Community and Neighborhood Services Committee Meeting - July 25, 2024

The Community and Neighborhood Services Committee convened on Thursday, July 25, 2024, at 9:00 AM. The meeting included approval of previous minutes, non-agenda public comments, a consent agenda item, a discussion item on all-gender restroom requirements, and an informational update on the short-term residential occupancy (STR) program. The committee took action on the restroom proposal and heard extensive public testimony on STR regulations.

Consent Calendar

• Item 1: Approval of Joint Use Agreements – The committee unanimously approved joint use agreements between the City and San Diego Unified School District for six elementary schools (Andy, Bernard, Erickson, Weg of Forth, Whitman, Zamorano). The motion passed 4-0.

Public Comments & Testimony

Non-Agenda Public Comment (before agenda items)

• Cesar Javier and Parita Javier (residents) – Expressed urgent concerns about toxic emissions from a neighboring ceramic facility, alleging the city’s home occupation rules allow industrial activity in residential zones. Pleaded for city action.
• Michelle, Christopher Biason (District 2 residents) – Opposed a proposed 12-unit ADU project on Shoshone Avenue, arguing it violates state ADU regulations, poses fire safety risks on a steep hillside in a high fire hazard zone, and would overwhelm their small cul-de-sac. Requested review.
• Joyce and Yata (District 3) – Highlighted student homelessness statistics: 9,680 homeless students in San Diego (8% of 121,000). Cited a middle school with 69% homeless students.
• Audra (reporter) – Claimed border crossers are endangering the city and nation, citing a friend attacked and passports from a terrorist watch list. Expressed concerns about migrant children and alleged trafficking by contractors.
• Lori Saldania – Urged climate resiliency in housing density decisions. Noted risks of wildfires and mudslides when building near canyons and on fill slopes.
• David Milroy – Spoke about seniors in managed buildings exposed to violence, drugs, and poor living conditions (no air conditioning). Asked the committee to address senior community safety.
• Virtual speakers:
  • Blair Beekman – Urged retention of virtual public comment and raised concerns about future Kettner Avenue shelter and surveillance tech.
  • Kathleen Lippitt – Argued marijuana, solar, and wind industries harm biodiversity; asked for reconsideration of support.
  • Terry Ann Skelly (parent/volunteer) – Supported smoke- and vape-free public places for children’s health.
  • Peggy Walker – Opposed eliminating virtual comment, citing accessibility for disabled, elderly, and working people.
  • Madison (mother of three) – Raised alarms about semi-synthetic cannabinoids sold as gummies/chocolates appealing to youth, leading to poisonings and psychiatric disorders.
  • Megan Stewart (public health) – Urged regulation of high-potency THC products and opposed consumption lounges.
  • Judy String – Requested the committee invite Deloitte LLC to discuss the $94 million contract, noting budget ambiguities.
  • Becky Rapp – Highlighted harms of high-potency marijuana concentrates (up to 99% THC) and urged mandated educational resources with sales.

Public Comment on Item 1 (Joint Use Agreements)

• Cesar Javier – Asked for inclusion of experts to discuss low-cost emergency shelter solutions.
• Joyce and Yata – Reviewed the 25-page joint use agreement for Zamorano Elementary, noted security language was vague, but expressed good faith.
• Audra – Supported the agreements but urged caution about pesticide use on school fields affecting children and users.

Public Comment on Item 2 (All-Gender Restrooms)

• Cesar Javier – Joked about sending employees to study modern restrooms in Europe/Australia and requested immediate installation of all-gender restrooms at City Hall due to odor.
• Karina Pew (San Diego LGBT Community Center) – Strongly supported the proposal. All-gender restrooms create safe, affirming spaces; no one should face harassment for using a public restroom. Thanked Councilmember Campbell.
• Joyce and Yata – Expressed empathy for those facing restroom discrimination and supported the initiative, hoping to understand the transgender community better.
• Audra – Cautioned that multi-stall all-gender restrooms might make some feel unsafe, especially children; recommended single-stall designs for equity.
• Lori Saldania – Supported the idea but noted the city lacks enough public restrooms overall. Cited grand jury reports and $30,000/month per portable toilet. Stated that lack of restrooms leads to health crises, including sepsis in unhoused adults.
• Lauren Casaris (Loma LGBTQIA+ Alumni Coalition) – Supported the proposal, citing state law (SB 1194) and noting taxpayers should not fund discrimination. Stated opponents can use single-stall restrooms.
• Virtual speakers:
  • Anu (LGBTQ committee member) – Supported all-gender restrooms, noting her sister was almost assaulted in a women’s bathroom by a straight male. Argued all-gender restrooms increase safety for women.
  • Blair Beekman – Agreed with Lori Saldania on the need for better bathroom access overall.

