Two committees meet in this holiday shortened week. The Audit Committee meets and considers the budget proposal for the Office of City Auditor. The Environment Committee also meets and will discuss several items related the Purewater Program.

From the Office of Council President Joe LaCava

Audit Committee Meeting – January 21, 2026 – 9 a.m.

Audit Committee Meeting Agenda

Consent Agenda

Item 1 – Approval of Committee Minutes

Item 2 - City Auditor’s Quarterly Fraud Hotline Report – Fiscal Year 2026 Quarter 2

The City Auditor reports the status of Fraud Hotline cases to the Audit Committee on a quarterly basis as required under San Diego Municipal Code § 26.1710 (d).

This item is for the Audit Committee to accept the report.

Discussion Agenda

Item 3 - Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR)

This item is to present the Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR) and request that the ACFR be received by and filed with the City Council.

The Annual Comprehensive Financial Report is a report prepared annually by the Department of Finance that includes the financial statements of all funds of the City and its Component Units, including disclosures that complement the financial statements, statistical information, management’s discussion and analysis and other supplementary information. The ACFR is prepared in accordance with Generally Accepted Accounting Principles, including those standards established by the Governmental Accounting Standards Board.

Item 4 - City Auditor’s Annual Activities and Accomplishments Report for Calendar Year 2025

The City Auditor’s Annual Activities and Accomplishments Report provides a summary of the Office of the City Auditor’s accomplishments for calendar year 2025 and highlights some of the significant reports issued.

The requested action for this item is for the Audit Committee to accept the report.

Item 5 - Office of the City Auditor's FY2027 Proposed Budget

The Office of the City Auditor (OCA) is an independent City department that delivers Chartermandated audit and investigative services. OCA’s audits and investigations save taxpayer money; identify opportunities for the City to increase revenues; increase the efficiency, effectiveness, and equity of City programs; and help identify and prevent fraud, waste, and abuse.

The Audit Committee recommend the one-time reductions to OCA’s budget for personnel and independent legal counsel expenses made in FY2026 and totaling $129,889 be restored in FY2027 and that $54,910 in other non-personnel reductions be made only on a one-time basis.

Information Items

Item 6 - Office of the City Auditor's Peer Review, July 1, 2022 through June 30, 2025

The Association of Local Government Auditor (ALGA) recently completed its review of Office of the City Auditor for the period July 1, 2022 through June 30, 2025. The independent peer review team gave OCA the highest pass rating.

Item 7 - City Auditor's Monthly Activity Report

This Monthly Activity Report provides information about the Office of the City Auditor’s activities in November and December 2025. This includes audit reports issued, the status of current audit projects, and a list of planned audits that have not yet started

Item 8 - Audit Committee Member Priorities for Calendar Year 2026

This informational item is an opportunity for Committee Members and the public to provide their priorities for the Committee for Calendar Year 2026.

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Environment Committee Meeting – January 22, 2026 – 1 p.m.

Environment Committee Meeting Agenda

Consent Agenda 

Item 1 – Approval of Committee Minutes

Item 2 - Authorization to Execute a Contract with US Peroxide, LLC (dba USP Technologies) for a Full-Service Operations and Maintenance Management Program Providing Hydrogen Sulfide Odor Control at Public Utilities Department Wastewater Facilities (RFP 10090193-25-H)

This item would authorize execution of a five-year contract with US Peroxide, LLC (dba USP Technologies) to provide a full-service operation and maintenance management program for hydrogen sulfide odor control, which includes supplying and delivering hydrogen peroxide and ferrous chloride at Public Utilities Department wastewater facilities in an amount not to exceed $62,442,415.28.

The current contract for hydrogen sulfide odor control management program will expire in April 2026.

Item 3 - Third Amendment to Agreement with Luth and Turley, Inc. for As-Needed Remediation and Clean-up Services from City of San Diego Water Main Breaks and Sewer Backups pursuant to Council Policy 400-10

This item would authorize to execute the third amendment to the Agreement for As-Needed Remediation and Clean-up Services from City of San Diego Water Main Breaks and Sewer Backups with Luth and Turley, Inc., which adds two additional one-year options to the Agreement.

This third amendment will allow for the completion of remediation work that was in process at the time of the expiration of the prior second amendment to the Agreement on June 24, 2025. The proposed third amendment does not increase the not-to-exceed value or scope of the Agreement, it is purely a no-cost extension.

