Legislative Update
BOMA San Diego
Legislative Update
COST OF LIVING COMMITTEE VOTES 3-0 IN FAVOR OF DRAFTING $25 “TOURISM WORKER” MINIMUM WAGE ORDINANCE
The San Diego City Council’s “Cost of Living Committee” voted 3-0 to direct staff to draft an ordinance increasing the minimum wage on “tourism workers” to $25.00 per hour. BOMA joined a broad coalition of business groups in opposition to the onerous mandate that would impact San Diego’s tourism economy, inflate the cost of living through goods and services, and lessen city revenue, the latter of which is already bleak given the $260M+ budget deficit. The action directs the City Attorney’s office to work with the Independent Budget Analyst and Councilmember Sean Elo-Rivera’s staff to draft an ordinance and return to the committee on June 4th. If the Committee members vote in support, it would then go to the full City Council later in the summer for approval. San Diego already has one of the highest minimum wages, now at $17.25, which is indexed to inflation. To read more, click HERE.
SAN DIEGO CITY COUNCIL APPROVES 5.5% WATER RATE INCREASE
The San Diego City Council approved on a 6-3 vote a 5.5% water rate increase this month. The increase, which is attributed to rising costs passed through from the San Diego County Water Authority, is the first of many planned rate hikes that could result in a total of 70% increase by the year 2029. Proponents stated that the planned increases are needed to cover infrastructure improvements, worker salary increases, and the cost of treating water. Councilmember Marni von Wilpert, who voted against the increase, suggested that the city reconsider its reliance on water delivered by the San Diego County Water Authority, particularly in light of the City’s “Pure Water” project, which BOMA has historically supported. For more information and associated backup materials, click HERE, and scroll down to Item-331.
SAN DIEGO CITY COUNCIL APPROVES NUMEROUS FEE INCREASES
The San Diego City Council approved on an 8-1 vote, with Councilmember Moreno opposed, the staff-requested user fee increases as contemplated in the “comprehensive user fee” study. Both staff and council noted that it’s been three years since the last fee review and adjustment.
With regard to the General Plan Maintenance Fee (GPMF), Councilmember Sean Elo-Rivera asked that the fee not get adjusted, and that staff conduct a cost of service study that “aims to be more equitable” and seeks to gain a higher level of cost recovery, which is now pegged at 50% if the proposed increase were to go into effect. Elo-Rivera called the fee proposal “a subsidy to the development industry” and wants more analysis. The Council chose to adjust the fee as proposed but did ask staff to come back with more information. The GPMF is generally supported by the commercial real estate industry given it helps pay for important Planning Department work projects like the Land Development Code Update, the Zoning Code/Mixed Use Zone Update and community plan updates.
Also included was a proposed increase by Engineering and Capital Projects in the right-of-way (ROW) inspection fee. BOMA expressed concern about the high cost of ROW inspections and asked that staff work with BOMA and others to find ways to mitigate the cost increase, as well as develop a better fee calculator given the difficult in estimating the total cost of ROW inspections.
For more information, please click HERE for the user fee staff report, HERE for the Planning Department report (GPMF), HERE for the Development Services Department report and HERE for the Engineering and Capital Projects report (ROW inspection fees).
CITY BUDGET DEFICIT WORSENS AMID $533 PENSION PAYMENT, INFRASTRUCTURE GAP
The City of San Diego’s pension board unanimously approved a record, required $533.2 million pension payment, $44 million higher than last year’s obligation. The City is required to make these annual payments to keep the pension system for its employees solvent. The action of the pension board comes in response to a volatile stock market and downward projections on returns, and widens the City’s budget deficit, originally projected at $250 million come July 1. In addition to the operational deficit, the City of San Diego’s infrastructure deficit appears to have increased by 35% since last year, with a $6.51 billion funding gap. The increase is likely due to rising construction costs, new regulations, and outdated infrastructure like stormwater that continues to age. Other significant shortfalls include funding for road repair, buildings, parks, fire stations, and police facilities. Following the failure of Measure E (Sales Tax increase), city leaders will likely look for new revenue by way of the ballot box in 2026 in the form of a renewed sales tax push, stormwater fee, and/or parcel tax. BOMA is tracking the budget discussions with specific attention to new fees to our members, as well as impacts to important services.