Public Comment on Item 3 (Short-Term Rental Program Update)

(32 in-person speakers; many virtual. Key positions summarized.)

• Michael Levit Collier (District 9) – Criticized the current policy for allowing commercial STRs in residential zones, converting homes to hotels, and displacing neighbors. Cited city attorney’s 2017 memo.
• Carol Schleif (Pacific Beach) – Documented noise and partying from an absentee-owned STR; called for better enforcement.
• David (Ocean Beach) – Acknowledged revenue but argued 6,000 units removed from housing market increases rents. Proposed zoning map overlay to restrict STRs to commercial corridors.
• Cesar Javier – Linked his toxicity case to STR enforcement gaps; questioned collaboration between departments.
• Jay Goldberg (Save Neighborhoods.org) – Presented data on loopholes: the “Mills loophole” allowing owners to obtain multiple licenses; 30% of whole-home licenses held by owners with 5+ licenses; over 200 apartment buildings fully converted to STRs (956 units). Showed concentration maps: Mission Beach 31%, Ocean Beach 7%, Pacific Beach 4%. Urged adoption of recommendations from Community Planners Committee.
• Kevin Hastings (Ocean Beach) – Called for closing loopholes, vetting licenses properly; said LLCs with 100 units mock the ordinance’s intent.
• Aaron Beard (vacation rental manager) – Advocated for engaging good actor managers; opposed retroactive one-license rule but argued prospective enforcement is failing.
• William Butler (Mission Beach) – Supported STRs as integral to Mission Beach’s identity and family income; opposed drastic changes.
• Bill Brewer – Supported STRs, citing revenue and precedent; said enforcement should be fixed, not the ordinance thrown out.
• Joyce and Yata – Called for holistic collaboration; urged committee to listen to all voices.
• Audra – Suggested caps on number of units per owner.
• Jerry Locke (host) – Expressed frustration with enforcement; argued fines ($1,000) are inadequate for nightly revenues; called for stronger penalties. Referred to “America’s finest tourist plantation.”
• Paul Becker (STR agency owner) – Stated market saturation caps are not being hit; most hosts manage 1 license; encouraged lifestyle hosting.
• Jeff – Disputed earlier claims of 15,000 STRs; said ordinance has reduced nuisance complaints. Stated that his family used STRs to afford Mission Beach.
• Peggy Haflinger (senior host, Bay Park) – Described emotional impact of receiving a cease-and-desist order ($1,000/day). Had zero complaints; hosts for joy and supplemental income. Hoped for resolution based on misunderstanding.
• Larry Webb (Mission Beach Town Council) – Praised reduction in problems since ordinance; urged banning “ghost licenses” (non-owners). Proposed cap of 25% or 2 units per parcel.
• Christy Ryan – Identified as a tenant being evicted due to the Mills loophole; said she and neighbors cannot find affordable housing.
• Brooke MB – Supported current regulations; asked council not to make drastic changes, just enforce existing rules.
• Franz Elisondo (host) – Spoke positively about hosting; asked to reward good actors and increase enforcement with the $7 million collected.
• Trudy Gremland – Described a party house nightmare resolved by the ordinance; urged targeting corporate operators, not individual homeowners.
• Mary Soriano (La Jolla Town Council President) – Announced a united coastal voice (La Jolla, Pacific Beach, Mission Beach); requested collaboration with city to identify loopholes.
• Virtual speakers:
  • Banu (family-owned STR) – Described hosting nurses, military families, and disaster victims; argued large corporations, not STRs, inflate housing prices.
  • John Tarney – Noted zoning caps adults but STRs host 16–20 guests; enforcement is ineffective; police arrive hours late; called for action.
  • Mandy Havlik (Peninsula Community Planning Board) – Opposed the ordinance given housing crisis; asked to prevent multiple licenses and limit concentration.
  • JTK – Nearby resident disturbed by 6-bedroom STR used as motel; called for complete ban due to loss of housing and noise.
  • Sainara Velazquez (Ocean Beach) – Opposed whole-home conversion; compared to NYC, LA, SF which allow only 30+ day rentals. Stated 6,000 affordable units lost.
  • Eric/Peter Cooper – Described neighbor’s party house with threats, fireworks; owner tried to retrain order against complainant; lawsuit pending.
  • Laurie Heggerly (Ocean Beach) – Said 8 whole-house STRs on her block; urged tightening regulations; supported community planning board recommendations.
  • Tasha (host) – Supported regulation but noted loopholes allowing rental arbitrage and hotels; asked for changes.
  • Jerry Locke (virtual) – Defended STRs; said affordable housing problem is separate; enforcement is adequate.
  • Eduardo Luna (former city auditor) – Called for greater limits on STRs in residential neighborhoods; said program harms housing supply and neighborhood character.
  • Blair Beekman – Thanked public for education on the issue; hoped for balanced approach.
  • Jesse Bullock (Ocean Beach renter) – Urged adoption of Jay Goldberg’s recommendations; described fear of eviction as building sold.
  • Jeannie Frost (Pacific Beach since 1945) – Noted oversaturation; neighbor had rental converted to STR; permits need stricter vetting.

