a Hillcrest Focused Plan amendment. For the first time since 1987, an update to the University City Community Plan anticipates a more than doubling of the community’s population. Five "priority zones," including three centered around trolley stations, would encourage the building of high-rise housing at least 10 stories tall. Numerous current one-story shopping centers, including two in southern University City, would have their zoning changed to permit redevelopment and as many as 500 dwelling units per location. Most of University City’s main roads would be changed to include protected bike lanes, replacing some car travel lanes to promote more climate-friendly commuting. Additionally, a public promenade is envisioned for Executive Drive. To learn more, click HERE.
The Hillcrest Focused Plan Amendment to the Uptown Community Plan anticipates the construction of 30-story residential buildings with very high density, public promenades, and an estimated 50,000 more residents by 2050. The plan seeks to allow high-rise housing along transportation corridors and hospital campuses, as well as plans for transit initiatives like an aerial skyway, streetcar system, and commuter rail lines. To view the focused plan amendment, click HERE.
SAN DIEGO APPROVES INCREASES TO DEVELOPMENT SERVICES AND PLANNING DEPARTMENT FEES
The San Diego City Council supported the proposal to significantly increase the fees charged for Planning and Development Services (DSD). DSD, which is operated out of an enterprise fund and almost fully user funded, embarked on a fee study that concluded the department is 88% cost-recoverable and must increase fees in order to keep up with employee salary adjustments and consumer demand. Commercial fees, in one example, are expected to jump as a result with the square foot increment rising to $1.04 vs. the current $0.31 fee. Planning Department fees were also increased.
BOMA’s legislative advocate provided testimony reflecting concern over the timing and economic issues members are facing. BOMA also expressed concern about processing times continuing to lag, as well as the desire to see offsets for these cost increases in improved processing times. In addition to the proposed increases, the draft contains no phase-in, fees are tied to consumer price index (not market conditions), and fees would be used to cover DSD’s move to new offices in Mission Valley and Downtown. BOMA and members of the business community argued that these fees will exacerbate the housing affordability crisis and questioned the analyst’s reliance on pandemic-affected data. To learn more, please click HERE and HERE.
SCOTT WAHL UNANIMOUSLY APPOINTED CHIEF OF POLICE, EFFECTIVE JUNE
Assistant Police Chief Scott Wahl, a 26-year veteran of the San Diego Police Department, was unanimously confirmed by City Council as San Diego's next police chief. Wahl will officially assume the position following current Chief David Nisleit’s retirement in June.
MAYOR RELEASES PROPOSED BUDGET REVISION
Following criticism from city council and community members, San Diego Mayor Todd Gloria reversed several budget cuts initially proposed in the FY 25 Budget. The revised $2.15 billion spending plan reinstates funding for homelessness prevention, tenant eviction programs, climate equity projects, library services, and youth public safety efforts. The City Council will take a final budget vote on June 11, but many members are already expressing relief at the restoration to some of the programs that were previously slated for reduction or elimination. To view the May Revise, please click HERE.
KETTNER AND VINE HOMELESS SHELTER ON HOLD
San Diego's plan to convert an empty warehouse at Kettner and Vine into a large homeless shelter remains on hold as councilmembers express concerns around the real estate deal and overall spending in a down budget year. Despite Mayor Todd Gloria's proposal in April to use the facility to house up to 1,000 people, there are no imminent plans to vote on a lease agreement. The originally proposed 35-year lease, combined with operating expenses, projected costs in excess of $1 billion.
SAN DIEGO RELEASES NEW PROJECT FINDER INTERACTIVE MAP
The City of San Diego has introduced a new interactive map, replacing the old ‘Project Finder’, intended to help the public access information on various construction projects throughout the city. The upgraded platform allows users to focus on specific areas of the city and receive alerts about relevant projects. It also includes Google satellite imagery, real-time traffic updates, and will have regularly updated project timelines to account for scheduling and environmental changes. You can view the updated map, HERE.
County of San Diego and Other Regional/State Agencies
SANDAG APPOINTS MARIO ORSO AS NEW CEO
Following a national search, the San Diego Association of Governments (SANDAG) has appointed Mario Orso, former Chief Deputy Director at Caltrans, as its new CEO. Orso's hiring comes amidst agency turmoil and transition resulting from the resignation of its former CEO, Hassan Ikrata, and federal investigations into SANDAG's management practices, including several audits and a debacle involving SR-125 toll road overcharges. Orso replaces Interim-CEO, Coleen Clementson who stepped in after former CEO Hasan Ikhrata resigned in December. Orso will assume acting CEO duties on June 17 and will oversee all SANDAG operations, including more than 200 ongoing projects and a $1.2 billion budget. To learn more, click HERE.
