BOMA San Diego
Legislative Update
On Thursday, February 27th, the San Diego City Council’s “Cost of Living Committee” will consider a $25 minimum wage on “tourism workers.” No specific ordinance language is currently drafted. BOMA has expressed concerns in the past about this kind of wage increase as it would severely impact San Diego’s ability to compete as a destination city, decrease City of San Diego revenue, and further inflate the cost of living. It is worth noting that an original $25 minimum wage increase measure floated last year included commercial and office space workers. As Thursday’s item is for “discussion purposes,” BOMA will be closely monitoring the action given the potential impact to San Diego businesses. It is anticipated that some direction will be given to potential draft an ordinance for consideration. For more information, please click HERE.
SEAN ELO-RIVERA PROPOSES ELIMINATING “PASS THROUGH” COSTS TO COMMERCIAL, RESIDENTIAL TENANTS
Preceding an item to discuss waste hauling fees (blurb below), Councilmember Sean Elo-Rivera proposed an ordinance that “protects customers and tenants” by prohibiting property owners from charging tenants more for city provided utility services (water, wastewater, and waste management) than the cost of that service, so-called junk fees, and a requirement that property owners provide an itemized breakdown of charges if a tenant requests one. This would apply to both commercial and residential property owners who receive city services. It should be noted that no outreach was conducted with impacted stakeholders, which was discussed with Elo-Rivera’s office and became a point of discussion at the hearing. The Environment Committee directed the city attorney to draft an ordinance for future consideration and included a request to Councilmember Elo-Rivera that stakeholder outreach be conducted to avoid unintended consequences. To read the staff report, click HERE.
CITY OF SAN DIEGO CHIEF OPERATING OFFICER TERMINATED, EXECUTIVE OFFICES CONSOLIDATED AMONG COST SAVING MOVES
In light of the estimated $360 million budget deficit, San Diego Mayor Todd Gloria announced a string of restructuring moves earlier this month, including the dismissal of Chief Operating Officer, Eric Dargan. The position of COO was removed entirely, with the Mayor now assuming the role under the Strong Mayor form of government. The reorganization also consolidates the departments of Race and Equity, Cultural Affairs, and Sustainability and Mobility, resulting in an estimated $5.3 million in cost savings. Additionally, several vacant executive positions were eliminated. Additional cuts are expected as the Mayor crafts the FY 2026 budget. To view the updated City of San Diego organizational chart, click HERE.
COUNTY BOARD OF SUPERVISORS DELAYS (AGAIN) POTENTIAL REVENUE MEASURE DISCUSSION
The San Diego County Board of Supervisors again delayed discussions around hiring political consultants to explore new revenue options (e.g. taxes) aimed at addressing a projected budget deficit. The item, which was continued earlier this month, attempts to address a $138.5 million county budget by deficit by hiring a consultant to conduct public opinion research on potential revenue measures including a sales tax, real estate transaction fee (aka transfer tax), and/or the creation of a new stormwater district. Supervisor Terra Lawson-Remer’s board letter was originally docketed the week of February 24, but was pulled from the agenda at the 11th hour. Several business groups, including BOMA, have expressed concern and are monitoring closely.
CITY OF SAN DIEGO SURVEYING RESIDENTS ON BUILDING DECARBONIZATION ROADMAP
The City of San Diego has created a Building Decarbonization Roadmap Survey to gather feedback as they look at ways to better implement their Climate Action Plan and meet their 2035 “net zero” goals. BOMA has been involved in these conversations, but this is an opportunity for our members to provide direct feedback through the survey to help inform the output from the perspective of building owners and managers. This feedback will be critical to help encourage the city to avoid costly, and difficult new requirements, while also communicating on ways property owners are helping invest in energy conservation and building decarbonization. BOMA has advocated for incentive based programs to help properties achieve success. To take the survey, please click HERE.