BILL PROPOSES COMMERCIAL RENT CONTROL DURING A STATE OF EMERGENCY
A new bill, AB 380 (Gonzalez), would limit commercial and residential rent increases to 10% during a declared state of emergency. The bill, which was prompted by the Los Angeles fires, is being opposed by the California Business Properties Association as it would prevent property owners from adjusting rents even as operational costs continue to rise. BOMA is closely monitoring the bill and will be fighting it through the legislative process. To learn more, please click HERE.
SAN DIEGO BOARD OF SUPERVISORS APPROVE ‘ANTI-PREDATORY’ PROTECTIONS DURING EMERGENCIES
Earlier this month, the San Diego County Board of Supervisors voted to expand protections against ‘predatory practices’ such as price gouging and unlawful evictions during state of emergency declarations. The board letter, which was prompted by the January flooding events, is largely duplicative of that which is already prescribed by the State of California, despite some efforts like AB 380 (above) to impose harsher restrictions on commercial property owners. To learn more, please click HERE and scroll down to Item-12.
ENCINITAS APPOINTS NEW CITY MANAGER
The Encinitas City Council voted unanimously to appoint Jennifer Campbell to the position of City Manager after serving in an interim role since December. Campbell, the longtime Assistant City Manager, has a background in parks and recreation and received praise from the Mayor who highlighted her fiscal responsibility. You can learn more, HERE.
GOVERNOR NEWSOM ORDERS STATE EMPLOYEES BACK TO THE OFFICE
Governor Gavin Newsom issued an executive order earlier this month calling for all state agencies to update their telework policies to require most employees back to the office for at least four in office days per week. The state has over 200,000 employees most of whom would be impacted by the new rules. Those rules are directed to go into effect on July 1, 2025. For more information, please click HERE.
POWAY COUNCILMEMBER FACES RECALL EFFORT
Poway Councilmember Tony Blain, who was sworn in on December 17th, is facing a recall effort led by former Councilmembers John Mullin and Anita Edmondson, and local business leader John Couvrette. The move comes on the heels of a 4-0 vote by the city council to censure Blain amid allegations of vote trading, extortion, bribery, and other threats. The recall proponents will need to collect at least 2,500 valid signatures in order to trigger a recall, which would go before voters for final approval.
NATIONAL CITY VOTES ON ADJUSTMENT TO CAMPAIGN CONTRIBUTION LIMITS
The National City Council voted unanimously to increase the maximum contribution candidates may receive from individuals to $1,230, up from $1,135. Political parties can now contribute $2,455, reflecting an 8.4% increase. The increases go into effect in April and will apply to 2026 local elections. All contributions to candidates over $250 must be reported. To learn more about National City’s campaign and agency disclosures, please click HERE.
NEW LABOR SECRETARY SWORN IN
Lori Chavez-DeRemer was sworn in this month after the Senate confirmed President Trump’s Labor Secretary pick in a 67-32 vote with bipartisan support. Chavez-DeRemer, a former Republican Congressmember whose father was a member of Teamsters, was backed by major unions, marking a departure from the Democrats’ recent close relationship with organized labor. During her hearings, there were questions about her ties to organized labor, but seemed to assuage any concerns from both parties. To learn more, please click HERE.
HOMELESSNESS UPDATE:
Legislative Update
COST OF LIVING COMMITTEE VOTES 3-0 IN FAVOR OF DRAFTING $25 “TOURISM WORKER” MINIMUM WAGE ORDINANCE
The San Diego City Council’s “Cost of Living Committee” voted 3-0 to direct staff to draft an ordinance increasing the minimum wage on “tourism workers” to $25.00 per hour. BOMA joined a broad coalition of business groups in opposition to the onerous mandate that would impact San Diego’s tourism economy, inflate the cost of living through goods and services, and lessen city revenue, the latter of which is already bleak given the $260M+ budget deficit. The action directs the City Attorney’s office to work with the Independent Budget Analyst and Councilmember Sean Elo-Rivera’s staff to draft an ordinance and return to the committee on June 4th. If the Committee members vote in support, it would then go to the full City Council later in the summer for approval. San Diego already has one of the highest minimum wages, now at $17.25, which is indexed to inflation. To read more, click HERE.