CPUC APPROVES FIXED ELECTRICITY RATE CHARGES
The California Public Utilities Commission (CPUC) has approved a significant change in how utility customers, including those within SDG&E’s coverage area, will pay their monthly bills. For most customers, the change introduces a fixed charge of $24.15 per month. The decision, which goes into effect for SDG&E customers late 2025, stems from Assembly Bill 205, which aimed to alleviate the burden of rising utility costs for lower-income Californians. Those who are enrolled in low-income assistance programs or who live in deed-restricted affordable housing would pay less, between $6 and $12. To read the CPUC’s statement, please click HERE.
POWER SAN DIEGO FAILS TO QUALIFY FOR NOVEMBER BALLOT
Power San Diego, a citizens’ initiative pushing to municipalize San Diego Gas & Electric (SDG&E) utilities, failed to gather the 80,000 signatures required to place the measure on the November ballot. Business and labor organizations had concerns with the measure due to potential cost implications, little fiscal analysis, and an oversight system in which board members would be drawn out of a hat. Power San Diego still hopes to have gathered enough valid signatures to trigger a council hearing on their proposal. That determination will be made in the next 30 days. To learn more, you can click HERE.
WATER AUTHORITY PROPOSING 38% RATE INCREASE OVER NEXT THREE YEARS
The San Diego County Water Authority (CWA) Board took action this week to continue moving forward with a proposed wholesale rate increase. The CWA provides water to many of the region’s water distributors, so the rate increase for wholesale water will ultimately drive water rates through member agencies to their business and residential customers. The proposed increase is dramatic. In the first year alone, it would be a 19 percent increase starting in 2025. It would go a total of 38% over three years. CWA staff justified the increase at the hearing saying that the cost to them from MWD rates has gone up significantly, and water purchases by member agencies has been down after a couple of decent rain years which has resulted in significant revenue shortfalls. Those shortfalls have impacted CWA’s ability to pay for bonds for water storage infrastructure that has been built over the years. The City of San Diego expressed concern through its appointees, noting the significance of the rate increase. A final vote on the increase is expected on June 27th. For more information, please click HERE and go to page 66 for the staff report.
Other Cities
CITY OF OCEANSIDE COMMITTEE SUPPORTS EFFORT TO PLACE SALES TAX EXTENSION ON THE BALLOT
The Measure X Citizens Oversight Committee in the City of Oceanside unanimously supported a recommendation to place a sales tax extension on the local ballot this November. Approved in 2018, Measure X is a seven-year, half-cent sales tax aimed at improving public safety services, upgrading infrastructure, and aiding the city’s homeless population. City staff plans to present the proposal to the City Council in the coming weeks who will decide whether or not to place the measure, potentially a 10-year extension, on the ballot. To learn more about Measure X, click HERE.
ENCINITAS TAKES STEPS TO APPROVE RESIDENTIAL ELECTRIFICATION ORDINANCE
Instead of banning natural gas hookups, the Encinitas city council took steps this month to prescribe energy efficiency requirements in new home builds. In a 4-1 vote, the City Council gave initial approval to require new homes to include solar panels and electric heat pump water heaters. Nonresidential construction and smaller homes would be exempt. Homes with gas hookups would need to meet an additional set of energy efficiency measures. The moves comes on the heels of a lawsuit against the City of Berkley, which was forced to rescind a complete ban on natural gas hookups in new construction. The ordinance will need to come back to city council for final vote before going to the state’s Energy Commission and Building Standards Commission for sign off. To learn more, click HERE and scroll down to Item-10.
ENCINITAS CITY COUNCIL PLACES SALES TAX INCREASE ON NOVEMBER BALLOT
Encinitas voters will decide in November whether to increase the city’s sales tax by 1 percent, following a City Council vote of 4-1 (Ehlers opposed) to place the measure on the ballot. If approved, the proposed tax would generate around $15.4 million annually for the general fund. City officials anticipate using the revenue for infrastructure improvements, such as storm drain system upgrades in Leucadia and the construction of two new fire stations. Despite ample public opposition, the city council emphasized the need for the tax to address looming budget deficits. The city may also consider a 2% tourism occupancy tax increase in 2026. To view staff’s presentation, please click HERE.
NATIONAL CITY VOTES TO REMOVE SANDY NARANJO FROM BOARD OF PORT COMMISSIONERS
National City has removed Commissioner Sandy Naranjo from her position on the Port of San Diego due to “irreparable fractures in her relationship with her peers.” The move follows Naranjo's censure by the Port Commission seven months ago for misconduct. Despite being appointed by National City in 2020, Naranjo's tenure was marked by tension with Port leadership, particularly its lead attorney, Tom Russell, and allegations of corruption and retaliation. You can read more HERE.