San Diego City Council Environment Committee Meeting – October 21, 2021

The Environment Committee convened virtually on October 21, 2021, at 1:00 p.m. (following a 17:00 UTC start in the transcript) to consider a full agenda covering the Pure Water program, groundwater sustainability, and rooftop solar policy. The meeting lasted approximately three hours and included public comment, staff presentations, and unanimous votes on most items, with two items moved to the full Council without recommendation.

Consent Calendar

• Items 1 & 2 were approved unanimously. Item 1 authorized a sole‑source contract with Hawthorne Machinery Company for as‑needed repairs and technical services to engines and generators. Item 2 awarded a service agreement to Stearns, Conrad and Schmidt Consulting Engineers for Miramar Landfill Gas System operation and maintenance. A public commenter (Lori Saldaña) raised concerns about Hawthorne’s equal‑employment‑opportunity compliance and the lack of competitive bidding, but the committee voted to approve both items.

Public Comments & Testimony

• Non‑agenda public comment: Lori Saldaña criticized city lease arrangements costing taxpayers millions for unused properties, and Ann Fegey (Community Forest Advisory Board) urged investment in urban forestry to leverage state and federal climate funds.
• Pure Water items (3–6, 10): Saldaña spoke on all five items, expressing decades‑long support for water reuse but urging that contracts be awarded to firms with diverse workforces and that water affordability be addressed. She also noted that AECOM and CH2M Hill (the firms seeking amendments) have low percentages of women and minorities in technical roles.
• San Pasqual Valley Groundwater items (7 & 8): Lonnie Lutar (Rancho Guajito) asked the committee not to approve the Groundwater Sustainability Plan (GSP) without first building stakeholder trust through a transparent surface‑water recharge study. Frank Conine (advisory committee member) supported the plan as a compromise. Lori Saldaña also urged inclusion of local residents.
• Net Energy Metering Resolution (item 9): Eleven speakers supported the resolution, including representatives from Grid Alternatives, Protect Our Communities Foundation, San Diego 350, Climate Action Campaign, and the San Diego Green New Deal Alliance. They argued that rooftop solar is essential for climate goals, job creation, and equity, and that the investor‑owned utility proposal would undermine adoption. One speaker from SDG&E urged the committee to consider equity for non‑solar customers.

Discussion Items

• Pure Water Program Update (Item 10, Informational): Shauna Laurence (Public Utilities Director) and Adam Jones (Deputy Director) presented an update on Phase 1 construction (over $1 billion awarded) and planning for Phase 2. They noted that the project’s water cost ($2,100–$2,300 per acre‑foot) is now lower than desalination, and that a demonstration plant for Phase 2 will be sited at Point Loma, saving $30 million. The committee discussed COVID‑19‑related cost increases, supply chain impacts, and the need for a diverse workforce.
• Pure Water Contracts (Items 3, 4, 6): Staff requested amendments to design contracts with AECOM ($5.8 million increase) and CH2M Hill ($7.3 million increase), both for construction support, and a grant agreement with the Integrated Regional Water Management program ($1.5 million). All items were approved unanimously.
• Capital Improvement Program Budget (Item 5): The committee approved a $130 million increase in the Pure Water Phase 1 construction authorization (from $1.08 billion to $1.21 billion), a $17.4 million increase in the pool contingency, and $33.5 million for Phase 2 planning. The change‑order authority for the mayor was increased from $1 million to $2 million, with a commitment to notify the council in writing of any change orders between $1 million and $2 million.
• San Pasqual Valley Groundwater Sustainability Plan (Items 7 & 8): Kelly Valo and Karina Danick (Public Utilities) presented the GSP, noting the basin is currently sustainable and that no pumping restrictions are needed. The committee expressed concerns about unresolved stakeholder issues, particularly regarding the surface‑water recharge study and Sutherland Dam. Councilmember Von Wilpert moved to forward both items to the full Council without recommendation, which passed unanimously. Staff committed to additional stakeholder meetings before the Council hearing.
• Net Energy Metering 3.0 Resolution (Item 9): Brendan Dentino presented the resolution, which urges the California Public Utilities Commission to reject elements of proposals that would hinder rooftop solar growth. After discussion, Councilmember LaCava offered friendly amendments to add equity language and to strike the specific reference to the IOUs’ joint proposal. The resolution, as amended, was approved unanimously.

Key Outcomes

• Consent Agenda (Items 1 & 2): Approved unanimously.
• Pure Water Contract Amendments (Items 3, 4, 6): Approved unanimously.
• Pure Water CIP Budget (Item 5): Approved unanimously, including the increased change‑order authority and the council‑notification requirement.
• San Pasqual Valley GSP (Item 7) & Contract Amendment (Item 8): Moved to the full City Council without recommendation (unanimous). Staff to hold additional stakeholder meetings.
• Net Energy Metering Resolution (Item 9): Approved unanimously with amendments.
• Next Meeting: The committee will meet on November 18, 2021, at 1:00 p.m.