SAN DIEGO CITY COUNCIL APPROVES 5.5% WATER RATE INCREASE
The San Diego City Council approved on a 6-3 vote a 5.5% water rate increase this month. The increase, which is attributed to rising costs passed through from the San Diego County Water Authority, is the first of many planned rate hikes that could result in a total of 70% increase by the year 2029. Proponents stated that the planned increases are needed to cover infrastructure improvements, worker salary increases, and the cost of treating water. Councilmember Marni von Wilpert, who voted against the increase, suggested that the city reconsider its reliance on water delivered by the San Diego County Water Authority, particularly in light of the City’s “Pure Water” project, which BOMA has historically supported. For more information and associated backup materials, click HERE, and scroll down to Item-331.
SAN DIEGO CITY COUNCIL APPROVES NUMEROUS FEE INCREASES
The San Diego City Council approved on an 8-1 vote, with Councilmember Moreno opposed, the staff-requested user fee increases as contemplated in the “comprehensive user fee” study. Both staff and council noted that it’s been three years since the last fee review and adjustment.
With regard to the General Plan Maintenance Fee (GPMF), Councilmember Sean Elo-Rivera asked that the fee not get adjusted, and that staff conduct a cost of service study that “aims to be more equitable” and seeks to gain a higher level of cost recovery, which is now pegged at 50% if the proposed increase were to go into effect. Elo-Rivera called the fee proposal “a subsidy to the development industry” and wants more analysis. The Council chose to adjust the fee as proposed but did ask staff to come back with more information. The GPMF is generally supported by the commercial real estate industry given it helps pay for important Planning Department work projects like the Land Development Code Update, the Zoning Code/Mixed Use Zone Update and community plan updates.
Also included was a proposed increase by Engineering and Capital Projects in the right-of-way (ROW) inspection fee. BOMA expressed concern about the high cost of ROW inspections and asked that staff work with BOMA and others to find ways to mitigate the cost increase, as well as develop a better fee calculator given the difficult in estimating the total cost of ROW inspections.
For more information, please click HERE for the user fee staff report, HERE for the Planning Department report (GPMF), HERE for the Development Services Department report and HERE for the Engineering and Capital Projects report (ROW inspection fees).
CITY BUDGET DEFICIT WORSENS AMID $533 PENSION PAYMENT, INFRASTRUCTURE GAP
The City of San Diego’s pension board unanimously approved a record, required $533.2 million pension payment, $44 million higher than last year’s obligation. The City is required to make these annual payments to keep the pension system for its employees solvent. The action of the pension board comes in response to a volatile stock market and downward projections on returns, and widens the City’s budget deficit, originally projected at $250 million come July 1. In addition to the operational deficit, the City of San Diego’s infrastructure deficit appears to have increased by 35% since last year, with a $6.51 billion funding gap. The increase is likely due to rising construction costs, new regulations, and outdated infrastructure like stormwater that continues to age. Other significant shortfalls include funding for road repair, buildings, parks, fire stations, and police facilities. Following the failure of Measure E (Sales Tax increase), city leaders will likely look for new revenue by way of the ballot box in 2026 in the form of a renewed sales tax push, stormwater fee, and/or parcel tax. BOMA is tracking the budget discussions with specific attention to new fees to our members, as well as impacts to important services.
BILL PROPOSES COMMERCIAL RENT CONTROL DURING A STATE OF EMERGENCY
A new bill, AB 380 (Gonzalez), would limit commercial and residential rent increases to 10% during a declared state of emergency. The bill, which was prompted by the Los Angeles fires, is being opposed by the California Business Properties Association as it would prevent property owners from adjusting rents even as operational costs continue to rise. BOMA is closely monitoring the bill and will be fighting it through the legislative process. To learn more, please click HERE.
