Legislative Update
BOMA San Diego
Legislative Update
PALOMA AGUIRRE SWORN IN, POTENTIAL TAX MEASURE(S) LOOM
Former Mayor of Imperial Beach, Paloma Aguirre, was sworn in earlier this month. The new County Supervisor for District 1 made “fighting for working people” and placing an emphasis on the Tijuana River sewage crisis top priorities, stating that she’s “not interested in more delays, plans, and excuses.” Her joining the Board of Supervisors is significant as it gives Democrats a 3-2 majority, which was immediately noted in naming fellow Democrats to top leadership positions: Terra Lawson-Remer (Chair); Monica Montgomery-Steppe (Vice-Chair); and, Aguirre (Pro. Tem.). The two Republicans were both sidelined from Board leadership, which has historically rotated to each Supervisor, as well as many of the appointments to regional agencies and organizations.
In a subsequent item placed on the docket by Supervisor Terra Lawson-Remer, the Board was given an update on the impacts of both the recently approved federal and state budgets. The new Board majority spent time discussing their concerns over the loss of funding for numerous county health and social services programs and the impact not just on service provision, but on County employees providing those services. The majority directed staff to return to the Board in 60 days with plans on how to address these cuts, including revenue augmentation measures that might be considered. Union members present at the hearing specifically urged for new tax increases, including a “wealth tax” to help augment the County budget. It’s worth noting that earlier this year, Supervisor Lawson-Remer called for hiring political consultants to analyze sales and property transfer taxes. BOMA is monitoring this development closely and working with our coalition partners to address this situation.
INDUSTRY SPONSORED UNLAWFUL DETAINER BILL PASSES OUT OF SENATE
A bill sponsored by the California Business Properties Association (CBPA), of which BOMA is a member, passed out of the Senate this month. AB 1384 (Nguyen - D-Elk Grove) now heads to the Governor for consideration. According to CBPA, AB 1384 ensures commercial unlawful detainer cases are resolved quickly by keeping them on the 5-to-7-day timeline for hearings on demurrers and motions to strike. It draws a clear line between commercial and residential cases, preventing delays that have cost property owners time, money, and leasing opportunities. Most importantly, it removes a judge’s ability to invoke “good cause” to delay these hearings in commercial cases - ensuring they are heard promptly and predictably. To read the bill, please click HERE.
COUNTY WATER AUTHORITY APPROVES SMALLER RATE INCREASE; TO BE IMPLEMENTED JAN 1ST, CITIES OF SAN DIEGO AND OCEANSIDE TO VOTE ON WATER AND SEWER RATE INCREASES IN SEPTEMBER
The San Diego County Water Authority approved a much smaller rate increase for water delivered to its customers. The 8.3% increase is significantly less than the previously proposed rate increase of 18% and will go into effect January 1, 2026. Nevertheless, the increase, when combined with other increases over the last two years, brings the total cumulative increase to 23.1%.
The City of San Diego, will hold their own hearing on September 30th to consider increases to water and sewer rates to their customers. The proposed increases being brought forward by the city’s Public Utilities Department would include water rate hikes of 14.7% in 2026, 14.5% in 2027, 11.5% in 2028, and 11% in 2029, cumulatively totaling upwards of 62%. Sewer rates would rise by 6%, 6%, 8%, and 8% over the same period. The move purportedly stems from increased costs related to the City’s ‘Pure Water’ program, and expenses associated with rising chemical, energy, and labor costs. BOMA has expressed concerns about the cumulative, long term impacts of these increases. To learn more, click HERE.
The Oceanside City Council will consider its own increase to water and sewer rates, expected to rise by an average of 6% and 4%, respectively. If approved in September, the increases would go into effect in 2026 and again by the same amount in 2027. Should the City Council elect not to raise rates, the city would be forced to dip into its reserves to cover the “pass-through-rate” from the Metropolitan Water District and San Diego County Water Authority. You can learn more about Oceanside’s water and sewer rates, HERE.
