(0-2020-40 REV.)

ORDINANCE NUMBER 0-

2.1,'.!L43

DATE OF FINAL PASSAGE

(NEW SERIES)

NOV 0.4 2019,, .

AN ORDINANCE OF THE CITY OF SAN DIEGO SUBMITTING
ONE CITIZENS' INITIATIVE MEASURE TITLED "FOR A
BETTER SAN DIEGO" TO THE QUALIFIED VOTERS OF THE
CITY OF SAN DIEGO, AT THE MUNICIPAL SPECIAL
ELECTION TO BE HELD ON MARCH 3, 2020.
WHEREAS, on July 9, 2018, an initiative petition titled "For A Better San Diego" (the
initiative petition) was filed with the City Clerk on behalf of the initiative petition's proponents;
and
WHEREAS, the initiative petition asks voters to approve an increase to the Transient
Occupancy Tax (TOT) paid by visitors to the operators of hotels, campgrounds, and other sites in
the City of San Diego (City), with revenues raised by the additional TOT reserved for San Diego
. Convention Center purposes, including expansion and modernization; programs and services to
reduce homelessness in the City; and street repairs, improvements, and maintenance in the City;
and
WHEREAS, the initiative petition also includes provisions regarding the City's issuance
ofrelated bonds; and
WHEREAS, upon completion of a prima facie review, the City Clerk accepted the
initiative petition as filed, in compliance with San Diego Municipal Code (Municipal Code)
section 2 7.1021; and

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WHEREAS, the City Clerk submitted the initiative petition to the San Diego County
Registrar of Voters (Registrar of Voters) for signature verification; and
WHEREAS, on August 8, 2018, the Registrar of Voters completed its verification of
three percent of the signatures selected at random from the petition in accordance with Municipal
Code section 27 .1022, and certified that the sample showed the projected number of valid
signatures fell between 95 percent and 110 percent of the number of signatures needed to declare
the petition sufficient; and
WHEREAS, as a result of the random sample, the Registrar of Voters, following
California Elections Code section 9115, then conducted a signature-by-signature examination
and verification of the petition signatures; and
WHEREAS, on September 20, 2018, the Registrar of Voters certified that the initiative
petition contained the valid signatures of ten percent of the City's registered voters at the last
general election, sufficient under Charter section 23 to qualify the initiative for direct submission
to the voters; and
WHEREAS, on September 20, 2018, the City Clerk certified that the signatures on the
initiative petition were sufficient to qualify the initiative for consideration for adoption or
submittal to the v_oters; and
WHEREAS, on September 25, 2018, in compliance with Municipal Code section
27.1027, the City Clerk presented the initiative petition, with its certification attached, to the City
Council (Council); and

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WHEREAS, in compliance with Municipal Code section 27 .1034, if an initiative petition
presented to the Council contains the signatures of ten percent or more of the voters, the Council
shall, within ten business days of the date of presentation, adopt or reject the legislative act as
presented, but niay not amend it; and
WHEREAS, in compliance with Municipal Code sections 27.1034 and 27.1035, the
Council shall consider a certified initiative petition and either (1) grant the initiative petition and
adopt its provisions in full; or (2) adopt a resolution of intention to submit the matter to the
voters at 'a special election, and direct the City Attorney to prepare an ordinance calling a special
election to place the matter on the ballot; and
WHEREAS, the initiative petition that is the subject of this ordinance seeks to increase
the City's Transient Occupancy Tax, and the Council does not have legal authority under the
California Constitution to increase a tax on its own vote; thus, the Council could not grant the .
initiative petition and adopt its provisions in full; and
WHEREAS, initiative measures that seek to increase a tax must be submitted to the
voters for approval; and
WHEREAS, Charter section 23 directs that initiated legislative acts that qualify for the
ballot "shall be submitted to the electorate at a Municipal Special Election consolidated with the
next City-wide Municipal General Election ballot on which the measures legally can be placed,
or at a City-wide Municipal Special Election held prior to that general election"; and

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WHEREAS, on October 8, 2018, the Council adopted San Diego Resolution No ..
R-311981, declaring its intention to submit the initiative petition for the measure titled "For A
Better San Diego Initiative" to the City's voters at a citywide election; and
WHEREAS, the resolution directed the City Attorney to prepare an ordinance placing the
initiative measure on the ballot at a Mnnicipal Special Election consolidated with the next
citywide Municipal General Election ballot in November 2020, unless the Council decided to
place the initiative measure on the ballot of a citywide Mnnicipal Special Election to be held
prior to that general election; and
WHEREAS, on April 15, 2019, the Council adopted San Diego Resolution No.
R-312349, superseding San Diego Resolution No. R-311981, and declaring its intention to
submit the "For A Better San Diego Initiative" to t~e City's voters at the Mnnicipal Special
Election to be held on March 3, 2020; and
WHEREAS, on October 1, 2019, the Council adopted San Diego Ordinance
No. 0-21139, calling a Municipal Special Election in the City for Tuesday, March 3, 2020, to
submit one or more ballot measures to the City's qualified voters, and the Council now desires to
submit the 'For A Better San Diego Initiative" measure to the City's qualified voters on that
ballot; and
WHEREAS; the. initiative measure seeks to increase the Transient Occupancy Tax, which
is a special tax, and thus the initiative measure requires approval by a two-thirds majority of the
local electorate to be adopted by the voters; and
WHEREAS, pursuant to Charter section 295(b), the Council's adoption of an ordinance
to submit a citizens' initiative measure to City voters at a Mnnicipal Special Election is not

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subject to veto by the Mayor, and thus the date of the ordinance's passage by the Council shall
be deemed the date of its final passage; NOW, THEREFORE,
BE IT ORDAINED, by the Council of the City of San Diego, that:
Section I.

One citizens' initiative measure titled "For A Better San Diego" is

submitted to the qualified voters of the City of San Diego at the Municipal Special Election to be
held on March 3, 2020, with the measure to read as follows:

MEASURE
The complete text of the initiative measure is attached to this Ordinance as Exhibit A, and
incorporated by reference here, and will be submitted to the San Diego County Registrar of
Voters in a separate document.

END OF MEASURE

Section 2.

The measure shall be presented and printed upon the ballot and submitted

to the voters in the manner and form to be detennined by the Council by resolution, in
compliance with the San Diego Municipal Code.
Section 3.

On the ballot to be used at this Municipal Special Election, in addition to

any other matters required by law, there shall be printed substantially the following:

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l\lIEASURE
. INITIATIVE MEASURE - HOTEL
VISITOR TAX INCREASE FOR CONVENTION CENTER
EXPANSION, HOl\lIELESSNESS PROGRAMS, STREET
REPAIRS. Shall the measure be adopted to: increase the City of

San Diego's 10.5% hotel visitor tax by 1.25 to 3.25 percentage
points, depending on hotel location, through at least 2061,
designated to fund convention center expansion, modernization,
promotion and operations, homelessness services and programs,
and street repairs; and authorize related bonds; with a citizens'
oversight committee and audits by the independent City Auditor?

YES

NO

.

Section 4.

An appropriate mark placed in the voting square after the word "Yes"

shall be counted in favor of the adoption of this measure. An appropriate mark placed in the
voting square after the word "No" shall be counted against the adoption of the measure.
Section 5.

Passage of this measure requires the affirmative vote of two-thirds of

those qualified electors voting on the matter at the Municipal Special Election..
Section 6.

The City Clerk shall cause this ordinance or a. digest of this ordinance to

be published once in the official newspaper following this ordinance's adoption by-the Council.
Section 7.

Pursuant to San Diego Municipal Code section 27.0402, this measure will

be available for public examination for no fewer than ten calendar days prior to being submitted
to the San Diego County Registrar of Voters under the deadline for publication of ballot
materials. During the examination period, any voter registered in the City may seek a writ of
mandate or an injunction requiring any or all of the measure to be amended or deleted. The
examination period will end on the day that is 75 days prior to the date set for the election. The
Clerk shall post notice of the specific dates that the examination period will run.

