The People’s Business – September 1, 2026
Another month is on the books as we begin September with three Committee Meetings. Audit Committee will hear the Hotline investigation of the City's Lease with Barnes Tennis Center. Economic Development and Intergovernmental Relations will consider an amendment to the agreement and loan document for an affordable housing project at 17th and Commerial. Land Use and Housing. Land Use and Housing will vote on whether to declare seven small city-owned parcels as surplus land.
From the Office of Council President Joe LaCava
Audit Committee Meeting – September 2, 2026 – 9:00 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 4
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).
Item 3 - City Auditor's Monthly Activity Report
These Monthly Activity Reports provide information about the Office of the City Auditor’s activities from April to July 2026. This includes audit reports issued, the status of current audit projects, and a list of planned audits that have not yet started.
The proposed action is for Audit Committee to accept the report.
Discussion Agenda
Item 4 - Performance Audit of Brush Management on Private Property
The Office of the City Auditor conducted and published an audit in 2023 focusing on brush management of City-owned land. This new audit supplements that work by focusing on brush management on non-City-owned land, predominantly private properties.
The objective of this audit was to determine whether Fire-Rescue’s brush management inspection efforts efficiently and effectively ensure private properties comply with brush management requirements. The report includes two findings and 14 recommendations.
Item 5 - Performance Audit of the City’s Response to Encampments Since the Unsafe Camping Ordinance
To address the growth of homelessness, the City of San Diego passed the Unsafe Camping Ordinance, which restricted camping in public spaces. Many stakeholders were uncertain of its potential consequences, such as if more people would accept shelter, or if encampments would be pushed into other areas of the City, remote locations, or far from services.
The Office of the City Auditor conducted a performance audit of the City’s response to homeless encampments since the adoption of the Unsafe Camping Ordinance to determine efficiency and effectiveness, and to determine if the process is equitable.
Item 6 - City Auditor’s Hotline Investigation of the City’s Lease with Barnes Tennis Center
The City Auditor investigated a hotline allegation regarding the City’s lease with the Barnes Tennis Center. The evidence we obtained shows that the lessee violated lease terms, permitting requirements, and environmental regulations.
The office also identified deficiencies in City Code Enforcement practices on City-owned land. The City’s Development Services Department does not conduct investigations into Code violations on City property. The office also determined that the current flat rate lease structure from 1994 no longer reflects the scale of commercial activities and substantial revenues generated by the lessee and should be updated.
Item 7 - Fiscal Year 2027 Citywide Risk Assessment and Audit Work Plan and Request for Approval of the Use of Independent Legal Counsel on Specific Audit on Work Plan
This item provides an overview of the City Auditor’s Citywide Risk Assessment and Proposed Audit Work Plan for Fiscal Year 2027, prepared as required by City Charter Section 39.2. In addition, in accordance with San Diego Municipal Code Section 26.1712, the Office of the City Auditor also requests Audit Committee approval to use the independent legal counsel under contract on a specific set of questions for an audit on the Work Plan, the Performance Audit of the San Diego Police Department’s Internal Affairs Unit.
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Economic Development and Government Relations Committee Meeting – September 2, 2026 – 2:00 p.m.
ED & IR Committee Meeting Agenda
Item 1 – Approval of Committee Minutes
Item 2 - 17th & Commercial Apartments - First Amendment to Regulatory Agreement and Loan
The proposed First Amendment to Regulatory Agreement and Loan Documents, between the City of San Diego and 17th & Commercial, LP, a California limited partnership supports the escrow closing and commencement of construction of the 17th & Commercial Apartments, an affordable housing project to be located at 9, 19, and 27 17th Street in the East Village Neighborhood of the Downtown San Diego Community Plan Area.
The First Amendment will facilitate the redesign and financial viability of the Project by reducing the total number of residential apartments from 108 to 99, including 98 affordable units with a new affordability mix for extremely-low-income (30% Area Median Income (“AMI”)) to low-income (80% AMI) households, and one unrestricted manager unit.
The First Amendment also provides for a change from all studio apartments to a mix of studios and one-bedroom apartments. The Project is preliminarily scheduled for award of tax credits on September 1, 2026, and is aiming to close escrow and start construction in November.