NEW VALET IMPLEMENTATION MEASURES ON PAUSE, MAYOR TO CONSIDER AMENDING POLICY
Following an abrupt move to repaint curbs and install meters over existing valet zones, BOMA has learned that the City of San Diego is pausing its new and restrictive valet policy, which reduces valet zones to a maximum size of two passenger vehicle parking spaces. This temporary pause will allow the Mayor to consider proposals and possible amendments to Council Policy 700-15, which was passed as a broader parking package, including increased ‘blockage fees’ and meter fees, earlier this year. For more information on the City’s parking package, click HERE. It’s worth noting that the City Council will consider the establishment of a paid meter parking zone in Balboa Park, Monday. To learn more, click HERE and scroll down to Items 600 and 601.
SD CITY COUNCIL COMMITTEE MOVES $25/HOUR HOSPITALITY MINIMUM WAGE FORWARD
The San Diego City Council’s ad hoc Cost of Living Committee unanimously moved forward Councilmember Sean Elo-Rivera’s proposal for a new industry specific minimum wage in the City of San Diego. The proposed $25 minimum wage targeting hotel, event space, and tourism workers will now go to the full City Council sometime in the early fall (likely September). The hearing presented a clash between the business community and impacted employers, including numerous small businesses, and organized union labor and their supporting interests.
As noted in previous updates, the scope of the minimum wage is very broad targeting hotels above 150 rooms, amusement parks and any facility that is used for the purpose of public performances, sporting events, business meetings, or “similar events.” This includes concert halls, stadiums, sports arenas, racetracks, and convention centers that are either more than 50k square feet or have more than 5k seats. Any contracted, leased, or subleased space is also covered under the ordinance, including restaurants, ticket taking services, concessions, retail stores, and parking facilities. If the ordinance is ultimately approved by the full City Council the new $25 minimum wage would go into effect January 1, 2026, OR thirty days after the effective date of the ordinance (whichever is LATER). Starting January 1, 2027, the wage would increase by inflation using Consumer Price Index.
To read the ordinance, click HERE, and scroll down to Item-1.
COUNCIL PARTIALLY OVERRIDES MAYOR GLORIA’S LINE ITEM VETO; APPROVES NEW BUDGET
Last month, the San Diego City Council voted 6-3 to partially override some of the vetoes that Mayor Gloria applied to the city’s budget. The initial vote for a full override of the Mayor’s line item veto didn’t pass, but a subsequent motion to add back in some of the items the Mayor cut did pass 6-3. In terms of restored items, they include some funding for brush management, flood prevention, recreation programs, as well as the Council’s $900,000 discretionary fund and another $450,000 for racial equity programs. To learn more about the budget, please click HERE.
CITY OF SD IMPLEMENTS “DYNAMIC PRICING” FOR DEVELOPMENT PERMIT FEES
The City of San Diego has implemented “dynamic pricing” for development permit fees, as of July 1. According to the City, under the new model, permit fees will reflect the cost of services provided at the time of invoicing rather than at the deemed complete date. DSD updates its user fee schedule annually to account for labor costs and inflation. The most recent fee schedule adjustment occurred on May 5, 2025. To read more, please click HERE.
SAN DIEGO DEVELOPMENT SERVICES READYING FOR OFFICE MOVE
The City of San Diego’s Development Services Department is making progress on the move of their services away from the City Operations Building adjacent to City Hall to two new locations, one downtown and one in Mission Valley. The 7650 Mission Valley Road location will host most public-facing services, including in person project and permit review meetings, as well as Planning Commission hearings (starting July 31st). The 550 West C Street location will house the Department’s leadership and other services for downtown and those that need to be close to City Hall. It is anticipated that the move will be completed over the course of August.
HOMELESSNESS UPDATE:
PROPERTY TAX ASSESSMENT APPEALS WINDOW NOW OPEN
Property owners and businesses who disagree with their property tax assessment can file an appeal as of July 2nd. The County Assessor’s appeals period runs from July 2nd to December 1st. To access more information, including tax appeal forms, please click HERE.
