Two committees meet this week. Select Committee on Addressing the Cost of Living meets to discuss a proposed $25 minimum wage for certain hospitality industry workers. Active Transportation and Infrastructure Committee meets to consider numerous infrastructure related contracts and changes in the Municipal Code to streamline capital improvement projects.

From the Office of Council President Joe LaCava

Select Committee on Addressing the Cost of Living Meeting – June 25, 2025 – 9 a.m.

Committee Meeting Agenda

Item 1 - Hospitality Minimum Wage Ordinance for Certain Workers at Hotels, Event Centers, Amusement Parks, and Zoos Within the Geographic Boundaries of the City of San Diego

This item proposes the City of San Diego Hospitality Minimum Wage Ordinance, which would establish an hourly minimum wage starting at $25 for workers at amusement parks, event centers, hotels, and zoos.

The hospitality industry is one of San Diego’s largest economic sectors. It is also the sector that pays some of the lowest wages. This impacts San Diegans’ ability to live and thrive in the region, which is one of the most expensive in the United States.

Councilmember Elo-Rivera proposes the ordinance to address these disparities which would go into effect January 1, 2026.

Special Active Transportation and Infrastructure Committee Meeting – June 25, 2025 – 2:30 p.m.

AT & I Committee Meeting Agenda

Consent Agenda

Item 1 – Approval of Committee Actions

Item 2 - Execute and award a 1-year contract with option to extend for four additional 1-year periods for as-needed crack seal services with Safe USA, Inc. in an amount not to exceed $5,000,000

This item would authorize the execution and award of a 1-year crack seal contract with option to extend for four additional 1-year periods to provide as-needed crack seal services Citywide. A crack seal treatment is a cost-effective preventative maintenance strategy designed to extend the service life of asphalt pavement.

Item 3 - CMA-CIP (E&CP-41395) Award a consultant agreement, #H2226034 to Kleinfelder Construction Services (KCS), for the purpose of providing construction management and environmental services for the El Camino Real Bridge & Road Widening project

This item would execute a phase-funded consultant agreement with Kleinfelder Construction Services, Inc. (KCS) for construction management and environmental services for the construction of the El Camino Real Bridge & Road Widening project.

It would authorize KCS to perform services including constructability, construction schedule, and contract review, construction contract administration, field and special inspection, material testing and quality assurance monitoring, construction staking and surveying, biological monitoring and reporting, environmental permitting compliance monitoring and reporting, and compliance with the Caltrans Local Assistance Program for federally funded projects; and will provide funding for the total contract amount of $7,999,937.71.

The total contract duration is 63 months.

Item 4 - Award three (3) Professional As-Needed Quality Assurance Material Test Lab Services (H2526552, H2526557, H2526558)

This action is to authorize three Professional As-Needed Quality Assurance Material Test Lab Services agreements with RMA Group, WSP USA, Inc., and Kleinfelder, Inc. for as-needed Quality Assurance Materials Testing Services for various Capital Improvement Program Projects and Non-Capital Projects in an amount not to exceed $5,000,000.00 for each agreement, with a maximum duration of five years.

Item 5 - Ratification of Emergency Sole Source Contract K-24-2316-EMR-3 with Orion Construction Corporation, and authorization of Construction Change Order No. 1 for the Villa La Jolla Storm Drain System Emergency project

This request is to ratify emergency sole source contract K-24-2316-EMR-3 with Orion Construction Corporation, pursuant to Section 22.3108(a) of the San Diego Municipal Code, and to authorize Change Order No. 1 for contract K-24-2316-EMR-3 between the City of San Diego and Orion Construction Corporation.

This action will increase the not-to-exceed value of the contract by $18,564,000.00, which will increase the total amount of the contract to $31,564,000.00 to complete the emergency storm drain repairs.

Item 6 - Authorize Construction Change Order #1 for the Point Loma Wastewater Treatment Plant Storm Damage Repair (K-24-2291-EMR-3) with Cass Arrieta

This request is to authorize Construction Change Order #1 for the Point Loma Wastewater Treatment Plant Storm Damage Repair construction contract between the City of San Diego and Cass Arrieta. The City will increase the Not-to-Exceed value of the contract by $3,215,000 for additional work to rectify the emergency.

This project is in the Peninsula Community Planning Area within Council District 2. The record rainfall on Monday, January 22, 2024 created a landslide and significant damage to the Point Loma Treatment Plant, the hillside above the plant, and the drainage system located throughout the hillside.

Due to the immediate threat that was posed to the facility, Cass Arrieta was mobilized as the emergency contractor to remove the debris that resulted from the landslide, and temporarily repair the damaged storm drain system to mitigate potential for further slope failure from subsequent storms. Cass Arrieta was initially awarded an emergency sole source agreement for a not-to-exceed value of $1,500,000 based on limited scope that was known at the time.

The original cost estimate was based on the limited scope of work available to the City at the time, prior to the geotechnical investigation and completion of design, which are now complete. Change Order No. 1 for $3,215,000 is needed to complete the permanent repair that will address the slope stability at the site and protect Digester N1, which is a critical component of the treatment plant operation. This necessary work increases the total contract amount to a not-to-exceed amount of $4,715,000.

Discussion Agenda

Item 7 - Amendments to the San Diego Municipal Code related to Progressive Design-Build and Construction Manager at Risk procurement methods for Public Works projects and Capital Improvements Program (Process Improvements and streamlining)

This action will authorize additions and amendments to the San Diego City Municipal Code to adopt the latest industry practices and streamline the delivery of Capital Improvement Program projects. The amendments to the City’s Municipal Code are related to Progressive Design-Build and Construction Manager at Risk procurement methods for public works contracts.

As the City of San Diego faces increasing infrastructure demands, it is critical to ensure the Capital Improvements Program (CIP) can be delivered efficiently, transparently, and with high quality. The City’s CIP is implemented through a collaboration between asset-managing departments, the Engineering & Capital Projects Department (E&CP), the Purchasing & Contracting Department, and other supporting departments.

Actions necessary to complete the CIP projects are governed by approvals and processes administered through Council authority and/or Mayoral authority, and as our infrastructure needs grow, the Engineering & Capital Projects Department has been looking into ways of streamlining the CIP process and the use of the latest alternative project delivery methods to continue to deliver quality service.

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