San Diego City Council Meeting – October 27, 2026

The City Council convened at 10:00 a.m. on October 27, 2026, to address a special docket including proclamations, an emergency moratorium on data center development, water rate adjustments due to litigation, and affordable housing loan agreements. The meeting drew extensive public testimony, particularly on the data center issue.

Public Comments & Testimony

• Proclamations: Multiple speakers honored Mary Scott Knoll for fair housing advocacy, recognized the Mission Beach Women's Club centennial (S501), and highlighted Domestic Violence Awareness Month (S505). Supportive comments were made by community members and colleagues.
• Data Center Moratorium (S510): Over 45 speakers in person and 32 remote callers voiced strong opposition to new data centers, supporting the temporary moratorium but calling for a permanent ban. Speakers cited concerns over electricity rates, water consumption, noise pollution, habitat destruction, and the proposed 400-megawatt data center at the Navy's NAVWAR site. Several speakers noted the lack of public support (only one satirical comment in favor). Many urged the council to extend the moratorium beyond 45 days and to oppose Proposition 45.
• Water Rate Adjustments (S330): Public comment included frustration over the shift to a unitary rate, which penalizes conservation. Some speakers opposed the increase, while others acknowledged the legal necessity. Advocacy groups requested a new cost-of-service study and expansion of customer assistance programs.
• Affordable Housing Loans (S506, S507): Most commenters supported the projects, emphasizing the need for affordable housing, though some questioned cost per unit and loan repayment expectations.

Discussion Items

• Temporary Moratorium on Data Centers (S510): The council debated an urgency ordinance to pause data center development for 45 days while staff develop permanent regulations. Councilmember Elo Rivera introduced amendments requiring: (1) staff to notify council within 7 days of any developer inquiries; (2) a framework for permanent policy including no cost shifting to ratepayers, 100% renewable energy, no potable water for cooling, skilled workforce, community input, and minimum separation from sensitive uses; (3) updates at 45 days; and (4) the Office of Government Affairs to lobby against a large-scale data center at NAVWAR. The council stressed the limited jurisdiction over federal land but committed to using all available tools. The moratorium requires a four-fifths vote and can be extended up to an additional 10 months and 15 days after further hearings.
• Water Rate Adjustments (S330): Staff presented the need to transition from tiered to unitary water rates to comply with the PATS litigation ruling. The change does not increase total revenue but reallocates costs: low-volume users see a 7.1% increase (approx. $5.62/month) while high-volume users see a 4.5% decrease (approx. $19.52/month). The city previously settled for $40 million. The IBA recommended approval to avoid further litigation and potential default on bonds. Councilmember Elo Rivera moved to approve with an additional directive for Public Utilities to work with the IBA on expanding customer assistance programs using non-rate revenue.
• Affordable Housing Loans (S506, S507): Staff presented two loans of $5 million each from the Low and Moderate Income Housing Asset Fund: $5 million for the Jule project (208 units for families, 30-60% AMI) in District 7, and $5 million for the Salvation Army Rady Center Phase 2 (89 units for seniors) in District 3. Both are part of the Bridge to Home program and include 55-year affordability covenants.

Key Outcomes

• Proclamations: Approved unanimously for items 30, S500, S501, S505.
• Data Center Moratorium (S510): Adopted 9-0 with amendments. The 45-day moratorium takes effect immediately, prohibiting new data center permits within city jurisdiction. The council will receive updates and consider extension and permanent regulations.
• Water Rate Adjustments (S330): Passed 6-2 (Councilmembers Foster and Lee voting no; Councilmember Von Wilpert absent). The ordinance adopts a unitary water rate structure effective January 1, 2027, in compliance with court orders. Staff will develop enhanced customer assistance programs and report back.
• Affordable Housing Loan for Jule Project (S506): Approved 8-0.
• Affordable Housing Loan for Salvation Army Rady Center Phase 2 (S507): Approved 8-0.

The meeting adjourned at approximately 2:30 p.m., with the next regular meeting scheduled for November 9, 2026.