CITY TO CREATE POLICY TO RECEIVE NON PROFIT PUBLIC IMPROVEMENTS
The City of San Diego’s Rules Committee approved a request from Council President Joe LaCava to develop clear rules for how to accept privately funded proposals for public spaces by non profits and community groups. According to the staff report: “…the City receives offers and proposals to privately fund repair, construction, and upgrades to public infrastructure. These offers have included proposals for transportation improvements, beautification or art installations, and replacement or addition of park equipment. Fully leveraging private resources, with little or no public dollars, is beneficial to achieve shared community goals, however, formal authorization by participating parties and a clear approval process would aid both City departments and nonprofit organizations…”. The matter has been referred to staff and the City Attorney’s office to return to the Rules Committee with policy options. To read the draft policy, please CLICK HERE.
COUNTY COUNSEL ABRUPTLY RESIGNS
Just one day after Democrats assumed a 3-2 board majority, County Counsel Claudia Silva, San Diego County’s top attorney, has resigned. Silva’s departure followed a closed-session performance review. It’s unclear what led to the review and resignation, but now kicks off a search for a replacement in this important position. This search for a replacement is one to monitor as the position is responsible for advising the Board of Supervisors on policy matters and the drafting of new legislation. You can learn more about the role, HERE.
Legislative Update
PALOMA AGUIRRE SWORN IN, POTENTIAL TAX MEASURE(S) LOOM
Former Mayor of Imperial Beach, Paloma Aguirre, was sworn in earlier this month. The new County Supervisor for District 1 made “fighting for working people” and placing an emphasis on the Tijuana River sewage crisis top priorities, stating that she’s “not interested in more delays, plans, and excuses.” Her joining the Board of Supervisors is significant as it gives Democrats a 3-2 majority, which was immediately noted in naming fellow Democrats to top leadership positions: Terra Lawson-Remer (Chair); Monica Montgomery-Steppe (Vice-Chair); and, Aguirre (Pro. Tem.). The two Republicans were both sidelined from Board leadership, which has historically rotated to each Supervisor, as well as many of the appointments to regional agencies and organizations.
In a subsequent item placed on the docket by Supervisor Terra Lawson-Remer, the Board was given an update on the impacts of both the recently approved federal and state budgets. The new Board majority spent time discussing their concerns over the loss of funding for numerous county health and social services programs and the impact not just on service provision, but on County employees providing those services. The majority directed staff to return to the Board in 60 days with plans on how to address these cuts, including revenue augmentation measures that might be considered. Union members present at the hearing specifically urged for new tax increases, including a “wealth tax” to help augment the County budget. It’s worth noting that earlier this year, Supervisor Lawson-Remer called for hiring political consultants to analyze sales and property transfer taxes. BOMA is monitoring this development closely and working with our coalition partners to address this situation.
INDUSTRY SPONSORED UNLAWFUL DETAINER BILL PASSES OUT OF SENATE
A bill sponsored by the California Business Properties Association (CBPA), of which BOMA is a member, passed out of the Senate this month. AB 1384 (Nguyen - D-Elk Grove) now heads to the Governor for consideration. According to CBPA, AB 1384 ensures commercial unlawful detainer cases are resolved quickly by keeping them on the 5-to-7-day timeline for hearings on demurrers and motions to strike. It draws a clear line between commercial and residential cases, preventing delays that have cost property owners time, money, and leasing opportunities. Most importantly, it removes a judge’s ability to invoke “good cause” to delay these hearings in commercial cases - ensuring they are heard promptly and predictably. To read the bill, please click HERE.
COUNTY WATER AUTHORITY APPROVES SMALLER RATE INCREASE; TO BE IMPLEMENTED JAN 1ST, CITIES OF SAN DIEGO AND OCEANSIDE TO VOTE ON WATER AND SEWER RATE INCREASES IN SEPTEMBER
The San Diego County Water Authority approved a much smaller rate increase for water delivered to its customers. The 8.3% increase is significantly less than the previously proposed rate increase of 18% and will go into effect January 1, 2026. Nevertheless, the increase, when combined with other increases over the last two years, brings the total cumulative increase to 23.1%.