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Section 8.

A full reading of this ordinance is dispensed with prior to its passage, a

written or printed copy having been available to the Council and the public prior to the day of its
passage.
Section 9.

This ordinance placing a qualified initiative measure on the ballot is a

ministerial act within the Council's purview and related to elections, and thus not subject to
mayoral veto under Charter section 280(a)(l); as such, it maybe passed by the Council on the
date of introduction pursuant to Charter sections 275(c), 295(b), and 295(d).
APPROVED: MARA W. ELLIOTT, City Attorney

By

~rvr.,1_01A-Ch,
Kevin Reisch
S.enior Chief Deputy City Attorney

SBS:KJR:jdf
09/11/19
10/24/19 REV.
Or.Dept: Mayor
Document No.: 2043393 2

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 Exhibit A to
Ordinance
(0-2020-40)

 INITIATIVE PETITION

To the Honorable City Council of The City of San Diego:
We, the undersigned registered voters of The City of San Diego, California, by this petition hereby respectfully
propose the fqllowing legislative act be adopted by the City Council or submitted to the registered voters of1he
City of San Diego for their adoption or rejection:

NOTICE OF INTENT TO CIRCULATE PETITION
Notice is hereby given of the intention of the persons whose names appear• hereon to circulate a petition within the
City of San Dieg? for the purpose of increasing the overnight lodging tax paid by visitors to San Diego to generate
hundreds of millions of dollars needed to address the leading problems affecting our status as a world class
destination city, with revenues being raised by hotel vi~itors only.

"FOR A BETTER SAN DIEGO"
Be It ordained by the people of the City of San Diego:
Section 1. Tltle.
This measure Is a dtizen ·In1ttatlve measure and It shall be known, cited and referred to as the "Fcir a Better San Dle"gd' measure.
Section 2, Findings and Purpose
San Diego has long been considered a "world class destination city" for tourists and visitors, Our tourism industry Is one of the
largest contributors to our local economy. And tourism revenues from visitor taxes, paid by overnight lodging guests- are the
third largest source of revenue to the City of San Diego.
However, today, our tourism economy and local community are facing unprecedented challenges. Tourism and lodging
· leaders have Identified three major factors that are diminishing San Diego's status as a desirable world class destination for
tourists and visitors, These factors are: a spiraling homelessness crisis, city streets full of potholes and In urgent need of
repair, as well as outdated and !nadequate convention and tourist facllltles. Together, these factors are restricting the healthY
expansion of the tourism economy which ·provide money for the local economy and funds for city servlces.
Yet, whlle "America's Finest City~ today faces multiple 'challenges tO our status as a world-class desUnatlon clty, we have
lncreaslngly limited flnahclal resources available to address those challenges. Taken together, these challenges threaten our
City's reputation, quality of llfe,_the health of our local economy, and our attractiveness to mlllions of tourists and visitors.
This measure, If adopted, vvtll provide significant new revenues to address these challenges and wm provide a•~urning point"
that will restore and secure San Diego's status as a world-class destination c!ty for tourlsto and visitors for years to come, To
accomplish th!s purpose, this measure will provide additional funding to: (1) reduce homelessness, (2) improve city streets, and (3) s!gnificantly expand v!sitor/tourlst faclUtles -with revenues being raised ~om I10tel visitors only.
With this purpose I~ mind, San Diego's tourism and lodglng leaders have joined with homeless advocates, community activists,
business leaders, and others who represent a broad cross-section of the San Diego community to sponsor "For A Better San
Diego" to address these problems Which are diminishing San Diego's stature as an attractive destination for visitors and tourists.
Tols cltrzen lnitiaUve measure wlll lncrease the overnight lodging tax paid by visitors to San Diego which will then generate
hundreds of mflllons of dollars needed to address. the leading problems affecting our status as a world class destination city,
Reducing Homelessness
As mentloned before, San Diego's homeless crisis has been a major concern forv!sllors and residents alike. Yet, the crisis
contlm1e$ to grow year by year. ~ecent counts suggas~ there are more than 5,000 homeless women and children, military
veterans, lndlvlduals with mental health and physical challeriges, and other vulnerable populations, In. our City. Many of these
lndlvlduals live on city streets, sidewalks, open space, canyons, beaches, parks, riverbeds and natural lands, which results In
Impacts on tourists and visitors, and puts strain on those resources·.
San D_iego's homeless crisis Is certainly a humanitarian crisis. But It Is ·also a publlc health threat, a publlc sr,1feiy issue, and
an economic Issue alt of whlch detrimentally effects our status iis a world class destination city. The current situation is of
grave concern to many San Diego residents, businesses, and visitors and requires Immediate action. The Regional Task
Force on the Homeless (an Integrated arraY of stakeholders committed to preventing and a!levlatlng homelessness In San
Diego} has determined that more funds are crltlcally needed for shelter and services tliat wlll help the homeless to get off
the streets and to imp~6ve ihelr condition. This group has also c!ted the lack of affordable housing In San [?!ego as a inajor
contributor to the homel~ss crisis; These needs must be addressed,
Lodging and tourism bustljesses are especially concerned about the Impacts of the homeless crisis. If potentlal visitors worry
about health, safety, or security Issues associated with rampant homelessness then they won't come to our city, Indeed, the
HeP.atltls A outbreak ln late ·201 e has had aprofoundly negative Impact on tourisn:i. This negative Image, if it goes unchecl<ed,
wlll reduce clty revenues from tourism which will negatively impact city services.

Yet, Federal, State and County leaders have provided jnsufficient funding and asslstanoo to the City to make a meaningful
difference in solving the hometessn!'ss issue. This sltuatlon Is unlikely to Improve anytime soon. We therefore.,need a
meaningful lnfus[on of re_soul'ces and we ne,ed It now.
This measure provides a permanent new source of dedicated funding that Is expected to generate more than $140 million In

Juet the first five years tb address the homele.ssness crisis. For the first time, our commun!ty will have significant new fund$ to
help provid0 food, shelter, and other asslf'itance to t~ose tn need. ·This measure will help to significantly reduce homelessness
In San Diego.
·

 illlll!QYJog.Qllil.~
Next, In order to make San Diego a world class destination for vlsltors and residents, we need to fix San Diego's deteriorating
streets, roads, sldewall~s, and related Infrastructure which are In dire need of additional funding so {hat they may be b'roughl
up to the modern standards that tmirlsts 1 visitors, and residents want, need, and expect.
Yet, current 01fy funds are woefully Inadequate to keep up with Jhe ongoing repair of streets, sidewalks, and related

Infrastructure: There are too many streets, roads, and sidewalks In our city that are badly outdated, ln urgent need of repair,
or dotted with broken pavement and deep potholes. Thls situation is harmful and dangero"us to both vehicles, residents, and
vls\tors. Unless these needs are addressed people WII( choose tc_, not come to San Diego.
This measure provides a permanent new_ source of dedicated funding-paid for by hotel visitors only-which will generate
tens of millions of dollars to help bring San Dlego's streets, roads, sidewalks and associated Infrastructure up to modern
standards.
·