SAN DIEGO BOARD OF SUPERVISORS APPROVE ‘ANTI-PREDATORY’ PROTECTIONS DURING EMERGENCIES
Earlier this month, the San Diego County Board of Supervisors voted to expand protections against ‘predatory practices’ such as price gouging and unlawful evictions during state of emergency declarations. The board letter, which was prompted by the January flooding events, is largely duplicative of that which is already prescribed by the State of California, despite some efforts like AB 380 (above) to impose harsher restrictions on commercial property owners. To learn more, please click HERE and scroll down to Item-12.
ENCINITAS APPOINTS NEW CITY MANAGER
The Encinitas City Council voted unanimously to appoint Jennifer Campbell to the position of City Manager after serving in an interim role since December. Campbell, the longtime Assistant City Manager, has a background in parks and recreation and received praise from the Mayor who highlighted her fiscal responsibility. You can learn more, HERE.
GOVERNOR NEWSOM ORDERS STATE EMPLOYEES BACK TO THE OFFICE
Governor Gavin Newsom issued an executive order earlier this month calling for all state agencies to update their telework policies to require most employees back to the office for at least four in office days per week. The state has over 200,000 employees most of whom would be impacted by the new rules. Those rules are directed to go into effect on July 1, 2025. For more information, please click HERE.
POWAY COUNCILMEMBER FACES RECALL EFFORT
Poway Councilmember Tony Blain, who was sworn in on December 17th, is facing a recall effort led by former Councilmembers John Mullin and Anita Edmondson, and local business leader John Couvrette. The move comes on the heels of a 4-0 vote by the city council to censure Blain amid allegations of vote trading, extortion, bribery, and other threats. The recall proponents will need to collect at least 2,500 valid signatures in order to trigger a recall, which would go before voters for final approval.
NATIONAL CITY VOTES ON ADJUSTMENT TO CAMPAIGN CONTRIBUTION LIMITS
The National City Council voted unanimously to increase the maximum contribution candidates may receive from individuals to $1,230, up from $1,135. Political parties can now contribute $2,455, reflecting an 8.4% increase. The increases go into effect in April and will apply to 2026 local elections. All contributions to candidates over $250 must be reported. To learn more about National City’s campaign and agency disclosures, please click HERE.
NEW LABOR SECRETARY SWORN IN
Lori Chavez-DeRemer was sworn in this month after the Senate confirmed President Trump’s Labor Secretary pick in a 67-32 vote with bipartisan support. Chavez-DeRemer, a former Republican Congressmember whose father was a member of Teamsters, was backed by major unions, marking a departure from the Democrats’ recent close relationship with organized labor. During her hearings, there were questions about her ties to organized labor, but seemed to assuage any concerns from both parties. To learn more, please click HERE.
HOMELESSNESS UPDATE:
- REGIONAL BEHAVIORAL HEALTH LEAD STEPS DOWN: The County’s Director of Behavioral Health Services, Dr. Luke Bergman, announced his resignation this month, a major shakeup in the office responsible for responding to regional mental health and substance abuse challenges. Bergman, whose department has accounts for $1 billion in annual spending, attributed the decision to an opportunity that will allow him a better work/life balance. BOMA’s leadership has prioritized addressing homelessness and the impacts of the unhoused to the conditions of our business corridors. The County of San Diego has an important role in this effort, including the department Dr. Bergman ran. To learn more, please click HERE.
- COUNTY BOARD OF SUPERVISORS MOVE TO STRENGTHEN ANTI-CAMPING RULES: The San Diego County Board of Supervisors voted unanimously to update its anti-camping rules with a focus on reducing fires caused by encampments. The move follows a recent Supreme Court ruling that allows local governments to clear tents from public land regardless of shelter availability. The ordinance, which will return to the Board of Supervisors in the coming months, would also ban ‘fire-starting materials’ in encampments and require a three-day notice before rents are removed.