Discussion Items

Item 2: All-Gender Restroom Requirements for City Facilities

Staff Presentation: Manuel Reyes (Policy Advisor, District 2) proposed requiring all gender restroom options in new construction and significant remodels of city facilities (libraries, parks, beaches, recreation centers). Cited Senate Bill 1194 (2022) granting local authority. Highlighted public safety: UCLA study found 70% of transgender/nonbinary people experienced harassment in gender-specific restrooms. Also benefits parents with children, caregivers, and people with disabilities. Suggested signage indicating restrooms for any gender.

Council Discussion: Chair Campbell (District 2) spoke in favor, noting her LGBTQ identity and the need for safe, inclusive facilities. She made a motion to direct District 2 staff to work with the City Attorney to draft documents requiring all-gender restroom options in new and significantly renovated city facilities with appropriate signage. Councilmember Von Wilpert seconded, calling it a “fantastic idea.” Councilmember Campillo offered support. The motion passed unanimously 4-0.

Item 3: Short-Term Residential Occupancy Program Update (Informational)

Staff Presentation: Matt Wood (STR Program Manager, Treasurer’s Office) reported that as of June 30, 2024, 8,733 active STR licenses exist (out of 9,596 issued). 91 revoked, 725 canceled. Tier 3 (1% citywide cap) has 760 licenses still available; Tier 4 (Mission Beach 30% cap) is wait-listed with 143 applicants. Total revenue from fees: ~$7.5 million; TOT collected: $153 million over FY22-24 (18% of city’s total TOT). Enforcement costs: ~$6.5 million (Treasury, Development Services, City Attorney, Performance & Analytics). Norma Medina (Building & Land Use Enforcement) reported that since May 2023, 1,780 complaints received, 1,258 closed, resulting in 1,083 code enforcement cases (620 resolved). 1,742 civil penalty notices and orders issued at $1,000/day/violation. 7 cases referred to City Attorney. Staff noted collaboration with platforms to block invalid listings (approx. 7,000 blocked).

Council Discussion: Chair Campbell acknowledged staff and public contributions. She reflected on the long history of STR regulation in San Diego, noting the pre-regulation “wild west” with 14,000–16,000 STRs. The ordinance reduced that by at least half. She stated the city cannot ban STRs (citing a 2017 memo now superseded). She encouraged use of Get It Done app and contact with staff. Councilmember Von Wilpert asked about platform compliance; staff confirmed cooperation. She offered City Attorney support via unfair competition law. Councilmember Campillo praised revenue ($55.7 million TOT from STRs in FY24) but acknowledged speed of enforcement is key. He asked about increasing fines for serial violators; staff noted $1,000/day is high but can be adjusted after evaluating summer 2024 data. He also asked about feedback to complainants; staff confirmed automated resolution emails via Get It Done. Councilmember Campillo emphasized the need for rapid response.

Key Outcomes

• Item 2 (All-Gender Restrooms) – Motion approved unanimously 4-0: District 2 staff to work with City Attorney to draft requirements for all-gender restroom options in new and significantly renovated city facilities (libraries, parks, beaches, recreation centers) with appropriate signage.
• Item 1 (Joint Use Agreements) – Approved unanimously 4-0.
• Item 3 (STR Update) – Informational item; no vote. Council directed staff to continue enforcement, evaluate data from first full summer, explore penalty adjustments, and address loopholes (e.g., multiple licenses, apartment conversions). The committee scheduled its next meeting for September 5, 2024 at 1:00 PM.