Expanding Vtsltor(fourjst FaclHlles
Finally, our outdated and Inadequately sized San Diego Convention ·center has been losing multlple major conventlonS to
competitors In Orange County, Los Angeles and other markets. Comic-Con and many other major conventions have long
ask~ for a larger and more modern Convention Cent'?r,
When we.Jose multlple major conventions, we lose _tens of thousands of overnight lodging gllests and WE LOSE MANY
MILLIONS OF TAX DOLLARS that those visitors would have paid. Instead they've taken their business to Anaheim, Los
Angeles, San Francisco and other competing markets.
San Diego depends on the stea·dy growth of visitor tax revenues to fund needed publlc safety, firefighting, park and
recreation, sen!or assistance programs, and many other seivlces. Until we can modernize and expand our Convention
Ceriter to attract and accommodate' visitors to San Diego, we will continue to lose major conventions and tens of mllllons In
tax revenues that our City needs.
Independent studies have estli:nated that a modernlz.ed and expanded Convention Center would create more than· 6,900
pe'rmanent new local Jobs and several thousand additional construction related jobs. It would also Jncrease General Fund
revenues by $10 to $15 mllllon per year,
For the reasons above, San Diego's tourism and lodg[ng businesses have teamed.up to sponsor and support this effort,
which WIii ralse taxes on their own.customers, ln order to restore San Diego to Its position as a world class-.destination city.
These businesses are supporting a trered_ lodglng tax on over~lght visitors that will be EARMARKED BY LAW exclusively
for programs to reduce homelessness, programs to Improve city streets, roads, sidewalks and associated Infrastructure, as
well as to modernlz:e and expand the San Diego Convention Center. A tiered overnight lodging tax wlll total 1.25 percent
for those on the outskirts of our city, 2.25 percent for lodglilg facilities on the periphery of downtown, and 3.25 percent
for downtown lodglng facilities closest to a modernlz:ed and expanded Convention Center, This proposal ensures that
customers of hotels likely to benefit the most from the results of this measure will pay the most. Occupants of hotels who are
expected to derive relativf;!ly less overall benefit from the results of the measure wlll be subject to lower tax rates.
This measure w!II also require an annual Independent audtt of the uses of these funds to ensure that they are spent as
intended by the voters and by law. This measure prohibits these funds from being used for other purposes.
The addlllona! overnight visitor tax proposed In this measure will stlll keep San Diego's tourism and lodging Industry at or
below the visitor tax charged by cities competing with S~n Diego for convention and tourism related business. Jt wilt keep
San Diego's tourism ecbnomy competitive with other markets. It will help keep current large conventions and attract many
more major conventions - thus helping to ~lgnlficantly expand our tourism economy.
Tourism and lodglng bL1sinessesAND San Diego residents wlll benefit from the Increase In tourism (an estimated 6,900 permanent
new jobs), significant new revenues to the City's General Fund, a reduction In homelessness, Improved streets, roads, and
sidewalks and improved tourlst/vlsltor·facilltles that this measure will bring. Adopting this measure will help to ensure that San
Diego will once again become a world class destination city for tourists and visitors and a source of pride for all San Dlegans.

Section 3. Amendment to the San Diego Municipal Codo
Chapter 3,_Artlcle 5 of the San Diego Munlctpal Code is amended to add a new Division 2, numbered, titled, and to read as
follows:
Division 2: Addltlonal1 Voter-Approved Transient Occupancy Tax and Related Bonds
§35'.0201 Imposition of Special Tax

(a) Notwithstanding the tax Imposed by Sections 36,0103, 35,0104, 35.0106, 35.0106, 35.0107, or 35.0108, and in addition
thereto, for the privilege of Occupancy in any Hotel, any Recreatlonal Vehicle Park, or any Campground, or other overnight·
lodging facility required to pay the Transient Occupancy Tax either currently or in the future, each Transient ls subject to and
shall pay the Addltlonal Tax in a specified percentage of the Rent charg'ed by the Operator, as follows:
(I) One and one-quarter percent (1.25%) in Tax Zone 1.
(II) Two and one-quarter percent (2.25%} In Tax Zone 2,

(Iii) Three and one-quarter percent (3.25%) In Tax Zone 3.
(b) The.Addlt!ona! Tax shall be effective on January 1, 2019 and shall continue for 42 consecutive yl3ars from the final
calendar day of the month in which the Convention Center Long-Term Expansion Bonds are Issued, except as follows;

 (1) If no Conventio~ Cent~r Long~Term Expansion Bonds have been Issued within 10 years after the date the tax Is first
Imposed, then this additional tax ~1all cease 10 years after the date of Imposition
(II) Notwithstanding the above provisions, If the Imposition of the (\ddltlonal Tax Is scheduled to cease 10 years after it is
fir~t imposed In aoccrdanoe with clause
(I) Immediately above, but any Issued earlier to finance Homeless Programs, Street Repairs,_ or Convention Center
Improvements rema!n outstanding, then the Add!t1011al Tax shall continue !n effect In the amount necessary to fund
payments of principal and Interest on the Bonds Lintil those Bonds have been fully satisfied.
§35.0202 Special Purposes of Additional Tax Revenues
(a) The Additional Tax is a special tax that will generate Addrtional Tax Revenues to the City for the Speclal Purpose
Actlv!t1es, speclfloally lnclud!ng:
(i) Homeless Programs;
(II) Street Repairs:
(Ill) Convention Cef1ter Improvements;
(Iv) Convention Center Operations;
(v) Convention Center support Activities; and
(vi) Convention Center Business Development Programs
(b)All Additional Tax Revenues shall be applied only to the Special Purpose Activities, as more speclflca!ly described !n
Section 35.0204 and Sectron 35.0206.
(c) The Peop!e of the City of San Diego Intend that the Addltlonal Tax Revenues wiH supplement, ralher than replace, any
ex/sting revenue sources (as outlined In the Fiscal Year 2016-20~7 budget adopted by the San Diego City Council) to the
Convention Center, Street Repairs and Homelessness Programs before imposition oftheAdditlona! Tax.

§35,0203 Collection and Allocatlon of Additional Tax Revenues
(a) The Additional Tax shall consist of the Homelessness Program TaX Component, the Street Repair Tax Component, and
the Convention C~nter Tax Component.
(b) Except as otheiwtse specified In Section 35,0204(a) the Homelessness Program Tax Component shall equal thirty~
one percent (31%) of the Additional Tax Revenues, the Street Repair Tax Component shall equal ten percent (10%) of the
Additional Tax Revenues, and Convention Center Tax Component shall equal flfly~nlne percent (59%) of theAddltlonal Tax
Revenues.
·
(c) If a TaxAllocatlon Triggering Event has occurred with respect to any fiscal year, the Mayor niay propose as part of any
annual budget required by Section 36,0206 and the City Council may approve, a revised percentage allocation that allocates a
lesser percentage of the Addlilonal Tax Revenues to the Convention Center Tax Coinponent and a greater percentage to either
or both of the Homeless Program Tax Component or the Street Repair Tax Component than shown in Section 35,0204. Any
revised percentage allocatlon shall be operative only for that fiscal year,

'
(d) The City Treasurer shall collect the Addltlonal Tax and deposit the Addfliona! Tax Revenues In the appropriate Revenue
Accounts, cons!stently w!th the revenue allocatrons Identified In this Section. The Chief Financial Officer shall disburse funds
from each Revenue Account consistently with the Special Purpose Activities identified In Section 35,0204 and approved
annual budgets described In Section 35.0206.
(e) Proceeds of the Homelessness Program Tax Component shall be deposited into the Homelessness Revenue Account.
(f) Tl1e City's proceeds of_ the Street Repair Tax Component shall be deposited into the Street Repair Revenue Account.