SAN DIEGO CITY COUNCIL TO APPROVES COUNCIL POLICIES GOVERNING LEASE, SALE, AND ACQUISITION OF CITY PROPERTIES
The San Diego City Council unanimously approved a set of three City Council Policies, including 700-10 (leasing and sale of city-owned property), 700-12 (leasing to non-profits), and 700-32 (acquisition of real property). Numerous lessees cited concerns, including a lack of impacted stakeholder outreach, little flexibility with respect to lease extensions, and language that disincentivizes property upgrades and investments. For context, these council policy changes stem from a city audit recommendation last year to strengthen real estate protocols, oversight and transparency guidelines, and establish cost-recovery guidelines for non-profits. To read the approved council policies, click HERE and scroll down to Item 201.
HUNDREDS OF CITY OF SAN DIEGO USER FEES EXPECTED TO INCREASE
Given the $360M+ budget deficit, the City of San Diego is considering fee increases for hundreds of services ranging from boat mooring to serving rooms in city libraries. Additionally, the city is contemplating charging for access to facilities in Fiesta Island and Balboa Park. Traffic control fees for events have also been identified. For BOMA they include fees, like the Planning Department’s General Plan Maintenance Fee, which is helpful for funding efforts like the annual Land Development Code Update. And others that are concerning like a significant increase in the city’s right-of-way inspection fee. The City Council will take a final vote on the proposed hikes next month. BOMA will be discussing further with city staff. To learn more, please click HERE.
SAN DIEGO’S DEVELOPMENT, PARK AND RIGHT OF WAY INSPECTION FEES COULD INCREASE
The San Diego City Council will be discussing a comprehensive set of fee increases in the coming weeks. A fee analysis is conducted every 3-5 years and is intended to ensure that full cost recovery from city services is collected from users. Included in the package are a broad set of fee increases for the vast majority of city services, including the Development Services, Park and Recreation and Engineering and Capital Improvements Departments. One of the concerns is the lack out stakeholder outreach, which is becoming a theme, to impacted users. BOMA will be meeting with relevant departments, as well as the Mayor’s office as this package progresses to Council. It is anticipated that the fee package will be considered by the full Council in March and that the fee increases, if approved, would go into effect in April. All of this comes on the heels of the city’s budget deficit which is estimated to be upwards of $250 million.
BOMA is specifically tracking the “General Plan Maintenance Fee” or GPMF, which helps fund the Planning Department’s work efforts, including the Land Development Code, Zoning Code and Community Plan updates. BOMA is also tracking the Engineering and Capital Projects Department’s (ECP) proposal to significant increase fees charged to applicants for inspections of public right-of-way permits.
For more information, please click HERE and scroll down to items two and three.
SAN DIEGO CITY COUNCIL DOUBLES PARKING METER RATES
The San Diego City Council voted 8-1 earlier this month to double parking meter rates, citywide. The move comes as the city seeks to raise revenue amid a $360 million+ budget deficit, with the rate increase expected to bring in nearly $10 million annually. Parking meter rates, which currently range from $0.50 to $1.50, will double with a max of $2.50/hour. The City Council also waived Council Policy 100-18, which redirects the increase away from community parking district and into the general fund. During the meeting, Councilmember Sean Elo-Rivera urged the Mayor’s Office to explore additional parking revenue measures, including charging visitors in the beach areas and Balboa Park. To learn more, please click HERE.
SAN DIEGO COMMITTEE SETS HEARING DATE TO DETERMINE RESIDENTIAL WASTE HAULING FEES
Pursuant to Proposition 218, which requires cities to set a public hearing date in order to adopt waste management fees, the City of San Diego’s Environment Committee set a hearing date in June. The impetus stems from San Diego’s Measure B, which passed by voters in 2022 and allows the city to collect residential waste hauling fees from eligible single-family and multi-family homes who receive city service. Previously, the city provided free trash pickup to these properties under what was called the “People’s Ordinance” which was amended by voters. The proposed fee schedule varies widely by the size of trash, recycling, and organics containers, ranging from $42 to $53 with escalators that would take the fee up to $53 and $66 by July 1, 2029.