Item 4 - Award three (3) As-Needed Environmental Consultant Support Services Agreements –Contracts 7 (H2526611-M) with Harris & Associates, 8 (H2526612-M) with Dudek, & 9 (H2526613-M) with Helix Environmental Planning, Inc

This item would award three as-needed agreements with Harris & Associates, Dudek, and Helix Environmental Planning, Inc. to provide as-needed environmental consultant services for the Public Utilities Department in an amount not-to-exceed $4,000,000 per agreement, for a total of $12,000,000 over a five-year period, and related funding actions.

Item 5 - Authorize the Third Amendment to Sole Source Agreement (Contract H186994) with Geosyntec Consultants, Inc. to provide Technical Consultant Services for National Pollutant Discharge Elimination System (NPDES)

This item would authorize execution of the Third Amendment to Agreement H186994 with Geosyntec Consultants, Inc. to provide Technical Consultant Services for the National Pollutant Discharge Elimination System, adding an amount not to exceed $492,350 to the Agreement, bringing the Agreement not to exceed amount to $1,217,330, and extending the Agreement term by three years to February 14, 2029.

Discussion Agenda

Item 6 - Amendment to North City Pure Water Facility Local Resources Program Incentive Agreement with Metropolitan Water District of Southern California

The Metropolitan Water District of Southern California (MWD), a regional wholesaler that provides water to public agencies, has a Local Resources Program (LRP) to provide financial incentives for the development of local water supplies to ensure supply reliability for the region.

In 2019 MWD approved the San Diego Pure Water North City Project Phase 1 to receive credits to produce Pure Water in the amount of $11.4 million annually, or approximately $285.6 million over the 25-year term of the incentive agreement.

This item seeks City Council authorization to support the City of San Diego’s request to amend the LRP Agreement to extend the contractual start of operation date for the Project from June 30, 2025, to June 30, 2028.

Item 7 - Pure Water Program – First Amendment to the agreement with PMWeb, Inc. to provide web-based project control system for Pure Water Program Phase 1 – Sole Source Agreement #4265

This action is to request authorization to extend the as-needed Sole Source Agreement (#4265) with PMWeb Inc., for an additional three years, for a total of eight years and increase the not-to-exceed amount by $684,000 for a total not-to-exceed amount of $1,684,000 to continue providing the PMWeb software that serves as a project/construction management tool utilized by Pure Water Program Phase 1. PMWeb provides software updates and upgrades, annual support and maintenance, a dedicated server, and licenses under the contract procured through Sole Source #4265. The current agreement will expire on July 31, 2026.

Item 8 - Pure Water Program – Amendment No. 3 to the Agreement with Parsons-Black & Veatch Joint Venture for As-Needed Construction Manager - Treatment Plant and Facilities Projects - Contract Number H176935

This item would approve Amendment No. 3 to the agreement with Parsons-Black & Veatch Joint Venture for As-Needed Construction Manager - Treatment Plant and Facilities Projects for a total not to exceed amount of $5,600,000.00, thus increasing the total amount of the agreement to $115,600,000.00. This action will also extend the contract by two years and five months, bringing the total contract duration to ten years and five months.

Item 9 - Pure Water Program – Amendment No. 4 to the Agreement with Jacobs-CH2M Hill Engineers, Inc. for As-Needed Construction Management Services – Conveyance Projects - Contract Number H176955

This action is for the approval of Amendment No. 4 to the agreement with Jacobs-CH2M Hill Engineers, Inc. for As-Needed Construction Management Services – Conveyance Projects for a total not to exceed amount of $4,000,000.00, thus increasing the total amount of the agreement to $89,000,000.00. This action will also extend the contract for an additional two years and five months, thus increasing the total contract duration to ten years and eight months.

Item 10 – Pure Water Phase 1 Consolidated Action – Contractor Contract Time Extensions

The Engineering & Capital Projects Department (E&CP) is requesting Council’s support for this consolidated action related to the Pure Water Phase 1 projects. This request seeks authority to execute change orders to extend three Pure Water Phase 1 construction contracts to the requested durations, as needed, to accommodate construction, commissioning, and project closeout activities.

Information Items

Item 11 - Pure Water Program Update

Pure Water San Diego Program is the largest and most complex Capital Improvements Program ever undertaken by the City of San Diego. The overall program will be executed in two phases. The effort, from planning to construction, start-up, and commissioning, will span more than two decades. Pure Water will provide a safe, secure, and sustainable drinking water supply while simultaneously reducing treated wastewater ocean discharges.

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