(g) The City's· proceeds of the Conventior1 Center Tax Component shall be deposited Into the Convention Center Revenue
Account.
·
§35.0204 Utilization of Additional Tax Revenues
(a) Special Homeless Crisis Allocation. Through fiscal year 2023-2024, forty~one percent of the total revenues shall be
allocated to the Homeless Revenue Account and fifty~nlne percent to the Convention Center Revenue Account. From and
after fiscal year 2024---'-2025, the revenue allocations shall be as stated In Section 35,0203(b).
(b) All funds In the Homelessness ReveiiueAccount shall be used exclusively for Homelessness Program Costs, and not
for any other Specfat Purpose Activity or any other governmental purpose. The City, another public ent!ty, a nonprofit entity,
or a private entity, as permitted by law, may operate, manage, and own an Affordable Housing project subsidized by funds
from the Homelessness Revenue Account. If funds In 1he Homelessness Revenue Account are allocated to construction
of a project that lncllldes both market-rate elements and Affordable Housing, the allocation of funds Jn the Homelessness
Revenue Account to the project shall not. exceed the actual, reasonable construction cost of Affordable H6uslng unlls, as
reasonably determined by the Mayor. Th€! City Council may from time to time establlsh by resolutron standards to Implement,
monttpr, and enforce each Affordabi!Jly covenant consistently with prevallfng standards In the affordable housing Industry,
The City Council shall also adopt a resolution establlshing an advisory seven-momber Citizens Oversight Comrplttee
appointed by the Mayor and confirmed by the City Councll as provided in City Charter sections 43, 265(b)(11) ~ (12), and
265(g) to have the followlng duties and responslbl!lt!es: (1) provide Input on, and review plans for, expenditure:'!' of bond
proceeds, Including an annual al!ooatlon plan or expenditure plan; and (2) advise and make recommendatiorls to the Mayor
and City Council relative to all expenditures In this program, Including plans, polfcles, fundlng guidelines and funded projects,
Except as otherwise provided herein, the members' terms a_nd quallflcations, and any other duties and scope of the Citizens
Oversight Commlltee, shall be established by the City Council.

 (c) All funds In the Street Repair Revenue Acco1,mt shall be used exclusively for Str.e0t R~palr Costs, and not for any other
Special Purpose Actlvlty or any other governmental purpose.
(d) All flmds in \he Convention Center Revenue Account shall be used exclusively for Convention Center Expansion and
Modernizatlon;,Costs, Convention Center Operating Costs, Convenllon Center Support Costs, and convention Center
Business DeVJ:'llopment Costs, and not for any oth~r Special Purpose Activity or any other governmental purpose,
(e) The City Councll may amend this Division to clarify the scope of Special P\Jrpose Activities, to clarify the manner of
collect!on of the Addltlonal Tax (or the collection of any Additional Tax Component, If Section 35.0201, subdfvlslon(b) ls
triggered or to clarify the use of funds In any Revenue Account, so tong ?S:
(I) the ordinance is not inconsistent with the purpose and Intent Ct the Addltlonal Tax as described ln both this Division and
the voter-approved ordinance adopting It; ·
(ii) the ordinance does not in any way change the nature of the Special Purpose Activities or Increase the Addltlonal Tax;

(Ill) the ordinance does not change the percentage of Addltlonal Tax Revenues allocated toward each Special Purpose
Activity under Section 35,0203(b)'except as permitted.under Sections 35.0202(b) and 35.0203(c); and,
(Iv) the ordinance does not allow the transfer of any funds from one Revenue Account t6 another Revenue Account.
§35,0205 Expenditure Restrictions

The Additional Tax·Revenues shall not be subject to the expenditure restrictions sEtt forth in Section 35.01 D1 or Sections
35.0128 through 35,0133, inclusive, but Instead shall be subject to the expenditure restrictions of this Division. Given that
the Additional Tax has been proposed by local cltlzens as an Initiative and approved by the local electorate, and is restricted
transient.occupancy tax revenue, the Additional Tax Revenues shall not be subject to any provisions of San Diego Charter
section 77 .1 related to the City's Infrastructure Fund because they are Exempt Revenues as defined ln that section.
§35.0206 Annual Budgets
(a) Commianclng with the Flscal Year 2019-2020 annual budget, and continuing In sach successive fiscal year until all funds In
the Revenue Accounts have been exhausted, the Mayor shall propose, and the City Councll shall approve (with any modifications
that the City Council deems appropriate), an Itemized annual budget for the expenditure of funds in each of the Revenue Accounts
In a manner consistent with this Section and SecUon 35.0204.A budget need not authorize expenditure of all avaUable funds In
the upcoming ilscal year and may reserve any portion of a Revenue Account to promote· effective long-term fiscal planning of the
applicable Speclal Purpase Activmes orfor_other purposes consistent with the Speclal Purpose Activities.
(b) ln accordance with Its budgeting authority under Section 11.1 of ihe City Charter, the City Council's allocation concerning
the portion of each annual budget relatlng to the Convention Center may ln the Council's-discretion reflect the following
expenditure priorities, In descending order of importance:
·
(1) Convention Center Expansion and Modernization Costs, utlliztng Construction Manager At-Risk or any other contracting
method consistent with Section· 20175 of the California PublJc Contract Code as adopted by Chapter 821 of the Statutes of
2017 as It may hereafter be amended, Including, but not limited to, servicing any outstanding Bonds.
(ii) Convention Center Operating Costs;

(Iii) Convention Center Support Costs; and
(Iv) Convention Center Business Development Costs.
(c) ln accordance with i~ budgeting authority under Section 11.1 of tl1e City Charter, the City Council's allocation concerning the
portion of each annual budget relating to the Convention Center may In the Counc!l's dlscretlon reflect the following principles:
(I) the Convention Center Corporation shell expend Convention Center Annual Operating Revenues to fulfill the reasonable
operational and capital needs of the Convention Center and to maintain a reasonable financial reserve for Conventlon
Center Operations;
(ii) the Convention Center Corporation shall not Incur expenditures for Convention Center Operations that are excessive or
unnecessary In comparison to established Industry standards for large convention facilities; and shall maintain labor peace
among both its direct and contracted workforces, and continue to recognize the representatives, and their successors, of
the represented workforce at the faclllty, to reduce the risk of operational disruptions and revenue loss;- and
(111) the Convention Center Corporation shall not accumulate a total flnanclal reserve for Convention Center Operations that
Is unreasonably high in comparison to established Industry standards for large convention facHitles,
(d) UnlesS reasonably necessary to address emergency sltuatlons·or unforeseen circumstances associated with operation
of the permanent dewatering system at the Convention Center, the City Councll may in Its discretion use its budgeting
authority under SElction 11. 1 of the City Charter such that the portion of the annual budget relating to Convention Center
Support Activities Includes a funding allocation of no greater than $4.5 million for Flscal Year 2019-2020 and thereafter
should be not more than 5 percent more than th~ previous· year's appropriation.
(e) in accord with its budgeting authority under Section 11.1 of the City Charter, U1e City Councfl's allocatlons concerning the portion of
1he annual budget relating to Convention Center Business Development Programs may Include a funding allocatlon of no greater than
$4.6 million for Fiscal Year 2019-2020, and thereafter Increase no more than 5 percent from the previous year's appropriation.

 §35,0207 Five-Year Implementation Plans
(a) In Fiscal Year 2019-2020 and every five years thereafter until all funds In the Homelessness Reven1,1e'Acc9unt have
been exhausted, the Mayor shalt propose, and the City Council shall approve (wlih any modifications that the City Council
deems appropriate}, a five-year implementation plan de$criblng how the City will allocate ex!sting and projected funds In
the.Homelessness Revenue Account to specific Homelessness Programs and ldenflfy!ng the order of priority among those
Homelessness Programs, Respecting the Council's budget authority under Section 11.1 of the Charter, voters express their
Intention that homeless expenditures reflect a considered, long-term strategy to address homelessness: The Council may
Implement the Community Plan proposed by the Regional Taskforce on the Homeless or other slmllar long-term plans for
addressing homelessness developed before or after the Imposition of the Additlonal Tax, The Affordable Housing shall bs
prioritized tor Extremely Low Income and Very Low Income households as defined by the U.S. Department of Houslng- and
Urban Development. Commencing in Fiscal Year 2021-2022, the City Council shall hold a publlo hearing during the second
year of each five-year planning period to consider whether any amendments or updates to the plan are warranted.
(b) rn Fiscal Year 2023-2024 and every five years thereafter until all fuI1ds In the Street Repair Revenue Account have
been exhausted, the Msiyor shall propose, and the City Council shall approve (with any mocl/flcatlons that the City Council
deems appropriate}, a five-year lmplementation plan descrlblng how the City will alloci:lte existing and projected funds In the
Street Repair Revenue Account to specific Street Repairs and ldentlfying the order of pr1or!ty among those Street Repairs.
Commencing In Fiscal Year 2025-2026, the City Councfl shall hold a public hearing In the second year of each five-year
planning period to consider whether any amendments or updates to the plan are warranted.