SAN DIEGO CITY COUNCIL EVALUATES NEW POTENTIAL HOMELESS SHELTER SITES
This month, the San Diego City Council evaluated three new homeless shelter sites that were proposed by the Mayor’s Office. The item came forward following news that the Kettner and Vine 1,000-bed mega shelter site had been scrapped. After analyzing over 20 sites, the Mayor’s Office recommended three properties, all of which were located downtown. These sites included:
- 1222 First Avenue (City Operations Building)
- 820 East Street (Old Central Library)
- 1515 Second Avenue (Solimar Systems)
After a lengthy discussion, the city council elected to scrap 1222 First Avenue altogether due to cost and Civic Center Revitalization efforts. Instead of proceeding with a shelter at the Old Central Library site, staff were asked to follow the Surplus Land Act process and begin a request for proposals process to convert the site into affordable housing. The 1515 Second Avenue site will be analyzed further to estimate costs associated with building upgrades. The Council also asked staff to discuss the use of more beds at the Veterans Village campus in the Midway area. A final decision on whether or not to move forward will be made in the coming months.
DOWNTOWN PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, “CLEAN AND SAFE” RENEWED
The Downtown Property Business Improvement District (PBID), also known as “Clean and Safe,” was renewed this month after receiving roughly 74% of affirmative votes from downtown property owners. A 1994 law authorizes cities and counties to establish PBIDs for the purpose of promoting economic revitalization and physical maintenance. This law also requires a PBID to be renewed every ten years. Originally formed in 2000, the Downtown PBID has evolved to provide “special benefits” ranging from cleaning, maintenance, and placemaking to safety, business attraction, and retention efforts. To learn more about Clean and Safe, please click HERE.
SAN DIEGO CITY CLERK PROPOSING CHANGES TO ELECTION PROCESS
City Clerk Diana Fuentes has proposed changes to the city’s election process, including a potential reduction in the frequency of primaries and special elections, modifying residency requirements, and updating how election ties are resolved. The proposed reforms aim to cut costs, streamline elections, and enhance voter engagement. Chief among the changes are the potential elimination of primaries when only two candidates are on the ballot, and prioritizing city council appointments over special elections in the event of a vacancy. Additional changes may include expanding language accessibility for election materials, adjusting ballot argument order, and increasing the time for candidates to file if an incumbent declines to run. The City Council is expected to discuss the proposed changes later this spring. To read the staff report, please click HERE.
MTS EVALUATING FARE INCREASES, TAX AND FEE HIKES
The Metropolitan Transit System (MTS) board is evaluating a fare increase for the first time since 2009 amid a $120 million budget deficit. Additionally, officials are considering cuts to bus and trolley services and are looking into a potential revenue measure that could be placed on the 2026 ballot. These measures could include a sales tax increase or a new vehicle license fee. For more information, click HERE and scroll down to Items 18 and 19.
CARLSBAD SETS PUBLIC HEARING TO POSSIBLE INCREASE TO WATER, SEWER RATES
The Carlsbad City Council voted to set a public hearing, April 22, to discuss a possible increase in water and sewer rates. Staff is saying the hikes are driven by a 14% rate increase from the San Diego County Water Authority, declining water usage, and the need for infrastructure maintenance. For more information on the proposed rate increase, please click HERE.
BLAKESPEAR INTRODUCES BILL TO EXPEDITE REMOVAL OF HIGHWAY ENCAMPMENTS
Senator Catherine Blakespear introduced SB 569, this month, which would expedite the removal of homeless encampments on or near state property, notably along highways. The legislation would require enhanced communication between CalTrans and local municipalities, higher frequency for encampment abatements, and funding. The California League of Cities and Mayor Todd Gloria are among those supporting the bill.