The City of San Diego, will hold their own hearing on September 30th to consider increases to water and sewer rates to their customers. The proposed increases being brought forward by the city’s Public Utilities Department would include water rate hikes of 14.7% in 2026, 14.5% in 2027, 11.5% in 2028, and 11% in 2029, cumulatively totaling upwards of 62%. Sewer rates would rise by 6%, 6%, 8%, and 8% over the same period. The move purportedly stems from increased costs related to the City’s ‘Pure Water’ program, and expenses associated with rising chemical, energy, and labor costs. BOMA has expressed concerns about the cumulative, long term impacts of these increases. To learn more, click HERE.
The Oceanside City Council will consider its own increase to water and sewer rates, expected to rise by an average of 6% and 4%, respectively. If approved in September, the increases would go into effect in 2026 and again by the same amount in 2027. Should the City Council elect not to raise rates, the city would be forced to dip into its reserves to cover the “pass-through-rate” from the Metropolitan Water District and San Diego County Water Authority. You can learn more about Oceanside’s water and sewer rates, HERE.
NEW VALET IMPLEMENTATION MEASURES ON PAUSE, MAYOR TO CONSIDER AMENDING POLICY
Following an abrupt move to repaint curbs and install meters over existing valet zones, BOMA has learned that the City of San Diego is pausing its new and restrictive valet policy, which reduces valet zones to a maximum size of two passenger vehicle parking spaces. This temporary pause will allow the Mayor to consider proposals and possible amendments to Council Policy 700-15, which was passed as a broader parking package, including increased ‘blockage fees’ and meter fees, earlier this year. For more information on the City’s parking package, click HERE. It’s worth noting that the City Council will consider the establishment of a paid meter parking zone in Balboa Park, Monday. To learn more, click HERE and scroll down to Items 600 and 601.
SD CITY COUNCIL COMMITTEE MOVES $25/HOUR HOSPITALITY MINIMUM WAGE FORWARD
The San Diego City Council’s ad hoc Cost of Living Committee unanimously moved forward Councilmember Sean Elo-Rivera’s proposal for a new industry specific minimum wage in the City of San Diego. The proposed $25 minimum wage targeting hotel, event space, and tourism workers will now go to the full City Council sometime in the early fall (likely September). The hearing presented a clash between the business community and impacted employers, including numerous small businesses, and organized union labor and their supporting interests.
As noted in previous updates, the scope of the minimum wage is very broad targeting hotels above 150 rooms, amusement parks and any facility that is used for the purpose of public performances, sporting events, business meetings, or “similar events.” This includes concert halls, stadiums, sports arenas, racetracks, and convention centers that are either more than 50k square feet or have more than 5k seats. Any contracted, leased, or subleased space is also covered under the ordinance, including restaurants, ticket taking services, concessions, retail stores, and parking facilities. If the ordinance is ultimately approved by the full City Council the new $25 minimum wage would go into effect January 1, 2026, OR thirty days after the effective date of the ordinance (whichever is LATER). Starting January 1, 2027, the wage would increase by inflation using Consumer Price Index.
To read the ordinance, click HERE, and scroll down to Item-1.
COUNCIL PARTIALLY OVERRIDES MAYOR GLORIA’S LINE ITEM VETO; APPROVES NEW BUDGET
Last month, the San Diego City Council voted 6-3 to partially override some of the vetoes that Mayor Gloria applied to the city’s budget. The initial vote for a full override of the Mayor’s line item veto didn’t pass, but a subsequent motion to add back in some of the items the Mayor cut did pass 6-3. In terms of restored items, they include some funding for brush management, flood prevention, recreation programs, as well as the Council’s $900,000 discretionary fund and another $450,000 for racial equity programs. To learn more about the budget, please click HERE.
CITY OF SD IMPLEMENTS “DYNAMIC PRICING” FOR DEVELOPMENT PERMIT FEES
The City of San Diego has implemented “dynamic pricing” for development permit fees, as of July 1. According to the City, under the new model, permit fees will reflect the cost of services provided at the time of invoicing rather than at the deemed complete date. DSD updates its user fee schedule annually to account for labor costs and inflation. The most recent fee schedule adjustment occurred on May 5, 2025. To read more, please click HERE.