§35.0208 Ann.ual R.aports for Additional Tax Re,venues
(a) Within 270 days after the close of {;lach fiscal year (commencing Jn F!sca! Year 2019-2020 with respect to the close of F!scal
Year 2018-2019), and continuing In each successive fiscal year ~ntll all funds in the Revenue Accou.nts have been exhausted,
the Chief Financial Officer shall retain an Independent auditor to subml.t to the City Council an annual report describing:

(I) the Addltlonal Tax Revenues collected by the City during the flscal year, item'rzed by each of the Additional Tax Components;
(II) thEl Additional Tax Revenues expended by the City for Special Purpose Activities during the fiscal year, Itemized by each
of the Additional Tax Components; and
·

(Iii) the status of all Special Purpose Activities required or authorized to be funded by Additional Tax Revenues, consistent
With the annual budget approved by the C!ty Councll for the fiscal year.
(b) Each report shall be Included as an Information Item on the Clty Counclfs agenda wlth!n 60 days after the Chief Financial
Officer submits lhe report to the City Council.
§35.0209 Perfortnance Audits
(a) The City Auditor shall conduct a petformanoo audit of each Revenue Account In accordance with San Diego Charter.
Section 39.2, as follows:
(I) CommenclnQ In F/scal Year 2022-2023, and continuing with respect to each successive three-year period until all
funds In the Hottielessness Revenue Account have Deen exhausted, the City Audltor shall conduct a performance audit of
Special PUrPoseActlvlties funded by the Homelessness Revenue Account.
·

(Ii) Commencing In Flscal Year 2023-2024,. and contlnu!ng with respect· to each successrve three-year period until all funds
·ln the Street Repair ReVehue Account have been exhausted, the City Auditor shall condu·ct a performance audit of Special
Purpose Activities funded by the Street Repair Revenue Account.

(Iii) Commencing In Fiscal Year 2024-2025, and continuing with respect to each successive three-year period unUI alt
funds In the Cot.wention Center Revenue Account have been exhausted, the C!ty Auditor shall conduct a perforrnance
audit of Speclal Purpose Activities funded by the Convention Center Revenue Account.
(b) Each performance audit shall determine whether that expenditures were made and Special Purpose Activities conducted
In accordance with this Division. The C!ty Auditor shall issue to the City Councll a written report of each performance audit.
Upon the City Council's request, the City Auditor shall present the results of any performance audit during a publlc meeting of
the City Council or a Council Commltte·e ..
§35.0210 Authorization of Debt and.Issuance of Bonds
(a) The City Is authorized to Issue and sell Bonds, froin time to time, payab!e from and secured by the Additional Tax
Revenues attrlbutable to the Homelessness Program Tax Component, to fund Homelessness Program Costs,
(b) The City Is authorized to Issue and sel! Bonds payable from and secured by the Additional 18x Revenues attributable to
the Street Repair Tax to fund Street RejJalr Costs.
(c) The City Is authorized to Issue and sell Bonds payable from and secured by the Addlt!onal Tax Revenues attributable to
the Convention Center Tax Component, to fund Convention Center Expansion and Modernization Costs.
(d) The maximum bohded lndebtedt:iess for Bonds Issued pursuant to this Section for Homelessness Program posts,
Including financing costs, shall not exceed the lesser of the Addillonal Tax Revenues attributable lo the Homelessness
Program Tax Component, projected'overthe life of those Bonds, and $750,000,000.
./ ·
(e) The maximum bonded indebtedness for Bonds Issued pursuant to this SE!ctloh for Street Repair Costs, including
financing costs, shall not exceed the lesser of the Additional Tax Revenues attributable to the Street Repair Tax component.
projected over the life ofthosa Bonds and $4Q0,000,000.

 (f) The maxlm\Jm bonded indebtedness for Bonds Issued pursuant to this Section for Convention Center Expansion and
Modernization Cost1;3, Including financing costs, shall not exceed the lesser of (I) t11e Additional Tax RevenlJeS attrlbutabls to
the Convention Center Tax Component, projected over tl1e Hfe of those Bonds -and (11) $850,000,000 provided, however, that
the City Counc!I may 11ft that latter, $850,000,000, cap by a resolution adopted after a noticed public hearing.
(g) All of the abncts authorized to be Issued pursuant to this Section shall be limited obl!gatlons of the City payable solely
from theAddlflonal Tax Revenues altributable to the pertinentAddltlonal Tax Component. Notwithstanding the foregoing, the
City m~y, but !s not obligated to, supplement AdditfOnal Tax Revenues with other legally avel!lable funds to make payrnents
on the Bonds. The Issuance of Bonds purstlant to this Section shall not dlrectly, Indirectly, or cohtlngently obligate the City to
levy or p!edge any form of taxation other than the Additional Tax.
(h) Upon the lssuahce and sale of ~ny such Bonds, the Chief Financial Officer shall establish an account into which the
proceeds of those Bonds wlll be deposited, Separate accounls shall be established for Bonds issued for each specific
purpose Identified In this Section.
(l) As lollg as any proceeds of such Bonds remain unexpended, the Chief Flnanclal Officer shall rePort In writing to the City
Council no later than 270 days after the close of each year, cornmenclng upon the Issuance of any Bonds: (1) the proceeds
of Bonds received and expended In that year, and (2) the status of any Special Purpose Activities funded· or to be funded
from proceeds of those Bonds, Such report may relate to calendar year, fiscal year, or other appropriate annual period· as the
Chief Financial Officer may determine, and may be lhcorporated Into, or presented with, the City's annual budget, the City's
audited annual flnancfal statements, or another report to the City Councll.

0) Bonds authorized by this Sectlon shall be Issued and shall mature at such Orne or times not to exceed forty (40)years, and shall
bear Interest at such fixed or variable rate or rates approved by the City Council, but not to exceed U,e maximum rate permitted by
law. Bonds authorized by this Section shall be' sold at either public or private sale and for such prices as the City shall determine.