Item 3 - Informational item regarding the Fiscal Year 2026 Consolidated Annual Performance and Evaluation Report (CAPER) for U.S. Department of Housing and Urban Development (HUD) Programs
This informational item will provide the City Council with a summary of the Fiscal Year 2026 Consolidated Annual Performance and Evaluation Report (CAPER), which highlights the projects and programs the City implemented during the period of July 1, 2025, through June 30, 2026.
These projects and programs used funds from the following federal sources: Community Development Block Grant program, HOME Investment Partnerships Program, and Emergency Solutions Grants program.
The U.S. Department of Housing and Urban Development (HUD) requires local jurisdictions to prepare a CAPER in order to receive federal housing and community development funding for all HUD entitlement grants. The CAPER summarizes the City's activities implemented with the following HUD entitlement grant programs
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Land Use and Housing Committee Meeting – September 3, 2026 – 1:00 p.m.
LU & H Committee Meeting Agenda
Consent Agenda
Item 1 – Approval of Committee Minutes
Item 2 - Approval of a First Amendment to the Subrecipient Grant Agreement with the County of San Diego for the Riverbed Encampment Resolution Funding Project
In 2023, the County of San Diego partnered with the City of San Diego, City of Santee, and Caltrans to apply for a project focused on addressing encampments in the San Diego Riverbed. On June 14, 2023, the County was awarded $16,951,298 in Round 2 Encampment Resolution Funding Program, Rolling Disbursement grant funds.
Of the total grant award, $3,666,572 was allocated to the City. On March 19, 2024, the City Council approved the City to enter into a subrecipient grant agreement with the County to accept the City’s portion of the award. This item seeks approval of a first amendment to the subrecipient grant agreement to extend the term from June 30, 2026, to June 14, 2027.
Item 3 - Approval of a Third Amendment to the Grant Agreement with the County of San Diego for the Domestic Violence Shelter
In January 2024, the City of San Diego (City) and County of San Diego (County) entered into a sub recipient grant agreement for the purpose of providing domestic violence shelter-based services to victims and their children actively fleeing or escaping domestic violence, or in imminent danger of domestic violence, survivors of human trafficking, and survivors of sexual assault.
This item requests approval to authorize a third amendment, retroactive to July 1, 2026, to increase the award amount by $1,500,000 for a total not to exceed amount of $6,900,000 and extend the grant term to June 30, 2027.
Item 4 - First Amendment to the Real Estate Purchase and Sale Agreement between the City of San Diego and Bridge Deck Owner, LLC, pertaining to a City-owned real property located at 40th Street and El Cajon Blvd to revise the sequence of work and extend the close of escrow date.
This item would approve a First Amendment to the Real Estate Purchase and Sale Agreement between the City of San Diego and Bridge Deck Owner, LLC, pertaining to a City-owned real property located at 40th Street and El Cajon Blvd to revise the sequence of work and extend the close of escrow date
Bridge Deck Owner LLC, a Delaware limited liability company, owns land in City Heights at 40th Street and El Cajon Blvd and is proposing to build 190 units of affordable housing.
Discussion Agenda
Item 5 - Declare seven City-owned parcels with Assessor Parcel Numbers 548-450-13, 587-420-02, 425-012-22, 425-012-24, 465-273-06, 591-100-40, and 446-364-06 “exempt surplus land” pursuant to California Government Code Section 54221(f)(1)(B)
To maximize public benefit and reduce long-term management costs, EDD identified seven City-owned parcels proposed for exempt surplus designation and determined that they meet the criteria under the Surplus Land Act under the “small parcel” exemption and meet the criteria for sale versus ground lease in accordance with Council Policy 700-10.
City-owned properties may be considered for sale if they meet the following criteria:---- The property is not currently used by any City department.
- The property does not support a municipal function and does not have a foreseeable City use.
- The property is a non-performing or under-performing asset.
- The property, if sold, would provide a greater public benefit than retention or lease.
Because a sale constitutes a disposition of City-owned property, all such transactions must also comply with the Surplus Land Act (SLA).
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