The People’s Business – June 18, 2026
Councilmembers will hear a second report in a series on establishing a public agency to deliver electricity to San Diego residents on Monday. They will also consider a cannabis delivery service permit system.
From the Office of Council President Joe LaCava
City Council Meeting – June 22, 2026 – 10 a.m.
10 a.m. – Closed Session Public Comment, Closed Session – Agenda
2 p.m. – Discussion Items, Non-agenda Public Comment
Discussion and Information Items
Item 200 - Public Power Feasibility Study - Phase II Report
The City of San Diego is conducting a multi-phased feasibility study to evaluate the processes, costs, risks, and opportunities associated with establishing a public agency to take on electricity delivery infrastructure assets of San Diego Gas & Electric within the City.
Following a competitive procurement process, the City retained the services of NewGen Strategies & Solutions LLC to assist in the review and development of the Public Power Feasibility Study.
The Phase I Report of the multi-phase, multi-year process was presented in July 2023 and included: process maps outlining the City’s decision points; an analysis of options for municipal utility governance; and preliminary acquisition, severance, and operational costs. The Phase II Report builds upon the Phase I report and reflects substantial refinements in data quality and detail, and, in turn, an improved understanding of the potential financial feasibility, risks, and changing regulatory landscape.
Item 201 - SDG&E Franchise Independent Audit Report and Franchise Compliance Review Committee Report (2023 – 2025)
In July 2021, City Council adopted Ordinances O-21327 and O-21328 awarding the 20-year Electric and Gas Franchises to San Diego Gas & Electric (SDG&E) for 10 years, with an automatic 10-year renewal if no separate action is taken by Council. Section 6 of the Franchise Ordinances requires an independent audit to occur every two (2) years, addressing SDG&E's fulfillment of the financial, operational, documentary, and cooperative requirements under the Franchise.
Section 6 of the Franchise Ordinances also outlines the creation of the Franchise Compliance Review Committee (FCRC), which is established for the purpose of receiving the independent auditor's findings and incorporating them into an FCRC report with recommendations to City Council.
This item provides an overview of the Independent Auditor’s Report, which reviews SDG&E’s performance under the franchise agreements, as well as the FCRC’s report and recommendation on the potential renewal for the second 10-year term of the Franchise.
Item 202 - Establishment of a Cannabis Delivery Services Business Permit and Enhanced Commercial Cannabis Enforcement Mechanisms
Following the approval of Proposition 64, the State of California established a regulatory framework for commercial cannabis activity administered by the Department of Cannabis Control. State law authorizes two types of retail licenses: Type 9 for non‐storefront retailers that operate exclusively through delivery and Type 10 for storefront retailers.
While the state regulates licensing and delivery requirements, local jurisdictions retain full authority to regulate cannabis businesses and may impose their own land‐use, operational, and taxation requirements.
This item would approve amendments to Chapter 4, Article 2, Division 15 of the San Diego Municipal Code to strengthen the City’s regulatory framework for cannabis delivery activities. The proposed ordinance would:
Establish a cannabis delivery business permit category for commercial cannabis operators conducting delivery within the City of San Diego, creating a defined local compliance checkpoint.
Create a private right of action allowing eligible entities, including state‐certified cannabis retailers and labor unions representing cannabis workers, to pursue civil enforcement against operators that violate the City’s commercial cannabis regulations, including delivery services.
Item 203 - Approval of a Fifth Amendment to the Agreement with PATH San Diego for the Coordinated Street Outreach Program
In July 2022, the City of San Diego entered into an agreement with People Assisting the Homeless San Diego (PATH San Diego) to operate the Coordinated Street Outreach Program. The program engages with individuals and households who are experiencing homelessness in the City through a client-centered and housing-focused outreach approach.
This item would approve a fifth amendment to the agreement with PATH San Diego to add a fourth option period to extend the term to June 30, 2027. The fifth amendment does not change the current not to exceed amount of $13,600,000.