(k) The voters Intend their approval of this D!vlslon to approve the Bonds authorized by this Section and understand that
San Dle~o Charter Section 90.1 appUes to the City Council and other City officials but not to the voters under the analysis of
California Cannabis Coalltlon v. City of Upland (2017) 3 Cal.5th 924 and at.her applloable law. Should a court of competent
Jurisdiction determine that Bonds authorized by this Seciion are-governed by Charter Section 90.1, the voters express their
desire that the City Coyncll exercise Its authority under that Section 90, 1 to approve those Bonds,
(I) The authority to issue Bonds in this Section ls not exclusive and Is not intended to prevent the City from entering into any
Financing Agreement or using any other legal mechanism to finance any Special Purpose Activities.
(m) The Cfty IS authorized to issue Bonds to replace or refund Bonds Issued pursuant to this Section.
§35,0211 Definitions
(a) The terms defined In Section 35.0102 shall apply to this Act and are ltallclzed In this Dlvlslon for emphasis.
(b) In addition, the following definitions are applicable to thfs Act:
"Add\tlonal Tax'' means the special tax levfed by this DMslon consisting of three components; the Homelessness Program
Tax Cornponent, the Streat Repair Tax Cornponent, and the Convention Center Tax Component.
·
"Addltlom,d Tax Colllponents" means, collectlvely, the Cc,mventlon Center Tax Component, the Street Repair Tax Component,
and the Homelessness Program Tax Cornponent.
"Additional Tax Revenues" means revenues derived from the Additional Tax collected by the City Treasurer.
"Affordability Covenant'' means a restrictive covenant that Imposes Income eltglbllity requirements and rental amount restrictions on a
residential dwe!llng un!t and remains In effect for the City's benefit for the longest feasible firne, which shall not be less than 55 years.
"Affordable Housing" means any dwelling unit subject to an Affordablllty Covenant and available for rental occupancy,
whether en a transltlonal or long~term basts, by a Targeted Rentf.ll Household at an annual cost that, together with estimated
annual utility expenses, does not exceed thirty percent (30%) of that household's annual Income, subject to any deductions
or exclusions from annual income allowable by the lJ,S. Department of Housing and Urban Development.
"Bonds" means debt Instruments, taxable or tax-exempt revenue bonds (lncludlng, without limltat!on 1 transient occupancy
tax revenue bonds), notes, debentures, or other s!mllarflnancial !nstruments payable ·from Additional Tax Revenues and
authortzed by this Division.
· "Convention Center" means the San Diego Convention Center generaliy located !n the area bounded on the South by San
Diego-Bay and bounded on the North by the Santa Fe Railway easement at the time of passage of this c1tiz0n initiative
measure as well as land Included ln any future contiguous extensions of the Convention Center,
"Conv.entlon Center Annual Operating Revenues" means annual revenues collected by the Convention Center Corporation
with respect to the management, marketing, and operation of the Convention Center, as disclosed in an annual f!nanctal
report or similar report prepared by or on behalf of the Conv~ntlon Center Corporation.
•"Convention Center Business Development Costs" means all costs alid expenses associated with the establlshment, lmplementatron,
operation, and completion of ConvenUon Center Business Development Programs, Including, but not limited to, the payment
of all staff, consultant, and legal expenses reasonably necessary to effectuate all or any part of Convention Center Business
Development Programs. Convent!on Center Business Development Costs shall exclude all Convention Center Support Costs.

 "Convention Center Business Development Programs~ means, coflectlve!y, rent credits, discounts on servloe charges (e.g.,
food and beverage charges or telecommunlcat!ons charges), and slmllar customer lncentlves-to secure conv'entlon and trade
show commitments at the Convention Center, and direct marketing at meetln~ planner conventions or trade shows aimed at
promot_lng the Convention Center,

"Convention Center Corporation" means the San Diego Convention Center Corporation, or Its assignee or successor-InInterest, to the extent !~at such entity has primary, day-to-day responslblllty for Convention Center Operations.
"Convention Center Expansion and Modernization Cqsts" means all costs and expenses associated with the financing,
acq!,Jlsltlon of land or right of way to enable construction, permrtting, design, development, and construction of the
Convention Center Improvements, Including, but not limited to, payment of land or site acquisition costs reasonably
necessary to effectuate the Convention Center lrnprovements, payment of debt service obllgatlons on one or more serles of
Bonds Issued to finance or refinance Convention Center Improvements (lncludlng the establishment and, where necessary,
replenishment of any reserves required under the documents governing such Bonds), anc;I the payment of all staff,
consultant, and legal expenses reasonably necessary to effectuate the Convention Center Improvements.
"Convention Center Improvements" means the contiguous (meaning physically connected to the existing Convention·
Center) expansion of the Convent!on Center, all associated lniraslructure or lmprov~ments, as wen as any additional capital
Improvements to modernize the Convention Center, consistently with the applicable land use planning documents, as amended
from time to time, that govern the Convention Center and improvements to the Convention Center, which may lndude, but are
not necessarily l!mlted to, the San Diego Un!fied Port District's Port Master Plan and any appllcable coastal development permit.
"Convention Center Long~Term Expansion Bonds" means an !nltlal series of long-term Bonds lssued to fund Convention
Center Improvements,
·
"Convention Center Operating Costs" means all costs and expenses assoclated with Convention Center Operations,
Including the funding of appropriate capital reserve accounts for the Convention Center, !he funding of reserve accounts
to pay the anticipated costs of Issuance of the Convention Center Long-Term Expansion Bonds, and the payment of
debt service or related lease payments associated with existing debt for capital improvements at the Convention Center.
Convention Center Operating Costs shall exclude all Conventlon 9enter Support Costs,
"Convention Cent"er Operations" means the malntenance 1 operation, Elnd repair of the Convention Center, as such facllfty
may be expanded and modernized through the Convention Center Improvements, so as to maintain the Convention as a
first~c!ess, vts!tor-servlng faclllty In a safe, usable condition and so the Convention Center can achieve and maintain a Facility
Condition Index that meets or exceeds the standard of a good physical condition and to provide a vlsltor~serving experience
that remains comPetltlve In the convention market among cities comparable ln slze to San·o1ego. !f the construction Industry
ceases to publish or commonly L1se the Facllity Condtuon Index to assess the physlcal condition of a faclllty or building, the
Mayor may rely upon any alternative publication or metric the Mayor deems to be an objectively reasonable. Indicator the
condition of the Convention Center. Convention Center Operations shall exclude an Convention Center Support Activities.
"Convention Center Revenue Account" means a special revenue account that Is hereby created in the City treasury, to
account for the City's proceeds of the Convention Center Tax Component.
"Convention Center Support Activities" means, collectively, the Convention Center Corporat'ion's operatlon of a permanent
dewatering system to allev!ate hydrostatic pressure on the foundation of the Convention Center and tl1e Convention Center
Corporation's efforts to market and promote the Convention Center as a visitor destination.
"Convention Center Support Costs'.' means annual support payments by the City to the Convention Center Corporation for
· Convent/on Center Support Activities.
"Convention Center Tax Component" means the portion of th~ Additlonal Tax intended to fund Convention Center Expansion
and Modernization Costs, Convention Center Operating Costs, Convention Center Support Costs, and Convention Center
Business Development Costs, as described ln Section 35,0204.
"Facillty Condition Index" ls described In the construction industry publlcatlon titled "Asset Ufecycle Model for Total Cost of
Ownership Management" and used to measure the physical condition of a facllity or bu!Jding, and Is expressed as a ratio of
the cost of remedying deficiencies, as well as the cost of capltal renewal requirements, to current replacement value. The
benchmark Is represented on a scale of zero to 100 percent, with higher percentages representing a poorer condition and
lower percentages representing a better condition.
"Flnanclng Agreement" means any lease agreement, Installment sale agreemen.t, Irrevocable assignment, or other slmllar
financing agreement or contract entered into by the City and payable from Additional Tax Revenues or other funds avallable
to the City.
"Homeless Population" means: (1) vulnerable lndivlduals and families who are present In the City and who clo not have
adequate permanent shelter or are at risk of losing access to adequate pennanent shelter, such as: homeless veterans,
homeless women and cl1lldren, victims of domestic violence, senior citizens, lndlvtduals with disabilities, Individuals with
severe mental illness, or lndlvfduals with a chronic substance abuse disorder; or (II) indivlduals and families who are present
in the City who meet the definition of "homelessness''. in the Homeless Emergency Assistance and Rapid Transition to
Housing Act, as It may be amended from time to time.
"Homelessness Program Costs" means all costs and expenses associated with the financing, establlshment, Implementation,
operation, and completion of Homelessness Programs, includln9, but not llmltl;ld to, payment of debt service oQ1igatlons on
one or more series of Bonds Issued to finance or refinance any Homelessness Programs (tncludlng the establi'shment and,
where necessary, replenlshment of any reserves required under the documents governing such Bonds), and the payment of
all staff, consultant, and legal expenses reasonably necessary to effectuate any Homelessness Programs.