SAN DIEGO DEVELOPMENT SERVICES READYING FOR OFFICE MOVE
The City of San Diego’s Development Services Department is making progress on the move of their services away from the City Operations Building adjacent to City Hall to two new locations, one downtown and one in Mission Valley. The 7650 Mission Valley Road location will host most public-facing services, including in person project and permit review meetings, as well as Planning Commission hearings (starting July 31st). The 550 West C Street location will house the Department’s leadership and other services for downtown and those that need to be close to City Hall. It is anticipated that the move will be completed over the course of August.
HOMELESSNESS UPDATE:
- President signs executive order aimed at hospitalizing homeless with mental illness and addiction: President Trump has signed an executive order, entitled “Ending Crime and Disorder on America’s Streets,” with the aim of directing federal agencies to streamline the hospitalization of homeless individuals with severe mental illness or addiction issues. The order characterizes street encampments as threats to public order and calls for expanding institutionalization, defunding harm reduction programs (which have been defined in some cases as permissive policies that allow those with drug and alcohol addictions to enter shelter programs without having addressed those issues), and prioritizing cities that enforce anti-camping laws. It’s stated aim is to reduce the number of mentally ill, chronically homeless on the streets. The reaction from city leaders to homeless service providers has been critical of the proposal, some of which is tied to the cost and potential impacts to hospitals which tend to receive the individuals who are deemed in need of this level of care. To read the executive order, click HERE.
- City, Caltrans agree to encampment abatement pilot: In an announcement last week, Mayor Todd Gloria revealed a new agreement with Caltrans that allows City of San Diego crews to clear homeless encampments along freeways, a needed change given the sporadic and infrequent nature of Caltrans cleanups. The pilot focuses efforts on a 5-mile section of the I-5 from just beyond the Coronado Bridge through Laurel St. The pilot also includes the southernmost section of the I-163 and westernmost I-94 freeways. The agreement also allows for beautification, hardscape, and placemaking efforts to take place along ingress and egress points. In the first day of abatements, city crews removed a massive 5.19 tons of trash. In turn, the state will reimburse the city up to $400,000. BOMA has been supportive of recent state legislation to essentially do the same, and is hopeful this will help clean up these blighted areas that are typically at entrances and exists to areas like Downtown San Diego. To view the press release, please click HERE.
PROPERTY TAX ASSESSMENT APPEALS WINDOW NOW OPEN
Property owners and businesses who disagree with their property tax assessment can file an appeal as of July 2nd. The County Assessor’s appeals period runs from July 2nd to December 1st. To access more information, including tax appeal forms, please click HERE.
CITY TO CREATE POLICY TO RECEIVE NON PROFIT PUBLIC IMPROVEMENTS
The City of San Diego’s Rules Committee approved a request from Council President Joe LaCava to develop clear rules for how to accept privately funded proposals for public spaces by non profits and community groups. According to the staff report: “…the City receives offers and proposals to privately fund repair, construction, and upgrades to public infrastructure. These offers have included proposals for transportation improvements, beautification or art installations, and replacement or addition of park equipment. Fully leveraging private resources, with little or no public dollars, is beneficial to achieve shared community goals, however, formal authorization by participating parties and a clear approval process would aid both City departments and nonprofit organizations…”. The matter has been referred to staff and the City Attorney’s office to return to the Rules Committee with policy options. To read the draft policy, please CLICK HERE.
COUNTY COUNSEL ABRUPTLY RESIGNS
Just one day after Democrats assumed a 3-2 board majority, County Counsel Claudia Silva, San Diego County’s top attorney, has resigned. Silva’s departure followed a closed-session performance review. It’s unclear what led to the review and resignation, but now kicks off a search for a replacement in this important position. This search for a replacement is one to monitor as the position is responsible for advising the Board of Supervisors on policy matters and the drafting of new legislation. You can learn more about the role, HERE.