 "Homelessness Program Tax Component",means the.portion of theAddltlonal Tax to be used for Homelessness Program
Costs, as described In SeGtlon 35.0204.
"Homelessness Programs" means any of the followlng activities performed In the City:
the financing QhroL1gh a·grant, loan, or other financial assistance), permitting, des!gn, development, and construction of
Affordable Hollslng (including payment of land aoqulsltlon costs and tenant relocation costs) and other capital projects and
payment of !'elated land acqulsltlo'n costs to assist the I-Jomeless Population or to prevent or reduce homelessness;
rapid rehousing programs; transltlonal housing programs or facilltles; permanent supportive housing programs orfacllitles;
shared housing programs; homelessness prevention and diversion programs; programs, services, or facllltles Intended to
Increasing the use or receipt of avallable public benefits and subsidies by the Homeless Population; educational programs,
job training, and related sewlces or facllltles Intended to Increase or subsidize the employment of the Homeless Population;
the· creation and operation of s.upport services ·assessment centers, includlng the provision of temporary beds, bridge
housing opportunities, and triage and assessment services Intended to assist the Homeless Population; capacity building
assistance for the Homeless Populatron; temporary shelter facllltles, shower facilities, and other facllities used to provide
supportive services or goods to, or otheiwlse benefit, the Homeless Populatlon;mental health treatment, substance abuse
treatment, counseling services, and related services or facilities Intended to assist the Homeless Population; any other
public benefits, goods, and services, lnclud!ng landlord Incentive payments, rental vouchers, other subsidies used to pay
rent or security deposits, .community outreach services, and case navigation services, Including street outreach, Intended
to assist the Homeless Population; the creation and operatlon of a regional hon:ieless crisis response system that prov.Ides
for centralized delivery cf services Intended to assist the H9mefess Population; the purchase of a landowner's agreement
to Impose an Affordab!lity Covenant on five or more residential dwelllng units located on one or more contiguous taxable
parcels, effectively converting those dwelling units from market-rate hous!ng lnto Affordable Housing; and, any other capital
Improvements, programs, services, or activities that, In the Mayor's re6sonable discre~on, wlll assist In reducing, allevlat!ng,
or preventing problSms or challenges 'frequently encountered by the Homeless Population that contribute to homeless·ness.
"Homelessness Revenue Account'' means-a special revenue account hereby created in the City treasury to account for the
City's proceeds of the Homelessness Program Tax Component.
"Imposition □_ate" Is January 1, 2019. This is the day the Additional Tax goes Into effect.
"Overall Condltlon Index" means the benchmark developed by the U.S.Army Corps of Engineers and used by many
· Jurisdictions nationwide to measure the general condition of publlcly-malntalned sire.els. This benchmark Is represented by
numerical values ranging from Oto 100, with lower values representing poorer cond!tions and higher values representing
better condlt!ons. If the Overall Condition Index ceases to be used commonly by munlclpalltles to assess t[1e condition
of public streets, the Mayor may rely upon any alternative publ!caUon or metric the Mayor deems to be an objectively
reasonable Indicator of the physical condltlon of City streets.
"Revenue Accounts" means, co!lectlvely, the Convention Center Revenue Account, the Street Repair Revenue Account, and
the Homelessness Revenue Accoimt
"Special Purpose Activities" 111eans, collect!vely, Convention Center Improvements, Convention Center Operations, c·onventlon
Center Support Activities, Convention Center Business Development Programs, Street Repairs, and Homelessness Programs.
"Street Repair Costs" means all costs and expenses associated with the financing, permitting, destgn, development, and
construction of Street Repairs, Including, but not l!mlted to, the payment of debt service obllgafions on one Or more series of
Bonds Issued to finance of refinance any Street Repairs (Including the est~blishment and, where necessary, replenishment
of any reserves required under the documents govemln.g such Bonds), and the payment of all staff, consultant, and legal
expem'ieS reasonably necessary to effectuate any Stree;,t Repairs.
"Street Repair Revenue Account" means a special revenue account hereby created in the City treasury to account for the
City's proceeds of the Street Repair Tax Component.
"Strast Repair Tax Component'' means the portion of the Additional Tax to be used for
Street Repair Costs, as described In Section 35,9204.
"Street Repairs" means any of the following activities performed In the City, to the extent they will enable the City to achieve
and maintain an Overall Condition Index of City streets that meets or _exceeds the standard of a good physlcat condition:
the repair and maintenance of streets, alleys, and bridges; street sweeping; the resurtaclng and reconstruction of streets,
Including the use of slurry s6al, paving, ovetlay, and ln!ay of asphalt, and the replacement of concrete; the striping and
re-striping of streets; the widening of streets; the lnstal!atlon, repair, and maintenance of sidewalks, pedestrian paths,
blkeways, curbs, guardrails, streetlights, traffic signals, street signs, street furniture, traffic calmlng measures, transit stops,
and traffic signs; the Installation, relocation, repair, and m1;:1lntenance of utilities or stormwater Infrastructure related to streets
and public rlghtsHofHway; the lnstallation 1 repair, and maintenance of accessiblllty upgrades or Improvements to streets and
public rlghts-of-w'ay In compliance with the Americans with Dtsabilltles Act of 1990, as hereafter amended, and Title 24 of the
California Code of Regulations, as hereafter amended; the installation of general street Infrastructure and public rlghtHofHway
improvements; the·malntenance, repair or Improvements to landscaping and trees and p8rks, parkways and open space
related to clrculatlon; transportation dernand management programs to manage and reduce traffic congestion by providing
mobl_llty options ahd encouraging the use of transportation alternatives; and, any similar projeots, Improvements, or actlvltles
that, in the Mayor's reasonable discretion, will enable the City to achieve and·maintaln an Overall Condition Index on City
streets that meets or exceeds the standar? of a good physical condition at all times.
"Targeted Rental Household" means any household as to which the combined annual gross Income for all members does
not exceed eighty percent (80%) of the area median Income, adjusted for house.hold size, published annually by the U,S·.
Department of.Housing and Urban Development (HUD) for the San Diego Standard Metropolitan Statistical Area. lf HUD.
ceases to publish the ai"ea median Income flg_ures, the Mayor may rely upon any altematlve public'ation or data source the
Mayor deems to be an objectively reasonable Indicator of the local area median Income.

 "Tax Allocatlon Trlggerrng Event" means a cJrcumstance, commencing no eariler than twenty years after the Addltlonal Tax ls
first trnposed, In which the Mayor and a majority of the board of directors of the Convention Center Corporation agree that,
after acc9unting for payment of anticipated Convention Center Expansion and Modernization Costs during an upcoming
fiscal year, the fixed percentage of the Add)tl0nal Tax Revenues ~hat otherwise would be allocated to the Convention Center
Tax'COmponent under Section 35.0203(b) ls expected to generate more funds than reasonably necessary to pay Convention
Center Operating Costs, Convention Center Support Costs, and Convention Center Business Development Costs.
· 'Tax Zone 1" means two noncontiguous portion~ of the City, one of which Is north of California. State Route 56, and the other
Is south of Callfornla State Route 64, as depicted on the Tax Zone Map.
"Tax Zone 2" means a contiguous portion of the City tha\ does.not comprise Tax Zone 1 or Tax Zona 3, as depicted on the
Tax Zone Map.
"Tax Zone 3" means a contiguous portion of lhe City located generally In the downtown area, as depicted on the Tax
Zone Map, and more spectfloally described as the area east of West Laurel Street and south of Laurel Street through !ts
Intersection with Sixth Avenue, West of Sixth Avenue through Its Intersection with Interstate 5 Freeway, south of Interstate
5 Freeway through its intersection with B Street, south of B Street through \ts Intersection wfth 22nd Street, west Of 22nd
Street through Its Intersection with Commercial Street, south of Commercial Street through Its Intersection wltl1 Ocean View
Boulevard, west of Ocean \/lew Boulevard t11rough Its Intersection with Dewey Street, west of Dewey Street, and west of
Californla State Route 75 (San Diego/Coronado Brldge),
"Tax Zone Map" refers to "Exhibit A'' attached to this ordinance and.incorporated herein by this referencEI which depicts Tax
Zones 1, 2 and 3,
"Tax Zones" means, coUectlvely, lax Zone .1, Tax Zone 2, and Tax Zone 3.
§35.0212 AdmlnlstratiOn of the tax.

(a) Consistency with Transient Occupancy Tax Rules.
The People of the City of San Diego Intend this Division to be enforced consistently with Division 1 of Article 5 of Chapter 3 of this
Code and any rule or regulation promulgated under that Division exc~pt as expressly provided to the contrary In this DiVlsion,
Section 4- Amendment.
(a) Except as otherwise expressly provided herein, this Measure

may only be changed by thEi voters at a Citywide election.

(b) The City Council is authotized to amend this Division in any manner that does not alter the tax rate or constitute a tax
Increase for which voter approval is required by Artlcl13 XIII C of the Callfomla Constitution, The People of the City affirm that
the following actions shall not constitute an increase of the rate of a tax-.
1. An action that inte.rprets or c!ar!ties the methodology of the Additional Tax, or any deflnitlon applicable to the Additional Tax,
so long as Interpretation or clarttlcatlon (even If contrary to some prior Interpretation or clarlflcatlon) Is not Inconsistent with
the language of this Dfvtslon; or
2. The col!ectfon of theAddiUona! Tax, even If the Clty had, for some period of time, failed to collect the Additional Tax or to
collect it in the amount Imposed or authorized by th!s Division.
Section 5. Conflibtlng Measures
If this Measure and anotller tneasure that imposes a transient occupancy tax, or redirects the uses of existing transient
occupancy taxes, appear on the same ballot; the provisions of the other measure shall be deemed to be 1n contllctwith this
Measure. If this Measure receives a greater number of-affirmative votes than the measure deemed to be In conflict wllh It,
the provisions of this Measure shall prevail In their entirety an_d the other measure shall be null and void !n Its entirety.

Section 6, Severablllty
If any provision of thls Measure, or its appllcation to any person or circumstance, Is determined by a court of competent
jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provislon of
this Measure or the appllcatfon of this Measure to any other person or circumstance and, to that end, the provisions of this
Measure are severable,
Section 7. Certification; Publication. Upon approval by the voters, the City Clerk shall certify_.to the passage and adoption
of this Ordinance and shall cause ·1t to be publtshed according to law.

*******"*
It Is hereby certified that this Ordinance was duly adopted by the voters at the [date] Election and took effect 10 days
following adoption of a resolution declaring the results of the election at a regular meeting of the City council held on [date]
by the following vote:
·
AYES',
NOES:
ABSEN1'
ATTES1' ELIZABETH MALAND
CITY CLERK
CITY OF SAN DIEGO
BY:

 EXHIBIT A

The CityoJ

SAN DIEGO

Figure 1
Special Lodg1ng Tax Zones

a

2

'
4

a Milea

TaxZone2
'. (2%)

'

'

Tax Zone 3
(3°/o)

111/S MAPIVATA 15 P/10\1/DfD Wm/OUT WAlll!ANTY OF ANY KIND,
f/Tllfll fXPRESSW 011 IMPL/1;/J, /NCWDING /JUT Nor LIM/1'/iD TQ
THE IMPLIED VIMAANTIES OF MEllCHANTAB/1.ITT ANO FITNESS
fQ« A P/\R:T/CVIAII PURPOSE.
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10

 A STATEMENT OF THE REASONS FOR THE PROPOSED ACTION AS CONTEMrLATED IN SAID PETITION IS AS
FOLLOWS:
San Diego has long been a ''world class destination city" for tourists and visitors. Tourism Is one of the largest contributors to our
economy. Revenues from visitor taxes, paid by overnight lodging guests, are the lhlrd largest source of ~enue to the City.

Today, our tourism eqonomy and local community are facing unprecedented challenges. Tourism and lodging leaders
Identified three factors diminishing San Dlego's status as a desirable world class destination. They are; a spiral!ng
homelessness crisis, city streets full of potholes and Infrastructure In urge.nt need of repair, and outdated/Inadequate
convention and facilities, Together, theae factors·restrlct the he-a/thy expansion of the tourism economy and_City revenues.
Yet, wh!le "AmericEl's Finest City" today faces multlple challenges to our status as a world-class d0stinalion city1 we have
llmlted resources available to address these problems. -These challenges threaten our cays reputation, quality of life, the
heslth of our local economy, and our attractiveness to m!lllons of visitors.
·
· This measure wm provide srgnlticant new revenues to·addressthese diallenges and secure San Diego's status as a worldclass destlnatjon city. 'fhls measure wll! provide addttlonal finding to: (1) reduce homelessness, (2) Improve city streets, and
(3) significantly expand visitor/tourist facllltles-wlth revenues being raised from hotel visitors only,
San Diego's tourism and lodglng leaders have thus Joined with homeless advocates, community, and business leaders, to
sponsor "For A Better San Diego" to address problems which are diminishing San Diego's stature as an attractive destination.
'fhls measure will Increase the overnight lodging tax paid by visitors to San Diego hotels which w111 generate hundreds of
millions of dollars needed to address the leading problems affecting our status as a world class destination city.
Vote YES on this initiative to help San Diego secui'e Its place as a world olaSs destination city!

INITIATIVE PROPONENTS' NAMES, SIGNATURES, ADDRESSES

SIGNATURE,

(

~~ ~

DATE,

I - f- /D

Father Joe Carroll
President Emeritus
Father Joe's Village
33 161h Street

San Diego, CA 92101
Sl~NATURE:

~.

Jaymie Bradford

/l,L(_r

Executive VP & C 0

San Diego Regional Chamber of Com
402 West Broadway, Suite 1000
San Diego, CA 92101

SIGNATORE:

/

------+---1----

DATE,

I

DATE,

[-°/,-/3'

DATE,

I -9-IP

Ilob McElroy

'j •'12

President & CEO

Alpha Project
3737 Fifth Avenue, Suite 203
San Diego, CA 92103
SIGNATURE,

..#1,(lJmtf/ltJ. 1/deJJ I€ t,

Namara Mercer

Executive Director
Hotel/lvfotel Association of San Diego
1915 Quivira Way

;;:z~-2 lr-'tBusiness Manager/Financial S retary
4545 V_ley11idge Avenue,'Suite 100,
San Diego, CA 92123

·'

IL

 Passed by the Council of The City of San Diego on _ _
NO_V_0....;4::...2_0_19__~ by the following vote:

Council members

Yeas

Nays

[1

Jennifer Campbell

□

0

Chris Ward

0
0

Chris Cate

□
□
0
lZI

Scott Sherman

[J

Vivian Moreno

□

Barbara Bry

Monica Montgomery
Mark Kersey

Georgette Gomez
Date of final passage

AUTHENTICATED BY:

,0

Not Present

□
□
□
□
□
□
□
□
□

□

□
□
□
0
□

Recused

□
□
□
□
□
□
□
□
□

NOV O4 2019
KEVIN L. FAULCONER
Mayor of The City of San Diego, California.
ZABETH S. MALAND
he City of San Diego, California.

(Seal)

~

.

I

I HEREBY CERTIFY that the foregoing ordinance was passed on the day of its introduction,
to wit, on
NOV O4 2019
, said ordinance being of the kind and character
authorized for passage on its introduction by Section 275 of the Charter.
I FU.RTHER CERTIFY that said ordinance was read in full prior to passage or that such
reading was dispensed with by a vote of five members of the Council, and that a written copy of
the ordinance was made available to each member of the Council and the public prior to the day
of its passage.

(Seal)

The City of San Diego, California.

Office of the City Clerk, San Diego, California

Ordinance Number 0-